Lowering your monthly credit card payments is a combination of reducing or eliminating new charges and figuring out ways to get a lower interest rate on your credit card debt. Ideally, you should pay as much as you can toward credit card debt to reduce the amount of interest that you pay in the long run.
However, if you are struggling to make your minimum monthly payments, lowering this payment amount will ensure you can still make payments on time with less risk of missing a payment or failing to meet the minimum amount.
Call the Credit Card Issuer
Call the issuer of your credit card to ask whether you can negotiate a lower credit card payment. If you always pay on time, you may be able to ask for a lower interest rate or a lower monthly payment.
Keep in mind that asking for a lower interest rate will not only lower your monthly payment but will also lower the amount of interest that you will pay over the life of the outstanding debt. The company may opt to lower your monthly minimum payment, but this will just extend the length of time it takes to pay off the debt unless the interest rate is also lowered. Paying less per month at the same interest rate does little to reduce the overall debt.
Look for Balance Transfer Offers
Shop around for balance transfer offers, or look for a credit card with a lower interest rate than your current card. Usually when you fill out an application for a credit card offer, you will be given the option to transfer the outstanding balance on your existing card.
If you have good credit from an established credit history and timely payments, you should be able to secure a balance transfer to a card with a lower interest rate, which will also lower your payments.
Be aware of the fine print, however: Some balance transfer offers are for a limited time only and will switch to a higher rate later on. Make sure you can pay off the entire balance before the special introductory rate expires, or check the standard APR to ensure it is lower than that of your existing card.
Stop New Charges
Stop charging new purchases on your credit card if you are not paying the balance in full each month. Otherwise, you are adding to your balance and increasing the amount of interest you are paying. Plus, you will increase your minimum monthly payments. By not adding new charges until the balance is paid off, you can keep your minimum payments down, and they will continue to lower as your balance is reduced.
0 comments:
Post a Comment