Debt: it’s an ugly four-letter word.
According to a study by MagnifyMoney.com, almost half of Americans carry credit card debt with an average of $10,000. $10,000 of credit card debt can cost thousands and thousands of additional dollars in interest. But, instead of simply throwing away money in the form of interest payments to the credit card lender, there are repayment strategies available to help those carrying debt slash the interest. Here are four empowering strategies:
1. Request a reduction of your interest rate
Many personal finance experts recommend giving your lender a call to negotiate the interest on your credit card debt. As banks hold most of the power in your financial relationship they aren’t likely to give you much wiggle room when it comes to reducing interest rates on debt. Banks are always on the hunt to acquire new customers, so the best deals are given to the “acquisitions.” In order to compensate for giving great deals to the new clients, banks will raise prices on existing customers.
So, the worst case is that they’ll do nothing. That being said, the best-case scenario is that your bank might drop your interest rate by two percent.
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