How to Save Money on Interest

When students ask math teachers why they should bother to learn math, the teachers’ answers usually have something to do with money. They might even give the example of compound interest. Just knowing how much you will have to pay over time does not show you the whole picture, though, which is why a growing number of states now require high school students to take personal finance classes; Florida was an early adopter. Yes, it makes sense that compound interest benefits you when the money is in your savings account, but it benefits the lender when you are the one that borrowed the money. What you don’t find out until you get into the details is that there are other ways to reduce the interest rate, besides just borrowing at a lower interest rate and paying more than the minimum payment on each installment. There are several ways to continue to pay down a debt while lowering the interest rate, besides contacting the lender directly and asking them to modify the terms of the loan. If high interest rates are making your loans unaffordable, contact a Boca Raton debt lawyer.

Borrow a Debt Consolidation Loan

When someone voices that they are thinking of filing for bankruptcy, someone else will inevitably say that you might be able to avoid bankruptcy by consolidating your debt. The notices you receive in the mail that look like checks for amounts of money that would solve your most financial problems are advertisements for debt consolidation loans. A debt consolidation loan is a low interest loan, usually unsecured, that you use to pay off debts with higher interest rates. The trouble is that the best debt consolidation loans are only available to people whose financial circumstances are better than yours. The better your credit score, the more you can borrow, and the lower the interest rate.

Refinance Your Existing Loans

You know you have made it in this world when you have a home mortgage, so you get tons of mortgage refinance offers in the mail, in addition to the debt consolidation loan offers. It is also sometimes possible to refinance other loans with long repayment terms and large principal amounts, such as car loans.

Transfer Your Credit Card Balance

Credit card balance transfers are a low hanging fruit for cash-strapped borrowers. You can move your balance to another credit card and pay no interest for the first year. Even if the interest rate on the new credit card does not differ substantially from the interest rate on your old credit card, the interest-free grace period enables you to pay down the principal for a while so that, when interest starts accruing again, there is less of it.

Work With a Debt Lawyer About Getting Out of Debt One Interest Payment at a Time

A South Florida debt lawyer can help you explore debt repayment strategies such as credit card balance transfers, debt consolidation loans, refinancing, and modifying the terms of existing loans.  Contact Nowack & Olson, PLLC in Boca Raton, Florida to discuss your case.

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