Get out of Debt and Pay Back that Loan with these 7 Money Saving Tips
Debt is the definition of a kill-joy. Whether you’re in a small or big amount of debt, it is a constant thought in the back of your mind that you’ll never get to pay it off. Without a structured plan and budgeting, it can be easy to borrow continuously and be sucked into a dependence on your bank that everyone could do without. Factors like your home loan interest rates can have a dramatic impact on your ability to pay back personal loans and other third party debts. Follow my seven money saving tips and find out how Newcastle Permanent can help you find financial freedom and get out of debt today.
- Start using a budget.
While this might seem a bit obvious, I can’t speak highly enough of budgets. Being aware of how much of your money is being spent and where it is being spent can highlight areas that you can easily cut back on to maximize your saving.
- Look at spending in the way of hours worked compared to cost price.
Money is sometimes hard to gauge when it comes to value. Looking at a nice jacket for $50 might seem like a bargain, but how many hours of work would it take for you to pay off that jacket? Is it really worth it?
- Have separate bank accounts.
Different bank accounts put different limits on how you access your money. If you’re someone who enjoys a bit of extra spending and can’t always hold back, you may want to look into opening a savings account that limits your access while giving you a high return through interest. Industries like Newcastle Permanent offer a Smart Saver account for under 25’s with a huge 3%PA interest return on your account balance without any monthly account keeping fees.
- Keep a few meals in the freezer.
On the days where cooking is just out of the question, don’t waste money on takeaways! Purchase a few freezer meals from the grocer (or even better, make your own!) and save while still being well fed.
- Cut back on energy usage.
Energy bills sneak up on you and can be a rude shock especially if the seasons are particularly intense. By using cold wash cycles for the washing and using your power in the off-peak hours, you can save a huge amount on your energy bills.
- Assess your loans and repayment systems.
Fees and high-interest rates can zap your money away at the start of each month. Meet with your lender and compare your current rate with other institutions to make sure that you’re getting the best deal you can. Visit newcastlepermanent.com.auto view the most competitive fixed rate home loans to compare your current rate to ensure that you’re not paying more than you have to.
- Sign up for loyalty programs.
It’s fairly hard to checkout of a shop these days without being offered a loyalty card of some sort. While these seem to be more effort than they are worth, a lot of the time you can save a considerable amount of money off your shop to put towards your savings.
Avoid the pesky debt monster that hangs over your shoulders with a loan that you feel confident with. With small changes and better awareness of your spending, you can meet your loan repayments sooner than you think and get out of debt. Find an institution that prioritizes your future over their profits like the Newcastle Permanent Building Society and start your debt-free life today.