Guide to Lowering Household Bills

Credit Cards

• The first rule of reducing credit card debt is stop taking on new debt. Even if you're struggling financially and feel tempted to use credit cards to get by in the short term, this will only make your situation worse. A typical monthly payment consists of 10 percent principal and 90 percent interest. The average interest rate on credit cards as of March 2011 is 18.9 percent. Cutting up all of your cards prevents you from succumbing to temptation and using them. If you feel you need to keep at least one card for emergencies, then at least avoid carrying it away from home.

Electric

• Many small actions can help reduce a large electric bill. Florescent lighting typically uses less electricity than incandescent lighting. Switch off all lights when not in use. Cook with a microwave whenever possible. An electric stove uses up to 90 percent more electricity than a microwave. Unplug any electrical appliance not in frequent use. Keep doors closed to avoid unnecessarily heating or cooling empty rooms. Use fans to cool rooms rather than expensive air conditioning.

Housing

• Many options exist for reducing your housing bills. If you rent your home or apartment, contact your landlord and offer to do yard work or basic home repairs in exchange for a reduced rent payment. Renting out a spare room allows you to subsidize your rent or mortgage responsibilities. If you have a low income, find out if you qualify for subsidized housing. Add up your total housing costs and see if you can find cheaper housing elsewhere. Don't forget to factor in the moving costs.

Gas and Water

• When using a dishwasher, washer or dryer always load them to full capacity. Line dry your clothes rather than use a dryer. Set your water heater to 140 degrees F if you have a dishwasher or 120 degrees if you don't. Install low-flow showerheads and take short showers instead of baths. Wash clothes in either cold or warm water rather than hot. For hygienic reasons, always wash towels and sheets in hot water.