If you have started 2020 in debt, you may be worried about what lies ahead for the rest of the year. Your number one commitment for 2020 should be getting out of debt but how can you go about doing so? Read on to discover some useful tips on how to lower your debt expenses this year.
- Look for ways to put more money towards your debt – The first thing you need to do is figure out whether there are any ways that you can put more money towards your debts each month. For example, could you take on a second job or do a bit of freelance work? There are lots of ways to make money today, from survey websites to test out products. You should also look for ways to reduce your utility bills. Do not be afraid to call up your suppliers to see whether they can put you onto a cheaper tariff. Any savings that you make can be used to put toward your debt, helping you to pay it off quicker throughout the year.
- Pay off your more expensive debt first – It is also a good idea to pay your most expensive debt first. This does not mean your biggest debt. It means the debt that costs you the most money. This will typically be the debt with the highest interest rate. You will need to sit down and look at all of your debts and figure out which one is costing you the most each month. By doing this, you will be able to pay off your debts at a much quicker speed.
- Consider taking out a loan to consolidate your debt – Another tip when it comes to debt reductions is to look into personal loans. While we are often told we should not borrow more money while in debt, taking out a loan can help in some situations. This because it can consolidate your debts, meaning you only have to make one payment every month. In some cases, it can even make your debt cheaper if you manage to secure a better interest rate than what you have on your credit cards at the moment.
- Ask your creditors for a reduced interest rate – Last but not least, it is certainly worth calling up your creditors and asking them for a lower interest rate. You are going to be in debt for longer if you have a higher interest rate and credit card issuers need to act responsibly. If you are struggling to pay off your debts, there is a good chance they will either lower your interest rate or freeze it for a period of time.
As you can see, there are a number of ways that you can reduce your debt expenses throughout 2020. We hope that the advice that has been provided will help you to get a handle on your personal finances throughout the rest of the year.