Reduce Credit Card Debt Interest - 4 Simple Tips
With the economy in the slumps right now, many people are turning to the use of credit cards to pay many bills and make necessary purchases.
And with the increased use of credit cards, many have found that their interest rates have increased as well.
Recently there has been a little relief in the way that credit card companies are able to increase interest rates.
As of May 2009, credit card companies are required to give the consumer 45 days instead of the 15 days before adjusting the interest rate.
But in addition to this, there are some ways in which credit card debt interest can be reduced.
Some of the ways would be by contacting the credit card company, closing the account, moving the balance to a lower interest loan or increase your payment every month.
One of the easiest ways to decrease the interest rate is simply by asking.
Contact the credit card company directly and ask for a reduction in the rate and typically the better the credit score, the more likely you will get a better rate.
But even if your credit score is not the best, it is still worth a try, you will never know.
Next, if it is possible, close the account.
With the new law that went into effect back in May, if you close the account, you have 5 years to pay off the balance at the current interest rate.
So your rate would not change for at least 5 years.
Also, many people in the past have transferred their balance to a lower interest rate card or to a card offering a 0% rate for balance transfers.
This will give you the option of paying off your debt without having to worry about increased rates.
Finally, a very wise thing to do would be to increase your credit card payment each month.
This at the time may not seem like it would save money but by paying more on the credit card, this will decrease your overall balance and therefore will decrease your interest rate.
These are a few simple step, so do what is in your best "interest" and good luck!
And with the increased use of credit cards, many have found that their interest rates have increased as well.
Recently there has been a little relief in the way that credit card companies are able to increase interest rates.
As of May 2009, credit card companies are required to give the consumer 45 days instead of the 15 days before adjusting the interest rate.
But in addition to this, there are some ways in which credit card debt interest can be reduced.
Some of the ways would be by contacting the credit card company, closing the account, moving the balance to a lower interest loan or increase your payment every month.
One of the easiest ways to decrease the interest rate is simply by asking.
Contact the credit card company directly and ask for a reduction in the rate and typically the better the credit score, the more likely you will get a better rate.
But even if your credit score is not the best, it is still worth a try, you will never know.
Next, if it is possible, close the account.
With the new law that went into effect back in May, if you close the account, you have 5 years to pay off the balance at the current interest rate.
So your rate would not change for at least 5 years.
Also, many people in the past have transferred their balance to a lower interest rate card or to a card offering a 0% rate for balance transfers.
This will give you the option of paying off your debt without having to worry about increased rates.
Finally, a very wise thing to do would be to increase your credit card payment each month.
This at the time may not seem like it would save money but by paying more on the credit card, this will decrease your overall balance and therefore will decrease your interest rate.
These are a few simple step, so do what is in your best "interest" and good luck!
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