The magic concoction – Rigging frugal living with debt consolidation

Debt consolidation is an option which helps in facilitating the debt payments, as the interest rate gets lowered and all of the debts get rolled over into one. So, you might be thinking as to why would you even be required to practice frugal living, while consolidating debts. The reason is that frugal living helps you live better with less. As you do this and as you get to save more money through frugal living, you would have the opportunity to use that money towards making larger debt payments.

Working off the debt load through frugality

Frugal living requires you to be wise, wise with money. So, you get to learn money management more closely and you learn to take even smarter decisions than before. You will first be required to opt for debt consolidation, and roll together your unsecured debts. This will also lower the interest rate on the debt. Therefore, making debt payments are going to be easier for you. Now, if you team up frugality with consolidation, you will have extra money in hand which can be forwarded towards consolidated debt payments. In order to maintain a frugal life and go on making consolidation payments, you will be required to:

1. Save your pennies – Saving even the pennies is an important trick. Pennies will eventually add up to grow into a large amount, which would be worth saving. You may also be able to use it toward making a little debt payment or two in time.
2. Try DIY tactics – Rather than getting help for almost anything and everything, do things yourself. This will help you save up money and workout at the same time. Although, it may not be possible to do all of the tasks, you can at least try some of the simpler things.
3. Lower credit card usage – You need to lower your credit card usage, if you want to stop debt from incurring. Credit cards are in fact the most common tool which easily result in unmanageable debt.
4. Save over coupons – You can try saving over coupons as you can get everyday items at a discounted price. However, you will have to stay organized if you want to save money through couponing.
5. Plan ahead of time – Plan everything ahead of time. For example, if you are going to travel, book tickets ahead of time. If you are into couponing, plan your daily meal as per the coupons available.

Image Sources: Coupons, Piggy

Some important factors to consider

While consolidating your debts and practicing frugal living, you will have to keep some important factors in mind. These are:

1. Do not incur further debts – In order to become debt free soon, stop incurring further debts.
2. Use cash – It would be better to avoid using credit cards altogether, and rather use cash for day to day shopping. Keep credit cards for emergency purposes.
3. Don’t overdo frugal living – Avoid overdoing frugal living, or else you will end up more deep in debt.

So, this is how you can go on to improve the amount of money you have in hand, if you want to become debt free soon enough through consolidation and frugal living.

About the author

Audric Stevens is a financial expert and a contemporary writer. He is involved in various online activities through which he imparts financial lessons to people with diverse needs. In addition to that, he is closely working with the ‘debtconsolidationcare community’ at the moment that has several interesting and prudent financial tips for people to use. If you like this article please follow us here.