Today’s money hack is related to debt repayment.
Credit card debt is particularly difficult for consumers to pay off because interest rates charged on short-term consumer debt is particularly high, compared to interest rates on long-term debt, such as your mortgage. As a credit card consumer, surrounded with credit card debt, you may be tempted to ask the heavens, ‘Will credit card companies reduce my interest rate?’
Yes. Credit card companies often reduce interest rates if you simply ask (request) them to.
Research by CreditCards.com shows that around 75% of the requests made by consumers to have their credit card interest rates lowered are actually approved. Similar results were revealed for requests to cancel late payment fees.
Some credit card consumers pursue the idea of switching their credit cards to get a lower the interest rate (Source: Student Legal Assistance – Northern Illinois University) and that may work out well if their current credit card company fails to lower the interest rate on their credit card debt.
However, credit card companies are committed to the idea of recovering their debt and if they are convinced that a reduce interest charge will ensure they get their money back, these companies will be more than willing to lower the interest rate on your credit card debt.
We have shared a few more tips on how to negotiate a lower interest rate on your credit card dues, if simply asking for a reduction does not work. The techniques are listed in the links below:
Customer Loyalty as a negotiation technique for a lower interest rate,