Reduce your credit card interest rate in one easy step – call your credit card provider and ask nicely. Just make a phone call saying you’ve gotten some better offers from other credit card companies and you’re going to close your account if your rates aren’t lowered. The majority of the time your credit card company will give in to your demands, simply because the credit card industry has a lot of competition and it’s a whole lot easier to retain an existing customer than to acquire a new one.
So if you want to lower your credit card interest rate, give it a shot. At worst, they’ll refuse and you’ll only lose a few minutes of your time. At best, you could get a major reduction in your interest rate.
Newer cars are more reliable than older cars. Older cars are cheaper to buy. Thomas Stanley’s book “The Millionaire Next Door” says that a car that is 2-3 years old is a good buy to get a reliable car at the cheap purchase price.
Buy a used car that’s 2 years old. Let somebody else eat the steepest part of the depreciation curve. To save even more off the purchase price get a four year old car. This isn’t an exact formula. Different cars yield different depreciations. You need to research each individual purchase. One thing is certain: Buying a brand new car isn’t the best investment.
Avoid setting up a bi-weekly mortgage payment plan through your bank. A bi-weekly mortgage payment plan essentially means you make 13 mortgage payments (a half payment every other week for 52 weeks = 26 half payments = 13 whole payments) instead of the 12 mortgage payments you would be making if you paid once a month. The extra payment will go towards the principal, and will allow you to pay off your loan faster. Great, right? Sure, the savings from a bi-weekly payment plan can cut several years off of your mortgage payments, but it often comes at a price – a several hundred dollar enrollment fee, plus additional transaction fees.
If you are paid bi-weekly, you can achieve the same results of a bi-weekly mortgage payment plan (and avoid the fees) by taking half of your mortgage payment out of each check and placing it in a savings account. If you empty out this account every time a mortgage payment is due, you’ll be including the equivalent of an extra half-payment at least two times a year. Be sure to specify that the extra money should go towards the principal.