zonkeypimp.com

Many Americans have gotten themselves caught up in credit card debt and often have to take drastic measures in order get out of the hole that they’ve dug. Many will contact services that offer to consolidate your credit card debt into one monthly payment by cutting monthly interest rates the card companies charge. These are known as debt management programs. They will negotiate with your credit card companies to get you a lower rate. You then make a monthly payment to the debt management program and in that monthly payment is a fee that they charge. Typically around $50. These programs are great for people who need a structured monthly payment to help get them back on track. But this can be done on your own. All it takes is a phone call to your credit card company.

Take a look at your monthly bill and look at the interest rate they’re charging. Now find your credit card’s customer service number and give them a call. Tell them that what you’re looking to do is pay off the revolving balance you have and would like a lower interest rate. What they will then do is look at your payment history. They want you to typically have 3 - 6 months of on-time payments and from there they will lower your rate. Now this is great even for people with very little balance or zero balance at all. But there’s more you can do. After getting your lower rate, ask for their account services number. Now these are the folks that can really help. Explain your situation to them saying that you just called the regular customer service number and got a little break on your rate but that you’re really looking to pay off the card as fast as possible. These folks will then be able to offer you an even lower rate and can even setup payments plans to get that debt paid off. With this you’ll be on your way to being debt free in no time.

But a few tips you want to watch out for when applying for a new credit card. Most “new cards”, and by that I mean ones you typically see commercials for. Something like American Express has some sort of new special deluxe rewards card, will typically have a very high interest rate for the first year that cannot be lowered. These cards are part of special programs offered by the companies just to get you to sign up. Also, beware of store branded cards. These can lower your credit score by 20 points each for every one you have. Most offer you some sort of discount to sign up by in the long run it can cost you more when attempting to make big purchases like a car or house. If you can use cash, because that’s everyone’s best friend.

These are just a few tips I have but if you have any I’d love to hear them.