If you’re reading this, chances are your monthly credit card bills are putting a serious dent in you and your family’s lifestyle. Even if you’re making the minimum payments (something that I don’t recommend, by the way), and you find that there’s way more month than money, you still may have a few tricks up your sleeve to help your situation.

By help, I mean you’ve got legal and ethical options to lower your debt amount, lower your monthly payments, or both! Plus, you can help yourself and keep a good credit rating (or even improve it) when you negotiate credit card debt!

  1. Find a credit card with a lower interest rate on the balance you hold. One of the oldest tricks in the book – and still very effective. An easy, no-sweat way to save literally thousands of dollars every year. If your income and credit ratings are still good, start your research now into cards with low rates. Sometimes, credit cards will have a “teaser” or introductory interest rate that can be absurdly low – but only for 3 – 6 months. Then it ratchets up, maybe even higher than you’ve got now. It’s worth the trouble, but you have to have another low-rate card lined up when the current low rate expires. Then you repeat the whole game over again – would you do this a couple of times a year to save thousands? I would.

  2. Negotiate your credit card debt with your current credit card companies. This is another very effective way to save thousands each year – and surprisingly few people take advantage of this option (or even know it’s available). It works like this – simply find a new credit card with a rate much less than you’re paying now. Call customer service at your present credit card company (or companies), the phone number is on the back of the card. Tell the CS representative that you have found a much cheaper card, and that you’re considering moving your balance. Then, ask if they could match the new rate – and you wouldn’t move away if they can help you. If they can do it – great, most times you’ll get a positive answer. If not, see #1 (above).

  3. Take out a personal loan at your local bank or credit union. If your credit is still ok, and you still have a job, then this could be a great option for you. Use a personal, unsecured loan to pay off those high interest credit cards and, once again, save thousands a year. Of course, the interest rate on the personal loan will be high, but probably quite a bit lower that the rate(s) on your credit cards.

These are only 3 of the many ways you can save money by negotiating your credit card debt. One thing that you really need to do is change the lifestyle and choices that got you into trouble in the first place. Get rid of most of your credit cards. Live on only the money you bring in each month. And, make extra payments on your debt – so you won’t be paying interest all your life!

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Filed under: Credit Cards

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