Renegotiating your debts for a lower rate is not as difficult as it may seem. The following are some steps for how you can get lower rates, and thus spend less repaying your debts.

Step one: Make sure you have a great history of repayment with the company you are trying to renegotiate your interest with. If you have been paying late, or not at all, what incentive will the company have to offer you a better deal? If you are a good customer, and actually make your payments, then they will be more likely to cater to you in order to retain you as a customer.

Step two: Explain your situation and desire to lower your interest rate, but do it without threatening the company. Your goal is to make the company feel like you are a valuable customer, and one they are going to have for the long term. So, unless you are really going to go bankrupt, or something else, then you should not tell them you are. Threats undermine your ability to get on good terms and get the best rates, etc.

Step three: Make sure you ask for a fixed rate when you go for the renegotiation of terms with a credit card company. They may let you renegotiate the terms of your credit rate, but this is not a good idea if you are going to settle for an introductory offer, rather than something that is set for the whole time you have the card.

Step four: Make the credit card company an offer that is not ludicrous, but that will work for both of you. A great place to start is around prime. Of course, ask that it is fixed at whatever the current prom is. Ask for it or you will never get it. Some credit card companies will go as low as 7%, although this is rare.

Step five: Let your credit card company know that you like them but are willing to shop around for a better rate if they will not help you to get lower rates.

When you negotiate lower rates you get to save several hundred dollars in the course of paying off your credit card, and this allows you to save money, and allows you to put money in your cash reserve.