Saving Money in these Challenging Times

This is a difficult time financially for many people in South Florida. People have not only lost jobs but have no idea when they will find another. Even those who have had their hours reduced do not know if they will ever return to full-time employment.

With finances tight, saving money is at a premium. Below, our Plantation bankruptcy attorneys identify some of the key ways to free up money.

Consider Refinancing Your Mortgage

Mortgage rates have fallen in many areas of the country, and now might be a good time to refinance. We offer a note of caution, however. Homeowners should refinance their existing balance, not take a “cash out” refi, which involves taking out a new mortgage for more than you currently owe on your existing one. A cash-out refi is an easy way to gain access to cash, but it comes at a price. Your mortgage payment won’t decline as much. Also, you are at risk of going into default and losing your home.

Refinancing makes the most sense if undertaken to reduce your monthly payment. When you feel on stronger financial footing, you can contribute more each month to the principal and pay off your mortgage faster.

Fox Business notes that banks have gotten more selective about who they approve for refinancing because of the COVID-19 pandemic. Nevertheless, if you and your spouse still have income coming in the door, you might qualify. You should certainly discuss this option with a lender.

Save Money in the Kitchen

People spend a lot of money on food. The recent pandemic has helped many people realize that they can save money by cooking meals at home. There are other easy ways to save money in the kitchen:

• Use your freezer. You can freeze almost any food, so if you find a great deal on meat, bread, or vegetables, load up and freeze whatever you don’t immediately eat.
• Avoid buying bottled water. Instead, it is usually cheaper to install a filter.
• Eat leftovers instead of throwing them away. You can often get an extra meal this way.

This summer, you can also start a garden, which gives you something to do outside but also allows you to restock your refrigerator more cheaply.

Consolidate Debt

Take advantage if you have access to a credit card that offers 0% APR for 12 or more months. By transferring balances with a higher interest rate, you could potentially save hundreds of dollars each month on interest. You can pocket the savings and use them to pay bills. Any money left over each month can go into paying off your balance faster.

Consider Bankruptcy

Wiping out certain debts in bankruptcy can also help those who are financially strapped. Our clients can avoid having to repay certain debts. Even better, they often free up more money each month that can go to those debts that they can’t eliminate in bankruptcy (such as their mortgage).

Contact Nowack & Olson today. We have offices in Plantation, Miami, Boca Raton, and Jupiter. You can schedule a consultation by calling 888-813-4737.

Resources:

zillow.com/mortgage-learning/cash-out-refinance/

foxbusiness.com/money/refinance-mortgage-rates-savings-these-cities

https://www.floridabankruptcynow.com/americans-are-carrying-record-amounts-of-consumer-debt/