So yesterday we spoke about you contacting your credit cards in order to get them to give you a reduced rate of interest. The reason to do this is to actually reduce the money that you give back to the credit card companies. Have you ever noticed that your minimum payment each month is not that much different to the interest that gets added to your account? Not rocket science is it?
The credit card companies know that you there is a good chance that you will only pay the minimum payment on your outstanding balance this is why they make the two numbers so close together. By doing this it means that you are paying off what you owe over a longer period than you really need to be. By getting you to make that call yesterday your minimum payment is now a fair bit more than that of the interest that you are paying, in turn this means while you are at the lower rate you are making a dent in that overall balance.
So now the next tip has to be to stop using your credit cards. This is the part that is common sense but gets overlooked! The reason your credit card bill gets bigger rather than smaller is because you keep adding to it each month. If you are at the point where you can’t live without your credit cards then you need to seek more help than just and advice blog on the internet. Talk to the companies that you owe money to and tell them what you can afford to pay back rather than what they expect you to meet each month. Respectable and well managed financial institutions will make the effort to help you as much as possible.
So today make yourself the promise to stop using your credit cards.
