Ways To Save Money To Cope With Unplanned Bills

There are ways to save money, especially when surprise expenses pop up out of nowhere- that will force you to shell out a pile of money on short notice. There are ways to save money to cope with unplanned bills.

Ways To Save Money [Photo: Financial Post]

Best Ways To Save Money

According to an article by Ashley Maready, 63% of American employees can’t cover a $500 expense out of savings, but there are ways to save money to cope with unplanned bills.

Deferred Interest Financing- the first strategy and the best way to save money. This is sometimes offered, especially when you make a large purchase like a home appliance. It’s a common feature of store credit cards. How to use deferred interest financing without risking your wallet? For example, you make a large purchase like a new washing machine. The washing machine you picked out costs $800, and you want some time to pay for it. So, you apply for a store credit card that offers a year deferred interest on purchases below $1,000. When taking this offer, you won’t be charged any interest during that year. But, if you are unable to pay the remaining balance when the time is up, you will be charged interest on the entire cost. If you pay every month with the exact amount, you will avoid those interest charges. Deferred interest financing is not a bad strategy, especially when you make your payments in full and on time- it will improve your credit score to qualify you for better credit cards later.

Credit Card With 0% APR- this strategy will give you a set timeframe during which you can use the credit card and not earn interest on your purchases. Using a credit card with 0% APR when you make a large purchase and are unable to pay it during the intro period, you will not have interest charges on the entire purchase- ONLY the remaining amount on your card when interest starts to apply. A credit card with 0% APR is the best way to finance a large purchase, but it has credit score requirements. If your credit score is a little shaky it is hard to qualify for a good 0% APR credit card.

Deferred interest can cost you interest charges if you are not careful. Before deciding, always do your own math to figure out how to pay your purchase before interest is charged because using the wrong credit card can cost you serious money. A credit card with 0% APR is the best ways to save money that experts use it personally.

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