This Memorial Day, as the weather warms up and summer approaches, there are several steps 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 downtime and focus on saving money.
- Refinance your private student loans
- Refinance your mortgage
- Consolidate your credit card debt
- Work to improve 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 to pay off your current loan – known as a refinance – 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 August 31.
Borrowers of these loans should carefully consider refinancing options, as this would disqualify them from the current payment pause, income-based repayment (IDR) plans, and forgiveness programs like Civil Service Loan Forgiveness ( PSLF).
However, private student borrowers can compare refinance 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 refinancing a student loan, refinancing your home loan could also save you money each month.
Although mortgage rates are rising, many homeowners could still benefit from refinancing their mortgage. In March, when mortgage rates hovered just below the 5% mark, data from Black Knight showed that two million homeowners could drop further their monthly payments by refinancing.
Estimated savings averaged $312 per borrower, but some could have realized savings of up to $500 or more.
If you want to refinance 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 struggling to pay off credit card debt, consolidating that debt can help you do it faster and lower 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 goal and pay off your debts faster. These cards allow consumers to transfer outstanding debt from one credit card to another, consolidate your total debt into one monthly payment, and reduce your utilization rate.
If you are looking to pay off your debts and want to take out a personal loan or use a credit card with balance transfer, visit Credible to get started and get pre-approved in minutes.
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4. Work on improving your credit score
Your credit score is a major factor affecting your monthly budget because higher credit scores mean better interest rates for borrowers. In turn, having good credit has a huge impact when it comes to securing favorable terms for mortgages, credit cards, and other financial products. Bad credit, however, can make it difficult to get loans and new lines of credit.
Take advantage of the time of this holiday weekend to set up a few strategies that could help you increase your score, such as paying off your debts, opening a secure credit card, or reviewing your free credit reports.
Visit Credible to sign up for free credit monitoring to start improving your credit score today.
5. Find a new auto insurance provider
The costs associated with buying a new or used car continue to rise, and some low-income buyers are even being overpriced of the new vehicle market.
However, drivers can cut costs by looking for a new car insurance provider. Different companies offer discounts for different reasons, such as a safe driving history, being a good student, or grouping. As a driver’s life situation changes, a new insurance company might also offer them a better rate.
Go to Credible to compare car insurers and choose the one that suits you best.
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