If you’re carrying a balance on your credit cards, chances are you could save some money on interest and other charges with a bit of negotiation. Contrary to what most people think, you’re the one in the driver’s seat – not the credit card company.
The credit card industry is highly competitive, with every card trying to get more and more business. And why wouldn’t it be, with the crazy interest rates they can earn on the balances that people carry?
That competitiveness can work in your favor, however. It can give you some leverage to get a better deal from your current credit card, or an alternative option with better terms to become debt free.
If you can convince your card company to lower your interest rate or waive certain fees on your card, it can save you quite a bit of money in the long term, assuming that you’re carrying a balance on your credit cards and get out of debt.
The key to negotiating this way is to have some leverage you can use when you call. If you get credit card offers in the mail, watch for special deals like zero interest on balance transfers, or even lower interest than what you’re currently paying. That will be a lot of savings thanks to debt consolidation companies.
Don’t sign up for these offers yet, just keep a couple of them so you can use them as ammunition? When you call your credit card company to ask for a better interest rate or elimination of fees you may be paying, have these offers on hand.
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