Credit Card Tightwad Tips
by Jessica
(Massachuestts)
There are some great tightwad tips here already, but how about this one...transfer all those high rate credit card balances or better yet, work at paying them off.
A great goal is to pay off your credit card balances. This is bad debt. If you can't afford to pay the entire balance of the card because it is too hard, start by taking baby steps.
A good first step to take is to transfer your balance(s) to a card that offers a 0% APR on balance transfers. Nowadays, most of us get several "pre-approved" credit offers in the mail daily. Some cards and offers are better than others, so make sure you read all the details before deciding which card to use. The ideal would be one that gives you 0% APR on balance transfers for ONE YEAR. Think about this: If you are paying $50 a month in interest every month on a high rate card, that's a savings of over $600 just from taking this one simple action! Now take that $50 monthly savings and pay it towards your balance in addition to your minimum monthly payment to get that card paid off even quicker.
Once you've transferred your balance, make sure you pay your bill on time every month, otherwise the 0% offer will be void and you will start paying interest, plus late fees. And be aware of something called a "Universal Default Clause". Simply put, this clause says that if you make a late payment to ANY creditor, the issuing creditor has the right to charge you a higher APR.
Another thing you can do is negotiate with your credit card company. Just call up customer service and ask them if they would lower your interest rate. If you've made several on-time payments in a row, they may work with you. It takes a little time on the phone to do this, but the savings can make it worth it.
