Reducing your overall debt, whether it be credit card debt or an outstanding car loan, is paramount to a healthy credit score. It may come across as a big task, but it all comes down to how much will power you have.
There are several ways to reduce the debt you’re dealing with, each of them having a profound effect on how much you owe. However, there’s a catch: it’s not easy. You’re going to need a lot of self-discipline if you want to get that debt you owe down.
Start Small At First
The first technique to reduce the amount of debt you owe is to start putting away $2-5 a day you weren’t going to save or put into debt already into a small jar. At the end of the month, take the money out and put it towards the debt you owe. This sounds pointless and as if it’s not really going to help you lower your debt, but think about this way: $5 a day, for thirty days is $150. $150 for 12 months is $1800. $1800 is a decent amount of debt to pay off.
Supplement Your Income
Another way you can reduce your debt is to go out and get a part time job. Working isn’t fun, especially if you’re already working all the time. However, getting another job and using it to exclusively pay off your debt will lead to having profound effects on your financial situation.
Transfer Your Balance
Another option to reduce what you owe and have a credit card and healthy credit score involves using a credit card. You can get a 0% balance transfer credit card to transfer your credit card debt and buy yourself some interest free time to save enough money to pay off your debt in full.
Those techniques deal with how to lower the amount of money you owe by working and saving more money to pay off your debts, however, there’s also another option that you can take if you’re looking to lower how much you owe: haggling your debt collectors.
Negotiate With Debt Collectors
Most of the time, debt collectors are so happy that someone is willing to pay off their debt without a hassle that they’ll be willing to work with you. You can get them to lower your interest rates, and even get them to lower the amount you owe on specific bills and circumstances. It’s not going to happen instantly, but if at first you don’t succeed, try again until you do.