5 money-saving moves to make this Memorial Day
5 ways you can rearrange your budget and cut back on expenses
If you are looking for new ways to save this Memorial Day, here are a few places to start. (iStock)
This Memorial Day, as the weather heats up and summer nears, there are several steps that Americans can take to save money over the holiday weekend. If you're looking for new ways to save, here are five strategies you can take advantage of during some downtime and zero-in on savings.
- Refinance your private student loans
- Refinance your mortgage
- Consolidate your credit card debt
- Work on improving your credit score
- Find a new car insurance provider
1. Refinance your private student loans
By taking out a new student loan with better terms in order to pay back your current one — known as refinancing — you could pay off your loans faster and reduce the amount you pay each month. The current pause on federal student loan payments is in effect until Aug. 31.
Borrowers of such loans should consider refinancing options carefully since doing so would disqualify them from the current payment pause, income-driven repayment plans (IDR) and forgiveness programs like Public Service Loan Forgiveness (PSLF).
However, private student loan borrowers can compare refinancing rates and potentially lower their payments. Visit Credible to find your personalized interest rate without affecting your credit score.
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2. Refinance your mortgage
Similar to student loan refinancing, refinancing your home loan could also save you money each month.
Although mortgage rates are rising, many homeowners could still benefit from refinancing their mortgages. In March, when mortgage rates were hovering just below the 5% mark, data from Black Knight showed that two million homeowners could still lower their monthly payments through refinancing.
The estimated savings averaged $312 per borrower, but some could have seen savings up to $500 or more.
If you are interested in refinancing your mortgage, visit Credible to compare multiple mortgage lenders at once and choose the one with the best interest rate for you.
3. Consolidate your credit card debt
If you're working on paying down credit card debt, consolidating that debt can help you do it down faster and reduce your monthly payments.
A balance-transfer credit card — which typically offers 0% interest for the first six to 18 months — can help you achieve this and pay down debt faster. These cards allow consumers to move outstanding debt from one credit card to another, consolidate your total debt into one monthly payment and lower your utilization rate.
If you are looking to pay down debt and want to take out a personal loan or use a balance-transfer credit card, visit Credible to get started and get preapproved in minutes.
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4. Work on improving your credit score
Your credit score is a major factor affecting your monthly budget, since higher credit scores result in better interest rates for borrowers. In turn, having good credit has a big-time impact when it comes to locking in favorable terms for mortgages, credit cards and other financial products. Bad credit, though, can make it difficult to qualify for loans and new credit lines.
Take advantage of the time this holiday weekend to implement a few strategies that could help boost your score, like paying down debt, opening a secured credit card or reviewing your free credit reports.
Visit Credible to enroll in free credit monitoring to begin improving your credit score today.
5. Find a new car insurance provider
The costs associated with buying a new or used car continue to surge, and some modest-income buyers are even being priced out of the new vehicle market.
However, drivers can cut their costs by shopping for a new car insurance provider. Different companies offer discounts for different reasons — like safe driving history, being a good student or bundling. As a driver's life situation changes, a new insurance company could provide a more favorable rate for them, too.
Head to Credible to compare auto insurance providers and choose the one with the best rate for you.
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