How to Lower Your Credit Card Rates

Here’s from Mahalo

“The average annual percentage rate on American credit cards is about 18%. Convincing your credit card company to lower your rates will not only reduce your interest payments each month, but will reduce your overall debt.

“And because the average consumer is regularly inundated with new credit card offers, you have more control over your rates than you might think.

“Lowering your credit card rates is possible even if you have little confidence as a negotiator. You’ll simply need to do some research and make a few phone calls.

“Step 1: How Much Are You Paying Now?” More here…

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Kim Klaver

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  • People can also take advantage of low interest and no interest credit card offers. Transfer the balance on a high interest card to the low/no interest card. When the new card’s promotional rate end, move the remaining balance to another card. We started doing this a couple of years ago and we have saved ourselves thousands and thousands of dollars in interest charges. We will have all of our consumer debt paid off in less than 2 years.

    We’ve transfered balances about a half dozen times and our credit score has not suffered. We close accounts after we transfer out of them. Too many open accounts may bring down a person’s score.

    Read the offers VERY carefully. Look for ways the credit company can jack up the rate.

    Watch the balance transfer fee. Most are 3% and that is okay if there is a cap. Look for a $99 balance transfer cap. $99 may seem high, but someone could pay more than that in interest in a few months, maybe even 1 month. Whatever the percentage, look for the cap. Some cards don’t have one and that could cost hundreds of dollars. I have seen some offers with 0% balance transfer fee.

    Find a card offering at least 12 months at the low/no interest rate. Write down on a calendar the day the promotional rate expires. Start the transfer process (of the remaining balance) 1 month before.

    Now here is the big secret…STOP using credit cards. Start using cash to pay for things, not a debit card, C-A-S-H. Study after study shows people spend and extra 30% using plastic versus cash. McDonalds found their plastic paying csutomers spend 43% more

    Disclaimer: I am not a financial expert. The above is not to be considered financial advise. I am only stating what has worked for me and I do not claim these methods will work for anyone else. Check with a professional financial and/or legal adviser first.

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