A Quick & Simple Way To Reduce Credit Card APR
May 2005
If you don't ask you don't often get in this world, especially when it comes to money, goods and services. One of the greatest things about increased competition is that the consumer is really the one in control. We can choose exactly who we do business with but the companies cannot make us call them, herd us into their shops or force us to fill out forms.
So the recognise this fact, we are in control.
Mega Competition In The Credit Card World
If competition is hot in a certain sector then you can be sure that the companies involved are open to negotiation. Credit Cards are proof of this. So if you have a debit balance on a card and for whatever reason don't want to change provider call them and simply ask them to reduce your APR. What's the worst that can happen, a polite no.
But make sure you follow some simple negotiating rules
- Be polite
- Be charming if possible
- Make sure you sound like a nice person
- Give 'em a bit of good old fashioned bull
What we mean by point 4 is simple, have some believable story to try and force their hand. For example, say you have a Barclaycard at 19.9% APR, tell them that you've just received something in the post from the Egg Credit Card and they're offering you 14.9% APR. But you can't be bothered to move cards and balances so can Barclaycard match Egg's APR. There's a better than 60% chance that they will and this could save you £100's or even £1,000's a year. Not bad for a 5 minute phone call.
Two Ways To Make Money
If you earn £24k a year and get a £2k pay rise you're better off, this is an obvious way to make more money. But what about if we just look at spending. If you earn £24k a year and spend £2k a month (assume no taxes in this example) there is a way to 'earn' more money without getting a pay rise, and that's to spend less.
Spending less can mean going out 2 times a month instead of 4 or it can mean saving money by buying deals/special offers and negotiating. And in the personal finance world there's plenty of deals and negotiating potential available such as asking your Credit Card company to reduce your APR.
Yes, the above is not rocket science but more often that not wealthy or well-off people are that way because they watch and pay special attention to how they utilise their money.
As we stated in the beginning, if you don't ask you don't get.......
See Also
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