Techniques To Reduce Your Credit Card Interest Rates

To some credit card debt can be a humiliating experience, and to others, a humbling experience. When you have ended up paying hundreds a month in your credit card’s finance charges, it is imperative that you find ways to lower your interest rates. Paying your credit card debt can bring financial burden especially if a large fraction of your payment goes to the finance charge and interest rate.

You are far from reducing your credit card debt, if you are heavily relying on it for paying your monthly bills. At the start of a financial turnaround, be sure to use the money properly. It only takes simple techniques to lower your credit card interest rate.

Request for a payment arrangement

While the easiest way to ask for a payment arrangement is to call the credit card issuer immediately, you need to prepare for the call by having a copy of your most recent credit card statement. It is important that you know your current interest rate. You should also write down your account number. If the credit card issuer has made offers to reduce your interest rate, be sure to collect offers. Explore your options and get a quote on a personal loan from the website of your local credit union. This technique can get your rates reduced.

Call the collections agency
Making the call is the first step to changing your interest rate. The customer service representative will be the first person you will be speaking to, but you need an authorized representative to process your request and to provide you other payment options. Any rate reduction made must be expressed in writing. You should also have a copy of your re-structured payment terms.

Consider a balance transfer option
Another way you can get interest rates to 0% is when you try signing up for balance transfer credit card. However, you need to qualify for another credit card to take advantage of this option. Balance transfer credit card provides you the quickest options to reduce interest rate.

Focus on the debt with the highest interest rate. You can try generating extra money by working a second job or starting a side business. It is also a good practice to live within your means. Live cheaper so you will not be tempted to get another credit card to support your lavish lifestyle. Interest rate reduction should be an opportunity to reassess your spending habits. As soon as you get rid of debts, avoid them at all cost unless you are in a financial emergency situation.

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