Quick Consumer Guide To Reduce Debt

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Today it seems the price of everything is going up. From food to gas consumption, you are spending more of your hard earned money. For example, due to the unrest in Libya, industry analysts are projecting gas prices in the Midwest will go up to $4.99 a gallon by the summer of 2011. This will not only affect the gas at the pump, but gas and oil used to warm your home, start the lawnmower and cook your food. The after effects of these price increases mean less discretionary income in the pockets of consumers.

This quick guide to reducing debt will not cure all debt problems, but find ways to reduce your current monthly expenses and eliminate some of your debt.

UTILITY

Electric devices in the home drain a certain amount of electricity. Some items such as clocks, timers, televisions, computers, game consoles, phone chargers etc., draw electricity even when turned off. When added to your electric bill these devices can add hundreds of dollars to your electric bill. Try unplugging the majority of these electrical devices and compare the cost when constantly in use as opposed to unplugged and see if it makes a significant difference in your monthly/annual electric bill.

CABLE TV

I know, I love my cable television package too, but if you had cable for over a year or two, look at the amount you initially paid and compare it to what you pay now! Its gone up. Consider how much television you and your family watch, and consider reducing your cable package to basic and maybe just one premium channel. You wont miss much, but you will save money by the end of the year. Canceling the service may seem extreme, but most premium packages run between $100.00 to $160.00 per month. At $160.00 per month this means a savings of $1,920.00 per year.

FOOD

We obviously cannot cut out food, but we can adjust the way we spend money on food. A middle income family of four spends $550.00 to $700.00 monthly on food. In Illinois, under the Supplemental Nutritional Assistance Program a family of four may receive up to $688.00 per month in food benefits. Money spent on food can be decreased by packing lunches, cooking more at home and eating out less. Daily lunches at fast food establishments can cost about forty dollars a week and restaurant dining with tips approximately thirty dollars per meal.

INSURANCE

If you have a homeowners or car insurance policy, consider taking the higher deductible to reduce monthly costs. If your deductible is in the $250.00 dollar range, you could see a significant decrease in your monthly bill by increasing the deductible between $500.00 to $1,000.00. If you are not comfortable with the high deductible, talk to your agent and see what options are available to you at the higher amounts. Based upon how much you drive you may be eligible for certain driver discounts.

Vincent C. Ragland is President and CEO of PLANS. PLANS can be reached at (312) 286-6886 and by Email at Vncnt599@sbcglobal.net

Extended Warranty

You can save on auto insurance premiums if you drive carefully and shop carefully. Here are some tips:

Safe drivers save money. You know that your premiums are related to the number of accidents you have; indeed, too many accidents and you may be dropped altogether. But did you know that speeding tickets and other moving violations can boost premiums, too?

What kind of car will you buy? Insurance premiums are based on the cost of the car, and the cost and number of claims other drivers of the same vehicle make. Pricey sports cars top the list.

A smart way to save on costs is to raise your deductible, assuming you can pay that deductible out of pocket if you have an accident.

And take advantage of all the discounts you can, starting with a multiple-policy relationship with the same insurer. Get a driver-improvement-course discount and others for good students, students away at college and antitheft and anti-collision devices.

Well work with you to get the best deal in a custom-tailored auto policy at 526 East 87th Street or call us at (773) 651-6200.

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