Introduction:Credit Card Companies have been charging incredibly high interest rates if a borrower is even a day late on payment or has a lower than average credit score. A late pay may cause rates to jump to the maximum rate allowed and you may not have noticed it went up. Here are five ways to lower or keep in check high interest rates.
The best counter to paying high interest rates is know what you are paying and keep track of each card. Note amount owed and interest rate charged. Keep a file of all debts and interest rates as well as minimum monthly payments. With good information you can make better decisions that lower rates or avoid interest
The only sure path to paying less interest is having no debt. You will never pay off a credit card if you continue to charge as much or more onto the card than you pay down every month. Delay purchases as much as possible and avoid anything that is not an absolute necessity when paying with credit.
Shop for a credit card with a lower rate. Open a new account and balance transfer if the fees for a transfer are not more than the interest saved.
Often a simple phone call to your credit card company can result in a lower interest rate. I have heard figures of 30% to 50% you can successfully lower your interest rate by asking. Often you need to be persistent and work your way up the ladder to a manager who has the authority to lower your rate. If it does not work try again next month. Persist.
A last resort may be enroll in a credit management program. Be aware of those with upfront fees or high costs. A good program can lower or eliminate interest with a debt management plan. Many plans require a hardship such as job loss, under employment or illness that have lowered income.
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