If you’re like most Americans, you are dealing with some form of debt and looking for ways out from under the burden. It could be the ubiquitous credit card debt, a home mortgage, student loans, or some other type of personal loan. It makes no difference what type it is, but only that you have debt.
Among the different types of debt, that which is attached to credit cards is the most severe since the interest is typically higher than other sources of debt. You are probably searching for rapid debt reduction strategies that target credit cards and other types of debt.
What follows is a brief introduction to three rapid debt reduction strategies. You need to take the time to read what each one is and then do more research to find out what approach will be the best one for you and which offers the fastest results. Although the focus will be upon credit cards since they should really be paid off first, each of these rapid debt reduction strategies can be used with all types of debt.
- Drop your rate – When it comes to credit cards, you will probably pay, on average, about a 14% interest rate. There are a few rapid debt reduction strategies related to credit card balance transfers. In essence, you transfer one card’s balance to another that has either lower or no interest rate. For example, there are cards feature a special, low-rate introductory offer, sometimes even 0% interest for six months. With the balance of a high interest card moved to a low interest one, more of the payment will go towards the principal than to interest speeding upon the payoff. (You may also contact the card issuer and request a lower interest rate if it is applicable.)
- Make Larger Payments – It only makes sense that if you pay more than the minimum balance on your credit card (or any debt for that matter) that you will be cutting into the principal and lowering your overall balance. If you stick with the minimum payment and nothing more, even if you have a lower interest rate, it will still take longer to pay off. Making larger payments is probably one of the best rapid debt reduction strategies that you can implement.
- Consolidation Or Negotiation – Other rapid debt reduction strategies require you to seek the services of debt specialists. These professional agencies may provide loan consolidation or debt negotiation services. Using these types of services can provide a fast and effective way to reduce your credit card debt. You may be able to obtain lower interest rates and lower debt amounts that you are responsible to pay. With a lower balance, you will be able to pay the debt off faster.
These are just preliminary points about each strategy. Take the time to find out more about each one so you are better equipped to make a decision about rapid debt reduction strategies.