52 Ways to Save $100 a Month | Stop Paying Interest {Week 39 of 52}

Welcome to my 52 Ways to Save $100 a Month series. We’re serious about saving money in 2016. Sometimes it’s the little things and sometimes it’s the big things. I’m here to walk you through some little things that can add up to BIG savings. 52 little things to be exact. Every week, join me back here for another small money saving tip or idea that might not seem like significant savings until you see the overall yearly savings. It might just blow your mind. So pop in each Tuesday and read a new tip that will help you on your way to save $100 a month!

I can’t stand paying interest on ANYTHING. I know it’s a necessary evil for some, but it makes me crazy knowing my hard earned money is being pocketed by banks and corporations. It all seems so unnecessary.  Okay, let me backtrack. I know that while I super support the “if you can’t pay cash, don’t buy it” model of living, I get that that is often impossible when it comes to houses, cars, college. But I do think that working towards paying down those balances as quickly as possible will help free you from the waste of money interest is!

The average American spends almost 6% of their income on interest each year. I read that recently and it made me cringe. That’s just wasted money that vanishes into thin air and you are left with nothing to show for it. So frustrating! Here’s how you can help avoid it:

Pay Down Revolving Interest Balances First: Consider any accounts or loans where you pay interest; the goal is to eventually eliminate as much of these as possible. But because this won’t happen overnight, make a plan of attack. Attack revolving credit first, as those interest rates are typically much higher. Some financial gurus recommend paying down the smaller credit card balances first, rather than cards with higher balances. You not only feel accomplished which encourages additional saving, but it free up additional monthly payments so you can work to whittle down high balances.

Make Extra Payments: This is what we’ve been focused on all year. Our goal is of course in regards to our mortgage, but you could do this with vehicle or student loans as well. If you set the goal to use every last cent of monthly savings to pay down those balances, you might discover what we have: we buy so much frivolous stuff. It was unnecessary spending because we could. We had relatively low interest rates on our loans and the payments were set and doable. We weren’t overextending ourselves, so making the monthly mortgage payment only made it easy to splurge in other areas. Since we’ve shifted that thinking this year and are working to really knock down our mortgage balance, that frivolous spending seems so, well, frivolous.

Don’t Buy It: The easiest way to cut down on those interest payments is to not buy it in the first place. We want shiny new things and shopping bags filled with new purchases. But examine your wants vs. needs. Do you really need a new car, or do you want it. Do you really need that new glass TV {HH!} or do you want it. You can use one easy tip I love: Freeze Your Credit Cards. Really helps curb impulse buying!

It’s HARD to cut back, but so worth it. Especially when you see the potential savings below…

How Much Can You Save:  $280,000. WHAT? Seriously. The typical American consumer will fork over an average of $279,002 in interest payments during the course of his or her lifetime {based on a new report from Credit.com, which analyzed the lifetime cost of debt in all 50 states, based on average mortgage balances, credit card debt, and credit scores}.

More Ways to Save:

52 Ways to Save $100 a Month | Clean Out Your Closet {Week 1 of 52}

52 Ways to Save $100 a Month | Break Up with Cable {Week 2 of 52}

52 Ways to Save $100 a Month | Barter Better {Week 3 of 52}

52 Ways to Save $100 a Month | Change Your Own Oil {Week 4 of 52}

52 Ways to Save $100 a Month | Adjust Your Thermostat {Week 5 of 52}

52 Ways to Save $100 a Month | Take Advantage of Your Perks {Week 6 of 52}

52 Ways to Save $100 a Month | Pack Your Lunch {Week 7 of 52}

52 Ways to Save $100 a Month | Make It Yourself {Week 8 of 52}

52 Ways to Save $100 a Month | Preserve Your Bounty {Week 9 of 52}

52 Ways to Save $100 a Month | Keep the Change {Week 10 of 52}

52 Ways to Save $100 a Month | The Art of Borrowing {Week 11 of 52}

52 Ways to Save $100 a Month | Ditch the Gym {Week 12 of 52}

52 Ways to Save $100 a Month | Clip a Coupon {Week 13 of 52}

52 Ways to Save $100 a Month | Start Your Garden From Seed {Week 14 of 52}

52 Ways to Save $100 a Month | Learn to Cut Hair {Week 15 of 52}

52 Ways to Save $100 a Month | Become a 1 Car Family {Week 16 of 52}

52 Ways to Save $100 a Month | Make a Phone Call {Week 17 of 52}

52 Ways to Save $100 a Month | Shop Christmas in July {Week 18 of 52}

52 Ways to Save $100 a Month | Grow a Garden {Week 19 of 52}

52 Ways to Save $100 a Month | Just Say No {Week 20 of 52}

52 Ways to Save $100 a Month | Go Generic {Week 21 of 52}

52 Ways to Save $100 a Month | Make a Budget {Week 22 of 52}

52 Ways to Save $100 a Month | Use the Library {Week 23 of 52}

52 Ways to Save $100 a Month | Kick the Soda Habit {Week 24 of 52}

52 Ways to Save $100 a Month | Improve Your Credit Score {Week 25 of 52}

52 Ways to Save $100 a Month | Shop Online {Week 26 of 52}

52 Ways to Save $100 a Month | Save on Lodging {Week 27 of 52}

52 Ways to Save $100 a Month | Play for Free {Week 28 of 52}

52 Ways to Save $100 a Month | Save Big on Birthday Parties {Week 29 of 52}

52 Ways to Save $100 a Month | Back to School Clothes on the Cheap {Week 30 of 52}

52 Ways to Save $100 a Month | Inexpensively Entertaining {Week 31 of 52}

52 Ways to Save $100 a Month | Buy Used College Textbooks {Week 32 of 52}

52 Ways to Save $100 a Month | Buy Used {Week 33 of 52}

52 Ways to Save $100 a Month | Buy In Bulk {Week 34 of 52}

52 Ways to Save $100 a Month | Skip a Meal {Week 35 of 52}

52 Ways to Save $100 a Month | Save on Medical Expenses {Week 36 of 52}

52 Ways to Save $100 a Month | Save on Christmas Spending {Week 37 of 52}

52 Ways to Save $100 a Month | Reduce Convenience Foods {Week 38 of 52}