Credit Card Debt Elimination - How to Combat Rising Interest Rates of Credit Card Companies

Credit Card Debt Elimination - How to Combat Rising Interest Rates of Credit Card Companies

The credit card companies increase the interest rates suddenly by giving two weeks prior notice to customers and thus is becomes difficult to search for other alternates for credit card debt elimination. According to financial experts there are several ways to combat against rising interest rates alongside credit card debt elimination without filing bankruptcy.

Below is a list of five effective ways to fight against rising interest rates of card companies:

Opt out of higher rate of interest: When there is an increase in rate of interest the customers will be given opt-out time period allowing them to reject the changes in interest rate. In case a customer opts out then his existing account will be closed and he can continue to pay the remaining balance at lower rate of interest. After the outstanding amount is completely re-paid, the customer will not be able to use his card for financial transactions, as his account would be closed. This is one of the feasible options toward credit card debt elimination. But some customers may not opt out, because they feel when their account is closed, it could affect their credit score.

Negotiate a lower interest with the company: If the rate of interest is increased because of default or delinquency from your side, then you may not be able to negotiate a lower interest with the company or the issuer. However if you have paid the amount on time in the past and because of some reason there was a slip-up that has resulted in increased rate of interest; then you can negotiate with the credit card company and request them to lower your rate of interest. This is one of the most preferred credit card debt elimination method used by most debtors.

Pay off the outstanding balance: It would be better for a debtor to pay off the outstanding balance amount before there is an increase in interest rate. If you are successful in reducing your balance amount before the increased rate becomes effective, then you wouldn't feel the brunt of increased rate.

Transfer the balance amount to a card with lower interest rate: It's wise to transfer the balance amount to another credit card that has lower interest rate. Before the transfer ensure that you have enough credit necessary to handle the new outstanding balance. Here you should compare the fees incurred on balance transfer against cost of paying-off remaining balanced at increased rate of interest.

Accept the changes in interest rate: If none of above mentioned credit card debt elimination options work out, then it's better to pay off the balance amount as quickly as possible at higher rate of interest. This will save you from paying related financial charges.

Debt settlement is clearly a better alternative than bankruptcy and due to the massive amounts of consumers in debt, creditors are agreeing to very generous debt settlement deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.

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