Recession Buster Boot Camp: Week 4 Challenge
Date Your Debt
Ready to get romantic? Good! 'Cause this week you're going to get intimate with your debt. And if it's been a while since you looked closely at your debt situation, this may be a little bit like a blind date. Put on a little lip gloss and let's go.
Step 1: Dig out your credit card statements and make a list of these things:
Your balances
Your minimum payments
Your interest rates
The toll-free numbers for your credit companies
Also, for each card, make a note of whether you've been delinquent in payment over the past year.
(Don't have any credit cards? Your challenge is STEP 2!)
Step two: Next, check your credit score, if you haven't done so already this year.
Did you know you're entitled to one free report each year from each of the three major credit-reporting companies (Experian, Equifax and TransUnion) thanks to the Fair Credit Reporting Act?
To get your report, simply visit Annualcreditreport.com and fill out the info there.
Did you know you're entitled to one free report each year from each of the three major credit-reporting companies (Experian, Equifax and TransUnion) thanks to the Fair Credit Reporting Act?
To get your report, simply visit Annualcreditreport.com and fill out the info there.
Caution: Use ONLY Annualcreditreport.com to get immediate, free access to your annual credit report. There are scams out there!
You can also call 877-322-8228 or mail in the form:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
You can also call 877-322-8228 or mail in the form:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Step 3: Use your credit info, plus info about your current rate and payment history and call your credit card companies to request lower interest rates.
Start with the highest interest rate and start calling your banks to try to negotiate a lower interest rate. (Yes, it's as scary as asking someone out ... get over it.)
Not sure what to say? Try this:
Start with the highest interest rate and start calling your banks to try to negotiate a lower interest rate. (Yes, it's as scary as asking someone out ... get over it.)
Not sure what to say? Try this:
"Hello, this is ___________. I've been a good customer of yours for years and have been getting offers in the mail from other credit card companies with lower APRs. I would like a lower rate, otherwise I will cancel my account with you and get another card. Is there anything you can do to help me out?"
Step 4: Successful? Use a credit interest rate calculator to figure out how much you're paying in interest. Then figure out how much you'll save with the lower rate.
Unsuccessful? Well, you can't win 'em all, but you should feel good for trying. We still love you!
Bonus Challenge: Cut up all of your cards except for one emergency card.
Unsuccessful? Well, you can't win 'em all, but you should feel good for trying. We still love you!
Bonus Challenge: Cut up all of your cards except for one emergency card.
When you've tackled this challenge, move on to the Week 5 Challenge! You're almost there! Only one challenge to go!
Need more? Check out expert recession busting advice and money saving tips from our awesome users. Or submit your own tips!
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