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How to save money with the way you pay

How will you pay for this today? Maybe it’s time to change the way you answer this common checkout question.

With more payment options than ever, consumers can find easy ways to save money, simply by using a different payment method.

Consider cash

Some merchants will provide discounts for cash purchases of goods or services. Using cash can also make it easier to stick to your budget. But watch how you access your cash. Use an automated bank machine (ABM) owned by your financial institution – withdrawing from a different institution’s ABM could cost more than $8.00 per transaction. Avoid taking a cash advance on your credit card since interest will be charged on those funds right away.

Debit cards can carry costs

Debit can be a good option, as long as you are not paying extra fees per transaction.  Check how many free debit transactions are included with your bank account package.

Make your credit card work for you

Credit cards can be a convenient and safe way to pay for purchases and services. Some also offer benefits and rewards. But they can encourage “buy now, pay later” spending habits that may lead to financial trouble. “Carrying a balance on a credit card increases the cost of everything you purchase with the card due to the amount of interest you pay,” says Ursula Menke, commissioner of the Financial Consumer Agency of Canada (FCAC). Aim to pay off your balance in full every month to avoid interest charges that mean you actually pay more than the price tag.

Read more Home Finance articles


About the author...

Laurie Baird is a Mortgage Broker with Verico Complete Mortgage Services. She has been in the mortgage business for 17 years starting as a lender with Royal Trust. She later worked at the Royal Bank as a Mortgage Consultant and 11 years ago became a Mortgage Broker. As a Mortgage Broker she is able to match her clients' needs with a lender who will provide them with competitive rates and products. Laurie has a Bachelor of Education degree from UBC.

Contact her at 250-862-1806 or by fax 712-0209 or visit:

Visit Laurie's blog at: http://www.okanaganmortgages.com/blog.html

The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet presents its columns "as is" and does not warrant the contents.

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