To continue the “Be debt-free in 2016” part I, “Be debt-free in 2016” part II will continually give you some other ways to save cost and be able to stay away from debts.
4. Revaluate your cell phones
Sometimes, wireless companies bank up on users upgrading hardware and signing up for services they may not need. Research has shown that the average cell phone bill rose more than 10% from 2011 to 2015. So, with the development of the mobile technology, we could take advantage of so many applications that offer texting, calling, voice messaging, sending documents for free such as Viber, Whatsapp, Line and Tango. Moreover, you also should bundle your cell phone with other home services for greater savings and ask for better deals such as the number of free minutes from wireless companies.
5. Car pool, Take public transit or Bike to work
Car ownership is very expensive so if you drive to work every day, it means that you have to pay for gas, parking on top of insurance, repairs and depreciation of car value. There are a variety of expenses brought out when you’re considering going to work by car. Thus, shifting from car ownership to public transportation will be a better choice because it helps to save about $9,242 per year based on the research’s calculation. Besides, using a bicycle to commute is also a great idea since it helps to save more money, get fit and reduce your carbon footprint. Big cities around the world, like Washington D.C and Barcelona, are instituting bike share programs in their downtown cores to encourage ridership.
6. Reduce your interest rate
There are no laws capping interest rates which usually run from 5% to 30%, with the average holder paying around 15%. In fact, everyone misses payment can jack rates up to significant figures so you should pay your bills on time based on the credit terms which is normally 6 months so that the credit companies or banks have to give back your pre-default rate. Moreover, you should refer to the average interest rates decided by governments and compare to ones that are applied to you. If you aren’t please, speak to the management and ask for the better interest.
7. Pay credit cards on time
In fact, late fees run from $15 to $35 and if you are past 30 days late, it will be reported to the credit bureau. Thus, don’t pay late fees or risk marrying your credit score with chronic late payments. It sounds difficult but you can easily implement by paying bills online as soon as they arrive, setting up automatic payments from your bank and asking for email or text reminders of due bills.