How to Successfully Lower your Credit Card Interest Rate

     I had to think about if I was going to post this blog for a long time. The dangerous thing is that sometimes the high interest rates are stopping people from using credit.  If I were to share how to lower these rates, would people then start using more credit? I have seen people with very low rates with the most amount of debt. They were excited about the interest rate but not about the total debt.  Just lowering your rate will not save you money.  Having a budget and changing your behaviors toward money is the only way to get out of debt.

Stop spending on Credit Card

     How is this going to lower your rate?  Directly it will not do anything, but if you do not put anything on the card and you pay money toward the card every month the debt will get smaller. 30% of a zero balance is still 0!

Budget

     By budget, I also mean set your priorities. You are going to need to keep up with the house payment, food and clothing, transportation and emergency fund (so you don’t need credit).  Whatever money is leftover is what you pay toward your credit card debt.

Integrity

     Just because some of their practices may lack this does not mean that you have to.

Open communication

     Now that you have your budget and a grasp on your priorities a phone call to each company will help.  You don’t need to threaten them with not paying just ask them for information.  Asking them “What is it that I can do to lower my interest rate?” will go far. Too often they are being told what they should do for us. It is refreshing for the person on the other end to hear someone be proactive.  They may even tell you that you need to miss a payment before they will lower your rate! You must then decide what it best for you. Remember to always capture who it is you talked to and at what time. If any agreement with rate or payments have been changed you must obtain these in writing before you proceed with sending payment.  Stay tuned to the blog for more to come…..or visit www.lighthouse-coaching.com for more ideas and strategies.

Where Does the Money Go?