Five Ways to Reduce Your Monthly Debt Repayments
In case you have been struggling with debt for a while, or would like to budget better and clear off your credit faster, you have different options ahead. From negotiating your existing agreement to taking out an alternative product, you can reduce your monthly bills while working towards financial freedom. Find a few tips below.
1.Extend the Term
If you are really struggling with your monthly bills and are experiencing difficulties paying your credit card bills, you can ask for a longer term or a payment holiday. If it is your personal loans that cause you a headache, you can reschedule them by asking for a longer term. While this is likely to increase the total amount you will have to pay back, you can breathe easier and have time to get your finances in order.
2.Ask for New Payment Terms
Banks are sometimes ready to negotiate the terms, if you can prove that you are really struggling. They would rather get less money back than none at all. You will have to prepare your budget and your income and expenditure statement when you meet your adviser, but they are likely to agree to a lower repayment, longer term, or even writing off some of your credit.
3. Switch Your Account
When you are not successful in negotiating the terms with your bank, you could simply seek alternative solutions. Transferring your credit card balance on a new deal can stop the interest for a while, generally 6-18 months. This will make your repayments lower, but you will not get rid of your debt faster, so be careful and always check the terms and conditions before you sign the dotted line.
4.Ask for a Lower Interest
To pay off your credit card fast, you could also talk to your bank to see if you can take out an alternative product. They will want to keep you as a customer as long as they can, but also see their money. If your credit score went up after you took out the card, chances are that you will be approved for a better deal. If you never ask, you will never be offered a lower rate on your credit cards.
5.Get a Consolidation Loan
When you simply feel like cutting up your credit card and never using it again, the easiest way of getting out of debt is taking out a consolidation loan. Check out debtconsolidation.loans to find out what types of financial products are available for your personal circumstances. Secured loans generally have a lower interest rate, but if you don’t make the payments on time, you might risk losing your property.
People struggling with debt repayments should consider their options carefully. Whether you are looking for lower interest rates, a debt consolidation loan, or a new deal, you will have to be vigilant and make sure you are not paying more long term than you really have to. In case you are unable to choose the right product, talk to an independent financial advisor.