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6. Consolidate your loans or negotiate a lower interest rate

consolidate your debt
Consolidate your loans – 8 Things that will Help you Get Out of Debt

Struggling to pay off your debt? Consider debt consolidation.

But what exactly does it mean when you are consolidation your debt?

What it basically means, is that you are taking out one large loan which you then use to pay all of your smaller debt.

So instead of making various payments at the end of the month, you are now only making one single large payment.

Of course one big advantage that you will have when you consolidate your loans is the fact that you will enjoy a lower interest rate.

Negotiate a lower interest rate

But there are some of you who might feel that consolidating a loan is not the right solution, and you would rather try and negotiate a lower interest rate.

When you think about it, negotiating for a lower interest rate might not be a bad idea – you have nothing to lose and it can’t do any harm just to ask.

All you have to do is to request that the bank review your account and if it is possible to consider giving you a lower interest rate. If you are lucky enough to get an approval, it can be a great advantage since it will go a long way in reducing the total amount of your debt.

But there are a few things to remember when you want to negotiate.

1. Be Prepared

It’s a good idea to get your credit report to see what your credit score is. If you have a good credit record, with up to date payments, changes are that this will be in your favour. You might also want to “shop around” and see if you can’t find a better deal with competing credit card companies.

2. Call & ask

Like mentioned before, it can’t hurt to ask right? All you have to do is call the customer service number, which you will find on the back of your card.

3. Be persistent & polite

This is important. Be polite, yet firm – if they can’t help you, ask them to explain why.

Being friendly also helps, remember they deal with complaints and difficult customers every day.

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