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Get out of debt, find a debt solution, and be debt free
It is not as hard as you may think to get out of debt and be debt
free. Once you find a debt solution that works for you, you can
be well on your way to get out of debt. The tough part is finding
the debt solution and the discipline that will help you get out
of debt. A little bit further in this article you can read about
many different ways to save money and get out of debt. For some
of us it just takes a little bit more encouragement than others.
Everyone wants to be debt free. No one likes being in debt, but
unfortunately many of us are. In fact, some reports estimate that
up to 90% of Americans are trying to get out of debt and find a
debt solution.
Debt consolidation programs can help you get out of debt. This
debt consolidation help
for example can help lower your monthly payments, reduce or sometimes
eliminate your interest charges, or work out a plan that helps you
get out of debt in half the time it would normally take you. Debt
consolidation programs can more effectively help people get out
of debt because there are trained professionals working with you
to become debt free.
Get Out Of Debt And Save Money With
Helpful Tips
This is a list of several things you can do to save money. Some
of them will be more effective than others in helping you get out
of debt. The topics on these issues have a wide range, so that you
can have ideas on how to save money, when doing just about anything.
Airline Fares
- You may lower the price of a round trip air fare by as much
as two-thirds by making certain your trip includes a Saturday
evening stay over, and by purchasing the ticket in advance.
- To make certain you have a cheap fare, even if you use a travel
agent, contact all the airlines that fly where you want to go
and ask what the lowest fare to your destination is.
- Be flexible, if possible. Consider using lowfare carriers or
alternative airports and keep an eye out for fare wars.
Car Rental
- Since car rental rates can vary greatly, shop around for the
best basic rates. Ask about any additional charges (extra driver,
gas, drop-off fees) and special offers.
- Rental car companies offer various insurance and waiver options.
Check with your automobile insurance agent and credit card company
in advance to avoid duplicating any coverage you may already have.
New Cars
- You can save thousands of dollars over the lifetime of a car
by selecting a model that combines a low purchase price with low
financing, insurance, gasoline, maintenance, and repair costs.
Ask your local librarian for new car guides that contain this
information.
- Having selected a model, you can save hundreds of dollars by
comparison shopping. Call at least five dealers for price quotes
and let each know that you are calling others.
- Remember there is no "cooling off" period on new car
sales. Once you have signed a contract, you are obligated to buy
the car.
Used Cars
- Before buying any used car:
- o Compare the seller's asking price with the average retail
price in a "bluebook" or other guide to car prices
found at many libraries, banks, and credit unions.
- Have a mechanic you trust check the car, especially if the
car is sold "as is."
- Consider purchasing a used car from an individual you know and
trust. They are more likely than other sellers to charge a lower
price and point out any problems with the car.
Auto Insurance
- You can save several hundred dollars a year by purchasing auto
insurance from a licensed, low-price insurer. Call your state
insurance department for a publication showing typical prices
charged by different companies. Then call at least four of the
lowest-priced, licensed insurers to learn what they would charge
you for the same coverage.
- Talk to your agent or insurer about raising your deductibles
on collision and comprehensive coverages to at least $500 or,
if you have an old car, dropping these coverages altogether. Taking
these steps can save you hundreds of dollars a year.
- Make certain that your new policy is in effect before dropping
your old one.
Life Insurance
- If you want insurance protection only, and not a savings and
investment product, buy a term life insurance policy.
- If you want to buy a whole life, universal life, or other cash
value policy, plan to hold it for at least 15 years. Canceling
these policies after only a few years can more than double your
life insurance costs.
- Check your public library for information about the financial
soundness of insurance companies and the prices they charge. The
July 1998 issue of Consumer Reports is a valuable source of information
about a number of insurers.
Checking
- You can save more than $100 a year in fees by selecting a checking
account with a low (or no) minimum balance requirement that you
can, and do, meet. Request a list of these and other fees that
are charged on these accounts.
- Banking institutions often will drop or lower checking fees
if paychecks are directly deposited by your employer. Direct deposit
offers the additional advantages of convenience, security, and
immediate access to your money.
Credit Cards
- You can save as much as a thousand dollars or more each year
in lower credit card interest charges by paying off your entire
bill each month.
- If you are unable to pay off a large balance, pay as much as
you can and switch to a credit card with a low annual percentage
rate (APR).
- You can reduce credit card fees, which may add up to more than
$100 a year, by getting rid of all but one or two cards, and by
avoiding late payment and over-the-credit limit fees.
Mortgage Refinancing
- Consider refinancing your mortgage if you can get a rate that
is at least one percentage point lower than your existing mortgage
rate and plan to keep the new mortgage for several years or more.
Ask an accountant to calculate precisely how much your new mortgage
(including up-front fees) will cost and whether, in the long run,
it will cost less than your current mortgage.
Home Equity Loans
- Be cautious in taking out home equity loans. These loans reduce
the equity that you have built up in your home. If you are unable
to make payments, you could lose your home.
- Compare home equity loans offered by at least four banking institutions.
In comparing these loans, consider not only the annual percentage
rate (APR) but also points, closing costs, other fees, and the
index for any variable rate changes.
Electricity
- To save as much as hundreds of dollars a year on electricity,
make certain that any new appliances you purchase, especially
air conditioners and furnaces, are energy-efficient. Information
on the energy efficiency of major appliances is found on Energy
Guide Labels required by federal law.
- Enrolling in load management programs and off-hour rate programs
offered by your electric utility may save you up to $100 a year
in electricity costs. Call your electric utility for information
about these cost-saving programs.
Local Telephone Service
- Check with your phone company to see whether a flat rate or
measured service plan will save you the most money.
- You will usually save money by buying your phones instead of
leasing them.
- Check your local phone bill to see if you have optional services
that you don't really need or use. Each option you drop could
save you $40 or more each year.
Long Distance Telephone Service
- Long distance calls made during evenings, at night, or on weekends
can cost significantly less than weekday calls.
- If you make more than a few long distance calls each month,
consider subscribing to a calling plan. Call several long distance
companies to see which one has the least expensive plan for the
calls you make.
- Whenever possible, dial your long distance calls directly. Using
the operator to complete a call can cost you an extra $6.
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