10 Money-Saving Tips to Make Debt Settlement Easier

Debt settlement allows you to settle your debts, making one low monthly payment, and to get out of debt in a shorter amount of time than by paying back your balances in full. With debt settlement, the savings are often greater than with debt consolidation. While credit card debt can be expensive and stressful, getting out of debt doesn't have to be. If you think that you can't afford a debt settlement payment every month, think twice! This article, the second of five, lists 10 easy ways to save money for your debt settlement program.

1. Make saving money a game, not work. Just feel good about all the money that you are saving and you will attract more situations into your life to save even more money.

2. Give up the daily or weekly lotto. The odds are against you, and you will save money in the process. For example, if you are spending $5.00 every week on the lottery, that's $260 a year. Use the money more constructively, such as applying it to your debt settlement program.

3. Watch fees, because they are everywhere. If your checking account doesn't have overdraft protection, the charge for insufficient funds now averages $34.00 per transaction. And according to SmartMoney.com, "Some banks even charge a fee each day an account sits in arrears."

There are also ATM transaction fees, ATM balance inquiry fees, point of sale usage fees, monthly service fees on checking accounts, late fees on utility bills, and much more. These all add up over time.

4. Buy generic or store brands instead of brand names. For example, the price for a 42 oz. box of generic oatmeal is now $2.69 at one East Coast supermarket chain. Comparably, the store brand is $3.59, and the brand name is a whopping $5.39. Is your calculator available?

5. Buy fruits and vegetables that are in season. You can pay as little as 99¢ for a pound of seedless grapes when they are in season, and as much as $3.99 a pound when they are not.

6. You are probably paying too much for your cell phone. Consider changing to a cheaper plan.

A debt settlement client made just one change in his spending habits and saved about $900 a year. This was enough money to cover 3½ months of payments for his debt settlement plan:

Michael admitted that he had once been paying about $100 in monthly cell phone charges. Before joining a debt settlement program, Michael let his cell phone plan expire, and for good reason. After starting the debt settlement process, Michael changed to a pre-paid cell phone plan and now pays about $25 a month instead of $100.

According to Michael, "I knew that I was paying too much on the old plan, but I was too lazy to make a change. I am now saving about $75 a month on my cell phone bill, which adds up to about $900 annually. This $900 can be applied to about 3½ months of payments on my debt settlement plan. I'd rather be paying less for my cell phone and applying the difference to my debt settlement program. What it all comes down to in the end is what is really important and what isn't."

7. Keep a distance from lavish, high-roller friends. You really don't need a large scree
TV in every room or the latest electronics gadget.

8. Consider paying your life insurance annually. Did you know that insurance companies charge you more if you pay monthly, quarterly or semi-annually? Pay once a year and you’ll pay less.

9. Traditional boxed cereals can be expensive. Consider eating oatmeal instead. It’s cheaper and healthier.

10. Your paycheck may be a lot smaller after you figure out how much of your spending is work-related. Cut out the daily latte, blueberry muffin, and eating out for lunch. Expenses like these really add up over time.

This article has listed 10 money-saving tips that can make your debt settlement program easier. While credit card debt can be expensive and stressful, getting out of debt doesn't have to be. Make saving money a game, and you will attract more situations into your life to save even more.