“He who understands it, earns it … he who doesn’t, pays it.”
This quote has been attributed to Albert Einstein, but our good friends at Snopes.com have not had any luck in proving it. Regardless of who initially spoke these sage words, they’re still very accurate and thought-provoking.
Interest rates are a fact of life when we get tangled up with credit cards, and we often just accept them as a part of living our credit-based existence. You’re stuck with the interest rate you’re given, right?
Today, as part of our 30-day “New Year, New You” Challenge, your mission is to review the interest rates on your credit cards and try to lower it!
Just ask! If you’re a long-running and good-paying (more than minimums, on time) cardholder, call their customer service line and simply ask if they’ll lower your interest rate. It may only be a small change if they do, but it can add up over time, especially on higher balances.
Transfer it. Here’s an idea for those who carry multiple credit cards. It may be possible to transfer your balance from the higher interest card to the lower interest card. If you can pull this off, you can potentially save a significant amount if you’re carrying a balance.
A word of caution: Be careful if you’re tempted to take advantage of a new credit card’s juicy introductory offer. Yes, the low interest rate may seem too good to pass up. But if you have trouble with impulse spending, you may just end up in more debt down the line. There’s no shame in it – just be honest with yourself and save yourself the stress later on. (Plus, requesting a new card will be a hit on your credit report.)
There are a lot of little tricks to help bring down those credit card debts you can utilize as part of your commitment to a new financial you, and I’d love to help you get there! Give me a ring at 513-563-PLAN (7526) or book a free 15 minute consultation online.