How to make the most of credit card debt

I don't recommend getting into credit card debt (…the borrower becomes the lender’s slave -pro.22.7) but, if you are already in that situation - why not make the most of it? By getting a lower rate on your credit, you can easily save hundreds, if not thousands of dollars in finance charges.

For instance, when I got married, my wife had a few credit cards that she had made late payments. On one particular card her interest rate was about 26%. I noticed on one of her statements that the minimum payment was one dollar more than the finance charge. So, each month she made the minimum payment she was only lowering her balance by one dollar. I was amazed. I was even more amazed when I discovered how easy it is to get a much lower rate on your credit cards…

Just Ask. Try calling your credit card company and asking for a lower rate. In my experience, the customer service representative who initially answers the phone will not be very helpful. If/when they say they can NOT lower your rate ask to speak to their supervisor - you will almost always get farther with the supervisors than the front line service reps. I have found the supervisors to really go the extra mile to satisfy me (the customer).

But, if you still are not getting the desired result, let them know that you mean business by kindly informing them that you would like to close your account. Most card companies will send you to a "specialist who can handle that for you." This "specialist" is 9 times out of 10, a great salesperson who is the company's last line of defense to keep you as a customer. They will verbally "wine and dine" you and try to persuade you not to close your account. It is at this point that you should again make your request for lower rate - and please let me know if you ever have a situation that this doesn't work, because I have not heard of any as of yet.

Leave them. You are the customer. Don't let the credit card companies convince you otherwise. If you are not happy with them or if they will not give you a rate you are satisfied with, transfer your balance. I don't know about you , but I have credit card companies all but banging down the door to get my business. I receive balance transfer offers in the mail just about every day. I say let the best offer win.

There really are some great deals if you transfer a balance or even open a new card in some cases. I have received at least three $100 gift cards for transferring my balances to CITI cards. Each one came with no annual fee, no balance transfer fee, and 0% for one year. And there are other great deals out there as well. Check out creditcards.com for some great offers on balance transfers. Just don't get sucked in to their trap. The goal is to get out of debt, not to get into more debt just so you can get a free gift card.