• It never hurts to ask- If you have seen an increase in your interest rate and have a good history with your credit card company, you should contact them to see if they will lower your rate. This strategy has been popular in the past with mixed results. Consumers should be prepared for an uphill battle to get a reduced rate since the credit card industry is not exactly noted for accommodating the requests of card holders at this time. With that in mind, there is no harm in making the call. It could save you thousands of dollars and if it doesn’t, there is no harm done.
• Opt out of higher interest rates- Card holders may have the option to opt out of the higher rate. This requires paying off your balance at your current rate without making new purchases. If you choose this option your current rate will remain in place however using your account, even one time will trigger the higher interest rate. Carefully read any information that accompanies your credit card statement or other correspondence you receive from the card issuer to ensure you understand the terms before agreeing to them.
• Shop for a better rate- If you are not satisfied with the terms and conditions of your current account, start seeking a better deal elsewhere. Balance transfer offers are not as lucrative as they once were, but they are still available. Before moving your balance, calculate how much money you will save by transferring your balance. To do this, consider balance transfer fees and the length of time you will be able to take advantage of the lower introductory offer.

The final and most effective way to avoid the negative consequences of high interest rates is by managing your credit wisely. Consumers who manage their accounts responsibly reduce or eliminate the consequences of late fees and high interest charges by paying their balance in full each month. Of course many people are beyond the point where paying off the balance in one month is feasible. If there was ever a time to aggressively tackle debt the time is now. Research the options available to you and develop a strategy to get out of debt once and for all.

Interest Rate Hikes And What You Can Do About Them was created by and is property of American Consumer News.

People need cash and when they do, it can create a somewhat desperate situation for some. Besides fantasies of robbing a bank, many will do other things to get cash that are just as foolish.

Case in point – Taking a Cash Advance

When you have a credit card, the financially intelligent thing to do is to save that card and only use it in emergency. The reality is, many people who are not doing so well financially will make the first mistake of using their credit cards to sustain daily life. When the time comes for cash to be needed on hand, people will make another vital mistake and use that credit card to withdraw cash. These cash advances added to an already poor financial situation will only make things worse.

Here are some of the reasons you should avoid taking a cash advance from your credit card. Remember that a cash advance isn’t just when you use your credit card at the ATM, it also counts when you use convenience checks sent from the credit card company:

Outrageous Fees
Where many people fail themselves is in part due to the particularly small print that contains the information on the interest rate applied to a cash advance. Card holders do not always take the time to read exactly what the are doing when they take a cash advance from their credit card and then wonder why they are paying up to 25%-30% in interest charges.

Unbalanced Pay Offs
Few consumers realize that when they make a payment on the balance of their credit card, the credit card company typically will apply the amount to the balance with the lowest interest rate. Because your payment does not technically go towards your entire balance at any one time, you can end up paying for that cash advance for many years to come.

No Grace
The grace period on a credit card is the time you have to make a payment before the interest charges accrue. When it comes to a cash advance, most credit card companies do not give a grace period on cash advance transactions. This means you end up paying more than you would on regular purchases.

Double Fees
When you use your credit card at a bank ATM or the teller window, you may incur additional fees for the transaction. Not only do you end up paying outrageous interest for the money, you likely will end up paying off the extra fees for a long time to come, no matter how small they may seem at the time

Before you turn to a cash advance when you need cash, try hard to come up with other ways to get cash in hand. Sell things you own or borrow from a family member. Do whatever you have to to not dig yourself into further debt.

Cash Advance: Just Say No was created by and is property of American Consumer News.

Being in debt, no matter how deep or how recent, is not the end of the world. The key is to attack the debt head on. For this you need to start with a plan. The first step of such a plan is to collect all of your bills at the same time and analyze what is going on with your account. On a piece of paper, write down the name of the account, the total balance due, the minimum payment due each month, and the amount of the interest rate charged. Make certain you have included all of your bills. Ordering a copy of your credit report can help to ensure you have included all of your debt and can help you understand the exact nature of your personal financial situation.

After you have listed your debt obligations, look over your list and determine which of the accounts charge the highest interest rates. Number each account according to the interest rate charged. For instance, the account with the highest interest rate should be listed as number one, and so on down the list.

Once you have created your list of debt, start working on your budget. Total up all your sources of expendable income and develop a budget for a month. Be sure to include daily living expenses and the like. Your priority will be to pay off the bill with the highest interest rate first, despite the remaining balances. Many people make the mistake of paying off the accounts with the highest balances instead of the highest interest and find they never get anywhere.

When creating your plan of attack on the high-interest accounts, figure out how to make payments that are double or triple the minimum payment required until the account is paid in full. As one account gets paid in full, take that payment and move it to the next high interest account. Continue on this payment plan until your accounts are paid off and current. You should find that it becomes less difficult to deal with overwhelming debt once you establish a cycle of budgeting and payment plans. If you find you can not afford to double up on payments and still live an adequate lifestyle, you may want to consider finding new employment with a higher pay rate or perhaps take on a second job and dedicate those funds to paying down your debt.

Pay Attention to Your High Interest Not High Balance was created by and is property of American Consumer News.