For roughly $15 out of pocket, you can refinance your car loan as well—right now, the average interest rate on a 36-month used-car loan is 7.89 percent. If your original interest rate was three points higher, you could save about $35 a month with a simple refi. To do it, call a local credit union (a good source for loans). If you’re not already a member, find one at the Credit Union National Association, cuna.org.
If your credit card interest rates have soared, call your company and ask for a reduction. If the answer is no, look for a balance transfer offer at a lower rate and make the switch. It’s important to remember that paying down a credit card balance gives you a guaranteed return equal to the interest rate on the card. That makes it a better deal than just about any other investment these days.
Take a whack at your insurance bills
Too many people consider homeowner’s insurance a fixed expense because they make the payment with the mortgage, says financial adviser Ellie Kay, author of Living Rich for Less. That’s wrong. “You could save hundreds of dollars in some cases by having the policy reevaluated,” she says. “Tell the insurer you’re shopping around. It’s incredible motivation for them to look for discounts.” Those include rate reductions for improvements such as security systems and roof upgrades. Increasing your deductible to $1,000 can get you another 20 to 25 percent off. If you buy home and auto insurance from the same carrier, you can net 5 to 15 percent off both bills.
A recent survey noted that 25 percent of consumers believe auto insurance rates are standardized among companies. Also wrong. Many discounts are available; make sure you’re getting the “midcentury” rate for drivers ages 30 to 59. And watch which driver is assigned to which car: A stay-at-home parent should be on the vehicle that’s most expensive to insure. You can save by shopping around for this insurance too. Start with a quote from your current agent, then compare that with quotes from Geico, esurance.com and other companies.
