How do I save money every month while I have the debt?
I try to save some little money every month but seem so hard because I have to pay my bill also. I would like to have some for me when I get out of such a bad debt. Please help.
Public Comments
- you might want to consolidate your bills but the simple answer is either you make more or you spend less You can cut expenses too (cut off cellphone, take hbo off your cable etc)
- get rid of internet and quit smoking
- remember as you are cutting debt you are lowing future interest payments so in a way you are saving!!!!
- take ten percent from every paycheck and put it into a savings account. then use the rest for bills and other things. also you might open a savings and check at bank of america. They have a program that when you use you check card they will round of the money you spend on a debt card to the nearest dollar and put it into your savings account. i.e you soend 1.01 on your debit card they put .99 in your savings account. I think 5/3 does this too. You would be surprised how fast it adds up. http://creditcardwarehouseonline.com http://creditcardwarehouse.ecreditdirectory.com/
- When you have debt, you should not 'save' money. All your excess funds after essentials should be put into the debt, not saved in a savings account. Here's why. Debt costs you money. If you owed $1000 at 15% interest, that would cost you about $150 a year in interest. That's an extra $150 you'd need to pay that wouldn't get you out of debt. It just makes the lender rich. Savings can earn you money, but the interest is usually nowhere near the interest rate you're paying on your debt. $1000 at 3% would be $30 a year in your favour. But as it's taxable income, your earnings would actually be far less. Like $25 to $20. You'd pay tax on the earnings. So putting extra money on the debt means that every dollar you pay extra is saving you (in the above example) $0.15 a year for EVERY DOLLAR you put in. That's basically earning you 15%, because you get to keep that money in your pocket. Paying out the debt is going to be the most effective use of your money. To save money, I suggest you go to your bank and set up a bank account -- a SPECIAL bank account that one day will be your savings account, when you're debt free. Every payday, have your employer put at least 10% of your income (or more) into this account. Then, go into the bank and transfer the money onto the debt. Make sure you choose a bank account that gets good interest. It won't do you much good now, but when you're debt free, you'll appreciate it. Work towards getting out of debt. You can't save while you carry debt. In fact, paying the debt is a form of saving -- it requires the same consistent use of money, and the money you put into the debt gets you a result -- it gets you debt free, and in the meantime, it reduces the amount of interest you pay on the debt, which saves you a lot of money and time. The faster you pay out the debt, the less interest you'll have to pay, which means MORE MONEY FOR YOU! That's like saving. Just treat this as practice for when you really ARE saving. Best wishes.
- pay your bills and your debts and save what's left. you have to stop indulging yourself with movies, eating out and drinking for a while.
- Check out these two links, they might help you: http://www.ehow.com/how_2243696_save-money.html http://www.ehow.com/how_2243923_setup-a-budget.html ..Setting up a budget will allow you to see if you have any extra money to pay off debt. Good Luck!
