Consumers who compare credit cards could save big

Those looking to avoid added debt from the upcoming holiday shopping season may wish to avoid third-party interest rate reduction companies, a new report says.

Recently, both the Federal Trade Commission and Better Business Bureau have issued warnings to consumers about such companies, and instead, directed consumers to a number of easily available low-cost alternatives.

Consumers looking to cut back on credit card debt by reducing interest rates may be able to achieve lower rates through their existing banks and lenders, Pennsylvania news provider The Morning Call reports.

These institutions will often offer struggling individuals the opportunity to negotiate these rates, which in turn could help lower minimum monthly payments.

Another alternative suggested by the FTC and BBB is to compare credit cards with lower rates, the news source says.

By shopping around, consumers can choose a new card with a lower interest rate, thus diverting the money they would have spent on third-party mediators to their existing creditors.

While this research process may take extra time, consumers could save as much as $1,000 by taking the search for lower rates into their own hands.

Posted in: Consumer Credit Cards, Credit Cards

Consumer Credit Cards News: This article was published on 12-8-2010 at 9:02 am.

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