That is simply not true and here is some very good news for you! There are several steps you can take to reduce your interest and save you hundreds, maybe even thousands of dollars every year.



Have you felt frustrated to see your minimum payment only has a few dollars applied to the principal? Would you like to see more of your hard earned money go towards that principal that you are trying so hard to pay off?

Be confident and comfortable while following these steps and you will soon see that you can keep credit card companies from ripping you off.

1. Contact your credit card companies and ask them if they have a balance transfer rate that is lower than your normal interest rate. (Be sure and ask what the fees are for doing a balance transfer and do the math to make sure it makes sense.) Also ask if your credit line can be increased for a balance transfer.

2. If they say NO, ask if there is any other way to lower your interest rate. If they still say NO, sometimes the card company will lower the rate if you talk about moving your account to another company.

Say, "I'm getting offers in the mail almost daily to transfer my money at 0%. I would really like to stay with you but I can't tolerate your interest rate. Is there a different department I need to talk with to discuss closing my account?"

(This will usually get you transferred to the retention department or a supervisor who has more authority to lower your rates.) Explain that you want to balance transfer to a lower interest rate or lower your APR and can they help you. (30% to 40% of the time managers are willing to help.)

3. If you've had problems with your card in the past (late payments, above your limits, etc.) ask if your standing with them has been long enough to "cure the account?" Also ask if they can review this without doing an inquiry. (Credit check).

4. Sometimes simply calling and saying, "I'm shopping around, what can you do to lower my APR?" (annual percentage rate) is enough to get them to lower your rates.

5. Every two months you should be calling your credit card companies and asking them to lower your interest rates.

WHY YOUR CREDIT CARD INTEREST RATES MAY HAVE GONE UP

1. You were late with a payment.

2. You were late with another debt. (Under the universal default penalties clause if stated in your contract.) Card issuers regularly check their customers' credit reports for late payments on any of their bills. Any late payments can be used as an excuse to trigger an increase in your credit card's interest rate, even if you have never made a late payment to the card issuer.

3. Your issuer merged with another entity. The receiving bank has the option of changing the conditions, if stated in your contract.

4. The bank's cost of borrowing money has increased. (Has to be in the contract.)

There are some individuals that have too much credit card debt and it is nearly impossible to get out of. People who have experienced this usually have, or will soon experience bankruptcy too.

Although not an ideal situation, bankruptcy can get some, if not all, of your debt forgiven. This should be your last choice though, a last resort. The tips listed in this article can give you some ideas to start controlling your debt and payments.