Unless you're really determined and extremely careful, it would take a very long time to pay off debts. If you're under this assumption that it is possible get rid of debt within a couple of months by making only minimum payments, then you're greatly mistaken. You need to pay more than the minimum amount when your goal is to kick debts out of your life within a few months.
Now, the main problem is that you need to free up a good amount to make extra payments. It is not all always possible to go for part-time jobs due to family obligations. So what is the solution? Well, you can try to reduce your expenses on monthly bills. Okay, I'm not saying that you start living in a dark room to save money on bills. All I'm suggesting is to take the following 4 steps that will help you save minimum $125 on your monthly bills.
You can't win a battle without knowing who is your enemy, right? Similarly, it is simply impossible to reduce expenses without having any idea about how many bills you have to pay every month. If you're too busy with your job, then ask your family members and make a list of various types of monthly bills you need to pay.
Ask your family members to give you a copy of the last month's bills. Find out how much you paid in the last month. If your last month's credit card bill was very high, then find out why were you charged such an amount? Is it because of 5 types of lipsticks? You need to analyze how much you're paying on what items.
You can check the last few months' bills also to get a more accurate idea. If you're paying $1000 every month on credit card bills, then ask your friends how much they're paying on an average every month. Apart from that, you can ask them how much they're spending for various kinds of services too. It is high time you get a reality check. Seriously.
Go online and check out the offers for various kinds of services. Find out what the competitors are charging for the same services. Check out the service charges for new and existing customers as well. Once you have collected the data, pick up the phone and negotiate with the representative.
Here are some tips that may help you negotiate for a better rate:
End the conversation by saying that you would have to switch to another company if they're not ready to offer help.
Remember that you won't win all the time. Even if you're not able to get a fair deal, yet it would at least help to increase your knowledge. You can utilize this knowledge in future to become a money-savvy consumer.
Sometimes, when you're unable to reduce your monthly bills even after giving best efforts, it is wise to downgrade your service. For instance, you don't watch all the 857 channels in your TV, do you? So, if you don't watch all the channels, then why don't you reduce the number of channels in your package and lower your cable bill?
Guys, I have shared my thoughts on how to slash monthly bills and accelerate the debt busting momentum. If you have any idea, then do share it. What bill would you like to negotiate and how? Share your comments.