A Decreasing Interest in Credit...

Well it finally happened, I managed to drop my interest rate on one of my cards by 8% points. WOOOOOOOOOHOOOOOOO!!!

After Christmas I decided that I will give it another go with the credit card companies to try and reduce my interest rate on my cards (or at least the outstanding balances) as I am sure I am not the only one out there dwelling on their debt at this time of year. Plus, I actually had a balance transfer option in my hand that I had fibbed about having the last time I called in, so I thought that Karma might do me a favour for being honest this time around.

Well after calling a not so nice Customer Service Rep at one of these companies, she indicated that "their credit cards have a set rate, and my card is 19.5%, so I would have to just deal with that." Nice.

That got me to thinking though, well what other cards does this company offer that would have a lower rate. Turns out they have a card at 11.5%. I called back and spoke to a much nicer CSR, inquiring as to whether I could transfer my balance to the low rate card. Jackpot!!!

So here is the deal, they close my old card (which I lose my piddly rewards, that I wasn't receiving as I haven't been charging on this card) and set up my new one, but it isn't considered to be an account closure and new credit on my credit report, just a change in product. My credit history from my old card stays on my report (it's good and is for almost 10 years), and the balance on my current card is transferred to the lower rate.

The only downfall is that the new card carries a yearly fee, but it is nominal in comparison to the over $1500 in savings from interest this year alone. Besides, when I pay the card off, I can try to switch to different no-fee card, or because I will be debt free, cancel the card and start a bright new beginning.

Finally, something is going my way!!

Paying to get out of bed...

So after completing that reconciliation of my credit cards, I went a little CRAZY and figured out how much interest I was being charged per day for the past month. The result...$41.

Yep, I am paying credit card companies $41 dollars a day to have the luxury to not own up to the purchases I have made over the past few years. Pretty hefty cost for denial.

I challenge anyone else to do this. Actually look at what your debt is costing you on a daily basis, I sure it will be more shocking then you realize.

Trying to shed some extra pounds...

I decided that since I didn't receive a balance transfer offer this month that maybe I could try to reduce my credit card interest rates by calling the companies and simply asking.

Although many debt smarties recommend this as an alternative, it did not work for me! First off I asked. No dice.

Then I threatened to move my debt to another provider. I was told to go ahead.

Then I asked to speak to a manager and I was told they could give me a "payment holiday" for a month, or lower my minimum monthly payment, but no reduction in interest! AHHHHHH!

This is frustrating as I have had one of these cards for 10 years with not one late or missed payment.

Oh well. I guess it is back to the drawing board. Can't say I didn't try. Maybe after I pay some of the debt down I can try again.