Step 3 To A Debt-Free Life: “Negotiate A Lower APR”

If the majority of your outstanding debt is credit card debt, you may be spending hundreds of dollars just on interest alone. Aside from wasting money, this keeps you from moving forward and paying down your debt.

Most people don’t know you can call up a credit card company and negotiate for a lower APR. Take the time this month to do that. Explain that you are working on paying down your debt and that the interest payments are impeding your progress. You can even research competing cards and cite their interest rates in a bid for a lower APR from your current credit card company. Worst case scenario is that the company cannot lower your APR and all you did was spend a few minutes on the phone.

Another option, if lowering your APR doesn’t work, is to consolidate your debt into one, or possibly smaller accounts. This option is not for everyone, although it is another option that could make your minimum payment more manageable or lower your monthly APR or the amount of payments due. This is a good option for people who hold store credit cards with high interest rates, and allows them to work with their credit union to lower this rate.

Lowering your interest rates will allow you to make another real step toward getting rid of debt.