It’s easy to land in a low-cash situation — no matter how careful you are with your money. Maybe you lost your job, had to use a credit card to make ends meet, and don’t know what to do about the debt you racked up. Or maybe your student loan payments have ballooned into a massive burden each time the monthly payment comes calling.
Whatever the case, you’re probably wondering if there’s any way to turn things around. Luckily, the answer is “yes.”
Here are five strategies that could save you money fast.
1. Consolidate your debt with a personal loan
Having a bunch of high-interest debt could be slowly bleeding your bank account to nothing. Even if you keep making the minimum payments on your accounts, it might feel like there’s no end in sight. But a personal loan could change all of that.
You can use a personal loan to consolidate all of your debt into one new loan with a new interest rate. Here are a few of the benefits:
Could help streamline your repayment (no more juggling 10 accounts!)
Might get a lower interest rate than you’re currently paying
Could save more money with a rate discount if you sign up for automatic payments, depending on the lender
If you decide to take out a personal loan, be sure to consider as many lenders as possible to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in two minutes.
2. Earn extra interest with a high-yield savings account
With the national average interest rate on savings accounts at as measly 0.05% as of Dec. 2020, it’s unlikely your savings account is earning you much interest. But with a high-yield savings account, you could get a much higher rate of return — possibly up to 10 times the national average. This means extra cash in your pocket simply for saving money — ka-ching!
If you’re not sure where to start, there are a few options for high-yield savings accounts available from Credible’s partner lenders. Keep in mind that none of these accounts require you to maintain a monthly balance nor do they charge monthly maintenance fees.
3. Switch up your car insurance policy
If you own and drive a car in the U.S., you might be overpaying on your car insurance. But searching for a new provider can be time-consuming and overwhelming. That’s where insurance brokers come in.
You can compare auto insurance quotes for free with Credible’s partner Young Alfred. Customers who’ve used an auto insurance broker like Young Alfred have saved hundreds of dollars per year.
4. Take control of credit card debt with a 0% balance transfer card
A balance transfer card could help you consolidate and pay off credit card debt without racking up interest charges along the way. This might just sound like another credit card, but hold up: If you move your balances to a balance transfer card with a 0% APR introductory period, you could avoid paying any interest if you’re able to repay your balance by the time this period ends.
Just keep in mind that if you don’t pay off your card in time, you could be stuck with hefty interest charges — meaning this method is likely better if you have a lower balance to start with.
5. Slash your interest rate by refinancing your student loans
Student loan debt can be a major burden to carry. One way to pay off your loans more easily is through student loan refinancing, which combines your federal and private student loans into one new loan with a private student loan lender. You can also refinance only part of your debt if you’d prefer.
By refinancing your student loans, you might:
Qualify for a much lower interest rate than what you currently have, which could reduce how much you pay over the life of the loan
Extend your repayment term to dramatically lower your monthly payment and loosen up your monthly budget
Keep in mind that while you can refinance federal student loans, you’ll lose your federal benefits and protections — including access to income-driven repayment plans and student loan forgiveness programs.
Additionally, federal student loan interest and payments have been suspended during the pandemic by the CARES Act until Sept. 30, 2021. Because of this, it might not be a good idea to refinance federal student loans right now. However, if you have private student loans, refinancing could help you take advantage of lower interest rates.
If you decide to refinance your student loans, be sure to shop around and compare as many lenders as possible to find the right loan for your needs. This is easy with Credible — you can compare your prequalified rates from our partner lenders in the table below in just two minutes.