Lower Your Credit Card Interest Rate...

[PennyPincher]

Could it be? I had to try it... That is, negotiating credit card APRs. A dear friend of mine is a bit more in debt than she'd like - actually, alot more. I spent 20 minutes this morning calling four of her credit card companies to negotiate lower rates...what a worthwhile chunk of time. Here are the stats:

1. First call - Lowered the APR from 19.5% to 15.5% (Still not attractive, but better.)

2. Next - Lowered from 16.4% to 11.4%.

3. Unable to connect w/account manager - awaiting return call.

3. Last - The whopping 28% rate dropped to 9.9%. (Of course the 28% was ludicrous, and made it nearly impossible to pay anything more than interest...)

Now my friend can make a better judgement on which to keep and which to cancel...and move closer toward being debt free. She has wanted so badly to make a change, but going up against these companies can be a daunting task.

If you have a balance on one or more cards - and haven't yet called to get it lowered - JUST DO IT! It's time well spent.

Also, you can negotiate your rate every 6 months, so write it down, and keep doing it! Good luck, and share any encouraging stories.

[Tree0164]

Absolutely it works. It doesn't hurt to say I am getting all of these balance transfer offers for 5.9% and I was hoping that you could match that.

Also if the cs rep won't do it, go up the ladder.

Good luck!

[jmjj215]

Remember in the excitement of negotiation that the best way to avoid the interest is to avoid credit cards all together. Great job on handling those companies though! If someone wants to get out of debt, then it's always motivating for the person to see that they're already making headway (with lower rates) even if they haven't yet begun to pay down their balance.

Remember that debt is a symptom, not a problem. The problem is usually something to do letting more money go out than what comes in. I'm sure you've talked with her about that already though! The budget is the bedrock of any financial plan! Way to stick it to the cc companies.

[marla]

I did this with the challenge. I just called and asked for a better rate and had no trouble getting it. When you say that you have been receiving a lot of other offers at better rates, the credit card company seems to listen a bit more.

[terry1156]

Asking doesn't anythhing and the worst they can do is say no. If they do, then all you have to do is change credit card companies. They are begging for you business these days.