Karen Writes In. “My Interest Rates Are Going Up. My Minimum Payments Are Going Up. Help!”


“Dear Steve,

Have a lot of credit card debt – struggling to keep my head above water. Interest rates are going up, minimum payments are going up, and I am falling behind. which causes the rates a payments to keep going up and my credit score to go down.

What is the best way to negotiate lower payments and lower interest rates for credit cards. Should I work with a debt counseling agency? Is there anyway to get a consolidation loan to get a lower interest rate and one monthly payment if I have a low credit score and no collateral? I am quite desperate.


Dear Karen,

Feeling desperate is completely normal. But the good news is that there is no need to feel desperate anymore. I’ll help you though this and together, you’ll get this resolved, one way or another.

It is so ironic that once you fall behind your interest rates go up and that does drive up the minimum payment, that you’ve already proven you are struggling with. Your situation is an unfortunate classic example of why one of the hardest hurdles people face is trying to repay their debt in the face of creditor actions that seem to not allow fair repayment strategies.

“Oh I see you are falling off the cliff. I know what you need, less rope.”

While bankruptcy is an option to financial problems I think you could really befit from contacting a credit counseling or debt management group and see what they can do to lower your interest rates and monthly payment through creditor offered concessions. While they will not individually negotiate on your behalf, they can be a conduit to access creditor programs.

You can click here right now to get an idea about what kind of reduced payment a debt management program might offer you.

As far as the debt consolidation loan goes, you are not going to get one so don’t even waste your time and money trying to find one.

Come back and comment about what happens with the debt management research and if that does not solve your issue, then we can talk about more drastic options.

Once you decide which solution path is best for you, then we can start to work on legally improving your credit report and credit score.

Make sense?


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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