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[H318]High Credit Card Rates

by Adam J. Heist, Ada

Consumers are shocked to learn that their credit card rates are much higher than they were just a few months ago. Indeed, double digit interest rates are common these days as credit card providers jack up these risky unsecured lending platforms to rates that are two or three times the prime rate. For the consumer who pays off his debt every month, then high credit card rates don't matter. For mostly everyone else, high rates do matter and are a real burden. You can escape high credit card interest rates; read on and I will tell you how.

Are you paying 15.9%, 19.8%, even 24% or more on credit card interest rates? If you are, then that is a shame! Chances are a late payment or other problem pushed up your rate, but not always. Sometimes credit card providers love to sneak a higher rate past consumers. This is both unfortunate and shameful!

There are several ways you can reduce your credit card interest rate:

--Call your current credit card provider and ask them to drop your rate. If they refuse, mention that you plan on dropping them. If they call your bluff, then follow through and tell them you will no longer use their card. Once it is paid off, you can cancel the card or simply tuck it away in a safe place.

--Check current offers from your credit card providers. Chances are you will receive a notice saying that you can transfer balances for no charge and receive a fixed interest rate on that loan until the loan is paid off. 4.9% interest until your $5000 debt is paid off? You bet that is a good deal!

--Make the switch. If neither the first or second option are available to you, then shop for a new card. Many cards provide zero percent financing for the first 6, 12, even 16 months on purchases and some will also provide a low, fixed rate on balance transfers. Check out all the offers and weight them for the one that works best for you.

Are you fed up with paying high interest rates on your credit cards? You have three options as outlined herein. Take aggressive action today to whip your credit back in shape. What are you waiting for? Get a move on it and start getting out of debt straight away!

How would you rate your credit card interest rate? Unfortunately, this is a simple question that few consumers take the time to ask, and it can be a costly oversight. High interest rates on your credit card balance can inflict some heavy damage on your wallet. A higher rate means higher finance charges, and hurts your ability to pay down your debt.

If you didn't take a close look at your rate when you got your card, fear not. Here are some simple ways to reduce your high interest rates and get a better handle on your debt:

1. Debate the rate. First things first – let's find out exactly what rate you're paying on your cards. Is that your Visa card whacking you at an interest rate of 19.8%? And that department store charge card – are they really charging you 29%? Yes, those high rates are not uncommon, and chances are probably pretty good that whatever you are being charged, you are probably paying at rates that are much too high.

Considering that banks are now paying savers from 3 to 4 % interest on savings accounts and certificates of deposits, then turning around and charging consumers 3-5 times that amount to borrow money, you'd think they have some room to give you a lower rate. They do – it's just up to you to negotiate to receive it.

Here's how: Contact each of your creditors directly and see if they will reduce the rate on past purchases to a more reasonable level. Let's say you get them to agree on 12%. If they accept the new rate, you'll have automatically shortened the time it takes to pay off your debt without increasing the amount you pay monthly. Our advice would be to increase your monthly payment even more to get yourself out of debt sooner.

2. Go shopping – for another card. What if the creditor won't negotiate a lower rate? Then be a good consumer and shop for another card. Your mailbox is probably stuffed with new credit card offers. (The Internet is also a great place to shop for credit cards.) Find one that will give you a low, fixed interest rate - somewhere between 6 and 12% - preferably with a 0% transfer rate on your balance. Once your balances have been transferred, cancel the old credit cards and snip them to itty-bitty pieces with a scissors. You simply don't need the temptation of an open line of credit.

3. How about a loan? There are basically two types of debt consolidation loans – consumer and home equity loans. Anyone can get a consumer loan, but you obviously need a house for the second loan. These types of loans only work if the interest rate you pay is low. Be careful of hidden fees and charges and make sure you fully understand what your new interest rate will be.

If you own a home and you've built up some value [equity] in your home, you'll want to opt for the home equity loan. Rates tend to be lower, and the interest you pay may be tax deductible. Make sure that you can afford the monthly payments of both a home equity loan and a mortgage before you commit to this option.

Debt is no picnic, and it goes hand-in-hand with high interest rates. It's going to take some of the tactics we mentioned earlier, along with a good dose of discipline, to pay down your debt. But if you followed that two-pronged attack, you'll soon find yourself debt free and in healthy financial shape.

Article Source : How To Make Bussines Cards

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Both Adam J. Heist & Frank Liz are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Adam J. Heist has sinced written about articles on various topics from Finances, Credit Cards and Finances. Adam Heist has written many great articles on Loans. are playing a vital role these days. Visit our site now to find out why.. Adam J. Heist's top article generates over 1830000 views. to your Favourites.

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