May's Money Challenge: Save Money On Interest

May's Money Challenge: Save Money on Interest

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:

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.


Comments

    Mortgage debt is the killer. Call up your mortgage holder and ask for a review of your rate. Know the rates of other lenders in the same tier before calling. If you've been with the provider for a while, use your loyalty as leverage.

    Another good trick if you are organised is to use citibank's 24 month 0% balance transfer and ask for a check to self.
    Put this in your offset then set a reminder and pay it back in full at 23 month mark.

    Can save yourself alot of interest paid.

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