Lower Monthly Bills
If you lower monthly bills, you're halfway to getting out of debt. Managing debt is a two part battle: increase income and decrease spending. For most people, it's easier to decrease their spending (at least in theory). Here is some advice for dramatically reducing your monthly expenses through smart, frugal living:
Shop around. If you really need to buy something, search online using services like Yokel and Craigslist. Remember to buy only necessary items; excessive spending is what landed you in debt in the first place!
Slash housing expenses. If you rent an apartment, consider breaking lease and moving somewhere cheaper. Depending on the rental market, you be overpaying as it is. Paying less rent is one of the most effective methods to lower monthly bills. Alternatively, move in with relatives in exchange for reduced family only discounts, or offer to help out around the house. If moving is not an option, consider sub leasing your apartment: a roommate can easily cut your rent in half.
If you are a homeowner, investigate refinancing your mortgage to reduce your payments. Avoid negative amortization loans or those with large balloon payments at the end, as they can create more problems than they solve. You can also move somewhere cheaper, and rent your house out to someone else. While this requires a bit more work, you can use some of your monthly savings to hire a property manager to find tenants, collect payments and handle maintenance issues.
Cut down on utilities. These costs can be extremely high, especially in the hottest and coldest parts of the year. Try using fans instead of air conditioning and wear an extra layer of clothes rather than the heater. If you must use the power, it's more efficient (and cheaper) to set a comfortable temperature and leave it on. Otherwise, the AC or heating system has to work harder every time you turn it on, thereby using more power.
Some utility companies offer energy saving programs, where they automatically shut off your power for a few hours during the day. If you aren't in the house during the daytime, this can be a great way to save money.
One of the biggest power drainers is the dryer. Hang your clothes in the sun or in front of a fan and you'll reduce your utilities bill substantially.
Change your eating habits. Obviously, you don't want to eat out, as restaurants are expensive. Try cooking large amounts at once: not only does this save energy, the leftovers are a great way to combat your desire to eat out when you're tired.
Coffee is a killer if you buy it from a shop. Why spend five dollars per coffee, when you can spend six dollars and brew your own for a month?
Cut down your commute. Consider car pooling to work, or using public transportation. You can also walk or ride a bike if your office is close by.
Using these tips will help lower monthly bills and allow you to pay down your debts faster.
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