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A simple phone call
Credit cards are pretty much unavoidable these days and no matter what you do, the bills keep piling up. With ever-increasing interests rates, your monthly payments barely seem to make a dent, but there are ways to lower those rates and free yourself from your overwhelming stack of credit card bills. By following a few tips from The Detroit Free Press’s Susan Tompor, you can get a jumpstart on paying off your high interest credit card debt.

Negotiate a lower rate
First you have to find out what you are paying in interests rates. Look at your latest bill for this information and you might be surprised to find that it’s higher than you expected. Next research what deals other credit card companies are offering. You’ll ideally want to find one with a 0% interest rate. Finally contact your credit card company. They do not want to lose your business, especially with so much competition out there, so tell them you are prepared to close out your account in order to switch to a competing card’s lower rate (you might even want to suggest that you are planning a vacation and hope to use their credit card). Many times your credit card company with offer you a lower rate to keep your business, but if they don’t, do not give up! Ask to speak with a supervisor or call back at a later time and try it again with someone new.

The best time to negotiate your new rate is when you have a lengthy record of paying your bills on time and are stably employed. If you are in danger of losing your job or already lost it, don’t mention this, as credit card companies don’t take kindly to this.

Maintain a low interest rate
Once you’ve successfully negotiated that lower rate, you need to make sure it doesn’t change. This means paying your bills on time and paying attention to how long that low rate lasts. Many companies will charge an increased rate on new purchases if you are late making your payment, or after their introductory offer of say, three months, expires.

Prevent unfair credit practices
The Federal Reserve has issued proposed changes to stop deceptive practices by credit card companies. The official name of the rule is “Regulation AA – Unfair or Deceptive Acts or Practices,” which aims to prohibit banks from increasing interest rates on pre-existing credit card balances, except under limited circumstances. You have until August 4th to file your comments on retroactive rate hikes or other practices.

Nothing to lose
You’ll never get a lower rate if you don’t ask. So pick up your phone and find out if your credit card company will accommodate you. If they don’t, then you might want to seriously think about transferring your balance to a card with a lower rate. Since lowering your interest rates is the first step to paying off your debt, you have nothing to lose and everything to gain by asking for a different rate.