Debt 101: How to Reduce Your Debt

debt 101: use these helpful tips to reduce your debts

Helpful Ways to Reduce or Eliminate Debt 

Quick Answer

 Debt can build up fast, especially when expenses rise or income drops. A clear plan helps you stay organized and makes repayment feel manageable. Use the tips below to simplify your budget, track payments, and stick to progress one step at a time. 

Tips to Reduce Credit Card Debt 

As you may know, not all debt is the same, and everyone’s situation is unique. So, let’s talk about how to reduce credit card debt specifically. 

Start with these 3 moves:

  • Transfer to a 0% intro card (12–21 months)
    • Pay $0 interest while you lower the balance.
  • Overpay every month — even $25 extra.
    • Cuts interest by hundreds and shortens payoff by years.
  • Call your issuer and ask for a lower rate.
    • 70% succeed (avg. 4–6% drop) —Experian.

If you do not qualify for a 0% interest offer, then you should overpay as much as possible on every monthly payment. This will reduce the interest you pay over the life of your loan, which can result in hundreds of dollars or more in savings, reduce your minimum monthly payments, and shorten the length of repayment.  

How to Reduce Medical Debt 

Medical debt can be a huge burden for many people. It can create stress and pressure that feels never-ending. Fortunately, there are several ways to reduce medical debt and get back on your feet financially.  

3 proven steps:

  • Call billing before you’re late
    • Ask for hardship programs or reduced balances. Many hospitals cut 20–100%.
  • Apply for financial aid.
    • Nonprofits and hospitals cover ER or hospital stays. Often income-based and free.
  • Set up 0% payment plans.
    • Fixed monthly payments. No interest. Avoid collections.

For more information on this topic, take a look at this helpful blog article that is fully devoted to the topic of reducing medical debt. 

Need cash to settle fast? Apply in minutes at LendNation.

How to Negotiate with Creditors to Reduce Your Debt 

Another method often overlooked by borrowers is negotiating with creditors to reduce the debt you owe. Many creditors would rather negotiate a lower amount owed or lower monthly payments than have you miss payments or pay creditors to contact you with legal demands. 

5 proven steps to negotiate debt successfully:

Confirm it’s right for you.

  • Debt settlement lowers your credit score (100+ points for 2–3 years). Only use it if you’re 90+ days behind and can’t pay minimums. Check your score first (CFPB). However, defaulting on a loan and not paying it back will decrease your credit score more than a debt settlement agreement

Build a realistic budget first.

  • Use a free tool like Mint or a spreadsheet. Know exactly what you can pay monthly or as a lump sum. Example: $5,000 debt → offer $2,500 cash or $200/mo.

Prepare a strong script.

  • Write:
    • Hardship (job loss, medical bills)
    • Offer amount
    • Request written agreement Take detailed notes.

Stay calm, polite and persistent.

Where to Find Loans to Get Rid of Old Debt 

While we know it’s important to reduce your debt, we also understand that sometimes you just need a loan to help with an unexpected situation. 

At LendNation, we offer a variety of short-term loans to help you get through the stress of an unexpected expense. No matter what your debt situation is, LendNation can help you determine if one of our loan options is right for you.  

If you want to learn more about debt reduction tips and strategies, check out our library of helpful resources.  

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