• Empower Yourself
  • Anyone Can Cook
    • Appetizers
    • Breakfast Ideas
    • Desserts
    • Lunch Ideas
    • Main Dishes
    • Side Dishes
    • Snacks
  • Financial Empowerment
  • Life With Vitiligo
  • About
  • Contact
↑

Dancing Through the Rain

Keeping Your Glass Half Full

  • Empower Yourself
  • Anyone Can Cook
    • Appetizers
    • Breakfast Ideas
    • Desserts
    • Lunch Ideas
    • Main Dishes
    • Side Dishes
    • Snacks
  • Financial Empowerment
  • Life With Vitiligo
  • About
  • Contact

Home » Financial Empowerment » Money Savings Tips For Paying Off Debt

Money Savings Tips For Paying Off Debt

Written by Alli Doubek, 2 Comments
August 26, 2020

This post may contain affiliate links. Read my disclosure policy here.
558 shares
  • 12

A frustrated man and woman budgeting their bills with a calculator on a table

Best Ways To Pay Off Debt

We all know that the quicker we are paying off debt, the more money we will have at the end of each month. Unfortunately, getting out of debt can be tough.

The good news is that there are things you can do. You are in charge of your actions, so let’s get to it. 

1. Consolidate – The easiest thing that you can do to save money while paying off debt is to consolidate your debt. The key is to find a low or no-interest way to consolidate.

For example, you might have a credit card that has 0% interest on cash advances for 18 months. If you have credit cards (like most of us do) with 18% interest or higher, you have the option to immediately save a ton of money if you take a cash advance on the 0% interest card to pay off the higher interest cards.

This would allow you to have a single bill to pay each month instead of a bunch of smaller ones. It’ll make organization that much easier. Plus, looking at a single bill instead of multiple will be better for your mental health. 

2. Call your creditors – Another great option for saving money is to call your creditors and ask if they can lower your interest rates. If you’ve been paying your bills on time and have been a customer for years, you may be able to lower your rate by a few percentage points.

You may need to be persistent and ask to speak with a manager to get the best drop possible. It can be intimidating to make this call, but be polite, explain yourself and if the person you are speaking to can’t help you, ask for their supervisor. Keep asking for supervisors until you are able to get a discount. The squeaky wheel gets the grease! As money saving tips go, this is both a long-term and short-term solution – and as confidence boosters go, this is a great one when you accomplish it!

3. Transfer debt – If you are not crazy about consolidating all of your debt into one loan or credit card, think about transferring the balances of your high-interest cards to a low interest-card.

You may be able to find a credit card offer that allows for 0% interest on balance transfers. This can save you thousands in the long-run and again, our stress levels go down when we are holding less bills (even if the balance is the same).

4. Snowball – There are two methods for paying off debt when you continue to have several bills to be paid off. This first method (the snowball method) suggests that you pay off small balances first so that you have more money to put towards your other debt. This saves money because you’ll pay your debt off faster when you keep paying off a new balance every few months. It makes you feel as if you’ve accomplished paying off debt little by little and can give you better peace of mind.

5. Pay off high-interest debt – The second suggested method for paying off debt is to pay off high-interest debt first. This saves you money by cutting the amount of interest you will end up paying.

The largest downside to this option is that you will continue to have several payments each month rather than paying off balances more quickly. That said, the interest can rack up very swifly, so make a choice based on your specific bills and what you owe, which is why consolidating everything to one card may be a better long-term option. 

If you have a lot of debt, it is worth doing whatever you can to save money. Giving in and giving up is never the answer. Life will go on and you don’t want this to be a constant hindrance.

Hopefully these money saving tips will give you some direction and have you paying off debt sooner than you thought you would be able to. Be sure to also read about how to avoid household budget mistakes to keep yourself moving forward on the right financial road.

A blue piggy bank wearing sunglasses on a brown table with a woman putting a coin inside

Related Posts:

  • How To Recover From A Financial Mistake
    How To Recover From A Financial Mistake
  • How To Stop Arguing In Relationships About Money
    How To Stop Arguing In Relationships About Money
  • Household Budget Mistakes To Avoid
    Household Budget Mistakes To Avoid
  • 6 Rules Your College Student Should Know About Credit Cards
    6 Rules Your College Student Should Know About Credit Cards
  • 5 Common Budgeting Mistakes Young Adults Should Avoid
    5 Common Budgeting Mistakes Young Adults Should Avoid
  • What Unnecessary Expenses Are Eating Away At Your Finances
    What Unnecessary Expenses Are Eating Away At Your Finances
  • 5 Ways To Save Money At The Movies
    5 Ways To Save Money At The Movies
  • 6 Ways To Save Money As A Single Parent
    6 Ways To Save Money As A Single Parent

Filed Under: Appearance, Financial Empowerment

subscribe today

Subscribe to the newsletter for all the latest tips, recipes, stories, and more straight to your inbox!

Comments

  1. Leviticus Bennett says

    May 3, 2017 at 10:25 am

    I agree with you that interest should be avoided. Like you mentioned, you can transfer debt to cards with lower interest or focus on paying off high-interest debt first. It’s also a good idea to watch your credit score so that you can qualify for lower interest rates.

    Reply
  2. Ken Hwan says

    June 25, 2018 at 9:55 am

    I found it very surprising that it is possible to convince your creditor to lower your interest rates, especially if you have been paying off your bills consistently and without any issues. My wife and I recently had a baby, and we are trying to keep ourselves out of debt with all of the new child expenses. I will be sure to show my wife this article and let her know that we should try to contact our creditors as soon as possible!

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

search

categories

Privacy Policy & Terms of Use

archives

Copyright ©2022, Dancing Through the Rain. All Rights Reserved.
Design by Pixel Me Designs
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.Accept Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT