How to Lower your Credit Card Payments

by : Ronnica Rothe

Due to any of a number of circumstances, many people find that they owe more to credit card companies each month than they can comfortably pay. This can be a hard situation to deal with financially as well as personally. Fortunately, there are several ways to lower your credit card payments.

One way to lower your credit card payments is to lower the interest you pay. The less you pay in interest, the less you will be charged each month as a minimum payment and the quicker you pay off. You could transfer your balance to a credit card with a lower rate. Beware of credit card companies that offer incentive rates that are enticing but will bump up your interest rate after a few months.

Different types of loans can be helpful in lowering your payments as they often have lower interest rates than credit cards. By getting a debt consolidation loan, you can lower the amount you pay per month. Because this is a loan, the lender will require you to have good credit. If you have missed a payment in the past or you have other negative items on your credit report, it might not be possible to get a debt consolidation loan and might not be beneficial if you can. If you own a home, you might qualify for a home equity loan that can be used to pay off the higher interest debt of credit cards.

There is also a program available that can lower your credit card payments. Not only could it save you each month, it also will help you to pay off what you owe to credit card companies at a faster pace, usually in 3 to 5 years. This helpful program is called a debt management program (DMP).

A DMP helps you by cutting interest and fees on the debt you owe. You also have the benefit of paying your bills in one payment each month. This money is then distributed by the debt management company to pay your credit card bills.

Unlike loans, you do not have to have good credit to qualify for a DMP. Another benefit of a DMP is that you'll be paying off your credit cards and making your payments on time, you will also see improvement in your credit score. Through a DMP, you can lower your credit card payments.

Whichever option you choose to lower your credit card payments, make sure it is something you can live with, not only in the short term, but also in the long term. Find a solution that will help you meet your financial goals.