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I\u2019m a huge fan of taking fifty-fifty odds if the upside is big and it takes only five minutes of my time. Accordingly, try negotiating down your APR. It works surprisingly often, and if it doesn\u2019t, so what? Just call your card companies and follow this script:<\/p>\n
YOU:<\/strong> Hi. I\u2019m going to be paying off my credit card debt more aggressively beginning next week, and I\u2019d like a lower APR.<\/p>\n CREDIT CARD REP:<\/strong> Uh, why?<\/em><\/p>\n YOU:<\/strong> I\u2019ve decided to be more aggressive about paying off my debt, and that\u2019s why I\u2019d like a lower APR. Other cards are offering me rates at half of what you\u2019re offering. Can you lower my rate by 50 percent, or only 40 percent?<\/p>\n CREDIT CARD REP:<\/strong> Hmm . . . After reviewing your account, I\u2019m afraid we can\u2019t offer you a lower APR. We can offer you a credit limit increase, however.<\/em><\/p>\n YOU:<\/strong> No, that won\u2019t work for me. Like I mentioned, other credit cards are offering me zero percent introductory rates for twelve months, as well as APRs of half what you\u2019re offering.<\/p>\n I\u2019ve been a customer for X years, and I\u2019d prefer not to switch my balance over to a low-interest card. Can you match the other credit card rates, or can you go lower?<\/p>\n CREDIT CARD REP:<\/strong> I see . . . Hmm, let me pull something up here. Fortunately, the system is suddenly letting me offer you a reduced APR. That is effective immediately.<\/em><\/p>\n It doesn\u2019t work every time, but when it does, you can save a significant amount of money with a five-minute conversation. Make the call, and if you\u2019re successful, don\u2019t forget to recalculate the figures in your debt spreadsheet.<\/p>\n I literally called my credit card company in the bookstore at the airport BEFORE buying the book, read the script, and was able to negotiate a better APR. And they even credited the interest for the last few years back to my account (only a few hundred bucks, but STILL). I bought the book seconds after hanging up.<\/p>\n -CHRIS COLETTI, 33<\/strong><\/cite><\/p>\n<\/blockquote>\n That first week I practiced my script, then called up my credit cards and had my rate dropped from 18 percent to 11 percent.<\/em><\/p>\n ?CHARLOTTE S., 35<\/strong><\/cite><\/p>\n<\/blockquote>\n Debt was awful. It felt like a cloud over me at all times. I started contributing $100 more than the minimums and crushed that shit. I still have my \u201cpaid in full\u201d notices saved.<\/em><\/p>\n -MATT GROVES, 31<\/strong><\/cite><\/p>\n<\/blockquote>\n One common barrier to paying off debt is wondering where the money should come from. Balance transfers? Should you use your 401(k)<\/a> money or your savings account? How much should you be paying off every month? These questions can be daunting, but don\u2019t let them stop you.<\/p>\n Many people begin by considering a balance transfer to a card with a lower APR. I\u2019m not a fan of these. Yes, it can help for a few months and save you some money, particularly on large balances.<\/p>\n But this is just a Band-Aid for a larger problem (usually your spending behavior, when it comes to credit card debt), so changing the interest rate isn\u2019t going to address that.<\/p>\n Plus, balance transfers are a confusing process fraught with tricks by credit card companies to trap you into paying more, and the people I\u2019ve known who do this end up spending more time researching the best balance transfers than actually paying their debt off.<\/p>\n As we just discussed, a better option is to call and negotiate the APR down on your current accounts.<\/p>\n<\/p><\/div>\n\n\n
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Decide How To Pay Off Your Debt<\/h2>\n
Balance Transfers<\/h3>\n