By Phyllis Zalenski
QcTimes.net : The end of the year is often a time for making financial resolutions for the coming year. If one of your new year’s resolutions is to get out of credit card debt, try some of the tips below.
Pay your bills on time. Don’t incur late payment fees or penalty rates. Credit card issuers could raise your rates several percentage points if you are late with your payment. Some issuers don’t disclose any particular penalty rate, but they state that they reserve the right to increase your interest rate if you significantly increase your total debt.
Check your statements carefully to make sure all of the charges are correct. And also check your statements each month to make sure your rate hasn’t gone up, and that you understand the terms and conditions of the cards you hold.
Call your current card issuer and ask that they lower your interest rate. Tell the card issuer that you’ve been a good customer for X years, that you’re making a resolution to improve your finances, and you’d like a better deal.
Shop around and transfer existing credit card balances to a card with a lower rate. However, make sure you will get that lower rate on the balance you just transferred, because some card issuers have restrictions on balances transferred. But even if the lower rate is a teaser or introductory rate for just 6 months, you could save several hundred dollars. But you need to pay off that balance before the introductory rate goes up again.
Pay at least the minimum payment and more if possible. If it hasn’t happened already on your credit card, it probably will after the first of the year. Your minimum monthly payment will be increasing. In the past the minimum payment has been 2 percent to 2.5 percent of your credit card balance. Some credit card companies have already increased that to a rate of 4 percent of your balance and others will be doing so next year. For many consumers this will be a very good thing. The balance will be paid off faster and you will save money.
QcTimes.net : The end of the year is often a time for making financial resolutions for the coming year. If one of your new year’s resolutions is to get out of credit card debt, try some of the tips below.
Pay your bills on time. Don’t incur late payment fees or penalty rates. Credit card issuers could raise your rates several percentage points if you are late with your payment. Some issuers don’t disclose any particular penalty rate, but they state that they reserve the right to increase your interest rate if you significantly increase your total debt.
Check your statements carefully to make sure all of the charges are correct. And also check your statements each month to make sure your rate hasn’t gone up, and that you understand the terms and conditions of the cards you hold.
Call your current card issuer and ask that they lower your interest rate. Tell the card issuer that you’ve been a good customer for X years, that you’re making a resolution to improve your finances, and you’d like a better deal.
Shop around and transfer existing credit card balances to a card with a lower rate. However, make sure you will get that lower rate on the balance you just transferred, because some card issuers have restrictions on balances transferred. But even if the lower rate is a teaser or introductory rate for just 6 months, you could save several hundred dollars. But you need to pay off that balance before the introductory rate goes up again.
Pay at least the minimum payment and more if possible. If it hasn’t happened already on your credit card, it probably will after the first of the year. Your minimum monthly payment will be increasing. In the past the minimum payment has been 2 percent to 2.5 percent of your credit card balance. Some credit card companies have already increased that to a rate of 4 percent of your balance and others will be doing so next year. For many consumers this will be a very good thing. The balance will be paid off faster and you will save money.
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