Debt reduction not only eliminates monthly payments sooner, but it also saves you money on interest and fees.
For the average American in 2004, that would mean a savings of $1,164 on interest payments.
Online, you can find a variety of resources to help reduce your debt.
Reduce Your Credit Card Interest Rates Credit card debt is one of the most expensive forms of credit.
In 2005, the average rate on a credit card was 14.
54%.
Online, you can find several credit cards with much lower rates.
Many cards also offer temporary 0% financing on balance transfers.
With no interest to pay, you can quickly wipe out your debt by making the same monthly payment.
So the money you were paying on interest now can now go toward your credit card balance.
Pay Debt Faster With A Consolidation Loan For large debt amounts or several open accounts, a debt consolidation loan may be your answer.
With a low interest loan, you can pay off your high interest lines of credit, like credit cards or personal loans.
Half of cash out refi's are used to pay off credit cards, since home equity offers a cheap line of credit.
Personal bank loans can also provide lower rate financing for those without property equity.
Take advantage of online lenders to request loan quotes.
Compare these offers from different financing companies to determine the best deal.
And don't be afraid to negotiate even lower rates and fees with a lender.
Work With A Debt Consolidation Agency Debt consolidation agencies can also help you reduce your debt, especially if you can't qualify for a prime rate loan.
For a small monthly fee, these companies work with your creditors to lower your interest rates and fees.
They also manage your monthly payments.
Make sure you request information on fees and pay off dates from these companies.
Fees can range from hundreds to thousands, depending on the payment structure.