How To Reduce Your Credit Card's Rate of Interest
In today's world, nearly all of us have at least one credit card. The good ol' average family is in debt to between 10 and 20 lenders, with almost 50% coming from credits cards alone. Getting a credit card has never been easier. There have been both good and bad consequences of this. While credit cards have allowed us to acquire goods faster than ever before, they have also allowed us to accumulate debt faster than ever before.
It might be that you are not ready to cut up your credit cards. As a result this article has been written with just that in mind. It's incredible how with some planning, you can end up paying much lower monthly bills.
Charging interest is the main way credit companies make their living. This is the way your payment is used. Firstly, a portion goes to clearing the balance. Secondly, whatever is left over goes to paying the interest.Nowadays, some credit companies have begun charging ridiculously high rates of interest. Store cards are culprits in this practice, often charging between 30 and 40 percent interest. People who find themselves in such a situation has little options. It's recommended that you get yourself a credit card from a large provider such as Mastercard and Visa. Depending on which bank you do it through, their interest rates will vary.
Nevertheless, the rate charged by these companies are much lower compared to those of store cards. In addition, you are generally allowed higher limits with major credit cards. Therefore, it's very possible to replace all your store with 1 major credit card and in the process save a whole heap of money.
If you've already got a heap of major credit cards, then here are some money saving tips for you. There are so many credit card companies that they now have to compete for business. This creates a few opportunities for customers. It's recommendable that you firstly phone your credit card company and ask for a lower rate of interest. Chances are, if you've been good with paying your bill on time, then they will give you a lower rate of interest.
Nevertheless, if you are not successful in doing this, it's recommended that you look around for better deals. All you need to do is to apply for a card that offers a lower interest rate and transfer the old balance onto the new card. You'll be pleasantly surprised at the amount of money you can save by reducing your interest rate by 2 or 3 percent.
In the long run, credit cards can become a costly investment. However, by following the money saving tips in this article, you can reduce your payments significantly and keep more money for yourself.
It might be that you are not ready to cut up your credit cards. As a result this article has been written with just that in mind. It's incredible how with some planning, you can end up paying much lower monthly bills.
Charging interest is the main way credit companies make their living. This is the way your payment is used. Firstly, a portion goes to clearing the balance. Secondly, whatever is left over goes to paying the interest.Nowadays, some credit companies have begun charging ridiculously high rates of interest. Store cards are culprits in this practice, often charging between 30 and 40 percent interest. People who find themselves in such a situation has little options. It's recommended that you get yourself a credit card from a large provider such as Mastercard and Visa. Depending on which bank you do it through, their interest rates will vary.
Nevertheless, the rate charged by these companies are much lower compared to those of store cards. In addition, you are generally allowed higher limits with major credit cards. Therefore, it's very possible to replace all your store with 1 major credit card and in the process save a whole heap of money.
If you've already got a heap of major credit cards, then here are some money saving tips for you. There are so many credit card companies that they now have to compete for business. This creates a few opportunities for customers. It's recommendable that you firstly phone your credit card company and ask for a lower rate of interest. Chances are, if you've been good with paying your bill on time, then they will give you a lower rate of interest.
Nevertheless, if you are not successful in doing this, it's recommended that you look around for better deals. All you need to do is to apply for a card that offers a lower interest rate and transfer the old balance onto the new card. You'll be pleasantly surprised at the amount of money you can save by reducing your interest rate by 2 or 3 percent.
In the long run, credit cards can become a costly investment. However, by following the money saving tips in this article, you can reduce your payments significantly and keep more money for yourself.
About the Author:
Jenni Snook is the chief reporter of http://www.HealthyWealthySoul.com, a website focused on giving individuals recommendations and tools on personal finance planning to have both financial and spiritual happiness in their lives.
posted by Credit Counseling at
8:48 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home