With our year long Ultimate Money Challenge, we're challenging readers to a different personal finance challenge every month. This month, we're taking on debt. Let's cut your debt interest rate. Photo by frankieleon.
Interest can really put a damper on your goal to get out of debt. Instead of putting all of your money toward the debt's principal, you have to dedicate some of it to interest, which means you pay more over time and your payoff takes longer. That's why this month's challenge is to reduce your debt interest rate. Some ways to do this:
- If you're in consumer debt, call your credit card company and ask for a better rate.
- If you're repaying a loan, set up a direct debit on your loan to get a discount on interest
- Refinance your loans
- Consolidate your credit card debt with a balance transfer
Some of these moves shouldn't be made lightly. These options aren't right for everyone, but we challenge you to find which options may be right for you, so you can save money on interest and get one step closer to your debt payoff.