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Why cut interest payments on your credit cards |
Why cut interest payments on your credit cards -
CONSUMERS carrying a balance on a credit card are often advised to transfer to one of the numerous zero per cent offers around. This is great advice, and never more so than right now with base rates on the rise again.
But what if you can't swap?
People knocked back for a low-interest-rate credit card should not give up, as they will almost certainly still be able to make savings by simply being clever with how they manage the debt that they already have.
Here is how to cut interest payments on your credit cards
Follow this four-step programme - The "debt shuffle".
Step one
is to call existing credit card providers and ask for a better rate. Bold, but more often than not this actually works.
Some providers have automatic interest rate-matching policies, so, if you have other cards at a cheaper rate, they will match it.
Even providers without matching policies have been known to lower interest rates for customers.
It also apparently helps to call either mid-morning or mid-afternoon when call centres are less busy.
Step two
involves asking what rates providers will give for balance transfers, as most cards offer lower rates for transfers than new spending.
Step three
the shuffle, comes once all rates have been minimised. This involves juggling debt around between the cards so that the card with the lowest rate has the highest balance.
The final step
is to pay off the debt on the card with the highest interest rate first, while ensuring the minimum balances are paid on the other cards.
By doing this 'credit card shuffle' you can easily wipe out £'s of debt and pay off your credit card bills alot quicker.
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