In these hard economic times, it’s difficult to get out of debt. There are times when you’ve probably felt like you’re drowning in bills and other payments that need to be made. There will be times when you won’t see the end in sight and the payments you’re making to get out of debt are not showing any real results. So, here are some ways you can reduce your debt payments, make them more manageable, and eventually make you debt-free.
One of the ways you can lower your debt payments is to negotiate with your creditors. It’s always possible to ask them for a break from any penalties in case you aren’t able to meet the minimum payment for a month or so. First, find out how much you are able to pay them and then contact each one and let them know that you are working your way towards paying the entire debt off but you can only afford to pay a certain amount. Most times, if the creditor sees your willingness and you have a good history of payments, you can get that much needed break. Just don’t forget to ask for documentation of the agreement before you move forward with your new arrangement.
Another option is to consolidate your debt with a home equity or debt consolidation loan. There are certain loans that will give you lower payments along with a lower interest rate. Just make sure that the loan you get does not offer lower payments because the payment period is long. You might end up paying more in the long run.
For those who have a good credit score, you can try getting a credit card that offers a balance transfer at a lower interest rate. There are some who even offer a really low introductory interest rate for new card members. With a lower interest rate, you can make more progress in paying your debt and save money at the same time.
One option that you can consider if you really feel in over your head is credit counseling. Some consumer credit counselors are really good at creditors to agree with lower interest rates and payments. The debt management plan that credit counselors also offer will help you get reduced monthly payments which lessens the trouble you encounter when it comes to paying your debt. These same counselors are also able to teach you how to make a budget and stick to it along with other money management skills that will help you stay out of debt in the future.
While any of these options can help you manage your debt more easily, it will not completely make you debt free. The only person who can make you get out of debt is yourself. So, if you really want to get rid of all your debt, make sure that you stick to your budget, don’t take on new debt, and follow your payment plan religiously.