Phoenix, AZ -- (SBWIRE) -- 01/30/2014 -- Who doesn’t want to save money while getting rid of debt? Most folks would jump at the chance to do this, but many think it’s not possible. However, it is, something that can be done. A small amount of determination is all it takes. Credit-yogi.com is here to offer some ideas that address how to get out of debt fast and save money, including:
- Understanding Interest Rates
- Refinancing a Loan
- Obtaining a Loan Modification
- Consolidating Loans
Interest Rates and Saving Money
The interest rate on a loan is the cost of borrowing the money. To tackle how to get out of debt and save money, look into getting a lower interest rate on one’s loans. The amount of interest one pays depends primarily one his credit score: The lower that score, the higher the interest rate. To save some money, make timely, full payments on a loan for a year, then ask for a reduction. Because one’s credit rating has improved over that year, a lender will be willing to grant that request.
Refinancing a loan is another answer to how to get out of debt fast and save money. When a loan is refinanced, it is paid off in full, and a new one is created. The new loan has a lower interest rate, making for a reduced payment. Most refinances can be done through one’s original lender; however, other lenders will also be happy to oblige. Credit-yogi.com reminds people not to add length to the loan being refinanced, as this will not lower the payment.
Modifying a Loan
Another option to deal with how to get out of debt and save money is to have a loan modified. This is a different process from refinancing a loan in that one’s current loan, say, a mortgage, simply has some changes (modifications) made to it, such as a lower interest rate or reduction in principal. The federal government has plans for both refinancing and modifying mortgage loans. Private lenders can help with auto or other types of loans.
Combining Several Loans
Consolidating several loans is also a great way to reply to how to get out of debt fast and save money. This action can be taken on practically any kind of loans, including those for college. For federal school loans, contact the Financial Aid office of one’s school for assistance. Private school loans must be consolidated by private lenders. Check with several different financiers to find one with great rates.
Credit-yogi.com was born eight years ago with one aim: To provide quick, reliable responses to the financial inquiries of consumers throughout the country. With the combined wisdom of thousands of fiscal experts backing it, the website has consistently achieved that goal every day since its inception. For a free preliminary consultation, dial 866-964-9644.