STEP 4: Managing Credit Card Debt
Action 1: Lower Your Interest Rates

There are several excellent ways of managing credit card debt in addition to finding extra money to pay off your credit cards.

Lowering the interest rate you pay is one of our debt reduction solutions that can make a huge difference in how quickly you achieve credit card debt relief.

Sound impossible? You might be wondering how to get credit card companies to do something positive for you when you owe them so much money.

The truth is, credit card companies have a huge stake in managing credit card debt with you. Bottom line: They want your money. They want you to pay off the debt and will often work with you if you approach them correctly.

The average interest rate on credit cards is 18.9%. Retail store credit cards can be even higher, reaching interest rates around 28%.

Two Solutions for Managing Credit Card Debt by Lowering Your Interest Rate

1. Credit Card Companies Offer a Variety of Cards

Credit card companies often have a variety of card options. Call each of the companies you owe and ask what cards they offer. Often you can save a huge amount in interest simply by switching cards.

Here's an example:

When I first began to tackle managing credit card debt I contacted my credit card company to see if they offered other cards as well as the one I had. Did they ever! What I found was that you can sometimes easily go from paying 18% or 19% interest to under 10% just by switching cards with the same company. I did that, and it made a huge difference in the amount I was required to pay every month.

Just make sure you find out ALL the details about their other cards. You don't want to lower your interest rate only to find out you have a huge annual fee to pay or some other negative aspect to the new card. Usually though, companies will have a stripped down card with no fancy giveaways, points or awards that has a much lower interest rate.

How's that for immediate credit card debt help?

2. Credit Card Companies Can Lower Your Interest Rate

You may think that you are locked into your existing rate on your credit cards, but not necessarily. Phone each of your company to request a lower rate on your existing card.

You are probably receiving several offers from other credit card companies for new cards at lower interest rates. Tell them that. Tell them that you would like to work with them to pay off your card but other companies are offering you much lower rates.

If the company refuses to lower their rate, tell them that if they don't, you will move your entire balance to another card company and close this account. Credit card companies don't want you to close your account because they obviously won't make any more money from you if you do.

If the person you are speaking with still refuses to lower your rate, ask to speak with their supervisor. Nicely of course. A bad attitude won't get you anywhere in this situation. Repeat what you said to the first person you spoke with and request a lower interest rate.

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To achieve financial freedom, ideas such as: listening to good advice, learning how to make a budget, understanding credit repair possibilities, avoiding the scams, and generally becoming more knowledgeable of the credit card business, can all play a role in eliminating credit card and other debt. There is A smarter way to manage your money.

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