Saving Money Requires More Than Coupons and Sales
During financial troubles, many people rely on credit cards to make purchases. However, the interest rate on credit cards is high. Therefore, it could cost you a significant amount of money down the road. Here are the top 7 ways to save money on credit card interest, so that you’re not strapped for cash forever!
1. Obtain Your Credit Report
The higher your credit score, the easier it will be to get better interest rates. Contact a credit bureau and ask for a copy of yours. You should look over your report and correct any inaccuracies. If the report contains a mistake, it could lower your credit score, so you need to do it ASAP before some bank or credit card sees that.
2. Contact Creditors
Contact each of your creditors to ask them what you can do to lower your interest rate. If you have paid your bills on time, you might have some negotiating power. Credit card companies are very competitive, so they want to try to keep your business. If the credit card company is not willing to lower your rate, you might want to consider switching companies – you can likely find a great introductory deal.
3. Compare Companies
If your current credit card company is charging you a high rate of interest, compare offers to see if you can find a lower rate. You might be receiving enticing offers in the mail but have just chucked these aside? It might be worth it to take look at what the company is offering. You could find a great deal!
4. Claim a Hardship
If you are to a point where you are really struggling to pay your bills, you need to call the credit card company and explain your situation. Credit card companies want to be paid, so they might be willing to work with you, so they can get their money in the long run (a few months or even years is nothing to them). If you file for bankruptcy, they will not get any money from you, so it’s in their best interest to negotiate.
5. Pay Off Credit Cards
The main way to save money on credit card interest is to not have a high balance in the first place! Collect all of your credit card bills and compare interest rates. Pay off the high interest rate cards first, and quit charging on those. It might help to create a budget and make a plan too.
6. Transfer Balances
Many credit card companies offer deals to entice you to apply for their cards. One of the deals that might be offered is a 0 percent interest rate for a certain amount of time. If the balance transfer fee is low consider transferring your balances on a high interest card to a new card. However, keep in mind that the introductory period will expire at some point, so you need to try to have the card paid off before the introductory period is complete.
7. Get a Home Equity Loan
If you have several different credit cards with high balances, you might consider getting a home equity loan. After receiving it, you can pay off all of your credit cards. These loans offer much lower interest rates than credit cards, so shop around to find the best one. Then, cut those cards up!!
Have another trick to save money on credit cards? Let us know!
[box_light]This is a guest post written by Jill Ramone. Jill likes to save her family money with Life Insurance Quotes. [/box_light]
Image courtesy of marsmet543.