Since most people have credit cards, it’s critical to understand
interest rates, and how the compounding of interest can cause your balance
to grow at an alarming rate. Managing your interest rate could be the key to
reducing credit card debts.
If you make your monthly payments on time, your account might already qualify
for a lower interest rate. Our attorneys suggest making a phone call to
each creditor, once every six months, to request that the account be reviewed for an
interest rate reduction. However, this strategy is generally limited to credit cards that are
current on payments, and not in default status.
Sample Script When Contacting a Creditor:
What is my current interest rate? For example, they answer 18.9%.
Am I eligible for a lower interest rate? They may respond with a lower rate, for example 15.9%.
Another credit card is offering me a lower rate, can you do any better? The creditor might offer you a further reduced rate in order to incentivize
you to keep your balances with them.
Can I really reduce my credit card interest rate?
In my years of observation as a
credit card lawyer, if a borrower has made on-time payments for the prior 1 to 2 years, and
has not requested an interest rate reduction in that time, they may have
a good chance at being approved for a reduction. Reducing the interest
rate will serve to diminish the cost of servicing the revolving credit
card debt on a monthly basis. Simply put, a lower interest rate will reduce
the total amount you have to pay back if you are keeping a revolving balance.
Calling the credit issuer only takes a few minutes, and the worst that
can happen is that they decline your request, and you can try again somewhere
down the line. On the flip side, you might be approved for the interest
rate reduction, and you can start enjoying the savings immediately.
Late Payments Can Affect Your Interest Rates!
Most monthly statements will include a late payment warning that informs
the borrower that if the minimum payment is not made by a certain date,
then the interest rate will be subject to an increase, sometimes as high
as 24.9% APR. In the event you’ve missed one payment, but otherwise
have a strong payment history on the credit card, you should call the
issuer and ask if they would be willing to waive the penalties in light
of the otherwise positive relationship. If you have been subject to an
increase in interest due to late payments, you should work towards rebuilding
your relationship with the creditor by making on-time payments for at
least 6-months, then call back and ask if they can reduce the interest.
Need help reducing credit card debt in New York?
Regardless of the status of your debt, there are almost always relief options
available. Even if you're facing a
credit card lawsuit or judgment, our attorneys can help you understand your rights and lead
you down the path of debt relief. Headquartered in Brooklyn, our law firm
practices throughout the State of New York and NYC, including Queens,
Bronx, Staten Island, Long Island, Westchester, and upstate.
Contact us at 877-717-0098 for a free evaluation. Get in touch with the Law Office of Simon Goldenberg PLLC today to schedule
your complimentary initial
case consultation with our experienced credit card lawyers.