Today I read some book about the way to eliminate credit card debt. The book named ‘What’s your net worth’. I read through the book and found something interesting. I want to share it for you now.
You will want to take the following steps to reduce or eliminate your credit card debt:
• First, stop spending unnecessarily—and I mean realty stop. Remind yourself of the ESG principles discussed in the previous chapter, and your goal of increasing your net worth.
• Find a credit card with lower interest rates. You can go to BankRate.com and look for credit card offers in your specific city to Cardweb.com, or to CardClues.com which offers a list of cards based on your lifestyle, interests, and credit standing. Armed with this information, you are now ready to negotiate.
• Call the bank that issued your current credit cards, and negotiate for a lower interest rate and reduced fees. Stress that you have been a long-time customer—one who would like to continue working with them Explain that you are trying to work off your debt and that there are other credit cards offering lower rates. See if they can offer you a lower interest rate, one that will stay in effect for a significant period before reverting to the old interest rate.
• Apply for an alternative credit card. If your bank won’t work with you, then look for a credit card that has a low interest rate. Be sure to find out, however, how long the low interest rate will last before it can be increased. If you have debt you know you will have to carry over from one month to the next for several months, 1 recommends you secure the lowest-rate card, even if it has a monthly fee. If you really intend to pay off your new card in full each month, then you should use a no-annual fee card. Also make sure that the advertised low Interest rate applies to debt transferred from your old credit cards; some cards charge a much higher interest rate on transferred debt. Finally, make sure your new card has a sufficiently long grace period—the time between when you charge something and when you must pay your credit card company to avoid interest payments. Believe it or not, some cards’ grace periods are so short that you will owe interest within a very few days of receiving your credit card bill. You can check all this out at Bankrate.com by going into their site, then into the credit card section, and then to “best cards if you carry a balance.” You can apply on-line and get instant approval. Credit Card Network at www.creditnet.com and GetSmart.com allow you to apply for a card on-line as well
• Read the “important disclosures” of any new credit card for which you apply, whether on-tine or off-line. That’s the place where you’ll find all the stuff you’ll want to know as more people (lock to low-introductory rate credit cards, banks have gotten smarter about hidden lees. Look at pre-payment penalties, annual fees, late payment fees, and even balance transfer fees (when you want to move balances to this new card). Close unneeded credit cards, Call or send a written letter to the credit cards companies and request that your cards be closed. If you call, get the elimination number and the agent’s name. Destroying your old cards will keep temptation away and improve your overall credit rating.
• Compare on-line. If you feel a credit card company is inappropriately
0 comments:
Post a Comment