Often, it is not the amount you have on your credit card that sinks you, it is the interest payments. Interest on your credit card can be crippling. If you have poor credit history, you could find that your credit card interest rate has increased dramatically. On top of that, many low introductory interest rates become very high interest rates down the road through no fault of your own. Many people do not pay attention to their interest rates even though rates can be the single most important decision to selecting a credit card.

As a rough example, if you have $10,000 on your credit card, and a 5% interest rate, then you end up paying about $41 in interest each month. However, if your interest rate goes up to 20 percent, then you end up paying about $166 per month in interest payments. That might not sound like a huge difference, but the interest plays a huge role in how long it takes for you to pay off the balance and more importantly how much interest you are paying. Over time, the 5% scenario pays $1585 in interest while the 20% scenario pays over $12,240. Not to mention if you are making the minimum payment it will take you 15 years longer to pay off. You don’t want this to happen to you, so you need to learn how to lower your credit card interest rates to limit how much you pay.

First, if you are going to get lower interest rates, then you are going to need to fix your credit and get your payments on track. You need to have a good credit rating to have low interest rates because the credit card company wants to know there is a low risk of you defaulting on the credit card loan.

In addition to having an excellent credit rating, you should also be prepared to be persistent with the credit card company. You want to make sure that you contact them and contact them until they agree to lower your interest rate. Be firm with what you want and ensure that you get what you want from the credit card company. If you have paid back everything you owe on your credit card, then you can even threaten to close your account if they don’t lower your interest rate. The fear of losing your business will most likely cause them to lower their interest rate on your credit card.

By complaining about the lack of customer service to help you can also help you get to escalated customer service where your demands are met.

It is amazing, but credit card companies will offer you lower interest rates to help keep you happy and keep your business. The trick is that they want someone with good credit history and preferably some money in the bank. If you were in this situation to begin with, it’s likely that your interest rate would not have increased.

Listen to this solution: Turning Point Debt Settlement’s program offers a way for you to lower your interest rate to ZERO. Our service can effectively negotiate your creditors to help you pay off your debts in 1 to 3 years with no interest.

This entry was posted on Thursday, January 29th, 2009 at 10:02 am and is filed under Blog, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.