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Minimizing bills is always a challenge, but a thoughtful approach can make all the difference. From trimming unnecessary expenses to paying off existing balances, there’s a lot you can do to streamline your finances and feel more secure in your spending.
Below, we share three tips to help you reduce your bills and tackle debt effectively.
Eliminate Unused Subscriptions
If you’re like most Americans, chances are you have at least a few unused subscriptions. Whether it’s a streaming service or a meal kit, purchases that seemed great months ago may no longer be worthwhile. What’s more, they could be adding up to hundreds of dollars each month.
To better understand these bills, start by making a list of your subscriptions. This will help you determine which ones you no longer use and help you figure out what you can cancel. If you’re unsure about any of your subscriptions, set yourself a timeline for making a decision. If you don’t use them within the next month, it’s likely time to move on.
Establish a Manageable Budget
Next, it’s time to develop a budget that takes into account your expenses and your disposable income. A simple way to do this is by creating a spreadsheet with each of your current expenses. Key expenses to consider should include:
- Rent or mortgage payments
- Utility bills
- Car or transportation expenses
- Grocery bills
Once you have a clear sense of how much you spend on necessities, subtract them from your monthly income to determine the amount you can devote to discretionary spending.
This will be your budget for “nice-to-haves” such as dining, travel, and entertainment, and it will help to ensure that you don’t overspend.
Whenever possible, be sure to also factor in savings and investments. Doing so will help you establish long-term financial security and allow you to address any unexpected expenses that may come your way.
Pay Down Existing Debt Using a Personal Loan
With your new budget in place, it’s time to tackle your existing debt. A Discover® personal loan is a great option for consolidating your balances. In addition to fixed rates and flexible repayment terms, there are no fees of any kind as long as you pay on time. You’ll also be able to lock in your rate so that your set regular monthly payments never change.
What’s more, a Discover personal loan lets you borrow anywhere from $2,500 up to $35,000 and you can check your rate and monthly payment with no impact on your credit score. To find out how much you could save on interest, we recommend trying Discover’s debt consolidation calculator and entering in your credit score and your higher-rate outstanding balances.
Getting a handle on your finances can be a great feeling. In addition to increasing financial security, it can also eliminate stress.
While getting started may feel overwhelming, following these three simple tips can make it easier. By taking stock of your finances and coming up with a manageable plan, you can reduce your spending and set yourself up for financial success.