Holiday bills got you down? If so, you’re not alone. According to the 2019 Bankrate Holiday Gifting Survey, more than 60% of Americans feel pressure to overspend during the holiday season. If you’re among them, here are five tips to help you reduce your debt quickly.
- Avoid adding to your current debt. If you’re serious about eliminating debt, it’s important to take steps that will prevent you from adding to your existing pile of bills. Consider cutting back on expenses to free up cash or look for ways to earn more money you can use to pay down your debt.
- Tackle high interest accounts first. Interest charges can add up quickly, especially on high interest accounts such as credit cards. When you pay off your accounts with the highest interest rates first, you’ll pay less in interest.
- Negotiate your rates and terms. If you’re struggling to make your debt payments each month, contact your lenders and ask to have your interest rate reduced or your term extended. You may not be able to change the rate or term on all your accounts, but some lenders may be willing to work with you.
- Be smart with credit cards. If you use credit cards regularly, consider choosing one that offers rewards. Select a card that rewards you for purchases you’d be making anyway and offers rewards that fit your lifestyle. Use it to buy only what you can pay for in full every month to avoid accruing additional interest charges.
- Pay more than the minimum due. Making more than your minimum payment every month will help you pay down your debt faster and reduce the amount of interest you pay over time.
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