How to Adjust Debt

Certain situations will determine if you need to adjust your debt. If you are experiencing a financial hardship or you have too much debt to manage, adjusting your debt could help solve your problems. Debt adjustment means you are changing the term and conditions of the original contract. Adjusting your debt may consist of changing the interest rate. Many types of debt can be adjusted including an automobile loan, mortgage, credit card and personal loans.

Instructions

1

Review all of your debt to determine which parts need to be adjusted. Write a list of all debts including the name of the creditor, account balance, interest rate and monthly payment. Add up all of the payments and balances.

2

Decide how your accounts can be adjusted. An adjustment to your debt can be made by lowering the interest rate, refinancing your loan or even asking for a debt settlement. A mortgage loan can be refinanced or you could receive a loan modification which lowers the interest rate and, in some cases, will extend the term. A balance transfer is another way to get your debt adjusted. You may be able to receive a low promotional rate.

3

Contact your creditors to discuss debt adjustment. You can negotiate a lower interest rate with your credit card companies. There is no paperwork to sign. Call the credit card company using the toll-free number on the back of your credit card. When your rate is lowered, more of your payment is applied toward the principal balance. Ask your mortgage company about refinancing options as well as loan modifications. You will be responsible for costs if you decide to refinance but there are no fees with a loan modification.

4

Take the necessary steps to get your debt adjusted. The lender will guide you through the process to get your debt adjusted. When the process is complete, add up your payments to make sure they are now affordable.