NEW YORK (CNN/Money) - Does saving money seem impossible?

Between the monthly bills, education expenses and even buying that new pair of sneakers, your budget may be stretched to the max.

"Americans are not good savers. They're spending usually right up to the amount that they're bringing in," said John Oldshue, CEO of Billsaver.com.

So, how can you have money left over at the end of the month without taking all the fun out of life? Here are five no-sweat tips for saving money.

One of the big problems with having big credit card balances is the fees and interest payments they incur. According to Cardweb.com, Americans, on average, owe about $8,000 per household on their credit cards. And the average household pays about $1,000 in credit card interest per year, plus whatever late fees they accrue.

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To cut your costs you'll first need to cut your debt. The average credit card interest rate is 12.9 percent, but you can still shop around for a better rate. Ask your existing card issuer to lower your rate, or find a low, fixed-rate card on Bankrate.com or Cardweb.com. And watch out for zero-percent interest rate offers as they often include additional fees.

A poor credit rating could disqualify you from taking advantage of lower interest rates, so it's a good idea to check your credit report on a regular basis. You can obtain a copy of your credit report from the top three national credit bureaus: Experian, Equifax and TransUnion.

Consolidating your outstanding debt on one to three cards can save you money, as well as your credit rating.

CNNfn's Gerri Willis shares five no-sweat tips for saving money. Play video (Real or Windows Media)

Late fees can contribute your credit card debt load. According to R.K. Hammer Investment Bankers, consumers paid a total of $43.1 billion in late and over-the-limit fees on their credit cards last year, up from $39.6 billion in 2002.

One way to cut your credit card fees is to automate your payments online so that even if you forget to pay your bill, your PC won't.

Also consider using your debit card every now and then instead of your credit card.

Many of the nation's largest telephone companies are raising rates.

AT&T, the nation's largest long-distance telephone company, is adding a monthly fee for basic rate customers who are paying per-minute rates instead of using one of the company's monthly calling plans. BellSouth and Sprint have also raised fees in recent months.

To learn more about which plan works best for you, log on to Billsaver.com, which offers a rate comparison calculator both for long-distance and wireless telephone services. Myrateplan.com and Cellupdate.com also offer rate comparison calculators.

A new technology called Voice Over IP, which sends your telephone call over the Internet instead of traditional phone lines, can also save you big dollars on your current phone bill.

The average household spends $966 per year on telecommunications but a VOIP account will run you $30 to $50 a month, or $360-$600 a year.

Buying prescription drugs online can help you save as much as 20 percent to 30 percent. And some major drugmakers offer prescription drug cards for medicare beneficiaries that can result in savings of 20 percent to 30 percent, and in some cases as much as 40 percent.

Take advantage of company-sponsored flexible spending accounts which allow you to set aside pre-tax dollars for medical expenses. These dollars can now be used for over-the-counter medications.

Taxpayers lose millions of dollars in tax deductions each year. Think of that as your hard-earned dollars going down the drain.

Unreimbursed work-related expenses such as travel, telephone calls, supplies, magazine subscriptions and training are miscellaneous deductions. If you were unemployed for all or part of 2003, you can write off job-hunting expenses such as travel or resume preparation if they exceed 2 percent of your adjusted gross income.

You should shop around for insurance, but another way to cut your bills is to boost your deductible--the amount you pay out of pocket before the insurer starts paying the claim--on home and auto insurance. For example, by boosting your deductible to $500 from $200, you can cut 30 percent off of your auto insurance premium.

Take advantage of discounts too. You could qualify for lower auto premiums if your car has extra safety features such as passenger-side air bags or if you have a clean driving record. Home insurance policy shoppers can get discounts for having security systems installed in their home.

You can also get discounts of 5 percent to 15 percent for combining your home and auto policies with one insurer. If your insurer doesn't offer a full-line of products, consider purchasing your policies from direct insurance sellers, such as Geico in auto insurance, and American Express for home insurance. They tend to have the best rates within their category.

John Oldshue of Billsaver.com says the average consumer can save up to $5,000 a year by shopping around in the areas we just described. So what should you do with the money you save? A good option is to set the money aside for retirement.  

Gerri Willis is the personal finance editor for CNN Business News. Willis also is co-host of CNNfn's The FlipSide, weekdays from 11 a.m. to 12:30 p.m. (ET). E-mail comments to 5tips@cnnfn.com.