In a perfect world, you would always pay your credit card balance in full. This allows you to keep your debt to a minimum while also avoiding interest charges.
However, depending on your financial situation, this may not be possible. If you find that a high interest rate is costing you a lot of money each month, here are some steps to take:
- Review your situation: From your current rate to your terms and conditions, review everything to get a better idea of what you're up against. For example, you may find that you have a variable rate, as opposed to a fixed rate, meaning that it will change on you from time to time.
- Find better offers: Search far and wide for credit card offers with a more competitive interest rate. Not only does this put you in a position to make a change, but it also gives you negotiating power.
- Contact your credit card company: This is the most important step, as it's when you'll figure out what comes next. Ask your credit card company if there's any way to lower your rate. Back up this question by mentioning other credit card offers, as well as your past history of paying on time (if this is true).
If your credit card company complies, you'll find yourself saving on finance charges. Conversely, if they shut you down, it's time to consider what comes next. If your credit card balance is too much to handle, filing for bankruptcy could be the best way to reduce or eliminate your debt in a timely manner.