The person who owes a debt, especially credit card debt, may focus all his attention on paying it without paying attention to one of the most important financial steps that is to reduce the value of the debt in the first stage. If you reduce the debt ratio, you will be able to get out of this financial impasse quickly.

In this report, the Spanish website Escuela de riqueza explained that if you pay the same installment to pay off less debt, it makes sense for your payments to increase your credit balance, and if you pay more dollars, you will pay off your debt faster.

As for the question in this case, how can the value of the debt be reduced?

Here are 5 ways to do this.

Compare credit card company offers

Be sure that credit card companies will want to do business with you, especially if your credit rating is good, or your record in paying installments is regular, in the past, it was difficult to get competitive offers, as the person has to apply for credit cards from companies Various to choose the best offer;

However, this method has the problem of having a low credit balance every time you get a card, not to mention that this procedure takes a lot of time as well.

Mortgage Guarantee Credit Line Refinancing

This method is not unique;

But it is less reliable, and this may be due to the fact that the value of real estate was low compared to nowadays, for this reason, you should consider adopting a home ownership line of credit, and since few people resort to this solution, the banks will be eager to deal with you.

Compare credit card companies' offers and choose the best way to reduce debt (Shutterstock)

Alternatives to credit card

If the benefits of credit cards are 8% or more, then you will definitely resort to a peer-to-peer lending service, and this service contributes to the connection between lenders and borrowers, and if you have a good credit score and a regular payment record, it will be easy for you to use this service, and it benefits many People claim that they have reduced 40% or more of their debt thanks to peer-to-peer lending services.


If you want to borrow money from a friend, you must determine how and when to pay it off. This will increase the chances of finding a friend who will agree to lend you the money you need.

the work

Some employers offer small loans to employees for a short period of time, and even if the business owner does not have a lending plan, he may be willing to lend you the amount you need if you are an important member of the work team, and you should show him how professional you are by presenting a plan for how to pay Installments.

It is advised to present it before you are asked.