Bad debt advice
Negotiate Your Rates
One of the first steps to reduce your debts is to list them. While this is intimidating at first, it helps you to see the overall picture. List each debt along with the monthly payment and interest rate. Next, call each lender and ask for an interest rate reduction. Even just a small reduction in rate will save money over the life of the loan. This method works best with credit card companies. If you receive a rate reduction from one, tell the next company that you want that rate matched. If you are not successful the first time around, call a week or so later and ask a different customer service representative to reduce your rate.
If you have a home mortgage, you can consolidate your debt by refinancing your first mortgage or by taking out a home equity line of credit to pay off your debt. Although this may lower your monthly payment, it will extend the life of your loans. You will pay for the same debt over a much longer period, and therefore will pay more interest. Yet if you use this method and continue to make serious reductions to the loan principal, you will be better off in the long run.
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Examine and Trim Your Budget
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