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How to Get Help with Credit Card Interest and Fees
Getting lower interest on credit card debt allows you to save money
on finance charges and get help with other fees that are costing you hundreds
or thousands of dollars each year. These costs can run into the
thousands of dollars each year. As you accumulate more credit
card debt, your credit score begins to drop. If your monthly
payments are barely more than the finance charges, then you
might really be in trouble.
There is help on the way. A reputable credit counselor can
help you achieve lower interest rates and often even a
lower
payment on your debts. The key is a little known program created
by credit card companies that rewards your consistent payments
by eliminating most nuisance fees, lowering your interest rates
and helping you with a lower monthly payment.
Nearly all of the
largest credit card companies offer benefits to help you with
credit card debt, as long as you are willing to reduce your
dependence on credit cards. These benefits can include lower
interest rates, lower minimum payments, and an end to any late
fees, over-the-limit fees and even collection calls that you may
be incurring. They provide these benefits through credit
counseling organizations that they also support financially.
Accredited Financial Counselors can help you determine if you
are eligible for these benefits.
Lower Credit Card Interest Rates
One of the main components of debt relief is getting a lower
interest rate on your credit cards. It is true that you can
negotiate better interest rates directly with your credit card
issuers.
However, to successfully receive lower rates on your own, you
need to show signs of financial strength.
A high credit score
and several months of payments that greatly exceed the minimum
payments are normally required to show financial strength. If
you currently are carrying more than $10,000 in credit card debt
or have a credit score below 675, it may be difficult for you to
prove that you deserve lower interest rates on your own.
Reputable credit counselors can help you evaluate your
financial situation and discuss the likelihood of getting lower
rates on your own. If you need help with making your payments, then
you may qualify for a creditor-sponsored debt management plan.
Debt Management Plan
A debt management plan sets up a repayment schedule of fixed
monthly payments that is designed to eliminate your credit card
debt in full within 3 to 5 years. It takes into account vastly
reduced interest rates that most major creditors extend to
participants. Credit card companies typically will grant a lower
interest rate on condition that you continue to make the fixed
monthly payment on-time until the debt is paid in full. Such
interest rate reductions can save you tremendously on your
monthly finance charges. This reduction in interest rates on
your credit cards allows you to put more of each payment toward
the principal balance of the debt rather than toward the
interest. Creditors are willing to provide this interest rate
reduction when you commit to getting out of debt by adding all
of your credit cards to a debt management plan (some creditors
allow one card for personal or business use). Lower Credit Card Payments
One of the main benefits of a debt management plan besides
the lower interest is the willingness of many creditors to
accept a lower monthly payment. In fact, it is typical for debt
management plan enrollees to pay less per month on a
consolidated payment through their debt management plan. This is
possible because of the substantial reduction in interest rates. You can typically pay your debts off faster, at a lower interest
rate and with a lower monthly payment by eliminating credit card
debt through a debt management plan. Your Accredited Financial
Counselor can show you possible options for becoming debt free.
Feel free to contact us for help
with credit card debt. |
