3/30/2010

Guest Post: Creative Ways to Pay Off Your Debt

Many people are just starting to assess the damage from this recession, and realizing that they still need to reduce their debt load. They know now that credit can be great for liquidity when in supply, but it can also be an anchor when it goes unpaid. Here are some creative ways to find cash to pay back your credit card balances, a cash advance, or just stash money away for another rainy day.

Review Your Insurance Needs

You can often find extra cash in your monthly budget by reviewing your insurance needs on a yearly basis. Auto insurance or home mortgage insurance rates can drop over time as the value of the asset depreciates or a new company offers more competitive rates. Take the difference and apply it your loan repayments.

Become A Vegetarian

One of the easiest ways to save money is through eliminating costly items in your diet. While not everyone will want to try to be a vegetarian, you can reduce the amount of alcohol or convenience foods you buy. Over the course of a month you can save $50 or more, if you start to review your food budget in detail. If you grow your own veggies, you can reduce it substantially more.

Cut The Umbilical Cord

Anything that hooks you into a yearly contract is a money leak. That includes cable television, phone contracts, or monthly memberships. With so many different services out there that don’t’ require you to make a one to two year commitment, it’s not necessary to get married to your service company. Substitute hulu.com for cable, a prepaid cell phone for a landline or expensive contract, and just say no to the gym. Walking is free. For every $50 to $80 you save on each service a month, you can direct that towards your debt payments.
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3 comments:

  1. I'm sure there are various work-arounds, but strictly speaking, Canadians can't use Hulu.com.

    (http://hubpages.com/hub/Hulu-Canada)

    ReplyDelete
  2. Good ideas. However, our gym membership is actually saving us money. It includes swimming lessons for all our kids (we have 6 that take advantage of these), year round. Plus they have so many other programs for the kids and us to attend (dance, tae-kwon-do, basketball, etc), so it's totally worth every penny. In the case of an single individual, maybe giving up that membership is an option that will save money to pay down the debt.

    ReplyDelete
  3. I pretty much became vegetarian during school unless someone else bought me some meat. So expensive!! I ate a lot of pasta, delicious and cheap. Not the greatest diet, but I made it through alive.

    ReplyDelete

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