calculating expenses

Strategies to Reduce Your Expenses and Pay Off Your Debt

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Do you know that the average Arizona resident has a per capita debt load of about $50,000? Not only is that debt way more than that of the average American, but it’s also more than the per capita income within the state.

So if you are struggling with debts, know that you are not alone. But you can change your circumstances by cutting down on your expenses, saving money, and using it to pay off what you owe your creditors. Here are several tips on how to get started:

   1. Buy a used car

Chances are that you need a good car to get around. But that doesn’t mean you should buy the latest car on the market. There are plenty of high-quality used trucks for sale in AZ that you can buy for your needs.

The moment you drive a new car out of the dealership, it begins to depreciate. That means it loses value almost instantaneously and whatever you pay will be much more than the value of the vehicle. On the other hand, used trucks are much cheaper and will depreciate at a slower rate. That means what you pay for the car in the end, is usually equal or less to the value of the car in the long term. And even if the buying price is high, you will not lose as much as you would if you bought a new truck.

Because used cars are usually cheaper, you will save money during a purchase. And even if you opt for a car loan, the cost of car payments would be much lower and you will save money. Those savings will be quite handy in helping you cut down your debts.

   2. Get a cheaper home/mortgage deal

There are times when you have to take drastic measures to get ahead. And one way you can do that is by finding a cheaper home to live in. The home you choose might be smaller or in a less desirable location. But what matters is that it is livable and more affordable.

Studies show that the difference between Arizona homes with the highest and lowest rates is $61,145 over a 3-decade period. That translates to a monthly cost difference of $170 where mortgages are concerned. So by choosing a cheaper home or shopping around for a better mortgage interest rate, you might be able to save enough to wipe out your debt in a few years.

   3. Cut back on dining out

How much do you spend on dining out each month? Have you ever sat down and thought about it?

Research shows that the average cost of a date is $106.36! Assuming that you go on two dates a month and choose to cut back by just one, you will save that amount each month. And over one year, you would have saved over $1200! There is no doubt that you can cut down on at least one of your debts by that amount if you eat in more often.

If you are willing to make some sacrifices and use strategies such as buying used trucks for sale in AZ, eat in more often, and downsize your home, then you will cut down your expenses significantly. And doing so will enable you to save enough money to pay off some of the debts that are choking you right now. Or you could use those savings to fund your dreams and do fun things like travel.