Credit Card Debt - Tips For Paying It Off

The rich rule over the poor, and the borrower is servant to the lender. (Proverbs 22:7)

The above scripture is one of the reasons why you should aim to get out of debt quickly. If you are struggling with credit card debt, these practical steps can help you reduce it and pay off your outstanding balance much quicker -

1. Call the credit card company and renegotiate the interest rate on your cards starting with the card that has the highest interest rate. The so called fixed interest rate can be changed - all you need to do is ask. Follow these simple steps:

Browse comparison websites to find offers and companies with the lowest rate who are willing to acquire your credit via a balance transfer (most credit card companies do this).

Call the credit card company and request that either your interest rate be reduced or you will move your credit to the company you identified above with a cheaper rate. Give them the name of the company to show that you are not bluffing but telling the truth.

Don't negotiate with the customer service person that answers the phone; make sure you request to speak with a supervisor or manager to show that you are serious about leaving. The company is likely to lower your interest rate because it will cost your them more to lose you to another credit card company than to lower your interest rate.

If they don't lower it interest rate, move your credit to where you will get the best rate. This will make it easier for you to pay off your debt without cumulative interest.

2. The above steps can also be done with late fees, go back to the credit card company and negotiate any late fees you have paid to be refunded to you, especially if you have been paying your bill on time lately. This is not a rip-off strategy, instead you are demanding a refund on the basis of being a loyal customer. Most times, they would rather also credit it back to you than let you go. The secret is in just asking.

3. Another thing that will help reduce your interest rate if you have more than one credit card is consolidating all of your debt in one card. This will not only reduce your interest but also keep your focus in one place since you will have only one repayment amount.

4. If you do not want to consolidate your debt, you should systematically pay it off starting with the credit card that has the highest interest rate. Make the minimum payment to the card with low interest rate and more to the one with the higher interest rate.

5. Automate your monthly payments by direct debit or standing order to avoid late payment fees.

6. Get your credit score and credit report from any reputable credit rating company. The report will contain ways to improve your score. Follow the necessary steps to improve your credit score.

7. Browse mail control companies such as this one and stop credit card companies from sending deals to your home address. Unsubscribe from all credit card correspondence whether via email, text etc, as this will avoid the temptation of taking up yet another tantilising offer.

8. Get free anonymous debt advice from charities and government agencies such as the Consumer Credit Counselling Service, Christians Against Poverty or Citizens Advice Bureau.

View the Original article