Breaking Free from Financial Stress: A Simple yet Effective Solution
Are you tired of feeling anxious every time you receive your credit card bill? You’re not alone. I recently experienced a similar situation when my health insurance company mistakenly charged me an extra $400, sending my balance soaring. Although the issue was resolved quickly, it brought back memories of the financial stress I used to face when I relied heavily on my credit card.
The Power of a Simple Phone Call
In an ideal world, paying off your credit card balance should be a breeze. But we all know that’s not always the case. According to a recent survey by CreditCards.com, calling your bank to request a lower APR rate or waiving a late payment fee can be an incredibly effective solution. In fact, the success rate is a staggering 79% for lowering APR rates and 90% for waiving late fees.
Why Don’t More People Try This?
So, why don’t more people take advantage of this simple solution? The answer lies in the fact that most people don’t bother to try. Only about 1 in every 5 American credit cardholders has ever asked to have a late payment fee waived or an interest rate lowered.
My Personal Experience with Negotiation
I’ve had great success with calling my bank to negotiate overdraft charges. As a recovering chronic overdrafter, I used to exclusively use my debit card while keeping most of my money in savings. However, after switching to a credit card and setting up low-balance alerts, I’ve been able to avoid overdrafts altogether. But in the past, whenever I did overdraft, I would immediately call my bank, and almost every time, they would refund the $30 charge.
The Benefits of a Lower APR Rate
Lowering your APR rate can save you a significant amount of money, especially if you’re currently working with a running balance on your card. For example, if you have a $5,000 balance on a card and you pay $150 each month, reducing your APR from 20% to 15% could save you over $850 in interest.
Take Control of Your Finances
While there are some aspects of personal finance that involve risk, asking your bank to lower your APR rate or waive your late fee is a relatively low-risk solution. So, what’s holding you back? Take a few minutes to call your bank and see what they can do for you. You might be surprised at how much you can save.
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