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What to Do about Those High Interest Credit Cards

Posted In:  credit cards

Credit cards have recently gone up in terms of the interest rates on them. Recent news, however, as reported on the IndexCreditCards.com Web site, show that they are now higher than ever. The overall credit card rate, according to the Web site, says that it is now at 14.17%. This is, of course, more than what thinking people want to pay, and there is a way for you to avoid it. Here are some tips on how you can avoid paying those higher credit card rates.

1. Say "No" to New Credit Card Debt

When you really think about it, it does not matter what interest rate a credit card company charges if you are not charging anything on the credit card. They can raise their rates all they want - but you do not have to take part in the plot to take more money out of your wallet.

A recent report from FoxNews reveals that this matter of the higher interest rates will soon be looked into by the President of the United States. Hopefully, it will lead to a reduction of these higher interest rates and restore some reason to the credit card companies. In the mean time, they are really showing everyone whose interest they really are concerned about.

2. Eliminate Cards with High Interest Rates

The next step you need to take is to get rid of some of those credit cards that you will no longer use because of the new high interest rate. Why keep a credit card you do not intend to use?

This will also let the credit card company know that you are not happy with their new rates and do not intend to go along with their rate hike. Don't forget that they need people to go along with their rate hikes - or they will go out of business. Eventually, they might get the message - if enough people avoid their cards.

3. Put Balances on New Balance Transfer Cards

You can also take advantage of a new balance transfer credit card from a company that will give you a better interest rate. This will enable you to put any credit card balances you have on to it and save a lot of money in interest. Make sure you either get a 0% interest credit card on balance transfers - or at least one that is as close to it as possible with your credit score.

4. Pay Down All Credit Card Debt

While you are thinking about the new interest rates and don't want to hear about paying high rates of interest, don't you think that it is time to eliminate your credit card debt? How much extra money would you have each month if you had no credit card bills with interest?

Changing your thinking about credit cards can enable you to get the mastery over your finances - instead of it being the other way around. If you pay off your credit card debt and then only use them with the intention to pay off the entire bill each month, then you have control - and don't have to worry at all about what the interest rate is.

5. Invest the Savings in Interest-earning Accounts

Save the money you would have spent on interest and invest it instead. It could be a lot more than you think before long. After all, you do remember whose life you are trying to make better - don't you? Hopefully, you are not too concerned about the credit card company's welfare anymore - rather than your own. Stop feeding the machine that is biting your hand. Start investing in your own financial future.

 

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