Lower your Interest Rate to Lower your Debt

by : Ronnica Rothe

by working smart. There are several steps you can take that will lower your card interest, allowing you to pay them off a faster rate.

It never hurts to ask. Ask your creditors in writing for a lower interest rate. Include reasons why they should do it, highlighting your payment history, credit history, etc. If you have been paying your bills on time, they credit card company have a good reason to believe that you'll keep doing it. The opposite is also true, however. If you have had late or missed payments in the past, they are reluctant to trust that you will pay them back in the future and won't lower your card interest rate.

You might be able to transfer your credit card balance to another card that has lower interest rate. Many cards offer low balance transfer fees and startup interest rates. Beware of rate hikes that often happen after the first six months or so as the introductory offer is usually short-lived. Also, you will want to know if there are startups fees on the credit card. If so, stay away. Some companies have started to offer cards with good interest rates, but then hit you with heavy fees. Understand the fine print before signing up for a card or transferring you balance.

Another way to is to go through credit counseling and obtain a debt management plan. The credit counselor can look at your situation and help you determine if this is the plan for you. With a debt management plan, you are able to obtain lower interest rates and fees on your credit card accounts, allowing you breathing room in order to pay them off.

If you are able to lower your cards' interest, you can enable yourself to get out of debt. Taking a step in this direction is the easiest way to walk to financial freedom.