3 Ways You Can Lower Your Monthly Expenses

Christy | 4:00 PM |

In today's world, the economy is suffering, the job market is slow, and prices continue to rise. Many people find themselves juggling their monthly expenses and falling behind on important payments like credit cards, mortgages, and insurance. Many people are living paycheck to paycheck, and all it takes is the loss of a job or even reduced hours to put someone into the trap of debt. During these troubled times, the overwhelming stress of overdue bills and expenses can add a lot of stress to someone's life, but there are simple steps one can take in order to lower these high monthly expenses and get back on track financially.

1. Lower Your Monthly Mortgage Rates Without Refinancing

If you are struggling to make your mortgage payment each month, this may be due to a recent job loss or extra expenses may be digging into your paycheck each month. A loan modification is a helpful way to lower your interest rate, and they are a much better alternative to refinancing. In order to become approved for a loan modification, you will need to show that you are currently suffering through a financial hardship. Alternatively, you can speak with your mortgage lender and inquire about lowering your interest rate.

2.Lower Your Auto Insurance

There are various ways you can save on your auto insurance each month, including discounted rates, policy downsizing, and special savings offered through your carrier. Many carriers offer discounts for drivers who keep a clean driving record and enroll in driver safety courses. By checking with your provider and learning what types of discounts they offer, you can definitely save some money. Changing your policy is another way to save each month. By paying higher with deductibles and eliminating collision or comprehensive coverage on older cars, you can save between 25-40 percent on your policy.

3. Lower Your Credit Card Payments

Many people are paying as high as 29% interest on their credit cards, when incredibly low rates are being offered to new customers by the exact same companies. By taking some time to research your credit score and find out what your rate should be compared to what you are currently paying, this can buy you some points with the credit card company. You will want to make sure that you have done all the research beforehand, as many times the customer service representative will simply state that they cannot help you. If you have all of the information in front of you and the representative refuses to assist you, ask to speak to a supervisor. Supervisors tend to have a bit more freedom when it comes to making decisions, and the majority of credit card companies will lower the interest rate for their current customers by at least 5 percent if the system allows them to do so. By lowering your interest rate, your monthly payments will be lower, therefore saving you money in the long run.

In today's economy, it is very important for people to keep a close eye on their finances. By taking the time to conduct a little research and learn the best ways to save, you will be pleasantly surprised with how much you can save each month. A little extra money each month goes a long way, and before you know it, you will be back on track with your finances once again.



Hayley Spencer contributed this guest post on behalf of EasyFinance.com. Hayley has a penchant for personal finance. She is also a freelance writer and enjoys writing articles for various personal finance blogs.
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