 TITLE: How to Pay Off Debt in a Year CONTENT: Consider Alternative Options for Paying Off Debt\n------------------------------------------------\nAside from adopting a debt-reduction strategy or slashing your spending, you may be able to lighten your debt load by embracing some alternatives. These include:\n*   **Asking a credit card issuer to decrease your interest rate.** Even a drop from 19% to 18% may help you pay off debt faster. If the credit card issuer declines your initial request, you might try again in three to six months (especially if your credit score has improved). It may take a little time and patience, but you could wind up with a lower interest rate on a credit card—and, therefore, could wind up paying less interest over time.\n*   **Looking into a debt consolidation loan.** A debt consolidation loan is designed to pay off higher-interest debt, typically credit card debt, through lower-interest lending. In August 2020, the average national interest rate for a 24-month personal loan, such as a debt consolidation loan, was 9.34%. By comparison, the average interest rate for a credit card that charges interest was 16.43%. One drawback of a debt consolidation loan: You typically need a FICO® Score☉ of at least 670 to qualify for a low interest rate.\n*   **Exploring a balance transfer credit card.** A low interest or 0% intro APR balance transfer card can help you pay off a higher-interest balance from another credit card. But to make this work, you must commit to paying off the transfer balance before the promotional interest period ends. Otherwise, interest charges will start kicking in. Also, you typically must have good or excellent credit to qualify for a balance transfer offer. END