CREDIT

access to that credit if your situation changes.

Ask your creditors for lower interest rates: You may not qualify for any hardship programmes being offered by your credit card company, but you might be able to get your interest rate cut. That can make paying off your debt more affordable.

“It’s not a bad time to call a lender and see if they can reduce your rate right now,” Welker says.

Be sure you understand the terms of any agreement and get them in writing, including how long the benefit will last and any trade-offs, like having a lower credit limit.

Put direct freed-up cash towards paying down debt. With restaurants closed, travel a no-go, and fewer events to buy new clothes for, you might have actually saved money throughout lockdown. Use that money to boost your debt pay-off. And if you have federal student loans, which are on pause through September thanks to the coronavirus relief bill, consider putting what you would have paid on those loans towards credit-card debt, which likely has a higher interest rate.

In addition, try to find a debt pay-off method that works for you and stick to it over the long haul.

Take the debt snowball method, for example: You direct your cash towards your smallest debt first, maintaining minimum payments on the others. When the first debt is paid, focus your pay-off efforts on the next-biggest debt. Picking off the smallest balances first can give you some quick wins that will help see you through your debt pay-off journey.

AP/NerdWallet