Lower credit card interest rates can be achieved through a number of methods, depending on your own financial strengths and weaknesses. Your options will depend on your credit and your financial health.
Increased Payments
Routinely sending in far more than the required minimum payment can give you more leverage in requesting lower interest rates. If you have the ability to dramatically increase your monthly payments, then you can follow these steps to request interest rate reductions.
Balance Transfers
If you have available credit on one credit card account, then you may consider transferring high-interest balances to that card. Balance transfers can be a good approach to reduce credit card debt, but only if you are able to get good terms on the transfer.
A permanent rate is preferred to a promotional rate. Also, consider that balance transfer fees may substantially reduce any savings while adding hundreds to your next monthly payment.
Frequent balance transfers can hurt your credit score. You should carefully select the best offer and refrain from subsequent offers that are not substantially better.
Credit Counseling
When you are unable to increase your monthly payments, then you may need to consider that your budget is stretched too thin. Lack of a budget surplus also can place your finances under tremendous pressure if anything goes wrong.
An Accredited Credit Counselor can help you evaluate your credit situation and provide feedback on your available options. An Accredited Financial Counselor can also discuss your net worth and any related aspects of your financial situation.
Frequently, a counselor may be able to help you develop a self-guided plan. The counselor may discuss debt management options as a way to get back on track financially.
Debt management can include a structured repayment plan, also known as a debt management plan. This plan is tailored to fit your own unique financial situation. Counselors will attempt to design a plan that fits your needs.
Debt management plans allow you to receive benefits directly from participating creditors. Since credit card issuers created credit counseling decades ago, most offer substantial benefits to help you repay your debt, thereby avoiding future default risks.
Benefits can include lower interest rates, and the amount of interest rate reduction depends on the creditor, the type of account you have and on their analysis of your situation.
Lower interest rates can save hundreds or thousands in excessive finance charges. They also have an extra benefit. They can help lower your monthly payment while still allowing to to repay the debt faster.
If you would like more information on debt management techniques, budgeting or other information, contact a certified credit counselor today. They can show you how to eliminate debt.