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How To Reduce Credit Card Debts

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:

  1. What is my current interest rate? For example, they answer 18.9%.
  2. Am I eligible for a lower interest rate? They may respond with a lower rate, for example 15.9%.
  3. 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.