5. Pay down/Pay off Charge Cards

Pay down/Pay off Charge Cards

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Savings per year: $840.00

Most Americans carry between $4,000 and $6,000 of credit card debt each year, and few manage or even try to pay them off. If you’re trying to save money, this ought to be a priority! Assuming you owe only $5,000, and your interest rate is a relatively low 9%, you could pay upwards of $500 in interest alone! That doesn’t even include late fees, over-limit fees, annual fees, or any of the other fees your credit card company might charge. Consider this — credit card companies rake in billions of dollars in interest and penalties every year, so why would they want their customers to pay off their debt? Paying off your charge cards will not only save you a lot of money on a ridiculous thing (interest), it will also improve your credit rating and that will really come in handy when you need that home improvement loan you've been considering.

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