The recent economic slump has certainly affected people from all walks of life. Unexpected loss of job and the lack available jobs had forced some people to file for bankruptcy to recover from debts. If you are presently struggling with debt repayment, check out the following debt reduction tips that you can work on starting today.

Limit plastic swipes. Surprisingly, despite the tough times, many consumers still do not exercise control over their credit card spending. The dangerous thing about using credit cards is that if you fail to pay your full balance on time, you automatically incur additional fees such as the interest rate or late penalty charges. For someone who is trying to reduce debts, even the lowest APR or late fees can add up to the burden.

Using your credit card when shopping should now be avoided. Making a list of the things you want to buy is important before going to the grocery or mall. Instead of charging it to your credit card, calculate your expenses and use cash for payment.

Use a debit card for online buys. Are you planning to purchase something online? It will be better if you use your debit card instead of a credit card. Unlike a credit card, a debit card minimizes the risk of debt build-up because your purchases are automatically paid using the existing funds in your debit account.

Negotiate with your lenders. You can reduce your monthly payments by calling up your creditors and negotiating for a much lower interest rate. If you have been a long time customer and your payment record shows that you have been a consistent on-time payer, you can use it to your advantage when requesting for a better rate. You can also ask your creditor to waive some of the fees so you can have an easier time catching up with debt repayment.

Granted, not all creditors may give in to your requests but it is always worth the effort to try. In case your creditor agrees, then the money you save from the reduced rate or waived fees can be a big help in cutting back your overall debt.

Be a wise shopper. The money you save from your purchases can be added to the budget you have for the repayment of your debts. When buying items, whether it is from a regular store or online, it is best to always check out your options and compare prices.

Consider a balance transfer credit card. If you are trying to pay off charges from different credit card accounts, why not apply for a new credit card with a zero percent balance transfer interest rate offer? Generally, you can enjoy the 0% APR for at least 6 months or longer, depending on the issuer. Transfer balances from your high-rate credit cards and do your best to complete your payments while the zero rate still applies.

Check your credit report. Securing a copy of your credit report at least twice a year is highly advised. This will help you avoid being charged with purchases that you did not allow or make. If you see unfamiliar charges in your any of your accounts, call the creditor involved for verification. Follow up your dispute with a letter sent via registered post mail. In addition to this, you must also send a dispute letter to the credit bureau so they can conduct an investigation on this matter.

Copyright (c) 2010 Suzy Vanstrusen