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Interest Rate Reductions Must Not Be Paid For

By Ruth Racey
Published: Wednesday, February 17th, 2010

It is true that there are actually a lot of consumers right now who are having trouble with paying for their respective credit card bills. This is because of the fact that spending using credit cards are just so convenient that overspending is a very tempting thing to do. 

Remember that whenever you are actually using credit cards the time that you are purchasing for goods and services, you do not have to bring all those cash, and you can actually purchase for more than what you actually have. This makes many consumers overspend, in which a very large debt is a common end result. This is also the reason why debt management help is usually needed by such consumers. 

In this case, one popular debt management help that are offered by different companies are interest rate reduction schemes. Imagine, you are actually offered by these companies to have the interest rate of your debt lowered significantly. Surely, it means that you are going to save a lot of dollars. For instance, when you are presently paying for your debt in 12% to 14% interest rates, there are companies which actually offer you to get it reduced up to 4% to 7%. In this case, such debt management help may surely be a wonder to debt ridden consumers, for it actually makes them save hundreds to thousands of dollars. 

The sad fact about this scheme is that it actually does not make you save on dollars. On the contrary, it even makes you spend more, making this debt management help worthless. Remember that there are actually a lot of companies who actually makes phone calls to reduce your interest rate payment, and already makes you pay from $600 up to $1200. The problem with this is that you can actually do the phone call your self, without having to pay such large amount. 

It is true that one of the most effective debt management help that you cab get is reducing your interest rate. However, you must actually remember that credit card agencies are very willing to reduce your credit card debt, especially when you are already debt ridden, rather than face the losses when you are to declare bankruptcy. In this case, it is better and cheaper for you to phone the credit agency yourself. Aside from the fact that you have saved money, you are also enabled to become a better manager for your credit card account.

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