June 15, 2010
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How To Get Out Of Credit Card Debt Fast, Pt.2
Do it yourself.Previous...
Next, don't go to a debt consolidation or counseling firm unless you are already months behind in your credit card and loan payments and considering court relief. Contrary to what most cardholders think, you can call the credit card company directly and negotiate a lower interest rate. If you have been making minimum payments on time and regularly, you have a good chance of getting your credit card interest rate reduced. Just a few points can save you thousands in the long run. If you are already delinquent, lenders will often negotiate lowering your balance if you are willing to shut the card down to future use.If you are not satisfied with the results of your conversation with the credit card company, begin searching for a new lender. Lenders have begun to offer better deals to those cardholders who have maintained good credit and have a higher credit score. If you qualify, take advantage of offers with zero percent interest on transfer balances with lower interest rates at the end of the promotional period. Additionally, when searching for a new credit card, look for one that doesn't charge an annual fee.
Take a close look at those rewards. If you are paying high interest fees for a credit card that issues rewards that either cost you more money or you have not been able to use, you need to dump the card. Card programs with cash rewards and miles typically charge higher interest rates and fees. Save the money and put it toward the balance of the card. You'll end up ahead of the game.
Lastly, put the credit cards away and pay with cash or debit card. This means sticking to a budget and passing up those impulse purchases that end up getting stored away or sold at garage sales for a fraction of the price. Save the money and put it toward the card balance. In no time, you'll be living debt free and financially healthy.