Five Radical Ways to Save Money and Get Out of Debt
When times are tough, the typical advice is to cut spending by reducing non-essential purchases. But what happens when you quit your daily Starbucks habit and switched to basic cable and you STILL aren't closer to getting out of debt? Try these radical ways to save money!
- Find alternatives to traditional shopping. We're all familiar with department store discount racks and comparing prices - but have you ever considered buying the floor model of that washing machine or piece of furniture? Stores may be willing to give you a good deal on the floor model of a product to compensate for it not being new in the package, missing a manual, or for having scuffs or advertising stickers. A little bit of research can pay off big when you need to make a purchase on a budget.
- If your credit is good, consider a credit card balance transfer. If your main debt is on a credit card with a significant interest rate, your minimum payments might not be enough to actually lower your balance. Look for a credit card with an introductory "0% interest for 6 months" balance transfer offer. You'll need to read the fine print to make sure you are getting what you need, but if you are able to get a credit card balance transfer in your favor, you may have a little extra time to pay down part of your balance before the interest kicks back in.
- Think your grocery bill can't get any lower after switching to generic brands and using coupons? Think again! Food and farm cooperatives, known as co-ops, are partially consumer owned and operated. This means that you trading a day of labor or purchasing a share of the co-op, you can receive either discounts or profit dividends depending on how the co-op is run. Check out sites like coopdirectory.org or do a web search for "co-op + cityname" to find one near you.
Save Money, Time And Stress Selling Your Property
Just last week, the Council of Mortgage Lenders announced that mortgage borrowing had fallen to its lowest April level in more than a decade and, in the first four months of the year, was down a total of 6% when compared to the corresponding period of 2009. Furthermore, emergency measures such as the Special Liquidity Scheme, which was introduced at the height of the financial crisis to bolster the housing market, is set to be withdrawn at the beginning of 2011 leaving a 400 billion deficit in the amount of mortgage finance available for homebuyers. Whilst interest rates remain so low, investors are looking for alternatives to traditional saving schemes for their money, and with a new government yet to reveal any policies in relation to the base lending rate, a new crash in house prices seems imminent.
Many people will be alarmed at this prospect, for not only does it damage the long term value of their properties, but many households are still living in a negative equity situation as a result of the last crash in 2008, and will find themselves owing far more to their mortgage lenders than their property is worth. Should the Government choose to raise interest rates to attract more funds for mortgage finance, the situation will become desperate for many, as the cost of repaying their finance agreements increases.