Proceed With Caution After Opting Out Of Higher Credit Card Interest Rates

In the span of just a few years consumers have dramatically changed how they manage their personal finances. Regrettably some of these changes came too late to avoid certain financial disasters, nevertheless consumers have options moving forward that reduce the chances of repeating the same mistakes. One of the biggest challenges facing individuals today is eliminating high interest credit card debt. In many cases the balances carried on credit cards have taken years to build and will take years to pay off.
 

As a result of the Credit CARD Act of 2009, account holders are anticipating protection from changes in the lending industry. New rules and regulations may level the playing field between credit card companies and those trying to manage their credit better. An example of this is the option to opt out of higher interest rates on existing credit card accounts. Consumers trying to pay off or reduce future debt can benefit tremendously from this option, however in doing so they must be cautious to avoid using the card in the future. Anyone using a credit card after opting out of the higher interest rate will trigger the higher interest rate, making the agreement null and void. Here are a few tips for consumers who have opted out of higher interest rates to ensure they do not end up paying more in the future.

• Eliminate the possibility of error- Despite the fact that many people are actively trying to cut costs and eliminate debt, credit cards remain handy in the event of an emergency. For this reason, consumers who otherwise have no intention of using their credit cards continue to carry them should a situation arise that requires "emergency" funds. With most people carrying more than one card, it is quite possible to use the wrong card when faced with an unexpected expense. Remove any credit cards from your arsenal to eliminate the chance of grabbing the wrong card and triggering the higher interest rate.
• Review automated, reoccurring or saved data- If you have opted out of a higher interest rate and removed the card from your wallet, you may think your work is done. This may not be the case if you have have used the account to make online, reoccurring or automated payments. Make sure you delete or update these accounts to avoid future charges to your card.
• Protect your information- As with all other financial records, it is your responsibility to protect personal and confidential information to reduce the risk of identity theft or fraud. Do not get lulled into a false sense of security simply because you are no longer using the account for purchases. If you receive paper statements via the mail, be sure to file or discard the information properly. Do not respond to unsolicited email or telephone requests for information. If you are not doing so already, take advantage of the option to view your credit report at no cost to you up to three times per year (if you alternate reporting bureaus). By doing so you can spot fraudulent activity and take action before more damage is done.

 
By following these simple tips, you can take advantage of the opportunity to decline higher interest rates and pay off your existing balance at a lower rate. As long as you avoid activity (purchases, charges) on your card you will see your debt go down and enjoy the many benefits of living debt free.