Surveys show that Americans are now saving less cash than ever before.  Along with that, Americans are carrying a heavier debt load than ever.  It’s easy for a home loan, a car note and a handful of charge card bills to get out of hand, and many people are struggling with more personal debt than they can repay.  To make matters worse, recent changes in bankruptcy law will make it more difficult to file for bankruptcy for individuals who simply am not able to pay their debts.

There are quite a few solutions available that allow most people to lower their interest on their personal debt, greatly reduce their total monthly payment, or both:

Ask for a lower interest rate on your credit card.  If you have been making payments regularly, and you have not had a history of late payment, you might be able to reduce your interest rate on your credit cards simply by phoning your credit card company and asking them!  It doesn’t work every time, but the market for charge cards is extremely competitive at the moment, and a lot of lenders would rather reduce your rate than drop you as a customer.  It’s worth asking.Get a new charge card.  If your lender isn’t interested in lowering your interest rate, look around for a charge card with a more suitable interest rate.  There is no reason to be paying 20%or more in charge card interest if it isn’t necessary.  The interest on charge cards is no longer deductible from your taxes, but if you can get a charge card with a lower rate and you move debt from other cards to that one, you can save quite a bit.

Take out a regular loan from the bank with collateral.  You can almost certainly obtain a basic installment loan from your bank by offering cash or stocks as security for the loan.  Like credit cards, the interest isn’t tax deductible, but the interest rate may be better than bank cards, and if you combine several payments into one with a loan from the bank, you will reduce your monthly payment.

Take out a home loan or home equity line of credit.  If you have home equity, you can borrow up to eighty percent of your  equity in either a lump sum or a revolving credit line.  Interest rates are still fairly low on home loans, so this one could be a fine way to reduce your consumer debt.  As a bonus, the interest is deductible from your taxes.  A modest downside is the fact that these loans usually have fees and/or closing costs.

Most people can make use of one of the ideas above to help them minimize their debt.  If none of these choices work for you, you should consider talking with a credit counselor, who can outline other possibilities that may meet your needs.  Many credit counseling organizations are non-profit, so it may be beneficial to talk to a credit counselor if nothing else works.