3 Great Methods To Reduce Credit Card Debt

Credit card debt is a problem for millions of Americans that just continues to get worse and worse. Here are the top three methods I know to start to reduce that debt and begin digging yourself out of that hole:

1. Make use of interest-free trials

When looking for a new credit card, find one with an interest-free trail offer. Some offer a year or even more with no interest on balance transfers and new purchases. If your new card offers the latter, use it to make those new purchases - but make sure you put away money to pay off the balance before the trail period is up, and use any money you save on interest to pay off your pre-existing credit card debt.

2. Work to have your current credit card interest rate reduced

Once you have stopped adding to your debt, the next step is to get lower interest rates. Did you know that most credit card companies will put increase your interest rate by as much as 100% if you so much as make one late payment? Even if payment is just one day late, the banks will often drastically raise your interest rate. The really silly part is that these companies rarely report you to credit bureaus unless you are a full 60 days late with a payment. So while they might have raised your interest rate, your credit score could well remain unscathed.

You can easily turn this situation to your advantage. If you find that your credit card company has raised your interest rate, call or write them, telling them you have another company that is willing to give you a much lower rate - after all, you still have a good credit rating. See if they call your bluff - odds are, they won't, because they know there are many lower rates available. This is a great way to save big bucks in interest each and every month without even opening up a new credit card.

3. Apply for Additional (New) Credit Cards

Of course, if your credit card company won't deal with you, you can actually search for another company offering lower interest credit cards, and open an account with them. Remember, unless you've been over 60 days late with a payment, your credit report might well have no marks on it from your old cards. Furthermore, even if you have a less than stellar credit score, there's a very good chance you can still find a lower rate than you currently have.