Check out the 5 financial tips for the 2nd week of July 2012.

Tip no 1 - Debt consolidation is not the only option. Get to know of the all other debt relief forms.

Debt consolidation is not the only debt relief option in the country. There are actually 5 types of debt relief options. These are debt consolidation, debt settlement, debt management, interest rate arbitration and bankruptcy. Each debt relief option has its own benefits and drawbacks. You need to know the process and features of all the debt relief options. You can even ask questions to debt experts if you have any doubt. This will help you know which debt relief option is suitable for you. Keep it mind that debt consolidation might be a popular debt relief option in the country, but it is not the only available option to you.

Tip no 2 - Try out the cafeteria benefit plans with regards to health insurance in order to save some money on the same.

Cafeteria benefit plans help the workers to use a part of their pre-tax wage to meet health related expenses. The workers can use a certain amount to pay the premiums on the employer sponsored health related plan. The best part of these plans is that they are exempted from state and federal government taxes. Due to this reason, the taxable income of a worker is drastically slashed. The worker can carry a greater amount of money to home. On the other hand, the employers also benefit from these plans. This is because they don't have to pay employees comp' premiums.

Tip no 3 - Try to buy things only with the cash that you have in your pocket.

Credit cards have made shopping easier and trendy. You can just swipe your credit card and purchase all the items. However, what you tend you forget is that, you have to pay credit card bills at the end of the month. If you fail to repay the bill, then the credit card issuer will charge additional interest rate upon you. To avoid this predicament, try to buy things with cash. When you see an item in a departmental store and you like it, see how much cash is there in your wallet. If the price of an item is $100 and you're carrying $50, then forget about buying it. If you really need the item, you can purchase it later on.

Tip no 4 - Depending on the size of the loan, lower interest rates could translate into significant savings.

Low interest loans can help potentially save money in the loan run. For instance, the interest rate on the federal student loan will not be increased for at least 1 year. The current interest rate on the student loan is 3.4%. It was supposed to increase to 6.8% from July 2012. President Obama has passed a bill and declared that the student loan interest will not be increased for 365 days. This will enable the students to save at least $1000 throughout the loan term.

Tip no 5 - Don't overspend since it will be a lot harder to change excessive spending habits.

It is extremely easy to buy what your heart desires. You can just whip your credit card and purchase an item without thinking about financial condition. This habit will be harmful for you in the long run. You won't understand it now. When you fail to pay the credit card bills and get into the debt cycle slowly, you'll be compelled to cut down your expenses. You'll face immense problem in this situation for you are habituated to overspend. You'll face difficulty in changing your excessive spending habits. So, it is much better to spend according to your financial means from the beginning. You won't have to lament later on.