Whether you’re dealing with multiple personal loans or credit card debt, paying high monthly bills isn’t just financially exhausting. It can also be physically and emotionally stressful. To put themselves into a better financial situation, many families and individuals are creating budgets and increasing their income streams. Others even had to cut some important expenses just to make it through.
Recurring monthly bills can come from different categories. The first one is the regular expenses such as rent payment or home mortgage. The second category involves your recurring expenses like utilities or grocery purchases. The last one is your one-off expenses, which include meals out, car repairs, and clothing. If you’re drowning with unmanageable bills and want to save more every month, renegotiating your debts or loans can help you out.
- Keep an eye on your budget
Chances are, you might already have a budget that you try to work on every week or month. However, most people tend to neglect the importance of regularly reviewing and adjusting their budgets. Creating a budget isn’t a one-time solution for getting your finances in order. It is a tool and it requires upgrades every now and then.
Avoid relying on autopilot and regularly check your budget. You can do it every week and find out if your money is going to where they need to go. This can then help you confirm where you need to cut or renegotiate.
- Review all your debts
The next thing to check is how much you owe. If you’re like others who have multiple credit card debts, you need to review all your statements. Create a list of the amount and interest rates on every card. You’d also want to have a list of contact details of your credit card companies that you can use when you’re ready to call them. Now, there are different settlement options you can use for credit card debts.
The first one is a workout agreement, which includes requests for waiving or reducing minimum monthly payments, removing past late fees, and lowering interest rates. If you already have a significant amount of money on hand, a lump-sum settlement is worth considering. Other settlement options to consider are hardship plans, debt settlement services, and debt management.
As for your lowering your home loan payment, seek the help of full-service home mortgage companies to determine the right solution for you. In most cases, a mortgage refinance is the key. It helps lower interest rates and monthly payments. Check with the lender about the financing terms and programs they’re offering.
- Cut unnecessary subscriptions
One of the first things to look into is your subscriptions. Be aware of the subscriptions you’re paying every month and see which ones fit your budget. You might not be able to save up a million if you cut off your Starbucks memberships or get a better gym deal. But considering how these tiny things can add up, you can save a lot more than you expect. If you don’t want to cut off anything, at least try to threaten to cancel a service.
This tactic may not work for all but it’s worth the shot. For instance, if you can consider canceling a clothing subscription for that athletic brand by talking to a customer service representative. If you’re lucky, the brand will give you $10 store credit to stay, especially if you’re a valuable customer.
- Know when to stop
Negotiations require a lot of time and patience so it’s not a good idea to make the talk too long. Reach for an agreement fast. If you’re not going anywhere with the negotiation, stop. Or, if you already achieve your expected or desired outcome, don’t push it further. Before calling your credit card company or loan provider, decide the minimum you’re willing to accept and stand by it.
This eliminates confusion and frustration during the negotiation process. You can call it a deal if you’re close enough to your goal or use a backup plan if you don’t. The point is, be sure you know when to stop. In case you’re planning to make a call, writing a script beforehand would be smart. It will help you politely and clearly explain your situation. You should also document the entire conversation, including the job title and name of the representative you’re talking to.
With these tips, you can safely and effectively renegotiate your debts or loans and lower your monthly bills. While you can do most of these on your own, it’s still recommended to seek the advice of a financial expert. They can help you get better deals and ensure everything will be processed legally.