4 Ways to Trim Your Fixed Expenses
When trying to trim a monthly budget, most people don’t even consider their fixed expenses; however, with just a bit of effort and research, most of these costs can be reduced.
1. Consider a refinance
Trim your mortgage payments by refinancing at a lower interest rate. It will cost a bit, but you can roll closing costs and other fees into your refinance loan. Plus, the money you save each month should more than offset these costs. A refinance is especially smart in a falling-rates environment or if your credit score has improved a lot.
2. Change your auto insurance policy
If you’ve had the same insurance policy for several years, speak to a company representative about lowering your premiums. By highlighting your loyalty and excellent driving record, you may be able to get a lower quote. If your insurance company is not willing to work with you, it might be time to shop around.
3. Consolidate debt
If you have multiple credit cards with outstanding balances, consider a balance transfer. This entails opening a new, no-interest credit card and transferring all debt to it. The no-interest period generally lasts up to 18 months. You will now have just one debt payment to make each month. Plus, the no-interest feature means you can make a serious dent in paying down that debt without half of your payment going toward interest.
Another way to consolidate debt is to take out a personal loan. Our Live Your Life Loan will allow you to pay off all of your credit card debt at once. For example**, $4,999 for 36 months as low as 9.99% APR*, you’ll only need to make a single, affordable monthly payment until your loan is paid off.
*APR = Annual Percentage Rate. **Payment Example: Estimated monthly payments on a $4,999 loan for 36 months for a well-qualified borrower at 9.99% APR = $32.27 per $1,000 borrowed. Rates are subject to change. Other rates and terms are available if you apply and qualify.
4. Cut out subscriptions you don’t need
Take some time to review your monthly subscriptions to weed out those you don’t really need.
If you’re paying for a gym membership, consider just paying for classes you attend instead of the full membership, or springing for your favorite workout machine to use at home. Drop your cable service or downgrade to a cheaper plan by cutting out expensive channels you don’t watch often. Also, you might be paying for premium versions of apps you don’t need. Dropping these costs can give you more wiggle room in your monthly budget.
