I am currently debt free except for a car loan and a mortgage. My husband and I had over $20k in credit card that we paid off a few years ago. One of the strategies that we used lowering our credit card rates and surfing the cards.
If you are trying to get out of debt, one of the first thing you need to do is try to lower your credit card interest rates.
Call your credit card companies to see if they will lower your interest rates.
A major consumer group conducted a study to find out how easy it is to get a lower credit card interest rate. Fifty-seven percent (57%) of those who simply telephoned their credit card company and asked for a lower interest rate got one instantly. This rate was anywhere from 7 to 10 points lower than their current rate.
A sample opening on a phone call to your credit card company may go like this I have received a pre-approved offer in the mail from _______ Bank offering me a ____ interest rate card. Can you beat or match that offer or do I have to transfer my balance to their credit card?
If you do not succeed with the customer service rep, ask to speak to a supervisor.
You can also pay the balance transfer game. First, ask these questions:
1. How long does the introductory rate last?
2. What is the card's annual percentage rate after that teaser rate expires?
3. Does the teaser rate apply to transferred balances or new purchases or both?
4. Does that card have an annual fee?
5. What about late fees and over-the-limit fees?
6. Ask if there are balance-transfer fees (Some issuers charge transaction fees as high as 4 percent. So the higher that balance, the higher the transaction fee. A 4 percent fee on a $5,000 balance would cost $200).
