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How to Lower the Monthly Payments on Your Credit Cards

Are you sick of carrying a huge balance on your credit cards, and never seeing the numbers go down? Are interest payments taking a huge scoop out of your budget? There are several ways to save money on your credit cards, ranging from the quick to the complex.
The simplest method is to add a little extra money to your monthly credit card payments. If your balance is $7,000 and you are paying 14% interest, a $150 monthly payment will cancel your debt in 68 months, and you will pay $10,200 total. That amounts to $3,200 extra in interest payments. Just $25 per month added to your payments will reduce the payoff time by over a year, to 54 months, and the final sum you will pay will be $9,450. Thats $750 in savings.
"If I had the money, I wouldnt have this credit card balance!" you say. Fair enough. Most of us arent interested in saving money on our credit cards over time; what we want is lower monthly payments. To reduce the amount you need to pay each month, you need to reduce the amount of interest youre paying by getting a lower interest rate. You have a few choices:
* Roll your debt onto a card with a lower interest rate. Watch out for rollover fees. They can easily reach 3% of your balance, which can amount to a considerable charge. If you can, find an offer that waives rollover fees. The best way to roll over a balance is to find a card that offers a very low interest rate on balances rolled over or charged to the card during an introductory grace period, then maintains the low interest rate for that balance until you have paid it off.
* Call and ask your current credit card company for a lower interest rate. You have the best chance of succeeding with this method if you have a good credit history, have been with the issuer for a year or two, and have a few credit card offers from other companies that offer substantially lower interest rates. Explain to the customer service representative that you have better offers and are considering switching. Frequently, the representative will be able to drop your interest rate, or will be able to offer you other perks. (If the first person you speak to cant help you, thank them politely, hang up, and call back later. Other representatives may have more leeway or may know a loophole in the regulations that the first representative didnt know about.) The worst the company can do is say no. If theyre not willing to lower your rates, switch to another card that offers you better rates up front.
* Call your credit card company and ask for help. If you are in an extremely difficult financial situation and you intend to pay off your credit card, but you cant make the full payments right now, you may be able to work out an emergency deal with your credit card issuer in which you pay a lower amount per month for a set time. This is only for use in the worst circumstances, when you are at risk of defaulting on your credit card otherwise. The credit card company may penalize you by lowering your credit limit or refusing you new credit, and you will have a black mark on your credit rating. However, its preferable to defaulting on your loan, and can get you through a tough time.
Saving money on your credit cards will take a little time, patience, and persistence. However, soon you will have a better deal, and will be on your way to considerable savings and greater peace of mind.

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