Are you looking for ways to lower your monthly payments on your credit accounts? There are several methods and strategies that can be used to reduce debt, but many people simply don’t know where to start. Maybe you have too much debt, or maybe you’re just not certain of what kind of debt you can reduce and how. Let’s take a look at debt reduction options for today’s financial world.
Auto & Home Loan Refinancing
Auto and home loan refinancing still leads the way when it comes to reducing debt. Most people realise that they can refinance their home to save money on interest or to lower their payments, but did you know that you may be able to do the same for your auto loan? If you took out your auto loan when your credit was worse than it is now, you may want to check into seeing if you can get a better rate now, which will save you money over the long run, just as it would with a home loan refinance.
Consolidation is one way to reduce debt, but only when it makes sense. Unfortunately, sometimes people will combine all of their debts into one loan because it’s easier to manage, only to realise later on that they’re paying more interest or monthly payments are higher. When you’re considering consolidation for debt reduction, make sure to take a hard look at what interest rates you’re paying now and compare them against the rate you’re being offered. Also, it’s important to add up all of your current payments and compare them against what your new payment will be. If you’re paying more in interest or your payment is higher, it may not make sense to consolidate.
One of the most important things to remember if you find yourself in too much debt is that ignoring your creditors will not solve the problem – in fact, it will just cause more problems. While not all creditors will offer you a way to reduce your debt, contacting them to see what sort of agreements you can negotiate is a great place to start. When speaking to your creditors, you can ask about payment reduction options, interest reduction programs, or even paying the total amount of debt off for less than you owe. Again, trying to negotiate with creditors doesn’t mean you will get approved for one or more of these options, but you won’t ever know if you don’t ask.
Lowering payments and saving money is often at the forefront of everyone’s minds. Do a little research, compare rates and talk to your creditors to see how much money you can save.
And finally, if you have tried all of the above and have had no luck, speak to one of our Debt Solution Specialists at Safe Debt Management. We often have options for people who have found themselves without options, and best of all - if we can't help you, we won't charge you!
It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.
Check your options before you borrow:
The Government’s MoneySmart website shows you how small amount loans work and suggests other options that may help you. https://www.moneysmart.gov.au/
This statement is an Australian Government requirement under the
National Consumer Credit Protection Act 2009.