It seems like the old saying, when it rains, it pours, holds true for finances. Right after your car breaks down, the roof starts leaking. Next thing you know, you’re in a mountain of debt! When you don’t have extra income to tackle that debt, it can be down right stressful.
Just take a deep breath. Believe it or not, there are some easy steps to take to start reducing your debt — without making a single extra payment.
Here are 5 Ways to Fix Debt Without Making Extra Payments
1. Fix Your Credit Score
Are you scratching your head right now, wondering why you should care about your credit score? After all, you already have a ton of credit cards.
Well, because if you improve your credit score, you can help qualify for lower interest rates, which means you’d pay less towards your debt.
Keep an eye on your credit with free services like Credit Karma, or Credit Sesame. These places can break down exactly what’s on your credit report and shows you how it all affects your score and how to address it.
2. Get a Lower Interest Rate
Once you get your score higher, you should reach out to your credit card companies to see if they’ll lower your interest rate.
This could save a lot of money by paying less interest on that debt.
Paying less interest means paying down your debt faster — and for less. It’s a no-brainer.
3. Get Credit-Repair Help
Sometimes debt can get out of control. So much, that we can’t make the payments on time. Then, the collection agencies start blowing up our phones, which adds to the stress.
How do you get rid of all the payments? Could you actually pay less than you owe on your other bills? Yes, with the right help.
When you need help with creditors, don’t do it on your own. Find a company like Saxton Associates to help. It’s like having a someone on your side to protect you from the bad guys.
4. Negotiate Your Bills
Everyone can probably remember being taught manners when they were little. Say, “Please,” and “Thank-you,” and “Ask nicely!”
Try using that when it comes to tackling your debt as well.
Sometimes you can lower your bills, especially medical bills, just by asking to have them reduced. If you have a good reason as to why you can’t pay, you might get a little relief.
They may even be able to get late fees and other charges taken off your bill.
It doesn’t hurt to ask, right?
5. Bring Your Interest Down to 0%
While you are trying to get a lower interest rate, why not try for 0%?
You might not want to get yet another credit card, but if you can get one with 0% for a limited time, it would be worth it to transfer your other high interest cards to it.
When you do a balance transfer, you take that balance you have sitting on a high-interest credit card and move it over to a different card.
Choosing the right balance transfer card isn’t as easy as it seems, but it will be a game changer for paying off your debt when you find one.