As a nation, America is not great at saving. More than 55% of American households have less than one month worth of income in liquid savings (cash, or savings or checking account). Are you one of them? Even taking into consideration retirement accounts and investments, the average family can only replace four months of income in the case of an emergency. Here are a few tips for increasing your savings and curbing your spending:
Consolidate Debt: By consolidating credit cards or loans, you can often save on interest and lower your total monthly payment, not to mention simplifying it, by just having one payment to make. The key to consolidation is to cut up those old cards, then, or close them all together. Consolidating won’t help you at all if you turn around and run up even more debt again!
Refinance Your Mortgage and Vehicle Loans: You may qualify for lower rates if you refinance. Mortgage rates are still low, so if you haven’t refinanced in the last five years or so, check your rate and compare it to offered rates in your area. If you had a mortgage loan with private mortgage insurance (PMI) see if you have paid your balance down enough to remove that coverage. If it makes sense for you, you could also extend the term of your loans to decrease your monthly payment.
Go Green: Many companies offer a discounted loan rate for borrowers who set up automatic payments for their loans. Check to see if this is offered at your financial institution. Using automatic payments can also help prevent late fees by making your payment for you, on time, every month.
Review Insurance Coverage: When is the last time you really reviewed your insurance policies? Check the rates that you’re paying and compare your rates to those of other companies on the National Association of Insurance Commissioners website. You could save money on your monthly premiums if you raise your deductible. Make sure you’re covered for what you need, but not paying for things you don’t need. You may be able to get rate reductions or discounts if you have vehicles you only use seasonally, if you have children off at college who are not typically driving, or if you have a high school student getting good grades.
At Horizon Community Credit Union, our loan officers would be glad to review your current debt and look for ways to save you money. We have great, low rates on mortgage loans and vehicle loans. You can get loan interest rate rebates for having a checking account with HCCU, for having direct deposit and automatic payments, or for being a Gold or Platinum SunDrops member. Finally, we also have partnerships with insurance companies including Liberty Mutual and TruStage. If you don’t have a savings cushion, don’t wait for a financial setback, start taking steps today to keep more money in your pockets each month!
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Post by: Erin S.
