1. Relook at your old housing loan (especially year 2007 and before) and negotiate. Many people think that housing loan is fixed and nothing can be done. Good news is it can be negotiated. I did revisit my house loan’s interest and have helped many of my clients. And this had saved hundreds to thousands of ringgit per year without having to move banks. 
  2. Consider Cashing in your life insurance. If you have insurance life policies that have built up cash value, this may be an alternative to payoff your debt quickly. The cash value might not be big, however it does help to ease the burden.

3.  Do a credit card balance transfer. Credit card interest rates normally range 18% – 20%. Hence one of effective way to reduce the interest is by doing a balance transfer to other that offer 0% promotion rate for 12-24 months.

If you do a balance transfer, please be discipline to complete paying it within 12 month. If not, once the promotion rate expires, the interest rate will go back to 18%.

4. Use your tax refund to pay down debt

If you happen to get a tax refund from LHDN, please consider paying down the debt of the highest interest eg. Credit card or personal loan.  I understand the temptation to use tax refund to purchase stuff but paying debt will make you feel much relief.

Finally, Don’t spend every day obsessing thinking over the debts – this can stress you out and demotivate you. Once you have a plan in place, be discipline to stick with it and have a belief that ‘things will get better’.

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