IRA vs 401k
Credit
April 10, 2019
By Mary Beth Eastman

You Can Save Money and Build Credit … Starting Now

Simple. Thrifty. Living.

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Saving money and establishing a credit history are two of the most important things that you can do build a secure financial foundation. Unfortunately, the average American household has nearly $7,000 in credit card debt.

You can change your financial future by making smart decisions.

Don’t wait. You can start now.

Credit card companies love it when you pay your bill late. Late payments give them the opportunity to charge additional fees. Many companies also use late payments as an excuse to raise interest rates.

Of course, other types of companies benefit from late fees, too. Make sure you pay all of your bills on time to avoid extra charges that make it harder to reduce your debt and save money.

The typical credit card provider charges about 15% APR. Some cards, however, charge 20% or more. We’ve collected the best credit cards as well as credit cards with low rates.

No matter what rate you have right now, contact your credit card provider and ask for a lower interest rate. Explain that you want a lower rate so you can repay the balance sooner.

Some credit card providers won’t lower your rate. Others will. You never know until you advocate for yourself.

Unless you have payday loans, your credit card debt charges you the highest interest rate. If you have payday loans, start repaying them immediately. They can haunt you for the rest of your life.

Commit to repaying your credit card debt as quickly as you can. Doing so probably means that you need to change your spending habits. Take a close look at your daily, weekly, and monthly expenses to find expenses you can cut. Dedicate your new-found money to lowering your credit card balance every month.

Eliminating credit card debt will help in at least two ways. You’ll have more money to save because you don’t have to pay interest anymore. You will also improve your credit score, which makes it more likely that you can qualify for low-interest loans in the future.

You don’t need to think about saving money. You can make it automatic by setting up an online savings account that draws weekly, biweekly, or monthly contributions from your checking account.

When you never see the money, you feel less tempted to spend it.

For the best results, choose a savings account that pays a high interest rate. Some of the best options include:

  • HSBC Direct Savings (2.5% APY)
  • Marcus by Goldman Sachs Online Savings (2.5% APY)
  • Barclays Online Savings (2.2%)

Many people feel like saving money and building credit is impossible. When you take the right steps, you can improve your financial standing. Starting with these tips today could put you in a better position within just a few months.

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