Three Tips for Saving Money

"Three Tips for Saving Money"

Saving money regularly is no doubt a goal for most people, but more often than not, it is easier said than done. There are bills and emergency expenses to face that eat up most of your monthly income. Add loans to payday to the equation and getting on that road towards financial freedom seems to be next to impossible.

Indeed, it could be overwhelming to deal with all your finances, especially if there are interest rates on loans that keep you from saving even just a little from your income. You are not the only one dealing with this, though.

Records show that Australia has one of the highest levels of household debt worldwide, with a debt-to-income ratio that has been alarmingly increasing. The Australian Securities and Investments Commission stated that about 1.9 million or 15 percent of Australian ask for financial assistance due to credit card debt, whilst 30 percent are struggling financially due to personal loans.

Whilst these figures can put off anyone who wants to regain their financial freedom, the good news is that there are ways you can adopt to help you start saving again and in the process, achieve the financial freedom you have always wanted for yourself.

1. Make a conscious effort of paying off your loans on time – or earlier than the agreed term

Paying off 100% acceptance rate loans in a timely manner lifts off the burden of having to deal with additional charges due to late repayments. What’s better than that, however, is making repayments much earlier than the agreed payment schedule.

When you make early repayments, you can take advantage of lesser interest rates, which means you don’t have to shell out more money. Moreover, you can pay off your loan at a much shorter time, which also mean less financial stress for you.

How do you avail yourself though of early repayments? Below are some ways you can do to pay off your same-day loan quicker:

  • Ask your lender if they are offering early exit fees. Early exit fees can offset the extra amount you have to pay for your loan repayments.
  • Check with your lender if you could avail yourself of a lower interest account. Even much better if you can transfer to a no-interest account that can help you save money on interest rates.
  • Assess your income if you can afford to pay an extra payment for your loans every year to shorten the time you have to pay off your dues.
  • If you can, add a little extra when paying off your loans. This means paying more than the minimum payment required, which can help pay off your direct lender loans quicker.
  • Consider paying off your loans every two weeks. Compared to monthly terms, payments that are made twice a month or even every week ensure that interest won’t accumulate.
  • Find ways to earn more by taking on extra jobs on your free time. You can do freelance writing if you have the skill and use the income you get from this source to make early repayment for your loans.
  • Adjust your living expenses budget. See where you can spend less, so that you can put more on your loan repayments.
  • Be on top of your loan payment schedules. This means keeping in mind your due date every month to avoid late payment fees.
  • No broker loans will allow you to work directly with a lender, whereas using a broker will help introduce you to a number of direct lenders, which can help if you are finding it difficult to get a loan.

By incorporating one or two of these solutions into your financial planning, you will be able to pay off your loan quickly, whilst saving a lot of money in the process.

2. Refinance your loan

Consider consolidating all your loans into a single one that you can easily pay off. You can do this by availing yourself of a large loan, which you can use as payment for your smaller loans.

By paying just one loan, you no longer have to keep track of multiple payment periods. You also don’t have keep up with paying multiple interest rates.

A simple way of consolidating debt is by transferring your loans under a 0% balance transfer scheme. Make sure you meet your payment due, though, as the interest can go up to an amount that is equivalent to 22% of the loan you originally acquired.

To know if consolidating your loans is right for you, it is best to weigh up its advantages and disadvantages.


  • You only keep track of one due date
  • You don’t have to deal with multiple interest rates
  • You only have one billing statement, which means lesser paperwork
  • Since you only have one loan, you don’t have to deal with a lot of other fees or charges
  • With just one debt on your name, this looks good on your credit rating
  • You can easily manage your budget with just a single loan to deal with


  • You can pay more on interest rate if the larger loan has a higher one, compared to all the interest rates of your multiple loans combined
  • Late repayments can mean higher interest rates
  • Sometimes you have no way of knowing if the lender offers transparency when it comes to the interest rates or other charges. There are some refinancing institutions that may lure you into availing low interest rates on a loan, yet there are actually hidden charges.
  • Some refinancing institutions will tempt you into availing new credit on your loan, which will only let you pay more than you can actually afford.

If you wish to get a no credit loan because you think your credit history is preventing you from qualifying for a loan, apply with Perfect Payday today.

Keeping in mind these pros and cons, think long and hard if getting a larger loan to pay off your pensioner loans is the best option for you. Decide within the context of getting more savings and quickly paying off your loans.

3. Don’t spend on what you don’t need

This one is very simple yet very hard to actually put into practice. However, if you consciously make an effort to avoid buying things you don’t need, you can use the money to pay off your loans instead or just simply keep it in your savings account.

With these simple tips, you will be on your way to being more responsible about money and regaining your financial freedom through easy ways to save.

Keep these in mind when availing yourself of loans

If you do consider availing yourself of a loan, there are a few things you have to remember before filing that application.

1. Ask yourself if you really need to get a loan to pay off your smaller loans. Remember that getting a larger loan will have a higher interest rate. It will not be cost-effective in the long run if this interest rate is much larger than what you originally pay for your smaller loans.

2. Should you really be paying off your loans quicker? If not, then it would be smarter not to rush into paying off much earlier than the agreed payment schedule, especially if your income cannot accommodate to make early repayments.

3. If you decide that paying off your loans quicker is the best way, make sure to only deal with a reputable financing institution. Ask for recommendations from friends or family members and don’t forget to research on the lending company you intend to get a loan from.

4. Don’t hesitate to explore your options. Ask for the best deals and payment schemes on loans being offered. Know everything there is to know about the loan you wish to avail.

5. If you need more information about loans and other finance-related issues, get expert help from accredited websites like Money Smart. You can make sound financial decisions when you are guided with more knowledge about your situation.

Remember that your decision should be able to meet your goal of saving whilst staying on top of your financial obligations. Always keep in mind that your aim is to ultimately gain financial freedom.

About the Author

Lucy has over a decade of experience in finance. She is currently the content curator here at Perfect Payday.

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