If you are an average American, you must know the pain of credit card interest. When you obtain a credit card for the first time, you have the time of your life. After 6 to 7 months, when you are used to spending more, you start getting credit card interest. That is where your credit card experience starts declining.
Why Do People Experience a Credit Card Interest Headache?
The first mistake that you make while getting a credit card is when you do not read the agreement clearly, or you forget about its terms.
When you first obtain a credit card, the issuer charges a minimal interest rate, and in some cases, they do not charge interest at all.
You get used to the luxury and forget that after some time you will not have this luxury and purchase at the same rate. But when you realize that the bank has started charging interest, it is too late.
When you pay off your balance for that month, you might not pay it in full and that it is your second mistake. Because, the next time you try clearing your dues, you will need to pay more, and you keep doing so due to your balance once again, and you get in a reoccurring cycle.
Asking Your Issuer to Reduce Your Interest Rate
Now that you are stuck in debt, the first thing you need to do is to reduce your burden. To do that, you will need to talk about your problems with your issuer.
You might not be looking at this opportunity, but a little talk on the phone will solve a lot of problems. This will work best if you have a good credit score, or you have been their creditor for a long time. Or you can show records that you used to pay your bills on time.
Tackle One Issuer in One Time
If you are someone who got a credit card from the different issuer at the same time, the best thing for you to do is tackle one credit card at a time. You need to make sure you tackle one credit card at a time. What you can do is pay off the balance from the card that has the lowest surplus of all cards. And keep up with that methodology.
When you pay off one card, you will get an instant boost of gratification. And when you have a lower interest to pay, it will also improve your credit score. Since it improves your credit score, your other issuers will also want to decrease the interest rate from your credit.
Conclusion
When you get a credit card, make sure that you keep up with its payment schedule because once you start getting late on your payments or you don’t pay off your balances in full, you will get hooked to that act. This way, you will also end up with extraordinary amounts of credit and keep on paying them off for a lifetime.
