How to Save on Debt

Cutting Your Debt

We all know how easy it is to get into debt.  We have all done it, some of us more than once.  Debt isn’t something we can hide from, once there it follows us everywhere.  So we pay it.  There are some ways that we can reduce that debt.  If you have a bank loan, for a car, home, or whatever, check with the bank to see if you can refinance for a lower interest rate.  If you have multiple different student loans, check out some consolidation options to see if by combining them you get a lower rate.  Outstanding debt on a closed account sent to collections, talk to the company and see about negotiating the amount owed.  Be honest about what you can afford and follow through.

When it comes to credit card debt, checking with the issuer to see about lower interest rate options.  If that doesn’t work, credit card issuers will run promotions on transferring a balance to another card for 0% interest rate.  It is important to ensure you fully understand the terms of the promotion to see if it will benefit.  Most of the time, that 0% is for a specific amount of time.  If it is not paid, then all that interest will be back.

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