TRICK #4: Pay your bills automatically.
You forgot to write the check. You couldn’t find postage. You lost the pre-printed envelope that came with your bill. There are a lot of excuses for forgetting to make a payment or paying a bill late, but they all result in the same negative effect on your credit rating.
Thankfully, many banks will allow you to sign up to have all your bills taken directly out of your checking account, including your credit card, cell phone, utility and cable bills. Some banks may charge a monthly fee for the service.
TRICK #5: Ask for a lower interest rate on your credit card.
Pay yourself first, and you won't notice the money being saved
It sounds almost too easy, but this little trick is amazingly effective. A five-minute call to your lender could save you hundreds of dollars on interest charges and help you pay off your debts sooner. In 2002, the U.S. Public Interest Research Group asked 50 consumers of varying credit backgrounds to call their lenders and ask for lower rates. The strategy worked for more than half the group, with the average rate reduction going from 16% to 10.5%.
That big of a rate chop on a $2,000 balance would save you nearly $200 over 2 1/2 years. Credit card companies spend hundreds of dollars trying to acquire new customers, so they may be willing to negotiate to keep your business, says Howard Dvorkin, founder of Consolidated Credit Counseling Services. It certainly doesn’t hurt to ask. Find out more tricks to get out of debt faster.
TRICK #6: Put your savings on autopilot.
What could be sweeter than always having enough money for your savings, never forgetting to make a contribution and eventually retiring a millionaire?
All you need to do is sign up to have a fixed amount automatically taken out of your paycheck to go directly into savings or investments. When you pay yourself first, you won’t even miss the money after it’s gone.