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Many consumers keep a close watch on newspaper ads for coupons and sales at their local grocery
store or clothes outlet. For some, there's a little thrill that comes along with getting a pair of pants for a
few dollars less than someone else might have paid. However, in many cases this frugal attitude doesn't
carry over to other things such as paying bills and dealing with credit cards. Someone who may shop
around for a better price on their gas doesn't think twice about the fact their credit card interest rate
has never gone down in years.
Saving on Bills
Cutting costs on your bills can be as easy as never mailing another payment again. While some
companies charge for electronic payment services, others will gladly take payments over the phone or
through the internet free of charge. Don't just assume that you'll be charged for making a payment in
such a way, call the company and ask. In addition to saving a little on stamps, you'll also know exactly
when the payment is received - ensuring no more late fees due to mail getting delayed.
Additionally, some bills such as insurance are paid in monthly installments for a six-month or twelve-
month coverage period. Although you make monthly payments on time, many such plans charge a little
extra for splitting up your payments over the course of several months instead of paying it all up front.
While many consumers can't afford to pay a full six month's insurance policy all at once, paying off
the full period a month or two earlier than your monthly payment schedule will save you a little in the way of
service fees.
Finally, check every few months to see if new service plans are available on whatever bills might have
them. Your cell phone company, for example, may have just started offering a service package that
more accurately reflects the amount of minutes you use for a better rate. The same might go for your
cable service, or other options.
Saving on Credit Cards
The most common reason people spend too much money on their credit cards is because they pay the
minimum (or close to the minimum) each month. This of course causes a larger balance to carry over
between payment periods, resulting in a larger finance charge. Take a moment to sit down and calculate
the financing charge on the balance you're about to let carry over, and then see how much you'll really
be saving yourself by paying another $20 or $30 more than you had initially planned.
Something few credit card holders realize is that card companies would much rather hold on to
customers who regularly use and pay off their card, instead of customers who constantly incur late
fees. Because of this, once you've established a decent payment history with your credit card
company, see if they'll be willing to lower your interest rate after six months or so. If they don't agree
to do so, let them know you'll be shopping around for better rates - but don't close out your account
with them. They'll be more likely to offer a lower rate if faced with losing you as a customer, or after
a period of inactivity they may try to lower your rate in an effort to get you using the card again.
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