Debt and interest rates are like best friends. Think about it this way: why would an official business agree to give you money if they had nothing to gain from this transaction? There’s no logic behind it. Basically, they are providing you a service – for which you obviously have to pay.

The bigger the service, the higher the costs. Therefore, if someone is going through a lot of trouble to offer you this service, then you can expect that the interest rates will skyrocket. Still, they have to be paid somehow – so, if the interest rates are a bit too high for your preferences, what are your options for paying everything off? Well, here are a few tips:


Ask for Lower Interest Rates

Interest rates change from time to time, and what was the “best offer” then may not be the same today. Talk to your creditors and see if they can lower your interest rate. If your credit score has improved over time and if you made a habit out of paying your debts on time, then you can use these facts as a bargaining chip to snatch a lower interest rate.


Tackle the Smaller Debts First

While this may sound like a logical step for you, getting rid of your high-interest debt may not be in your best interest (pun intended). Instead, try paying off the smaller debts first in order to free up your monthly wages – which will ultimately allow you to tackle the bigger debt.

Now, this does not mean that you can skip on your payments to focus on the other ones. You have to make at least the minimum payment, and only after that, you can focus on making bigger ones.


Cut your Expenses

This may sound logical, but if you have any hope of getting out of debt, then you may want to forget about dinner at the restaurant every evening. If it’s an expense that you do not necessarily need, cut it out. Disconnect your cable, or try to quit or reduce your smoking habits. They may not look like much, but all of these expenses will add up in the long run.


Transfer Everything to a Low-Interest Credit Card

The advantage of new credit cards is that they come with a few months of little to no interest – so you may try to transfer everything first, and then close off your old account. A couple of months of low interest may be all you need to cover an originally high-interest loan. Furthermore, if you do not have enough credit to move all your balance, you may want to at least move some of the content. It will significantly lighten up your load.

High interest may indeed sound scary. However, with a little bit of budgeting and a few good strategies, you can definitely pay everything off – and this can be done without burying yourself in even more debt.

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