Save Money on Everyday Finance Expenses
Learn how to get Cash as Cheaply as Possible
Aug 17, 2009 Armand Famiglietti
Many people use the availability of credit to purchase homes, cars, clothing, food and other necessities. In short, people absorb the cost of using this money for everyday purchases so that they can have their desired item now instead of in the future. However, the only fees consumers used to pay were interest rates. Now there are all sorts of fees associated with the money that is borrowed. Here are some tips on how to save money on the money that many people borrow.
Get Lower Rates on Credit Cards
Call each and every credit card customer service and ask that they lower the interest rate. Mention to them that a balance transfer to another credit card is imminent unless they lower that rate. While the cards will most likely not slash the rates in half, even a few percentage points on a sizable debt will make a difference. For instance, losing three percentage points on $30,000 worth of debt, saves approximately $900 a year in interest.
Ask About Removing Credit Card Fees
Credit card companies are now infamous for charging fees to customers. If you notice an annual fee, ask if it can be waived. If a payment is missed appeal to the genteel side of the companies and ask for a one time waiver of the fee. Many credit card companies will remove one late fee charge every year or so. But the catch is, one usually has to ask.
Go Over Insurance Premiums
Insurance is something that provides peace of mind. If an unfortunate event should occur, the insurance company will help monetarily to straighten out the situation. However, many people have very low deductibles. A low deductible raises the point where an insurance company begins coverage and in turn raises the premium. Work to establish an account that holds a couple thousand dollars for emergencies. Then raise the deductibles on the insurance premiums. This will lower the rate for the costs of that insurance. After a few years the money saved will be greater than the money in the emergency account. An example would be raising car insurance deductibles from $250 to $1000.
Call Service Providers and ask about Specials
Whether it’s a phone line, cell phone contract, high-speed internet contract, cable or other monthly payment that is billed, call the service providers to see if they are running specials. Often, long time clients will once again qualify for new customer pricing. Especially if a client mentions they might go with a rival company. Saving just $30 per month on all of these various contracts adds up to $3,600 over the cost of a decade.
Refinance the Home Mortgage
While every situation is different, refinancing to a lower interest rate can save quite a bit of money per month. Dropping a point on a $300,000 mortgage can save up to $250 per month. Things that need to be considered are the amount of equity in the property, the length of time a family wishes to reside in that property, potential tax implications and the closing costs. Don’t be afraid to perform the math equation. After running the numbers, refinancing will either save money or it won’t. Either way at least the option will be understood. Speak to a financial professional for further information.
Shop Around for the Best Auto Loan
Zero percent interest on an auto loan is obviously the most favorable. But if a loan needs to be obtained from another source, don’t rule out using money from a home equity line, bank, or credit union. The best deal will be in the numbers and will be easy to spot. The lowest interest rate over comparable amounts of time, wins.
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Employ these tips and save money!
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