Finding Money to Pay Down Debt
What can you do when you try to set up a debt management plan only to discover that your income is insufficient to cover your expenses and debt payments? It is an oversimplification to advise somebody to either spend less or earn more. Here are some concrete suggestions to help you reduce your expenses and increase your earnings.
How to Reduce your Expenses by Hundreds of Dollars per Month.
Believe it or not, there are innumerable ways you can reduce your expenses. Here are some simple ideas that could help you save hundreds of dollars each month.
AUTO INSURANCE. If you haven’t shopped for auto insurance in a while, now might be a good time to see if you can get a better rate. Switching insurers or adjusting your coverage is a great way to save money every month.
GROCERIES. You might not want to hear this, but tracking sales and cutting coupons every week can save a family of four 40-50% on its monthly grocery bill. That could translate into a savings of $500 per month. There are websites that can automate this process for you for a nominal subscription fee. This is probably the best way to cut money from your budget without sacrificing anything.
MORTGAGE PAYMENT. Right now, mortgage companies are bending over backwards to help people avoid foreclosure. If your payment is more than you can afford, call your lender and ask for a loan modification. Ask to have your interest rate lowered and your payment term extended. This can save you hundreds of dollars per month.
DEBT CONSOLIDATION. It is worthwhile to explore your options for debt consolidation. You might be able to lower your interest rate, lower payments on revolving debt, and simplify your debt repayment plan.
HOME EXPENSES. (1) Switching from a premium cable service to an inexpensive, basic satellite service could save you $50 per month. (2) Switching your home phone to a voice over IP option (Vonage has a basic package starting at $17.99 per month) could save you another $25 per month. (3) You can save money on your internet service, but only if you switch to something slower. If you only use the internet to check your email, giving up speed for money could save you as much as $50 per month. (4) Check with your local utilities companies for ideas on saving energy and water. Simply adjusting the temperature on your water heater, washing your clothes in cold water and changing your light bulbs to CFLs can save you a bundle every month.
ENTERTAINMENT. I am a big believer in finding ways to stretch your entertainment
dollar. Movie night out with your spouse will probably cost you about $40 if you don’t eat dinner first. Popcorn and a Netflix movie at home will cost you less than $5. Dinner for four in a modestly priced chain restaurant will cost you about $60 without any alcoholic beverages. A nice steak dinner at home might cost you $30. Kids love trips to the beach and picnics in the park, and these activities are almost free.
With a little bit of creativity and perseverance, you should be able to save hundreds of dollars off of your monthly expenses. That will certainly help you pay your bills.
