More Free Money from your Credit Card Company

Is there free money to be had out there? I like to think that there is. A few months ago a couple of co-workers and I were talking about credit cards and such and I was explaining the evils of carrying a balance. This discussion led us to the topic of balance insurance. Both people commented that they were paying $40 – $50 a month for balance insurance and they had been paying it for a couple of years.

Giving my opinion that the were basically being “ripped off” (both have an excellent insurance plan through work) they canceled this overpriced insurance after shaking their heads at the money they had spent on it in the last few years. Both are now making an effort to pay off their cards and keep them paid off.

One of the same guys sent me a text message the other morning excited that he had called one of his credit card companies and got his rate reduced from 18.99% to 11.99%. On a $10,000 balance this is a savings of over $700 a year.

After this first phone call he proceeded to call his other credit card company to see if he could get this rate lowered as well. He did not have the same luck getting his rate lowered from 11.99% but they did offer him a balance transfer at a rate of 3.99% for six months.

After this second phone call he proceeded transfer his $10,000 balance to the second card. This will save him $750 dollars in interest over the next six months. In addition to the savings, he realized his entire credit card balance was now showing up on his online banking statement. This became a psychological factor as he now wants to get this card paid off having the statement as a constant reminder!

Twenty minutes on the phone saved him $750! I call that free money!