Credit card debt, left unchecked, can pile up quickly — especially for debtors making minimum payments. According to the Federal Reserve, a credit card balance of $5,000 at 23.99 percent APR won’t pay off for 16,127 years.
That’s one reason why it’s important to manage your credit card rates — and renegotiate them whenever possible.
In this 4-minute piece from NBC’s The Today Show, you’ll learn the tested tactics that can cut a credit card rate and get monthly payments to a more manageable range. And it’s do-it-yourself — no debt management firms required.
Tips for Lowering Your Credit Card Rate
Some of the tips in the video include:
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Compare your current rate to the rate offered to new customers. Ask the lender for the “new customer rate” if it’s lower.
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If your credit score has improved since your application, ask for an interest rate more reflective of your current credit score.
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Be nice to the customer service representative. Kindness helps.
Why It Matters
Managing debt is an important part of household budgeting. So if you’re finding your credit card payments and/or rates too high for your liking, try following the instructions as described in the video.
And above all else — be persistent. The credit card companies won’t likely approve your first request.
