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5 Ways to Lower Monthly Payments Before End of the Year

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Peak Credit Union
4 min read

As the year draws to a close, you might be looking for ways to reduce financial stress and free up extra cash funds. Lowering your monthly payments can help you start the new year on a stronger footing. Whether you’re dealing with credit cards, loans, or household bills, there are practical strategies you can use to cut costs.

Let’s explore five ways to lower your monthly payments before the end of the year — and set yourself up for financial success next year.

1. Refinance Your High-Interest Loans

If you have loans with high interest rates — such as personal loans, auto loans, or even a mortgage — refinancing them can significantly reduce your monthly payments. By securing a lower interest rate or extending your repayment term, you can make your monthly obligations more manageable.

Why this works:
Re-financing to get a lower rate can help alleviate the burden of your previous borrowing costs.

Pro tip:
Check your credit score before applying for refinancing. A higher credit score often results in better rates.

2. Consolidate Your Credit Card Debt

Credit card debt can be one of the biggest drains on your monthly budget, especially with interest rates often exceeding 20%. Consolidating your balances into a single loan, or a balance transfer card, can help you lower your monthly payment and simplify your finances.

Options to consider:

  • Balance transfer credit card. Can offer a low or zero percent APR for an introductory period. Be aware that often there is a fee to transfer balances to a new card. 
  • Debt consolidation loan. Fixed monthly payment at a lower interest rate.

Pro tip:
Search for “best balance transfer cards” or “low-interest debt consolidation loans” to find current offers from financial institutions and then compare them to find the best solution for your needs.

3. Negotiate Lower Bills

Many people don’t realize that monthly bills such as cable, internet, and even insurance can be negotiable. A quick phone call to your provider could result in discounts, promotional rates, or bundled savings.

How to negotiate lower bills:

  • Call providers and ask about their current promotions.
  • Mention competitor offers for additional leverage.
  • Consider downgrading to a plan or switching to a provider that better fits your needs and budget.

Pro tip:
If you’re pressed for time, consider using apps or services that negotiate bills on your behalf.

4. Review and Cancel any Unused Subscriptions

Streaming services, gym memberships, and subscription boxes add up quickly. Reviewing your monthly statements and canceling what you don’t use is one of the fastest and easiest ways to lower your expenses.

Action steps for managing subscriptions:

  • Check your debit and credit card statements for recurring charges.
  • Cancel or pause subscriptions you rarely use.
  • Consider sharing plans with family or friends to split costs.

Pro tip:
There is no shortage of advice online about cutting subscription costs. To get started, try online search terms like: “Best apps to track subscriptions” or “how to cancel unused subscriptions.”

5. Adjust Your Budget and Automate Your Savings

Sometimes, lowering monthly payments isn’t only about reducing bills. It’s about managing your money smarter. Creating a realistic budget and automating your savings can help you avoid overspending and keep more cash in your pocket.

Smart budgeting tips:

  • Use a budgeting app to track income and expenses.
  • Set up automatic transfers to a savings account.
  • Allocate extra funds toward debt repayment to reduce future payments.

Final Thoughts

Lowering your monthly payments before the end of the year doesn’t have to be complicated. From refinancing loans to cutting subscriptions to adjusting your budget, there are practical and effective ways to save money.

Start with one or two of the strategies we covered today, and you’ll notice a difference when the new year rolls around.

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