Do you have credit card debt?
Credit card debt is highly destructive.
It can take a large toll on your monthly income and it can be quite stressful.
Negotiation is one way to save yourself thousands of dollars each month.
In my last post I spoke about how you can negotiate many different things to save money. You can read it here:http://sageva.com/three-simple-ways-save-money-week/
You can negotiate the price of your phone, insurance on a car, and the fees that you pay your bank.
Anything you spend money on is negotiable.
One area which can have a dramatic impact on your month-to-month finances is your credit card interest rate.
Here’s a simple example of how interest rates really impact your monthly finances…
Let’s say you go out for a really nice dinner with friends and you spend $250.
If you only pay the minimum payments on the $250, it will take you two and a half years to pay it off.
You’ll end up spending a total of $297 and that’s at a 14% APR. There’s a very good chance that your APR is much higher than that.
If you would rather keep your money than give it to the credit card company, then it pays to negotiate your interest rate.
1. Call the company
Call your credit card company and ask to speak with someone. Tell them the interest rate you’re paying and then ask if they can reduce it to a specific amount. For example, if you’re paying 14% you might ask to reduce it to 10%.
2. Prepare for the “No”
Chances are they’re going to come back with, “we can’t do that.” You can then ask to speak to someone else or you can talk about taking your business to a different credit institution. Generally speaking, they’ll either “talk to their supervisor” or let you talk to them.
3. Be patient
You may have to talk to a few people before you get a reduction in your interest rate. It’s worth the effort. Each percentage point can mean hundreds, if not thousands, of dollars saved. Over time, that savings will make it much easier to pay off your debt.
Keep in mind that you can use the same strategy with your cell phone, with your bank fees, and with just about any type of regular customer account that you have.
There is room to negotiate and pay less each month.
Just like you don’t need a degree to pick up the phone and call your credit card company and negotiate a lower interest rate, you do not need a degree in finance to invest your money.
Next, we’ll talk about a few rules of thumb to invest your money wisely – and they apply to anyone.