Financial Experts Recommend Lowering Interest Rates

If you are like many Americans, you have thousands of dollars in credit card debt. Such debt is considered “bad debt” because it is unsecured and it can only worsen your financial standing, both in the short-term and the long-term.

One television news operation found that obtaining a lower interest rate can be as simple as asking for it. In fact, more than half of the people who requested a lower rate actually received it.

That can be encouraging news, especially if you carry $9,000 in credit card debt - the national average.

The steps to a lower interest rate are simple enough: Begin by calling the toll-free hotline number listed on your credit card. Inform the customer service representative that you are a customer in good standing, but that you have received a number of offers from other credit card issuers with lower annual percentage rates. State that you would like a lower interest rate on your account, and ask the customer service representative if he or she could be of assistance.

If the company representative refuses, ask to speak to a supervisor. Then repeat your message: you’re a lower customer, but you’re being tempted to switch cards because of lower interest rates. Repeat your request for a lower interest rate, and see what happens.

By following this simple formula, you may be able to reduce your rate from anywhere from 1 to 20 points. That could mean potentially thousands of dollars’ worth of interest saved.

Consumer advocates recommend that credit card customers request new rates every 3 to 6 months in order to receive the best deals on their accounts.

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