Monthly Archives: July 2015

Restructuring Debts At Lower Rates To Improve Your Financial Outlook

If you have credit card debt, now more than ever you have options on how to deal with the credit card debt! The competition in the credit card industry is very very saturated at the moment, this gives you a little bit of leverage when it comes to dealing with the credit card companies. You can consolidate your credit card debts with a balance transfer with a sweeter deal than advertised, or you can opt to try and have your interest rates reduced, or both! Your credit card company knows that there are many credit card companies that are hungry for your business, and it is far easier to retain a good customer than it is to find a new customer. New customers are also a risk, especially if you already have a stable payment history with that credit card company. Basically if you are a very low maintenance borrower, and you are never late with payments, your credit card company is more apt to give into special requests.

All you need to do is pick on of your credit card companies, preferably the one with the lowest balance. Look for any balance transfer offer that they have and write down what fees they have, and check to see if they have any zero interest balance transfer offers open at the time, and if so how many months do you get interest free? Once armed with this information you next need to figure out what is the most reasonable interest you would like to pay, one that is still profitable and reasonable for the credit card company to offer you. For example if the interest rate after the intro period is 19 percent, you could ask them for 17.5% interest. If the intro period is too low, you can also ask for a slightly better intro term. One big thing to ask for is to ask if they can waive any balance transfer fees. Even if this is the only concession you can obtain, it is a huge bonus since balance transfer fees on average amount to 3 percent of the total transferred to the card. Ask for a special rate on any upcoming balance transfers, and let them know that you are inquiring with all of your credit card companies for a better rate.

You can also ask for lowered interest rates on any new purchases. Also another area many credit companies will budge on is the waiving of any annual fee that they may carry. All it takes on your part is a call to the credit card companies toll-free number. While it is no guarantee that you will be successful asking, you risk nothing by trying. If you are successful you will save money here and now, as well as in the future. If your payment record stinks with the credit card company you likely will not receive the concessions that you are asking for however. If your payment record is to spotty, you might have more success simply looking for a new low interest rate credit card than trying to get a concession from one of the credit card companies you are already doing business with. However if your spotty record only happened just recently and due to circumstances beyond your control, and if you had previously had a spotless record, you may be able to make your case with the customer service representative, or their supervisor if the pitch doesn’t go to far with the CSR rep. Even if your payment record has been not perfect you should still try and see what concessions they may be willing to offer you, you just may very well receive a better offer by asking nicely and being honest!

A few last pieces of advice here that I recommend you follow. If you do opt to apply for a new credit card, make sure you are already qualified, as each card you apply for will temporarily dip your credit score due to the hard inquires that will result. Also pay attention to the interest rate that follows any introductory offer, as often intro offers are just teaser offers with very high rates after the intro period. You do not want to dig yourself out of one financial problem just to find yourself in a new one. Also any money you save on balance transfers should be used to pay off your debts quicker. While paying down your debts following a balance transfer, if at all possible avoid making new charges, since new charges just result in more debt to pay off.

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