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Repaying Your Loan: 7 Tips to Trim Your Expenses
When it comes time to start repaying your payday loan or credit card debt, you'll often find that it doesn't seem you're able to both make the payments and continue to maintain your current lifestyle. If this is the case, then it's time to start making some choices. Don't despair -- pruning a budget isn't as hard as it looks and often times is just a matter of switching a bad habit or two. We've assembled some helpful expense-trimming tips below, but you can also consult any number of financial books, magazines or websites for additional advice on tightening your belt and controlling your spending.
1. Terminate A Costly Habit
Look... Giving up smoking might be a little ambitious at this point, and that nightly glass of bourbon may be just the thing to keep you calm. Let's not try to reinvent the wheel straight away, although giving up major bad habits like smoking can certainly be a major financial boon. For now, keep it straightforward and abandon something small and manageable: Switch to free office coffee from $4 lattes. Rent the video instead of going to the theater for the premiere... Let your health take a back seat to your wallet for awhile and buy generic instead of upscale organic. Try carpooling to work a few times a week instead of driving yourself.
2. Don't Bulk Up
But what about all that money your saving buying toilet paper rolls by the gross? Listen, we have news for you. Similar deals can be had by clipping coupons and watching sales. There's no need to make huge outlays -- especially on more perishable goods.
3. Don't Rip Up Your Credit Card; Just Bury It Somewhere Safe
If you close out your line of credit, your FICO score is going to suffer and if you need another loan in the future you'll have to pay more interest. On the other hand, using your credit line is what brought you to this need for austerity in the first place. What we're saying is make it hard for yourself to access you credit card. If you don't have it near you, you can't use it so much. It's like smoking -- if you're not around smokers or a bar environment it's easier to just say no...
4. Stop Coveting Your Neighbor's Lexus
But it has such nice handling and the leather interior is to die for! Listen: your neighbor's probably deeper in the hole than you are. What you want to do right now is pay back a loan; not impress your friends and influence your fellow consumers.
5. Steer Clear of Consumerism
Are you a QVC addict? It's time to have your cable company restrict your access to this channel. E-bay your master? Ban yourself now! Enjoy that T.G.I. Fridays attached to the mall? Right now you need to find someplace else to eat out. Like credit cards, proximity is key here. If you're not in a buying environment, you're less likely to make purchases you don't really need.
6. Plan an Alternative Vacation
Instead of flying to the beach this year, think about taking time off closer to home. You can still splurge for great food and accommodations, but you'll be saving airfare and other lengthy-travel-related expenditures.
7. Don't Go Overboard
There's no need to become a Franciscan monk here: Just try to be mindful of how you're spending your money and look for prudent, feasible areas to cut expenditures. You can prune your budget gently and still get great results. You don't want to take a hacksaw to your finances to spend more responsibly.
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