The best way to manage your finances
Why it matters: High-interest debt (like credit cards) drains your money quickly. How to do it: Check all your debts. Write down balances and interest rates. Try the “Debt Snowball” or “Debt Avalanche.” 1. GET RID OF HIGH-INTEREST DEBT
2. BUNDLE YOUR INSURANCE
Debt Snowball: Pay off the smallest balance first for a quick win, then move to the next smallest. Debt Avalanche: Pay off the debt with the highest interest rate first to save more on interest.
Why it matters: Insurance can be expensive. If you bundle (combine) policies for your house, car, and other needs, many insurance companies will give you a discount. How to do it: Review your policies. Make a list of all your current insurance plans. Ask about discounts. Call your insurance agent to see if you can get a better rate by combining plans. Shop around. Compare offers from different companies to find the best price and coverage. Example: The Insurance Information Institute says bundling can save 5% to 15% each year. If you normally pay $2,000 for insurance, you could keep up to $300 in your pocket.
Consider your home’s equity. If you own a home, you might borrow against your equity at a lower rate than most credit cards. This could help you pay off your cards faster. Make extra payments if possible. Even a little more each month can shorten how long you owe and reduce interest costs. Example: According to the Federal Reserve, credit cards often have rates around 20%. If you can get a home equity loan at around 6%–8%, you might save hundreds of dollars each month in interest.
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