Interest rate reduction offers could cause credit card debt

With the holiday season less than a month away from full swing, many struggling consumers may be turning to credit cards in order make those extra purchases on their loved one’s wish lists.

Some may end up overspending their budgets, which in turn could lead to higher monthly minimum payments and greater credit card debt.

However, those looking to alleviate this growing debt and reduce their interest rates may not wish to turn to third-party companies, Pennsylvania news provider The Morning Call reports. Both the Federal Trade Commission and the Better Business Bureau issued warnings this past year advising consumers to avoid these institutions, instead directing individuals to a number of available low-cost alternatives.

Consumers looking to reduce their rates can simply call their banks to negotiate a more affordable rate, the news source says. Another avenue individuals may wish to pursue is to shop around for another credit card with a lower rate. A process that may take time and research but could save money in the long run.

However, credit card debt can also be avoided by good budgeting and employing other money-saving practices.

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