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Money, there just never seems to be enough of it. If you’re saving towards a new house or car, or just trying to reduce your debts, then every penny counts.
Being careful about what your spending and cutting out unnecessary purchases is a great place to start, but there are other things that you can do to ensure you’re not spending money unnecessarily.
Interest on loans and credit cards
Interest on credit can mean it takes a lot longer to pay off your debts. When was the last time you looked at all of the interest rates on your accounts?
Like most people, you probably signed up for a credit card with a great introductory offer. But now that offer has expired and you could be paying a much higher rate than you need to.
Take a look at what balance transfer options you have available and move your higher-interest balances to cards with better rates. Once you’ve done this, you can choose to either save the extra money or overpay on your card to reduce the debt faster.
The same goes for any loans. If you’re looking for non-recourse loans at somewhere like https://www.accuplan.net/blog/guide-non-recourse-loan-ira/ or want to reduce your monthly interest, look at paying off the debt with a lower cost loan.
Keep your savings in a high interest account
If you do have any savings, then you should try and make the most of them by putting them in an account of scheme that will give you the best perks or interest rate. These differ between products so look closely before you do. Often, you’ll receive higher rates for leaving your money in for longer periods or choosing an account that you can’t directly access easily.
Choose a free bank account
There are many bank accounts that now charge a monthly fee for giving you certain extras like cellphone insurance or discounts at certain stores. This can seem like a great deal, but take a look at the perks of your account and decide whether or not you really use them. If the answer is no, then swap to a different account that doesn’t have a monthly fee.
Choose a bank account with a monthly fee
Yes, this the exact opposite of the advice in the section adobe, but there are certain circumstances where this can be a better option. For example, if you monthly fee gets you phone insurance, travel insurance, an interest rate on positive balances and discounts at retailers you shop in often, then it could actually save you a lot of money. Add up how much these extras are costing you, and if the amount is more than the monthly fee for the account, make the switch.
Final thoughts
There are so many tips and tricks out there to save you money. Use these tips alongside others to make sure you’re not spending where you don’t need to and you’re not paying exorbitant interest rates that just add to your debt.
