How Do I Lower My Credit Card Interest Rate?

Credit card interest rates are often the culprits for the debt problems of individuals. If a balance on a credit card cannot be completely paid down then interest rates can very quickly multiply the overall amount of money owed. Individuals can end up paying hundreds in interest fees without paying off the actual debts. Lowering these rates can be key to controlling an individual’s debt, and their hopes of eventually becoming debt free. Here are some tips that can help individuals reduce their interest rates.

Just Ask! Believe it or not, just asking over a short phone conversation can significantly lower your interest rates. In order to do this just gather your information, bills, bank statements and other relevant documents. Then make the call and directly ask for someone who has the power to change your interest rate. This may take navigating several different automated menus and a couple different levels of employees but just be patient. When the person who deals with interest rates becomes available to talk to, explain the situation and ask for a rate that is reasonable and would be more helpful in making payments towards the debt. Remember, while credit card companies do want to charge some interest to make a profit, they also don’t make a profit if individuals cannot repay their debts.

Another popular option is balance transfers. This is where another credit card company offers a special rate to for individuals to move their line of credit this other company. This can save hundreds of dollars in lower interest fees because they will often offer fairly low rates to entice consumers to switch. It is important to remember that these are temporary rates! Just because the interest rates are lower doesn’t mean that the credit should be used generously. Instead, this will give each individual a time frame to pay off as much debt as possible with these lower interest rates. Once the special rate expires, be aware of credit spending to make sure to avoid falling back into debt. As with any financial decision, be sure to read all of the terms of a balance transfer because there are always scammers out there who will try to take advantage of unaware consumers.

Ashley Russell

Ashley Russell

Ashley Russell is a junior at the University of North Carolina at Chapel Hill. She is double majoring in Journalism and English with a minor in Information Systems. After she graduates in the spring of 2013, she hopes to continue to work for the UNC system. Her ultimate goal is to become a book editor. She recently worked as an intern at the John W. Pope Center for Higher Education in Raleigh, North Carolina, researching and writing articles, as well as building two new websites for college applicants and alumni. She now works for the Medical Foundation of North Carolina as an office assistant and web designer. She opens the office every morning and takes care of the daily tasks and scheduling. She also uses her down time at work to create fundraising web pages that benefit the hospitals in the UNC-Chapel Hill area.

Ashley Russell is a North Carolina native, hailing from Kings Mountain. She is a diehard Carolina fan who loves to watch her team play in any sport—a Tar Heel born and bred. She loves to read and write in her free time. Since high school, she has known she wanted to pursue a career that involved both reading and writing. However, she has recently discovered a love for computers, so she also hopes to incorporate them into her career. She spends her free time tutoring k-5 students in reading and writing in the Chapel Hill area. She is a second-year captain of a Relay for Life team and a participant in Dance Marathon 2011. She is also the online webmaster for the Blue & White magazine based out of Chapel Hill.
Ashley Russell

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