Reduce Debt via Loan Forgiveness, Negotiation, and Minimalism

A blank loan forgiveness form sitting on a wooden table.

Most of us have been in debt at one time or the other without loan forgiveness. The way in which the financial system is structured is such that we end up buying many things on credit. There are advantages and disadvantages to buying things in this way. One of the advantages is that if you get the car or education right away, your capacity to make more money increases. The disadvantage is, of course, that you have to pay interest. Then, you might end up paying twice as much as that thing is worth.

Sometimes, you anticipate that you will make a certain income that enables you to repay all your debt. However, your income ends up falling below that level. Thus, you're unable to make the payments you thought you would make. If this has happened to you, then you're probably eager to reduce your debt as much as possible. Here are some ideas:

Do You Have to Pay Loans?

There are certain kinds of debt that may be eligible for debt forgiveness.

  • By now, most students have heard of President Biden's upcoming loan forgiveness scheme which will reduce student debt by $10,000-20,000. All you have to do is apply for it.
  • There is also public service loan forgiveness (PSLF) in which people working for non-profits can have their student loans forgiven.
  • There's also teacher loan forgiveness in which teachers can get student loans forgiven.
  • It is also possible to get credit card loan forgiveness by working with a third party. Then, they can negotiate a deal between the credit card company and you.
  • Bankruptcy is also a possibility though you might want to speak to your lawyer about the long-term effects this will have on your credit rating.

It's just a good idea to keep in mind that you don't always have to pay off a loan if there is a forgiveness program that applies to you.

Can You Negotiate It Down?

Credit card companies and other lenders may be willing to negotiate the amount that you need to pay them. Think about this from the point of view of the company/lender. If you lend someone money, isn't it better for you to get at least some of that money back rather than not getting anything at all?

So, it makes sense to speak to the company, no matter how nervous you might feel about doing this. Then, come to some kind of understanding with them. They might be willing to lower the total amount you have to pay if you can give them a lump sum now. Or they might be willing to spread your payments out over a period of time until you get back on your feet.

Can You Be More Minimalist for Loan Forgiveness?

Once you've figured out whether you really need to pay a debt and negotiated it with loan forgiveness to an amount that seems doable for you, the next step will be to actually pay that amount. In order to do this, you'll need to keep your monthly expenses down and make your monthly payments regularly.

The best way to do this is to ask yourself if you really need something before you buy it. If it turns out that you do need that thing, ask yourself if you could find it for cheaper. Food and groceries can be purchased in bulk online or at wholesale prices at Costco. Purchase clothing on sale too.

Try practicing a minimalist lifestyle, at least in terms of new purchases, and consider getting rid of things that are costing too much in terms of upkeep. Once you embrace the spirit of minimalism, you may find that you prefer it, since it's easier to maintain a smaller house and fewer possessions.


Loyal Lending can free you from creditor calls and multiple bills with our easy low interest rate debt consolidation loan. With an interest rate in the single digits and a single monthly payment you will be free to plan for your future.

Let Loyal Lending help you find financial freedom from high interest credit card debt.