Debt Consolidation Credit Counseling In Phoenix

In today's world, nearly all of us have at least one credit card. The good ol' average family is in debt to between 10 and 20 lenders, with almost 50% coming from credits cards alone. Getting a credit card has never been easier. There have been both good and bad consequences of this. While credit cards have allowed us to acquire goods faster than ever before, they have also allowed us to accumulate debt faster than ever before.

If you don't see yourself giving your credit cards the chop, then this article will assist you in saving money. In fact, you can start seeing your monthly bills dropping at a quicker rate with just some simple and easy planning.

Charging interest is the main way credit companies make their living. This is the way your payment is used. Firstly, a portion goes to clearing the balance. Secondly, whatever is left over goes to paying the interest.Nowadays, some credit companies have begun charging ridiculously high rates of interest. Store cards are culprits in this practice, often charging between 30 and 40 percent interest. People who find themselves in such a situation has little options. It's recommended that you get yourself a credit card from a large provider such as Mastercard and Visa. Depending on which bank you do it through, their interest rates will vary.

Nevertheless, the rate charged by these companies are much lower compared to those of store cards. In addition, you are generally allowed higher limits with major credit cards. Therefore, it's very possible to replace all your store with 1 major credit card and in the process save a whole heap of money.

If you've already got a heap of major credit cards, then here are some money saving tips for you. There are so many credit card companies that they now have to compete for business. This leads to certain opportunities being created. It's recommendable that you firstly phone your credit card company and ask for a lower rate of interest. You should be surprised if they give you a lower rate especially if you've been paying your bills on time.

If you're not able to get a lower rate of interest this way, then it is advisable that you shop around for a better deal. It then becomes as simple as obtaining a lower interest rate card and transferring the old balance over. You'll be pleasantly surprised at the amount of money you can save by reducing your interest rate by 2 or 3 percent.

Credit cards can be quite costly over a long period of time. But with the money saving tips in the article, you can make a good start to reducing your credit card debt and keep more money for yourself.