I can’t even begin with “they’re ba-a-a-ck” because they never went away – those dreaded robocalls. One day they’re offering to help me out by selling me an extended car “warranty” - humm, my car is just a year old and I lease it, so why do I need a service contract anyway? The next day, I get a call to lower the interest rate on my credit card. But, I already did that on my own and now proudly have a 0% interest rate for 14 months!
So here’s yet another story about those unscrupulous businesses that violate the federal Do-Not-Call List by trying to sell me a service that I don’t need, didn’t ask for, and hey, I just want them to go away!
Automated telemarketers are now calling with their “final attempt to reach me to discuss my credit card debt.” What they really want is for me to pay a hefty up front fee, as much as $1,000, so they may negotiate a lower interest rate with my creditor on my behalf. But remember, I did this myself already! All it cost me was a few minutes of my time on the phone with a customer service representative from my credit card company. I just saved a cool grand – shoe shopping here I come!
This is the deal. You simply don’t need to pay any company a thousand dollars to lower your interest rates. It is a DIY; your results are dependent on your credit payment history, your credit utilization (the amount of credit used in relation to the total available credit), and the overall condition of your credit report. But for most, a simple phone call really can turn into a substantial cost savings. Here are some additional tips for negotiating a reduced interest rate on your unsecured debt:
- Your best opportunity is when you have a competing offer in your hand and you ask to match it;
- Don’t ask for the moon (or stars)! Know the going rate for prime rate and average credit card rates and ask for something in that range – be realistic!
- Be willing and prepared to meet them half way – you gotta’ give to get! For example, if they drop your rate, explain you’ll be able to pay a certain amount more each month or offer to stop using your card for a specified period of time and see if that makes a difference.
- If they won’t give you 9% forever, ask if they will give you a reduced rate for a temporary period of time. Ask them to drop your rate for six months and be agreeable to “revisit” at that time. Hopefully they’ll forget or you will have proven you are worthy of remaining their client and they’ll have an incentive to keep you!
- Lastly, be nice. If you have a good job, let them know. Remind them of your loyalty when the market was more competitive and show a willingness to cooperate. Just remember the rules of good behavior on the playground and it could get you a better return in the financial marketplace. Just be calm, nice, and remember to say “thank you.”
Okay try it – and let me know how you do! Seriously, I want to hear your success stories so drop me a line at
abarnett@greatermd.bbb.org. Talk soon! Angie
P.S. - always remember to check out a company at
www.bbb.org to make sure it's one you can trust!
