Alleviation of common household debts

There is no doubt that the cost of living is going through the roof and earnings can be described as stagnant at best. So, in these circumstances, logic demands that we reduce our expenses as much as we possibly can to alleviate our household bills. Here are a few tried and tested ways to do just that.

Credit card bills

If you have one or more credit cards now is the time to sit back and calculate the interest you are paying each month for all the cards combined. A credit card charges approximately 2.5 percent per month on the billed amount. If you are a habitual late payer, your credit card company simply loves you as they charge you a late fee of 15 to 20 dollars for each late payment. This could take the total payout each month to as much as 5 percent above the amount you spent. It may be wise to consider consolidating. If you have home equity, apply for an instant loan on it and pay off all credit card bills. This will lead to substantial savings each month.

Cut down on utilities

Believe it or not, but utility bills can be quite a drain on resources. This is especially true if you have a very large refrigerator at home and one or more air conditioners. Leaving the fridge door open for too long each time it is opened can take the electric consumption up by as much as 30 percent. Leaving doors and windows open or not having proper insulation beneath the doors can make air conditioners work extra long leading to massive increase in electricity by these power guzzling appliances. Similarly, leaving fans and lights on when they are not needed increases the power bill drastically. Cut down on these utilities and you save about 25 to 40 percent on your power bills. In addition, get rid of the electric geyser and install solar ones.

Review the mortgage

Almost everyone has a mortgage to repay. If this is the case, it may be time for you to take out the old mortgage file and go through the terms and conditions again. Do a bit of research and see how much equity you own in the property (this may come handy in paying off some large bills that attract a heavy interest). However, what you also want to consider is refinancing the home at lower interest rates. If the costs of refinancing subtracted from the total amount your will be saving by way of a lower interest rate is substantial, then it is time to refinance and bring down the mortgage payments.

If you find that you are incapable of making mortgage repayments and the house is too big for your needs, perhaps it is time to replace it with a cheaper property. Bridging finance can help you pay for the new house whilst you await the sales of your current house. This can help your mortgage a great deal if you find that your current house isn’t a necessity and mortgage repayment is becoming increasingly difficult.

Compare before you shop

When it comes to shopping it is a great idea to spend an hour on the internet and do a bit of comparison. You will get great deals for whatever it is you are going to buy for the house – even groceries. This will save you 15 percent or more each month.

Get rid of the phone

Get yourself a mobile phone and get rid of the landline. Check the various plans available in the market and perhaps even consider changing your carrier. Choose a prepaid plan because it is a great way to budget your calls and you cannot be over charged by the carrier.

Life frugally and you will soon find that taking care of the pennies leads to the dollars taking care of themselves. By putting in just a few changes in the way you live you will be putting many dollars away in the bank. The best time to begin is now.

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