I’ve said it before; I’ll say it again. Long Islanders are suffering financially, and we’re not alone.
In America, 38 percent of households carry credit card debt with an average outstanding balance of $16,000.
This kind of debt is usually worse right after the holidays. It’s time for Long Islanders to get their financial houses in order.
I’ve always had a passion for business and investing; and, as my wife Renée likes to say, I’m “fluent in the language of money.”
I’m always working at lowering our monthly nut, and you can too! Here are some suggestions to run your financial life more efficiently.
Credit Card Debt
As previously stated, 38 percent of American households owe $16,000 in credit card debt.
The average interest rate charged, about 14.95 percent, makes credit cards one of the worst choices as a source of debt.
On Long Island, credit unions usually have the most competitive credit card rates.
For example Suffolk Federal Credit Union has a 0.00 percent 6-month introductory rate on both purchases and free balance transfers.
After the introductory period ends, the rate can be as low as 7.74 percent. It’s worth the time and effort to make the balance transfer and change credit cards!
Mortgage Payments
Most conventional mortgages are for 30 years and pay off interest and principal with a monthly payment.
If you pay your mortgage every two weeks instead, you will make 26 annual payments, or one extra monthly payment a year.
This will shave off roughly five years of mortgage payment. Make sure your lender deducts the payments immediately as some wait until month’s end to give you credit.
There may be some fees the servicer of your mortgage will try and tack on.
Don’t ever accept the statement, “This is standard and customary.”
Everything is negotiable! Don’t be afraid to ask to have fees waived.
Cell Phone
Fierce competition among cell phone service providers creates opportunity for the consumer. Don’t be concerned about switching services if savings are to be had.
Quality of service is relatively consistent among providers throughout Long Island.
I recently called Verizon and found out they roll over unused gigabytes of data so I lowered my plan from 40GB a month to 18GB for a savings of $60 per month.
I also noticed I was paying $40 per month for smartphone line access.
When I told the customer service rep this seemed way too high and asked if Verizon could do better, it was cut in half to $20 per month. My family cell phone bill is now $140 per month cheaper.
Cable TV and Internet
Just like cellphone service, there is fierce competition for cable TV and internet connections.
Dish Network, Verizon/Fios and Cablevision/Optimum all want your business.
If you don’t call your provider every six months to check on the latest deal you are actually losing out.
Although I am currently already on a “promotional rate,” a quick call to my cable and internet service provider saved an extra $20 per month.
Banking
Heavy competition for your business means you should have free checking and overdraft protection.
Consumers shouldn’t have to pay a monthly maintenance fee or for many bank services such as wires, overdraft protection or an insufficient funds fee.
When these fees hit up, if they aren’t already free, complain! If you are a good customer these annoying fees are usually waived.
Long Island has several credit unions such as NEFCU, Bethpage or Nassau Educators Federal Credit Union, which are competitive and worth a look.
Other Bills
Other negotiable household bills that need to be shopped around at least once a year are home heating oil providers, auto and homeowners insurance.
For example I just switched from Geico to Liberty Mutual for auto insurance and saved $2,500 per year.
The gecko on the commercials may be cute but Geico didn’t provide a competitive quote when my son was recently added to our auto policy.
My father gave me great advice many years ago: “You don’t get poor from asking.”
Now stop wasting your precious, hard earned dollars and go out there and negotiate!
