If you’re currently in debt, after making some financial mistakes, although there is no one approach that will help each one of you reading this to tackle the problem, there are some strategies that most of you will be able to use to cut the costs of your debts, so that you can speed up the rate at which you pay them off. Here are some of the best tried and tested techniques for diminishing the cost of your debts:
Transfer Your Balance
Transferring the balance of your credit cards to another card that has a long 0 percent interest period for transfers can save you a fortune because you can get as many as 40 months free – that means you don’t have to pay any interest for well over three years! Sure, you’ll have to pay a small fee (usually around the 3 percent mark), but that’s much less than the interest you’d otherwise have to pay.
Consolidate Your Debts
If you have multiple debts in multiple forms, then taking out a debt consolidation loan at debtconsolidation.co, which turns all of your individual debts into one, more manageable loan, could also cut the cost of your debt by offering you a smaller interest rate overall. It almost always works out cheaper to do this, but you should check very carefully and perhaps even seek financial advice first, just to be sure you are getting a good deal.
Clear Your Loan With A Loan
In a similar vein, if you simply have the one loan that you’re paying off, you could save on the interest by taking out a new, lower interest loan to settle the balance. There are numerous banks who will enable you to do this after asking a few simple questions, and it could save you hundreds, even thousands of dollars over the years.
Use A 0 Percent Purchase Credit Card
If you like to pay by credit card, perhaps because it’s more convenient and easier to keep track of your transactions, look for cards that offer 0 percent on purchases for a period – you can do that at http://www.magnifymoney.com/– and you won’t accrue any interest as long as you pay the money back in full during the grace period. Once the grace period is over, pay your statement off in full each month, and you won’t accrue any interest!
Call Your Lender
If you’re struggling under the weight of your debts, call up the lenders and let them know you’re struggling. Quite often they will be willing to suspend interest for a while or lower your interest levels so that you can get back on your feet again.
Save for a Rainy Day
Paying off your debts might be the most important use of your money, but if you can spare even a little cash to put into savings for a rainy day, it will help you to diminish not only the cost of your debts but the need for future debts at all because you’ll be able to pay for all of those little emergencies in cash once you’ve built up a nest egg.
Here’s to less costly debts!