Just started this past month really looking at and preparing to clean up my debt. Just thought I would share a couple things I did in case they might be useful to anyone else. They are pretty common examples, but a reminder of easy things to do never hurts:
- Cell phone. Currently paying Verizon $184 for 3 lines. Looked at the data usage and realized we could drop from 8gigs to 4 gigs without issue. Dropped the bill to $164. Then found the ads for Boost Mobile, and with sprint coverage being pretty decent in our area, I will be moving our three lines to them. If done before the end of may, we get three new phones and 3 lines for only $100 (inc. taxes and fees). $84/month savings
- Signed up for an online defensive driver's course that is accepted by my state. Cost $36 or $39. Completed the course, and submitted the info to my insurance company. My 6-month premium is now being discounted a further $36/6-mo for the next three years. Got a discount from the driver's course to sign my wife up for $31. Soon as she finishes I will submit the info for a futher discount. $6+/month savings for three years ($216+ savings in total)
- Stopped putting money into savings (similar to Dave Ramsey method). We have $2k in emergency fund. Moving forward, the money that was going into savings is just going to the debt. Moved the $2k into a high interest savings account (2.3% APY). $200/month "savings" via debt/interest reduction
- Stopped rounding up my car payment to the nearest $10. Was paying $160 a month, but now going back to the real amount of $157.17. The remaining $ is going right to the debt. $2.83/month "savings" via debt/interest reduction
- New annual cycle of mortgage payments went down $30/month. I was originally planning to just keep paying the same monthly payment as last cycle, but decided instead to only pay the minimum and put that extra $ to debt. $30/month "savings" via debt/interest reduction
- I got a hefty "refund" from taxes every year. Instead, I am changing my allowances to have more of that money stay in my paycheck. I monitor each paycheck and keep making adjustments to reduce that refund to as close to $0 as possible. So far, I am saving $80 a paycheck from not letting the gov have a free loan. $160+/mo savings
Without making any more money, or cutting any other expenses/subscriptions/etc, I can now pay $482.83 more a month on debt repayments than I was before.
Submitted April 26, 2019 at 11:01AM by Martinwuff http://bit.ly/2IZFzBA
