Reduce Debt Faster

While most people would not consider it a means to reduce debt, getting lower interest rates can help you reduce the overall amound of money you must put towards your debt and help you eliminate your debt much faster.  Lowering your interest rates on your debt can also give you a lower monthly minimum payment, which could help give you the breathing room you need in your monthly budget.

There are a few different options for reducing debt through lower interest, depending on your specific situation.  Whatever your debt reduction plan, getting a lower interest rate will be very helpful.

How to Get Lower Interest on Credit Cards

If you are struggline with credit card debt or personal loans, and you have high interest rates, your are likely giving your creditors hundreds of dollars a month in interest alone!  Despite your high minimum payments, very little of that money actually goes towards paying off your debt.

If you do not have great credit, you are even more likely to have high interest rates.  So, how can you get your interest lowered?

One option is to contact a reputable, accredited non profit credit counselor to enroll you in a debt management plan.  With a debt management plan, the credit counselor will work with your creditors to get you lower interest, get fees waived, and help you get out of much, much faster.

In many cases, a debt management plan will get you a lower monthly payment as well.  These benefits make debt reduction programs such as this a very good option for people struggling with debt who have a tight monthly budget.

Options for People with Good Credit

If you have a very good or great credit score, but your interest rates are still very high, you have even more options for  getting lower interest.

The first thing you should try is to simply call your creditors and ask for a lower rate.  While this may sound too simple, this is actually ver effective for people with high credit scores and high APR’s.  While you probably qualify for a better rate, your creditors often won’t lower it for you unless you ask.

If asking for lower interest does not work for you, you may want to transfer your debt.  You may be able to qualify for a lower rate loan, which you can use to pay off your existing high interest debt.  You could also transfer your debt to a low rate credit card.

When using the balance transfer method, it is important that you look closely at what fees will apply, as well as what your rate will be.  Beware of introductory rates that will expire and rise after the introductory period as well.