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Be a Bargain Hunter

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Published on August 10, 2021

Be a Bargain Hunter; Start with your Monthly Payments

We all want to get the most for our money. Whether it’s a great rate on a car loan or  loyalty perks at stores we frequently visit, getting the biggest bang for your buck is always a high priority.

Some people get more for their money by shopping with coupons. If you can save on milk and cereal, why not clip the coupon. Others prefer to drive around the neighborhood looking for a few cents off a gallon of gas.

It all adds up.

Swiping Credit CardIf you fall into the bargain hunter category of carefully watching for the best deals and going out of your way to save money, here’s a suggestion: Remember your personal debt.

If you have a balance on multiple credit cards, it’s likely that rather than saving any money on these cards, you’re actually losing money each month with the interest that you’re paying.

Put your scouting skills to use and hunt down a no-interest credit card that offers no balance transfer fee with a 0% promotional rate, or even a personal loan. You’ll be amazed at how much you can save each month on interest and over the course of the entire loan.

Let's break it down

Credit Cards: Let’s say you’re paying 22% interest on a card with a $2,500 balance and 19% interest on a card with a $1,500 balance. Here’s what you’re paying in monthly interest alone.

  • $45.83  on $2,500

    • 22% APR (annual percentage rate) divided by 12 (months) = .0183 x $2,500 (total balance) = $45.83 (interest)

  • $23.75 on $1,500

You  bought a big screen TV that cost $2,200 at a big box store that charges 28% interest.

  • $51.33 on $2,200

That’s $6,200 in total debt and you’re paying $120.91 in interest alone. Principle remains the same. That’s a lot of cereal and milk.

Remember, if you make a $100 payment on the $2,500 card, you’re only really paying down $54.17 in principle because $45.83 of that payment is going to interest.

Get off the ride

How do you get off of this interest merry-go-round? Consolidate your debt and pay the interest once, not on multiple monthly payments. The easiest way to do this is with a personal loan. The interest rate is usually much lower.

With a Signature Loan from Community Choice, the interest rate can be as low as 8.49% for up to 72 months. But let’s do the math at 12%.

  • 12% APR divided by 12 = .01

  • .01 x $6,200 (total debt) =

  •  $62.00 (monthly interest).

That’s a savings of $58.91 for the month.

These numbers change as you pay down principle. For instance, when you pay $100 off your principle ($6,100) in the above scenario, your interest would be $61.00 that month.

If you can find a credit card that offers 0% interest for 6, 12, or 18 months, consider that, as well. Transfer your balance and start paying down the principle. Even when the 0% offer expires, you’ll likely still be saving money because you will have paid down what you owe.

Do the math yourself or use this handy calculator to see how much you need to pay in order to pay off your debt in a predetermined amount of time or how much you can save when you consolidate your debt.

There are several free and easy to use calculators on our website that can help you visualize your payments and savings for all your financial needs. It’s nice to experiment with the numbers to see exactly how much you’ll spend and save.

Take the time. Search out the deals. Consolidate your debt and save money. If your inner bargain hunter loves saving a few pennies, think of the thrill you’ll experience when those pennies turn into serious dollars!

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