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Manage your debts by saving more
Set up a plan and stick to it to pay off your debts
Most Americans are doing a poor job of saving money. That, in turn, contributes to the mountain of debt that most families face. There is an answer, and it involves saving money and discipline. Here are some more tips on how to save more money.
Continued below
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Easy credit leads to piles of debt that are difficult to repay
In part one of this article on debt management, we outlined a few things that you can do to keep your debt in order. The piling up of debt, made easy by companies that are all too happy to give you credit cards, is much easier than paying down the bills. That requires discipline and saving money that you are probably spending elsewhere. In order to reduce your debt, you are going to have to find some additional cash that you don’t even realize that you have.
Here are some additional tips for how you can save more money and apply them to your monthly bills:
- Use coupons - In part one of this article, we suggested that you eat at home, rather than eat out. If you are eating at home, you will need to buy groceries, as pizza from Domino’s does not count as eating at home. One way to save on groceries is to use manufacturer’s coupons. Every little bit adds up, and in some markets, some stores will double or triple the value of the coupons as a competitive tool. Sometimes you can use a doubled or tripled coupon to get something for free. It takes a bit of work to get in the habit of using them, but the power of shopping with coupons cannot be denied. Start clipping.
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- Cut back on miscellaneous expenses - If you subscribe to HBO, Cinemax and Showtime, you might consider canceling one or them. Every little bit helps, and even one of those services can add up to several hundred dollars a year. Do you go to the movies a lot? Rent them on video instead. You’ll see them a few months later, but you’ll still see them.
- Check your cell phone use - Do you have the cheapest and most efficient plan? If you do use your cell phone a lot, do you still need your land line? You might save a few hundred a year by eliminating whichever telephone you use least.
- Use credit cards with cash back options - Some American Express cards and Discover cards give you cash rebates from a portion of what you spend. It’s a small amount, just one percent or so, but it does add up. If you use these cards, make sure that you pay the bills in full. Otherwise you are giving your savings back.
- Carpool to work - If gas is $3 a gallon, you might save money by carpooling to work or by taking public transit. Those $80 fill ups can add up in a hurry.
There are many things you can do to cut back on your spending. The key to saving is to realize that it is necessary and to begin looking at where your money is going. Once you do that, you will find many places where you can put a bit of cash aside. Once you do that, use the money to pay your credit card bills. Getting out of debt is the point, remember?
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