Overextended credit cards. Braces for the kids. Reduced hours at work. Unexpected car repairs. Most of us will face some or all of these scenarios, at some point in time. If you’re in this situation now, you may be wondering how you’ll ever save more money, especially if you have mounting debt.

However, even when it seems impossible, there are steps you can take to pay down debt. And when you do, you can save more, and build your wealth. Consider these possibilities:

1.  Examine your cash flow
Sometimes, you can uncover ways to save just by keeping track of expenses for a month. When you’re running with day-to-day activities, it can be difficult to notice how much you are spending on coffees, lunches, or magazines grabbed at the drug store. However, when you see these purchases totaled on paper, it gives you a different perspective. This often makes it easier to change the way you do things, to cut expenses, and find extra money.

2. Consolidate high-interest debts
Unsecured, high-interest debts such as credit cards, department store cards, loans, or lines of credit can cost you hundreds – even thousands – of dollars in interest every year. If you have several debts like this, or if the balance on your credit card is a little too high, a consolidation loan can help.   Folding your debts into one, lower interest loan will save you money. You can then use these savings to pay off your debts faster.

3. Save on your mortgage
When did you get your mortgage? For many of us, it was before interest rates dropped. This means you may be able to refinance your mortgage, which could reduce your payments by hundreds of dollars every month. For example, reducing the interest you pay from 5% to 3% on a $100,000 mortgage could save you approximately $200 every month. You can use these savings to pay down high interest debts, or to build an RRSP or RESP.

Another alternative is to increase the frequency of your mortgage payments. This allows you to pay down your mortgage more quickly and can save you thousands in interest payments over the years.

Even Small Changes Can Save You Hundreds of Dollars Every Year

I work with my clients to help them reduce expenses and find new ways to save.  For example:

  • I can guide you through a monthly budget and help uncover new savings.
  • With our one-stop financial services shop, I can put you in touch with a mortgage expert who can help you consolidate loans; refinance your mortgage, or both.

We will do the number crunching and show you different options. Then, walk you through the pros and cons, so you can pick the options that work for your family.

Contact us for your free appointment to find out how we can help you save more.