Pay Lower Interest Rates

Credit card companies tend to charge high interest rates for the privilege of using their cards. The resulting revolving debt can be difficult to pay off, because a larger proportion of your payments goes toward the interest, leaving the majority or your principal balance unreduced. In order to get the debt paid off, you have to get rid of high interest rates so that more of your payments can go toward reducing the amount of the principal debt instead of just paying interest. It is a logical conclusion that lowering the combined interest rates of your total credit card debt would save you a sizeable amount of money. However, finding credit card issuers that offer lower rates can be a problem. A consolidation loan (usually in the form of a home equity loan or second mortgage) can be a smart strategy to trim down your interest liability and make repaying your debts more palatable.

• Balance Transfer
  The easiest way to reduce your total credit card interest is to transfer all your credit card balances to a single card that carries a lower interest rate, saving you a lot of money. Some credit cards offer you an exceedingly low interest rate for a specified introductory period when you transfer balances. For example, you may qualify for a credit card that offers a zero percent interest rate for the first six months. That low rate can spur you to pay off your debt before the introductory period expires, and if you can do that, you will save a great deal of money. But remember, this strategy is not a long-term solution, and if you haven’t paid off the balance before the introductory period expires, you may have to pay another high interest rate later.
  
  Visit CardConsumers.com for a list of low APR cards.
  
  
  
• Secured Loans
  Secured loans usually offer lower rates than those that are unsecured, because the lender has guaranteed collateral to recover debts owed if the borrower defaults on the loan.
  
  
• Second Mortgages
  If you have built up equity in your house, you may want to consider a home equity line of credit loan, which usually comes at a very decent interest rate. Home equity lines of credit can be closed- or open-ended, and allow you to obtain cash advances against the equity value of your home.
  
  
• 401K
  Interest rates for this kind of loan are generally very attractive, but there are certain conditions for borrowing money from your retirement plan, so check with your account advisor before you finalize this kind of loan.
  
  
• Debt Consolidation Services
  If you still feel like you are banging your head against a wall when it comes to getting ahead of your debt, seek help from Debt Consolidation Services. You can receive assistance renegotiating the terms and rates of your unsecured debt with your creditors. You may have to pay a fee for these services, so be sure to shop around for the best deal with a reputable debt consolidation service agency.