The Three Best Methods to Reduce Credit Card Debt
Wednesday, May 6th, 2009 Subscribe To Our Feed
If you literally are drowning in debt these days, you’re certainly not alone. Credit card debt is an increasing problem for many people these days, with balances getting larger and larger and minimum payments increasing to unmanageable levels. But you really can lower your debt load by following a few very simple strategies:
1. Never, Ever Pay a Late Fee
In recent years, late fees charged by charge card banks have been getting bigger while the grace periods have been shrinking. Be certain you always pay nothing less than your minimum payment, and pay it on time. If it happens that you simply cannot pay even a basic amount of money, then give a call to your credit card bank and alert them to this fact. You could possibly be able to get yourself more time to figure out what to do.
If you are late with even a single payment by as little as a day, there is a very good chance the bank will raise your interest rate, often by 50% or even more. Over time, this can can add up to charges far more significant than the 30 or 40 dollar late fee.
2. Have Your Interest Rate Lowered
If your credit card interest rate is too high, call your bank and ask them to lower it. Odds are, you could find a lower rate elsewhere, and your bank knows this. So don’t just accept them at their word, call their bluff. Tell them you can get or have been offered a lower rate, and ask them to match that rate. If they refuse, all you have lost is a phone call. But if your request is reasonable, there is quite a decent chance your bank will drop your rate to a more manageable level. This is a good first step in do it yourself debt negotiation and eliminating your bills altogether.
3. Obtain a Brand New Credit Card
In the instance that your bank won’t budge on your interest rate, just look around for a better rate at another credit card bank and transfer your remaining balance to that account. The truth of the matter is, many, many credit card issuers out there love to take balance transfers from other credit cards. Furthermore, even if you have made some late payments, thus causing your rates to rise, the odds are your credit rating hasn’t been affected. Banks usually alert credit bureaus when payments are significantly late (by like 30-60 days). If your credit rating remains unscathed, there should be nothing stopping you from finding a card with a lower rate and saving lots of money in the process. Once you have lowered your payments, you can begin investigating do it yourself debt settlement and do it yourself debt elimination
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