Thursday, March 23, 2006

Bill Re-Evaluation

The whole fiasco with my auto insurance reminded me of the importance to re-evaluate all of my bills. It has been a while since the last time I really went over what all my monthly bills were and whether or not there were ways I cut back. So in the past week I have been doing some thinking and have decided on a couple of money saving sacrifices:

1) After comparing all of the auto insurance companies I decided that Unitrin was the most cost effective and reliable insurance companies, even with the additional $40 fee for renewing my policy. Even though I couldn't get that fee waived, after changing some of my coverages to what was more approriate (lowered bodily injury liability and dropped towing and rental car expense coverages) I was able to save $40 off of my premium.

They had also increased the per payment fee from $3 to $5. So I decided instead of paying on a monthly basis I would just pay for it all up front. This will hurt the debt repayment in the short term but after the initial hit I'll have more money per month to pay towards the credit card.

2) I cancelled my subscription to Audible. I don't commute anymore so I don't have any real need for audiobooks and I have a ton that I haven't listened to yet. That will save me $15 a month.

3) I changed my student loan repayment schedule from the most agressive repayment plan to the least expensive per month. That will free up an additional $50/month to put towards the credit card. While this may not save me any money (either way it would have gone towards debt) it will help me out mentally by speeding along the process of paying off the credit cards. Once the credit cards are paid off I'll be able to focus all of my energy towards paying off the student loans.

The end is near, I can almost taste it. The closer I get, the more excited I get and hopefully making these few small changes will help me along my way.

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3 comments:

LeighAnn said...

Such a good girl!

Livia said...

Hey girlie. I just discovered your blog from the article in Money magazine. I just want to say "KEEP UP THE GOOD WORK". My husband and I were in 8,000 of credit card debt when we got married. We got out of that in 2 years and have gone on to pay off both our cars, pay off our student loans, buy a house and save up a cushion of $32,000. It can be done!!!!! Our net worth is now over $200,000. You never lose the discipline in your life after you get out of debt like that. It's so great to have financial freedom. You are really close, keep it up. It's worth it!!! Livia

mapgirl said...

Actually changing your student loan payment plan means you're going to pay less interest on your credit card debts. Usually a credit card has higher interest rates than a federally backed student loan, so it's a smart move!

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