The lower your interest rate the faster you will get out of debt. If you have rung up large balances you will see your rates go up, that is because most credit card companies know lower rate cards will not give you another card based on the balance, late payments, etc.

Ask the credit card companies if you are able to better make the monthly rates, and when you get the lower rate, pay the credit card off. The credit card company isn’t going to care if you ask them, they are not concerned about your uniqueness, they are simply charging you and this is based on an innate profile within your credit rating. They make judgement calls based on this, and it will not affect you if you try to lower the rate. If they will not, transfer the credit card to a lower rate card. If you have multiple cards, ask them what they can do for you, and transfer it off of other cards. However, you will want to make sure that you try to get transfer fees waived and be weary of default interest rates if you are a day late in payments, this will put you in a worse position once you are consolidated into one card, with more money owing… you will be better off not consolidating but focusing on just paying that one off or finding another method of consolidation. Maybe a friends and family loan to help lower the bad debt in your life.

“Friends or family will try to help you out in a tough spot, if you or they are willing to get into a loan. Please think twice about asking them to do that. Are you really sure, are you really really sure, than at least make it professional, set-up an official promissory note and an official loan with payment schedule.” Garrett Sutton, ESQ Rich Dad’s Advisors for Rich Dad Poor Dad, The ABC’s of Getting Out Of Debt

You can also get them on a prepayment at your Bank so they never have to ask you for the funds, and they know what you can afford and that they will get paid back. Even if they would like the full payment back all in one payment, make the agreement and make sure you add the interest that you can afford to pay them and make sure you can pay them back. At least the document gives them confidence and puts it in writing so that you can’t personally forget about it, its the best thing you can do as a person and a friend.

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