Frugal Tips

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3 Easy Ways for Fast Debt Relief

Feb-9-2018 By Frugal 101

There are many ways for fast debt relief, but unfortunately not all of them are painless or easy.

These 3 are my favorite ways to reduce debt, because they don’t require much work, but are very effective.

1. Use any extra money to pay off your debt.

If you get a bonus at work or cash for Christmas, don’t get excited and blow it immediately. It is much wiser to spend this money to pay your debt off. While it is not fun to spend your holiday money to pay your debt off, it is even less fun to be in debt and pay thousands of dollars in interest very year. Pay your debt off first and then you can reward yourself with expensive presents and vacations.

2. Negotiate with your creditors.

Many people don’t negotiate with their credit card companies simply because they don’t know that they can. No matter how deeply you are in debt, you should call your company and ask them if they would lower your interest rate. The more money you owe them, the better the chances that they will help you out.

Actually, if your debt is more than 10K, you have a good chance to wipe as much as 40 to 50 percent of your debt off just by talking to your credit company. It is much better for them to reduce your debt now and get at least some money from you than to let you go bankrupt and get nothing.

3. Transfer your balances.

If your credit score is decent, you can open a new card with a lower interest and transfer your balances. Sometimes it is even possible to get a new card with a 0% interest. Having a card with 0% interest rate for 6 months to a year will save you a significant amount of money, because you will be able to pay your debt instead of paying interest.

Some companies will charge you balance transfer fees, which could be either a flat fee or a percentage of the balance you transfer, so be careful before you transfer anything. Read the terms and conditions carefully and ask many questions before you make any decisions.

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