How to Cut Corners on your Monthly Bill

Saving money is always a wonderful thing. A great way to consistently save money every month is to cut corners on your monthly bills. It may be less complicated than you think to cut back a little here and there without affecting your standard of living. Often, just practicing better bill management techniques and canceling services you don't need can save you hundreds of dollars every month.

Instructions

Cut Corners on Your Monthly Bills

1. Get rid of high interest credit card debt. Credit cards with high interest rates can bite a chunk out of your budget even if you only pay the minimum amount due. The best bet is to stay away from unnecessary credit cards altogether, but if you already have a stack of high interest bills lying around, you can still eliminate those high finance charges. A great way to cut corners on your monthly credit card bills is to apply for a line of credit that offers a low interest rate and allows you to pay off your debt in a set period of time. Failing that, you can call your credit card issuer and ask that your rate be lowered. Chances are, if you've consistently made payments on time and haven't exceeded your credit limit, your credit card company will be happy to lower your rate just to keep your business.

2. Refinance when rates are low. If you accepted a loan agreement with a high interest rate when you purchased your home, you may be able to save money every month by refinancing when interest rates are low. Refinancing your home can lower your mortgage payment and, if you've accumulated at least 22 percent equity in your home, you can even eliminate the need to purchase private mortgage insurance. PMI protects the lender if you default on your loan. When the equity in your home reaches 22 percent, you may be able to drop the PMI because lenders know you are less likely to default if you have a lot of money already invested in your home. You can save hundreds of dollars every year just by canceling PMI.

3. Turn the thermostat down in the winter and up in the summer. Keeping your thermostat set at 70 degrees in the winter and 78 degrees in the summer keeps your home comfortable and your gas and electric bills low.

4. Take advantage of bundle packages. Most major cable companies allow customers to bundle their digital cable, high-speed Internet, and telephone services all on one bill. Consolidating your bills this way can save you around $100 each month.

5. Drop services, subscriptions, and memberships you don't use or need. Analyze your monthly bills to determine which services you can live without . If you're paying for extras such as premium movie channels or multiple cell phones, consider how much you can save by dropping them.

6. Shop around for car insurance. Choose a company that does most of its business over the phone or online. Companies that have local offices, employees, and high sales commissions to pay often charge more for their services. Many popular online insurance companies are able to charge a lower rate for their services because their employees aren't paid sales commissions. Shop around and get quotes from as many insurance companies as you can and compare their rates and coverage amounts to choose the one that best fits your needs.

7. Take shorter showers. Long showers can make your water bill skyrocket. Limit your showers to five minutes or less to save a bundle of money on your water and electric bills.