Spring Cleaning Part 1

Video Transcript

If your finances are looking a little dusty right now, it might be time to try a little spring cleaning - but for your wallet. Hey, this is Chris with Money Burst and this is a time of year when we all realize that our homes could probably use a little bit of attention. So, since you're already cleaning, why not add your finances to your spring-cleaning list? Over the next few videos, let's focus on three areas that I think could use some cleaning. Those would be credit card debt, taxes and monthly subscriptions.

Today let's start out with debt. We're several months out from all of those New Year's resolutions that we all went out and made, and if you're like me, you've probably already forgotten what it was that you said you were trying to accomplish this year. But, I'm pretty sure that most people have 'getting your finances in order' on your list. And with credit card debt now well over a trillion dollars, I think we all could use a little more help with how we look at our debt.

So, this is what I want you to do. I want you to spend a little bit of time learning about your credit cards. Things like your balances, what interest rates are you paying, who do you contact if you have a question, what's that customer service number? Because I want you to take all of that and I want you to call your credit card company and ask them for a lower interest rate. And now I know this may sound a little weird right, because interest rates have been going up. So, you're thinking like 'why would they ever lower my rate when they've been raising it for everyone else?'

But I have some information for you. According to a recent survey from Lending Tree, they found that 76% of people who ask for a lower interest rate ended up getting one. And now I know that's not a guarantee, but three out of four people – that's pretty good odds.

And on average the reduction that they received was 6.3%. So, I think this is worth a try. And really the worst that they can say to you is no, and then you just keep your current interest rate. So, hey, I think you should give it a shot.