|
|
|
There's a lot of bad "expert" advice out there that says to consolidate your credit cards, close zero-balance accounts, and cut up the cards. Be wary of this advice because you need credit options! If you cut up your credit cards, you cut out your credit options!
Closing zero-balance accounts in haste may be a big mistake! Especially when all your debt is on a single credit card. If something happens, and the bank raises your rate, you'll be stuck at a high rate with no place to go shopping for money. You need places to go shopping for money so you're not at the mercy of any single bank!
Having one credit card is like shopping in only one store. Imagine only shopping in one place no matter what the prices are in another store. Let's say someone that shops in only one department store is looking for a television. They find that television selling for $350. Imagine that the same exact television is selling for $175 at another store in the same town. Wouldn't it be insane to shop solely in one store without looking around for better deals?
It's just as insane to use only one credit card. Money is the same physical product no matter where you get it. It's green paper you buy stuff with-that's it. The only difference is the price you pay to use it. You must be sure to make the banks compete for their very plain, but useful product.
If you have debt at high rates and your current banks won't budge, then you'll need to find other credit sources with lower interest rate deals in order to save money. That's one of the reasons I have so many credit cards, so I have many places to go shopping for money.
I'm always asked, "What's the best credit card? Where do you get low rate offers? How do you keep your rates so low?"
The answer is that almost all banks have "good" and "bad" offers. It depends on your personal relationship with that particular bank. The best offers, and lowest rates, are most likely to originate from your existing credit card accounts. One of the easiest ways to find low rate credit options is to call your credit card bank and ask. There may be a great rate offer available to you right now and you don't even know it!
When you call the bank, make sure you are prepared to take immediate advantage of any good offers. That means having the statement(s) of the high rate loan(s)/credit-card(s) handy so you can do all the balance transfers on the phone if a better deal is available.
A good offer, one that's better than your current credit cards, may include one or more of the following: (1) a lower APR, (2) low or better yet, no transfer fees, and (3) the deal lasts for at least six months
Remember to take good notes about the details of the offer. If you're getting the offer during a phone call, you'll need to get some type of proof that you did get that offer. Get the rep's name. Record the date and time in your notes. You should also ask them to make a note of that offer on their computer.
By the way, if you're planning to go on a vacation, holiday shopping, or make a major purchase (furniture, appliances), be sure to call your banks and let them know that you'll use their card only if they give you a good deal. I've done this many times, but that was before I started recording calls.
Play all your credit card banks against each other. Make them fight for your business!
Scott Bilker is the author of Talk Your Way Out of Credit Card Debt and the best-selling book Credit Card and Debt Management. Scott is also the creator and publisher of the FREE DebtSmart(r) Email Newsletter (debtsmart.com). DebtSmart(r) Online provides readers with the tools to be smarter about their credit cards, personal loans, car loans, mortgages, and all debts. Being "debt smart" means being budget smart, buying smart, investing smart, saving smart, and money smart. Copyright (c) Scott Bilker. All rights reserved.
Sign up for our free eNewsletter Dollar Stretcher Tips.
Looking for an answer to a frugal living question? Click here to ask a Dollar Stretcher Stretchpert!
To subscribe, check the newsletters you wish to receive, enter your email address and then click Subscribe.
Each month one TDS reader will win $100 just for telling us your favorite time or money saving idea. It could be you!
Click here to share your idea.
Recent winners are:
- Michelle from NC
- Matt from CO
- Joan from CT
- Joanne in New York
|
Money problems? Struggling with credit card debt? What you need to know about bankruptcy? Trouble repaying student loans?
|
Copyright 1996 - 2012 "The Dollar Stretcher, Inc." All rights reserved unless specifically noted.
Contact the Dollar Stretcher at:
Dollar Stretcher
PO Box 14160
Bradenton FL 34280
Voice 941-761-7805
Fax 941-761-8301
"The Dollar Stretcher, Inc." does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for their own situation.
| About Us | Privacy Policy | Writer's Guidelines | Sponsorship | Media | Contact Us |
Dollar Stretcher Community
Forums
Blogs
Also In This Week's Issue
In The Dollar Stretcher Community
Reader Favorites
Newsletters
Email
Print
Contact Editor
RSS Feed
Share
Leave a Comment
