Wealth-Coaching

One of the hardest things to beat in the debt elimination game are those pesky and high interest rates. Especially credit card interest rates. When you have an interest rate of more than 16 percent, it is difficult to get that credit card balance down, even if you are paying more that the minimum payment each month. Well, one debt reduction strategy that can help is to call your credit card companies and ask for a lower interest rate. Most credit card companies will accommodate you as long as you meet the following standards:

1. You have been a customer for a while (at least one year; at least two years is better).
2. You make your payments on time and at least the full minimum payment.
3. You can point out that you have other credit card offers with lower interest rates.

Most people who answer the phone can give you a 3 to 5 percent interest rate cut. You’d be surprised at what a difference that makes when it comes to eliminating debt. If the person you speak with will not give you the interest rate reduction, politely ask to speak with a supervisor. Most of the time, if you remain calm and polite, you can get that interest rate reduction. If not, let the supervisor know that you are disappointed and that you will be switching to a card with a lower rate. Then do it.