I know negotiating with the credit card companies sounds like a tough thing to do, but I think you will find it can be very simple. If you never try you will continue to pay higher interest and have a harder time paying down your debt and you credit card balance will linger on.
By understanding your current interest rate and how much of you balance is going to interest on the credit card and how much is actually hitting the principle of your balance is critical and will give you motivation to call and see if your credit card company will give you a better rate.
Now if you have good credit it makes it much easier to negotiate with the credit card companies and get a low interest rate credit card. If you have poor to bad credit they may or may not want to deal with you and may tell you no. But this is something still worth trying because you just never know and it is worth making the phone call to the credit card company.
So you may be asking how do I negotiate my current interest rate to a lower interest rate with my credit card company? Normally if you call them up and tell them you have received a balance transfer offer in the mail at a much lower interest rate to transfer you balances to they will be willing to work with you. Tell them you got this offer but really like their service and you would like to keep your credit card with them but will have to switch if they don’t give you a lower interest rate for either 6 months or 12 months.
Most of the time the credit card whether it be DiscoverCard, Visa, MasterCard or American Express will lower your interest rate to keep you business. Once they lower it you will now be able to pay your debt down faster as much more of your payment will be hitting the balance and thereby reducing your credit card debt much quicker.
Most people do not even pay attention to their credit card payments or interest rates. They might have a rate of 18 to 21 percent and just go on paying and accepting the rate. This is a big mistake and if you pay on time and have a decent FICO score you just should not accept a rate this high as you are paying a huge amount of interest if you are carrying a balance.
Once you get a negotiated rate on you credit card make sure you always pay the payment a few days ahead of when it is due to ensure you keep this good rate and remain in good standing.
If you cannot get your Chase, American Express, Discovercard, Bank of America or whoever your credit card issuer is to reduce you interest rate down on your credit card you should take action by transferring the balance to a low fixed rate for the life of the balance transfer card such as the American Express Blue Card. They have a fixed rate for the life of the balance transfer of 4.99%. If you have a small business, Advanta has a small business credit card that offers a 2.99% fixed balance transfer interest rate for the life of the balance transfer. Taking advantage of either one of these can save you hundreds in interest.