How to Reduce Credit Card Repayments
- 1). Review your latest credit card statement, taking note of the interest rate, and call your credit card company with the customer service number supplied on your statement. Ask your credit card company to lower your interest rate. Interest expenses are one of the contributing factors to credit card debt. The higher the rate of interest, the more you will have to pay each month just to satisfy minimum repayment requirements.
According to Bankrate.com, your credit card provider is not required to give you a lower rate. However, if you ask, then you may be able to shave several points off of your interest rate. A survey by the US Public Interest Research Group (US PIRG) revealed that 56 percent of consumers who asked for a lower rate got one. You do not have anything to lose, but you may have much to gain in the form of improved repayment terms. - 2). Step up your payments. Perhaps the monthly amount you are repaying on your credit card debt is not the problem, rather it is the number of months you are repaying your debt. Months can quickly turn into years if you make only minimum payments, even if you do not use your credit card again.
Yet, if you do not have funds available to make larger payments, you can still reduce your debt by following Jean Chatzky's advice on NBC Today. Divide your monthly payment in half and pay that amount twice a month. Most credit card companies charge you interest on a daily basis which means that if you make monthly payments, then your charges accumulate steadily and quickly. However, if you take that same $100 per month and split it into two $50 payments made every fifteen days, then you can lower your balance quicker. Contact your credit card company to make sure that they are okay with two monthly payments and that you will be credited accordingly. - 3). Seek the advice of a credit counselor or financial adviser if your credit card debt is beyond remedy, meaning you cannot secure a lower interest rate nor can you keep up with monthly payments. You will be guided through the steps needed to fix your situation.
Your counselor may advise arrange for the credit card company to reduce your interest rate, forgive some or all of your debt, or advise you to file for personal bankruptcy if you have no other option.
