Taphephobia- the fear of being buried alive

Step 2- Reduction

Now that you know where you stand debt-wise (thanks to step 1), it’s time to see if that amount can’t be decreased. Many medical and dental bills can be reduced just by calling up the company and letting them know that you just can’t afford to pay that much. There are people out there who have had their bills just about cut in half just from asking; even if they could take 10-20 percent off, that could be amazing.

What if all your debt lies in credit cards? You can call up your credit card companies and let them know that you’re trying to make good on your accounts and would like to have your interest rate lowered. More than likely, the customer service agent you talk to will say no; move up the chain, ask to speak with their manager.

If they still won’t budge, you could always mention that you fear bankruptcy in the future and would rather pay them off sooner. I know that sounds awful, but it might be worth a shot.

Any reduction in your interest rate is good (obviously the more the better) and can lower the total amount of new interest charges. Which means you’ll be able to pay it off with less of your hard earned dough. Wouldn’t it being awesome to save hundreds or even thousands by doing this?

Action to take:

One by one, begin calling whoever you owe and pleading your case for a reduction. Don’t feel weird about it, at least you want to give them their money; many people who find themselves in debt try to hide from it and not pay at all. Also, it should get easier after the first or second attempt. Depending on your debt, you could become a pro. 😉

After completing this 2nd step, I’d say you’re at 20% of digging yourself outta debt (of course assuming that you completed Step 1). Congrats! You’re taking the necessary steps to get rid of that icky debt.   Want to gain another 10%…look for Step 3 coming soon.

Image Credit: http://www.flickr.com/photos/rakka/1628979772/