Do you want to lower the interest rates on your credit cards? If you are in debt and have high interest rates, then you may be paying hundreds of dollars (or more) in interest and finance charges alone. This can cause you to have very high minimum payments, and can make it seem impossible to actually pay off your debt. However, if you can somehow reduce your interest rates, you can save a ton of money and get out of debt much faster.
How to Get Lower Interest
If you have a high credit score, extra money to pay off your debts, and you do not have a very high debt load, you may be able to get lower interest rates on your own. By overpaying on your monthly payment by a couple hundred dollars, you show the financial strength necessary to command lower interest rates. Simply call to ask for a rate reduction after making extra payments for 3 or more months. However, most people do not fall in this category and could use a little help.
An Accredited Financial Counselor may be able to help you get lower interest rates and other benefits through a debt management plan. The counselor can work with your creditors to get you benefit that you cannot usually get on your own. If you would like to learn more about getting lower interest, contact a reputable credit counseling organization.
If you are in debt, a debt management plan may be able to help you out with additional benefits as well. In some cases, you may benefit from eliminated late fees and over the limit fees, and you may even qualify for a lower monthly payment.
A debt management plan has awesome benefits, but it is no pleasure cruise. You still have to repay your debt which can make it tough to get by on your monthly cash flows. If your reduced monthly payment allows you to break even, then it is a feasible option. Otherwise, you may need more drastic measures up to and including bankruptcy.