I can tell it from my personal experience that most of the credit card holders labour under a misconception that buying new cards will ease burden of interest on the existing ones. I prefer shuffle of what you have and believe me, you can cut down around 75% of cost without a new purchase. What you need is to be wiser while spending cash and if you can ensure that, it will do you a massive and magical saving without additional supply of any new credit card.
Listing of Existing Debts
Start with assessing where you are currently now from the financial perspective. Take a sheet or create a file on computer to make an accurate and detailed listing of the current debts that you have. Also include the overdraft (if any) as that could be the most voluminous debt you have. Note down your personal loans and don’t leave the new credits that you have already opened or have a plan to open. It will help you find ways to size the potential debts down to the lowest level and facilitates credit card shuffling.
Application for Interest Reduction
Apply to the authorities of your credit card providers to drop interest. However, before taking that step, spend some time to do some valuable research. It’s important to know the exact rules of dealing followed by your credit companies. Out of curiosity, I did some research and came in for surprise that a number of attractive deals are available. Problem is they are not meant for everyone and usually change with passing of time. However, I got an idea about the available deals that could cut down cost on my existing credit lines. You should do so before contacting the credit card company hierarchy.
Passing Debts to Cheapest Credit Card
A good way to part ways with high interest on credit cards is to shift your debts to the cheapest credit card even if it means difference of only a few percents. Remember that even a slight difference can save you a good fortune, especially if you have a larger sum of debts.
Debt Distribution among Existing Cards
Once the interest rate is negotiated down to an affordable margin, it’s high time to distribute debts among the existing credit cards. Shift burden of debts from the most expensive credit card to the cheapest one. Balance transfer is allowed for a certain fee. After the debts are shifted, the old cards will have no debts attached to them and you owe it all to the new cards.
Clearance of Costly Debts
When it comes to debt clearance, a thumb of the rule is to pay off expensive debts at first. That means you have to make lesser payment on other cards. After the expensive debt is cleared, turn your attention to the next costly one and pay it off.
It requires a little bit of wise planning about how to get interest rate reduced on the credit cards. And most importantly, you need to stick with planning just like what I did. I got result and hopefully, you will enjoy that too!
Looking forward your comments.