Save Money Managing Your Personal Finances

Category : Managing Money

Reduce the number of credit cards you have. Check with your local credit union and see if they issue credit cards. That's usually where you can get the best deal - no yearly charges and lower interest.

If you get a credit card, my first recommendation is...
Try to get a reasonably high limit so you can transfer balances from your other credit cards to this one (or any other low-rate card you can get).

Reduce the number of cards you have so you reduce the payments that are necessary each month. Once you close an account destroy the card and don't look back. The goal is to get yourself down to one or two credit cards, no more. Get rid of all the superfluous individual gas or department store cards. Keep only the one or two that can be used universally.

Have a credit card you want to keep but the interest seems a bit high?

If you have a good credit rating (meaning you've always paid more than the minimum and on time) you might try calling their customer service and requesting a lower rate. This frequently will work. If it doesn't you can always take advantage of a good introductory offer for another card (as long as you check first to see that the fixed interest rate is good after the introductory period is over), and dump the uncooperative card. This approach has worked a couple of times for me.

Another approach, especially if you're a member of a credit union or there is one you can join locally and you have a small savings account is to get a loan using your savings account as collateral. Most credit unions offer a very low interest rate on that type of loan, often only perhaps 2% above what you're earning on that account.

Getting a loan instead of taking the money out of your account in effect forces you to put it back in.

Generally the account you get the loan against has the amount you're using as your collateral frozen and as you pay it back that amount is unfrozen. Before you do this, find out how much you need to allow you to consolidate what debt you have.

Get that amount of a loan, pay off your other debts, destroy any credit cards you pay off and you're down to one fixed payment per month. Oh, and that one or two credit cards you need for real life. Just don't go crazy and let them get out of control again.

The same applies to some household expense.
If you get a small loan against your savings account instead of a much higher interest 'equity loan' you'll have some serious money.

Keep your checkbook balanced.
Do this religiously every month when the statement comes in. Don't assume you have money because you still have checks! If where you bank offers overdraft protection, get it. My credit union does it for free.

Should I overdraw the checking account it would be covered by my small savings account. Believe me, if you're ever faced with overdraft charges and fees you'll be amazed by how much this could potentially save you in real dollars.

Start saving money on a regular basis if you don't now. Even if it's only $5. 00 or $10. 00 per pay period it will add up and become that nice little cushion you can get loans against or draw from in an emergency. If you can squeeze out a little more, even better. And it produces a small income into your savings account in the form of interest.