How to Reduce Debt Payments in 21 Days

Contact the right people and make some wise decisions, and it won't take long for you to reduce your debt payments, and maybe even get out of debt faster at the same time. If you have a good credit score and a little cash saved, the process will go even faster and easier. But, even if you're broke with a fair score, you can still reduce your payments with a good debt-to-income ratio.

Instructions

1

Apply for a home equity loan. Since the portion of your home is used as collateral, the interest rate on the borrowed amount should be much lower than your existing debt. Once you're approved you use that to pay down as much of your high interest debt as possible. The new interest rate is lower, so the new payments are much lower.

2

Contact your creditors to renegotiate the size of your payments, payment schedule, and interest rates. If your credit has improved, or remained good, and you've paid consistently with that creditor, then they are likely to lower your interest rates and reduce your payments.

3

Sign up with a highly rated debt management or consumer credit counseling service. There an agent or credit counselor will create a personalized debt relief plan with you in person or over the phone. They will create a plan with your creditors to lower interest, fees, and debt payments. In fact, you will only have to make a single payment to the debt relief company or credit counseling agency. The debt relief company's relationship with the creditors reassures them and makes the process go smoothly.

4

Apply for a lower interest credit card that allows balance transfers at a minimal fee. Transfer your highest interest credit card debt onto the new lower interest card.