How to reduce debt

How to reduce debt

Reducing your debt is an easy way to save money. Most debts attract interest, which means that the longer you owe money, the more you end up incurring in interest. Follow these steps to reduce your debts and get debt free.

1. Ask your creditors for help

If you are genuinely struggling with your repayments, often a company will agree to give you a time period of hardship. Most creditors will agree to freeze the interest for a short period of time (maybe 3 to 6 months). Furthermore they may waive or write off recent late payment penalties. If your creditors agree to this period of hardship it is critical that you pay off as much debt as possible in this period. If you fail to make any payments the hardship period will not help you at all and you will be in the same position where you started.

2. Consolidate your debts into one

Consolidating your debts is a great way to simplify your repayments and pay down your debt faster. We have lots of information on debt consolidation on this site, which you should always consider.

3. Take advantage of introductory rates

If you still have a good debt credit rating, you may be able to take advantage of the great introductory rates many credit card companies offer to new credit cards. If you are able to transfer the old credit card balances to a new credit card and enjoy a low introductory rate for 6 or 12 months you should be able to pay back debt at much faster rate. But if you do this make sure you close down the old credit card so you don’t incur more debt. With many introductory rates from as a low as 1% for 6 months to 12 months, you can effectively have a debt free loan allowing you to only pay down the principal.

4. Speak to an expert.

Professionals who deal with credit problems all day are likely to have a list of other options available. Just like in other industries, it is the professionals who are experts and know the ins and outs of credit card debt. If you would like to speak to an expert for free, our team of professional debt advisors are available on our toll free line. Call 1800 98 10 70 today and get the help you need.