If debt isn’t bad enough, the exorbitant interest rates that credit card issuers charge their customers is mounting. One of the reasons that consumers have such a hard time getting out from under credit card debt is because they cannot keep up with the interest rates.

Many people turn to opening new accounts to transfer and manage their debt. Consumers need to understand the leverage they have with credit card providers, they do not want you to transfer the debt. If done right, you can try and negotiate a lower interest rate on your account.

Negotiate a lower interest rate

• Look at your oldest account(s): You likely will have more leverage with older accounts that you have good history with. A long-standing relationship goes a long way for creditors.
• Look at what they’ve made off you: Credit card providers want to make money – they want you to carry a balance. Before you call look at approximately how much interest you have paid them over the years.
• Do some research: Look at what competitors are offering for similar accounts. You can also mention your research into balance transfer cards. Credit card providers know that to transfer a balance you must open a card through a different creditor. Which means they will be losing the debt. You can offer not to transfer the balance in exchange for an interest rate decrease, or other negotiation.
• Call and speak with a representative: It don’t hurt to ask, call them up and investigate the request. Speak with a supervisor if you must. The worse thing that happens is they say no.
• Don’t get frustrated: Remember you want something from them – so be polite when speaking with the creditor.

Remember it’s usually in the creditors benefit to keep you as a customer and lower your interest rate. It’s also in your benefit to refrain from opening new accounts, causing inquiries on your credit, and lowering your average age of credit just to get a lower interest rate.