I know the title might seem a bit contradictory nevertheless I really mean it, it’s really what I want to show you today. There are solutions out there that are meant for people who are indebted or deeply indebted. My objective is to help you see outside the box and provide you with solutions that will allow becoming debt free sooner and start investing faster. I came up with the title 4 Tips for saving money to help you pay your debts faster because it seems that when you’re a single parent there’s an incessant flow of bills, calls and letter of seizures. Once the bills start raining, they pour and it sometimes feels like all the creditors colluded to harass you at the same time.
I have tried (and trying) each of these methods and they work. Why, because at the core, your budget can be resumed to this equation:
- Revenue – Expenses = profit/loss or zeroed out.
4 Tips for saving money to help you pay your debts faster will help you delve into that equation and squeeze out the unnecessary things that will help you go from showing a deficit to being zeroed out to ultimately showing a profit. Follow me and let’s start the journey.
Debt consolidation loan
This is by far the most common method that people tend to use and it’s quite understandable. The objective of the method fits directly into what I mentioned above. It won’t do anything in terms of increasing your revenues nevertheless It will do wonders regarding lowering your expenses. I won’t explain in details what is a consolidation loan because I spoke in depth about it in this article(link to How to get rid of debt). However, I can certainly tell you that by merging all your debts together in a consolidation loan, you will be a winner. The lower payments that will come with a debt consolidation loan will allow to breather much better and permit you to invest that additional disposable income in these high return secure financial products like this one.
There are many companies that offer debt consolidation loans nevertheless my advice would be to go with Fairstone Financial. I have been in contact with them many times and I what I appreciate the most is that their interest rates are the most reasonable when compared to ungodly rates that payday loan charge for borrowing with them for a simple 2-week period. They answered all my questions without trying to sugarcoat anything and everything was explained properly. Compare a 400% interest rate charged by online payday lenders as well as physical payday lenders to a 19.99% to 39.99% charged by Fairstone Financial. I know what you’re thinking and you’re absolutely right, they don’t even compare.
Let the retailers work for you
What do I mean by let the retailers work for you. Even though we might be indebted, we still need to have a roof over our heads, to eat, to buy clothes and fulfill our other basic needs. We still need to be able to do that albeit it doesn’t mean we cannot get paid for our business. Nowadays, we can literally buy everything online from diapers to fresh produce to a new sofa. Amazon has literally changed our habits and has put the world at the tip of our fingers.
Linked with a program like ebates, you can literally save hundreds to thousands of dollars every year. Ebates is wonderful because it allows you to continue purchasing whatever you’re used to purchasing online but with a twist. You get paid every time you make a purchase while being connected in your account. For example, whenever you purchase from amazon, you can get up to an additional 5% on top of the already low prices that you have on Amazon. Nevertheless, all the amount that you accumulate on your Ebates account is then sent to you every month like clockwork.
For example, a typical family of four that includes 2 children ( not even teenagers) spends minimum $1200 on groceries every month. The family needs clothes and let’s not forget miscellaneous items like soap, toothpaste, toothbrush, deodorants and so on so forth. For a family of four, we can roughly estimate that a budget of $2200/month allows the family to purchase the strict minimum. If we calculate our $2200 and put it on an annual basis, we get a yearly amount of $26400. With the 5% cash back that you can get with Ebates, you will receive a total amount of $1320. You can use that money to invest in these high return secure financial products like these.
If you use tip#1 and #2 together you’re definitely on your way to clearing all your debts and being able to invest the additional disposable income you have available. Instead of calling this article 4 Tips for saving money to help you pay your debts faster, I should have called it: How to make money while online…
So if we return to the equation from the beginning, we managed to lower our payments/expenses with a debt consolidation loan and we increased our revenues with ebates. Continue reading to find out about the other solution that will help you put more money in your pockets.
Let the banks work for you
There’s an incredible app that allows you to get rid of your debt faster. This is really wonderful because it definitely ties in to our objective which is to provide financial solutions that will quickly get you out of debt and ultimately teach you how to invest that extra money in the stock market. Let’s immediately delve into how this special app can help you achieve your objective becoming debt free quickly.
The app is called MYLO and what it does is that every time you purchase something it rounds it up. Instead of a burger costing you $4.50, it will cost you $5.00. That extra $0.50 will immediately be redirecting towards paying off your loans or towards your savings account if you don’t have any more debts wink. This app will work towards the expense side of the equation and when merged with the two other tips, it can be a really powerful tool. Imagine this, you buy online on Amazon while you’re using Ebates with a debit card that’s linked to the MYLO. You’re saving money, accumulating money and paying your loan all in one transaction. Now, calculate how many online transactions you do on a daily basis and now you realize the power of compounding. All of this without having to change any of your habits.
OK, continue reading to know what the last tip is.
Ask for it
You read that right. Not many people know about this or do this nevertheless It’s worth a try. I have done it before when I had serious financial issues. What you do is call your creditors and ask to negotiate the amount you owe because you’re in serious financial distress and might not be able to pay it entirely. It’s worth noting that if you mention that you might transfer your file to a debt reduction service, they usually tend to lend a more open ear. If you have a student loan, you can call the company that owns your student loan and ask that the repayments be made in accordance to your income. You might face many hurdles when you will make these requests but it’s really worth it.
It’s important that companies are made of people and as a financing company their primary objective other than to extends loans is to get paid back. You might have to try a few times before they acquiesce to your demand nonetheless It is worth a try. I used to have a credit with GMAC and that ‘s what I did. I owed them about $20000 and I managed to negotiate it down to $13000 simply because I mentioned that I was going to declare bankruptcy and they would probably not receive anything if I did that.
On this article about 4 Tips for saving money to help you pay your debts faster, we managed to find 3 solutions that lowered our expenses and 1 that increased our revenues. I understand that these solutions are really useful if your finances are in distress howbeit if you’re in severe financial ordeal, I strongly urge you to go see a debt reduction service like Debt.ca. They will direct you towards the best alternative for you. To recapitulate in order to pay your debt faster these are the 4 steps you can take:
- Ask a financial institution for a debt consolidation loan, reduce your monthly payments by merging them into one single payment;
- Let the retailers work for you and accumulate up to 5% every time you use Ebates and shop on Amazon.
- Let the banks for you. Download Mylo and let the app round up all your purchases and use the additional fund to pay off any outstanding loans.
- Ask for a reduction of the outstanding amount. A strategy that especially effective if you’re on the verge of dealing with a debt reduction service company.
There’s no better time than now to do something about it.
What other money-saving tips could I have included?
Please don’t forget to leave any comments or questions you might have below and it will be my pleasure to continue the conversation.