Everything About Credit Cards

With interest rates rising, consumers facing layoffs or reduced work hours can have a hard time making monthly minimum payments, let alone paying down their debt to any significant degree. When interest suddenly escalates from the 9% range up to nearly 20 or 30 percent, the effect on monthly minimums can be drastic.

The answer is to get that interest rate lowered – something many consumers believe is an impossibility.

Not so, says Ms.Yip. Most consumers make one call, hear the word “no” and give up. But that’s a mistake.

Here’s what to do instead:

Make your first call about 3 days before the end of the month. That’s when customer service representatives are under pressure to meet monthly goals. If the first representative says no, wait a while and call back. You’ll probably reach a different representative.

If the second representative says no, respectfully request to be put through to a supervisor. Then be prepared to wait. The wait could be a long one because:
1. They’re hoping you’ll get tired and hang up
2. The supervisor is probably talking to another customer, and may have more ahead of you on hold.

Traditionally, the odds are 3 in 4 that talking to a supervisor will result in a lowering of your interest rate. But, if he or she won’t readily agree, suggest a 6-month period of lower interest to allow you to catch up.

They don’t want to hear the word “bankruptcy” so should be willing to work with you if you tell them the situation is serious. Explain that you’ve been a good customer and ask them to review your record to verify that you’ve always paid on time.

Tell them you like the company and would like to remain with them, but that their failure to reduce your rate will result in you transferring their balance to a different company. They should “get it” that in that case they’ll earn NO further interest. If your credit score is still good, it won’t hurt to mention that fact, along with your history with their company.

Be sure to call before your account has gone into arrears – and do educate yourself on the going rate for credit cards before you ask for a reduction. Studying the offers on this site should give

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