Stop rate hikes on your credit cards

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Stop rate hikes on your credit cards

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Credit card lenders are infamous the world over for changing the interest rates of the credit cards for people at a time when it is totally unexpected. While the new CARD Act that has come into effect has taken care of this problem to a great extent, there are still some banks that get away with it banking on the ignorance of the customers about the new Act. There are simple tips using which you can ensure the banks and other lenders do not increase the interest rates on your credit cards at their whim and fancy.

Make your payments regularly

If you are a person who regularly pays off your credit card dues on time, you are well protected and can protest against the change. You will have an upper hand a better chance of winning at the negotiations if you manage your finances well. If you are not able to clear off the entire debts at one go, ensure that you at least make your minimum payments on time to avoid penalties and interest rate hikes. Banks cannot consider increasing the rates on your account if you have been a consistent payer and have not defaulted even once in the last six months.

Opt for a balance transfer

Despite you being a regular payer, if the bank decides to increase the interest rates, then, it is time to consider opting for balance transfer on another credit card with lower interest rates so you can pay off the debts fast. Look around and you will find banks rolling out some great offers on credit cards. Choose the one that offers best deals on balance transfer and move the balance on the existing card with the impending hike to the new card. This will make a world of difference when it comes to repaying the debts.

Negotiate with the bank

If you do not want to opt for the balance transfer, but just want to stick on to the existing credit card, then it is time to negotiate with the credit card lender. Call them up and let them know that you will be able to consistently make payments at the current interest rate. If the increase in the rates is bound to impact your finances let them know about it and ask them to reconsider their decision. If you feel you cannot handle this by yourself, don't think twice about contacting debt consolidation firms that specialize in this area.

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