The economic downturn combined with inflation is hitting families hard, whether it’s in the form of high gas prices, rising food costs or other increases.
Consumer-affairs reporter David Migoya searched out some popular — and some unusual — options for cutting costs in a variety of areas:
Forget the garage sale
EBay and craigslist have been hot spots for people trying to turn their trash into someone else’s treasure.
Garage sales generate pennies on the dollar, whereas online auctions and listings could do much better.
Consolidate those cards
But don’t close the accounts. You’ll often do better by transferring your outstanding balances onto the card with the lowest rate.
Ask, too, if transfers have special rates, which they often do. But note that new credit-score calculations look favorably on unused credit lines. Canceling a credit card negatively affects your debt-to-limit ratio, lowering your score.
Reach for the tap
Instead of bottled water, which in many cases is no safer or better-tasting than most tap water, fill up at the faucet.
ABC News recently compared bottled water with New York tap water and found little difference in bacteria and purity.
Stock up groceries on sale
Most grocery products go on sale once every 12 weeks and usually for up to a third off. Instead of buying certain items once a week, stock up for as much as three months. Of course, this wouldn’t apply to foods that spoil, unless they freeze well.
Good-driver discount
Consider overhauling your auto-insurance cover age by increasing your deductibles, especially if your car is older. Increasing your deductible from $200 to $1,000 can reduce your premium by up to 40 percent.
The same goes for homeowner’s policies. Also, think of consolidating both policies under one carrier.
Insurers will often give rate cuts for bundling coverages.
Leave retirement alone
Resist the temptation to pull from retirement accounts such as an IRA or a 401(k). Not only do you risk serious penalties, but you toy with your future.
Things may be tough now, but think how much harder it will be when you’re less employable and have no retirement savings.
Avoid the plastic
If things are tight, it’s best to pay with a check or cash for your purchases, keeping your finances honest and precluding unnecessary debt.
If you want to accrue points or other rewards on your credit card, pay with plastic and write the check out to the credit-card company when you get home.
