The rates of interest that apply to the loans that you might have taken are the most discouraging factor while trying to become debt free. Any progress that you might have made at the end of the month after having paid off your monthly installments for debts gets wiped away once the interest charges are levied. In order to avoid such a discouraging situation trying to get your rates of interest as low as possible is the only way to tackle this monstrosity.
Try negotiating for a lower rate of interest
Trying an honest approach and letting your credit provider become aware of your intentions of clearing off your debt and requesting them to lower the rates of interest for you is a great way to approach the hurdle of high interest rates. It should be the first thing that you should try and although there is no guarantee that it would work, trying has never killed anyone.
Moving your balance to a product with lower interest rates
Moving your balance in buying a product that has a lower interest rate than that of your credit card provider is a great way of reducing the rates of interest in a dramatic manner. However, you need to keep in mind that you cannot keep spending on your credit card as this will create separate branches of debt and you would find yourself more under water than ever.
Start using balance transfer credit cards
Opting for a balance transfer credit card is another great way of reducing the interest rates for your debts. These types of credit cards offer a low interest rate for a promotional period of time. However, you need to remember paying off your debt before the promotional period comes to an end. Otherwise you will be charged with penalties on the interests. Moreover, the promotional rates of interest are only applicable on the amounts that you might have transferred and not on any kind of purchase that you might have made on the card. Therefore, keep in mind to not use this credit card for daily purchases.