Q: How can I save money on my credit card debt?

A: The first way is to just ask. Oftentimes, all it takes is a call to your card issuer's customer service line. If you've been a fairly good customer, tell them you're thinking of transferring your debt to another company's card with a lower interest rate. If you've had some trouble making your payments on time, tell them you're worried about your ability to pay in the future. Either way, they'll often volunteer to drop your annual percentage rate of interest by a few points. Credit card companies aren't dumb: They know that they make no money when you close your account, and they'll usually work with you in order to avoid that coming to pass.

If this doesn't work, you can consider applying for another card with a low introductory APR. Then you can transfer your existing debt to this card and pay as little as 0% interest for a year.

Finally, it's usually a good idea to use your savings to pay off credit card debts. After all, if your bank account is yielding only 2-3% and your credit card is charging you 12-24%, it only makes sense to withdraw your cash from the bank and use it to pay down your cards. Yes, it is important to have a cash reserve, but once you pay down your credit cards, you'll be able to use your available balance in the case of an emergency. In this way, it's not a whole lot different from cash. However, if your cash is yielding 2% and your credit card is charging you 12%, you're actually losing 10% on every dollar in your bank account!

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