The most effective way to pay off debt is not only to have a plan to pay off your loans and credit cards but also to increase the amount of money you have available to put towards debt. While you could focus on making more money by picking up a second job or selling items you no longer need, there’s also the option of reining in your spending and making your money go further.
Keep reading to learn about 6 different ways you can save money to pay off debt.
1. Use Coupons
Couponing isn’t what it used to be. Years and years ago you’d have to spend hours rummaging through newspapers and manually clipping coupons. And then you had to spend time sorting them. But in today’s digital world, there’s no need for a newspaper, scissors, or hours of wasted time.
These days there are dozens of apps you can use, allowing you to digitally clip coupons at the tap of a finger. Digital coupons are accepted in grocery stores, clothing stores, and at most merchant locations. You can even find coupons that can be used online.
Couponing can save you hundreds of dollars a month. Some of the top coupon apps to consider using include:
- Coupon Sherpa
- Retail Me Not
What’s even better is that most of these apps are free! You’re able to save money without spending a dime!
2. Bundle Services
Saving to get out of debt is made a lot easier when you bundle at-home entertainment services. Chances are you have internet and cable, and maybe you use a home phone for emergencies. If you’re using different providers for these services, you’re likely spending much more money than you need to.
By bundling services under the same provider, you can save money and better manage your monthly payments. Many providers offer discounts for customers who purchase several different services. Before making the switch, take the time to compare prices. You may even want to contact both providers to see if one is able to price match or offer an even more competitive deal.
You’ll also want to make sure that you don’t have to pay any fees when bundling your services. Ensure you aren’t locked into a contract that will cost you money to end.
3. Use Public Transportation
Owning a car is expensive, and the more you drive, the more costly it is. Not only do you have to factor in the cost of gas, maintenance, repairs, and monthly insurance costs quickly add up. If you live and work near a large city with public transportation, consider making the switch a few times a week. This will save you money on gas, and depending on how less often you drive your car, you may be able to save money on insurance costs as well.
Using public transportation is also beneficial in that it’s friendlier for the environment. Protect your wallet and the environment!
4. Cook Meals at Home
According to the Bureau of Labor Statistics, the average American household spends around $3,000 a year eating out. Imagine how much debt you could wipe out if you were cooking and eating more meals at home! While you don’t have to stop enjoy family meals at your favorite restaurants entirely, you can save a lot of money by limiting meals out and instead of cooking at home.
To make cooking at home a lot less cumbersome and repetitive, set a day to meal prep. Making meals ahead makes it much easier to avoid the temptation of ordering take out. You can even make your favorite restaurant meals at home by finding copycat recipes online.
5. Quit Bad Habits
Some of our worst bad habits not only sometimes cost our health, but they also cost our wallets! Habits such as smoking, drinking, gambling, and impulsive buying can all cost of thousands of dollars a month. By putting an end to these habits now, you can start saving money and putting it towards paying off your debt.
Since it can be hard to end bad habits, be sure to get any support you need. The financial savings of kicking a bad habit to the curb is definitely a good encouragement to stay on track
6. Use Less
Do you let the water run when you brush your teeth? How often do you leave for work and forget to turn off a light in your home? These actions all cost money. By using less water and energy at home, you can see savings reflected in your water and electric bills. Using less energy also reduces your carbon footprint, which is a great feat in today’s world.
Saving money isn’t as hard as it may seem. As you have more money in your bank account, you can better spend that money by paying more than the minimum on your debt balances, allowing you to pay off your debt quicker.