The idea that credit cards in and of themselves are evil is a common misperception regarding credit card debt. They are not. Instead, the impact of interest rates in the double digits makes them so dangerous to our financial well-being.

Purchases that we once anticipated paying off within a few months might suddenly balloon into a daunting sum that may take years to eliminate due to the exponential increase of a balance.

Credit cards with exorbitant interest rates are a thing of the past, but that's good news. You can probably negotiate a better interest rate if you know who to talk to and what levers to pull.

Why Should You Try To Lower Your Rate?

If you're here, it's because you're ready to take charge of your credit card debt. For this reason, it's important to remember that even a modest reduction in your credit card's annual percentage rate (APR) might hasten the day you're debt-free.

Imagine you have a credit card amount of $10,000, and the interest rate is 25% per year. Assuming no changes, the interest on that credit card bill will set you back $2,500 next year.

If you could negotiate a reduction in your credit card interest rate from 25% to 15%, you could contribute an extra $1,000 each year toward reducing your debt. The time it takes to pay off debt increases dramatically if interest rates aren't reduced.

Getting Acquainted with Your Credit Card Issuer

When you have a sizable debt to a credit card company, it's normal to be intimidated by the prospect of having to communicate with collection agents. Maybe they anticipate being scolded, embarrassed, or punished for whatever they did wrong.

Credit card firms are for-profit enterprises, and the vast majority of their revenue comes from interest fees charged to customers who carry balances from month to month. A higher credit card balance means greater profit for the credit card issuer.

Put another way; you are one of their greatest clients if you tend to have a sizable balance. It's in the best interest of the credit card business to maintain you as a customer and get your interest payments regularly. Make use of this vantage point.

Methods For Bargaining Down Your Interest Rate

There aren't many hoops to go through or sophisticated bargaining abilities needed to reduce your credit card interest rate. It's a matter of calling the right number and getting the appropriate person on the line. Here's a strategy for haggling with your credit card company.

Take Stock of Your Predicament

The needs of each client vary greatly. Start with taking stock of your life and setting an intention to improve it. A better selection of offerings at more reasonable prices is possible if your credit is good. Simply put, make it clear to your credit card business that you intend to transfer your debt elsewhere and, therefore, its profit.

Allowing your junk mail to accumulate for a month should provide multiple competing offers. There might be transfer offers from competing credit card providers, all of which would temporarily cut your interest rate in exchange for moving your debt.

You may also take a few minutes to look into balance transfer rates on the websites of the main credit card issuers. Three or four offers at a long-term rate of approximately 10% are what you should be shooting for. Some of the deals you see may only be available for a limited time.

Confer with an Appropriate Individual

The next step is to get your credit card, turn it over, and contact the number listed on the back for customer support. Then, press zero again or take any other action required to reach a real person.

When discussing your issues with the agent, try to be open-minded. Don't be shy about letting them know if you've uncovered a plethora of different deals to which you're entitled.

Share with the agent that you've had multiple offers from other credit card companies offering a considerably cheaper interest rate, but you'd rather not transfer your debt.

The Verdict

Remember that your credit card issuer views your remaining amount as an asset. Without its clientele, the business cannot generate a lucrative rate of return. If you ask the firm nicely but directly if they can do anything to maintain you as a client, they could cut your charge. Anyone with a significant credit card bill would be wise to try these methods; they have nothing to lose but a little time.