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How To Save Money On Credit Card Interest

February 16, 2012 | Comments: 0 | Views: 120

With the economy going through a major slowdown there are many consumers that are forced to make some tough financial decisions. The amount of interest that people pay in their credit card debts has remained nearly 20% and in some cases more while the central banks have lowered the prime lending rate to historic lows. Since the banks are able to borrow money so cheaply it does not make sense why they are charging their clients so much interest.

If a person wants to lower their credit card interest rates they need to do some preparation work first. The first step is contacting the major credit reporting agencies and getting a copy of their credit report. There is no cost to get a copy of this report and while reviewing the report be sure to closely review it for any mistakes. If there is a mistake in the report it could bring down the credit score of a person making the cost of borrowing higher than someone with a higher credit score. These mistakes can be addressed by contacting the credit reporting agency in writing to make them aware of the issues.

The reason a person needs to check their credit report is the information that it provides will help give them bargaining power when calling their creditors. If a person has a good credit score they will have more leverage with the firm providing the credit.

After the credit score has reviewed a person should make a list of every company they owe money to and call them one at a time and speak with the account executive on the account. During the conversation with the executive inform them that you are a good client and have a good credit score and want a better rate. These credit card providers are very competitive and want to keep good paying clients so they will be willing to discuss options. If the credit card representative does not want to discuss lowering the rate a consumer should make a note of it and consider using a different firm with a lower rate.

If the creditor is willing to offer a lower quote a consumer should confirm how much the reduced rate will be and make a note of it. After speaking with each company an individual should then take the highest rate card and transfer the balance to a lower rate card. Since some credit cards might not have enough balance available to handle the balance transfer a person should look for another card that has the lowest balance transfer rate possible.

By taking these steps a person will be able to lower their credit card debt and save money in the process. It is very important to get the lowest rate possible since the economy is not showing any signs of recovery a person needs to make the most of their money.

With the economy going through a major slowdown there are many consumers that are forced to make some tough financial decisions. The amount of interest that people pay in their credit card debts has remained nearly 20% and in some cases more while the central banks have lowered the prime lending rate to historic lows.

Source: EzineArticles
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