3. Think about the Consolidate Debt
You can pay off your debt more quickly without making larger payments by consolidating multiple higher-interest debts into one with a reduced interest rate. However, if you choose the consolidate debt, it is highly important to control your spending. Stick to the plan you made in the initial step. Only by doing this, you can avoid making a new debt on top of the debt you are currently consolidating.
The third tip on how to pay debt faster is two popular methods for debt consolidation. Let’s check them.
- Transfer balances
Use a low transfer rate to transfer debt from high-interest credit cards. Although balance transfer fees typically range from 3 to 5 percent, the savings from the reduced interest rate can frequently exceed the cost of the transfer. Never forget about this when using this option.
- Home’s equity
The second way to pay off your debt is to use the equity in your house. A home equity loan is a second mortgage. It has different terms compared to your existing loan and it has its own fixed interest rate. This means that you can borrow a lump sum of money with a home equity loan and use that money to pay down your debts.