3 Excellent Ways to Lower Personal Debt

If you are finding yourself overwhelmed by your credit card debt, you're in good company. Credit card debt is an increasing problem for many people these days, with balances getting larger and larger and minimum payments increasing to unmanageable levels. But you really can lower your debt load by following a few very simple strategies:

1. Never, Ever Pay a Late Fee

Late fees have been going up, up, up over the past few years, and grace periods having been shrinking. Make sure you pay at least your minimum payment each and every month. If it happens that you really cannot pay even that very minimal amount of cash, then ring up your creditor and alert them to this fact.

If you are late with even a single payment by as little as a day, there is a very good chance the bank will raise your interest rate, often by 50% or even more. Over time, this can can add up to charges far more significant than the 30 or 40 dollar late fee.

2. Request for Your Interest Rate to Be Lowered

If you feel that your interest rate on you credit card is too high, ring up your credit card company and ask them if they will reduce it. Chances are, you could track down a better rate elsewhere, and your bank most certainly is aware of this fact. So let them know you know this. Tell them you can get or have been offered a lower rate, and ask them to match that rate. If they refuse to budge, you're out nothing more than a phone call. If your request is within reason, there is a pretty good chance your credit card company will lower your rate to a much more manageable level.

3. Obtain a Brand New Credit Card

If your bank refuses to lower your rate, simply search for a lower rate card and transfer your balance. There literally are a large number of credit card companies that are more than happy to take balance transfers. Furthermore, even if you have made some late payments, thus causing your rates to rise, the odds are your credit rating hasn't been affected. Banks usually alert credit bureaus when payments are significantly late (by a month or two). The thing is, as long as they haven't reported anything to the credit agencies, you'll have no negative items on your credit record, and you should be able to apply for another card, thus saving yourself some money.