Bank of America is Charging Me 27% on My Credit Card. – Melinda


“Dear Steve,

I made late payments a couple of times on my Bank of America Visa card. Now my interest is at 27% on $11,000.00. I cannot afford the payment minmum that they require.

Should I try to talk them into lowering my interest rate back to a something more reasonable? Does that usually work?


Dear Melinda,

You can always call and beg for a lower interest rate. The worst they can say is no. What concerns me most about your question is that you can’t afford the new minimum payment. If they don’t lower your interest rate you are slowly headed for trouble here.

You may want to consider contacting a debt management company and enrolling in a debt management plan (DMP) to get your interest rate lowered. Just be aware, while this will lower your interest rate, the card will probably be closed and it could hurt your credit report a bit. But then again, what are the options, sinking into a slow financial death on a payment you can’t afford?


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.

Steve Rhode

3 thoughts on “Bank of America is Charging Me 27% on My Credit Card. – Melinda”

  1. This was my problem too at the end of last month. I have shed tears over it. BofA would not lower my rate in spite of my calling them and they then immediately lowered my limits on all 3 cards that I have with them. Over all 3, I owe them about 14K. They recommended that I speak with one of their credit counselors which I declined. I am still evaluating my finances currently before deciding on a DMP. Part of me feels like a DMP is a cop out- that I’m reneging on my promises and responsibilities. But why should I try to “do right” by my creditors when they are screwing me and many like me at every turn. Citibank at least lowered my rate when I asked them.

    I would love to win the lottery so that I can tell BofA to SHOVE IT.

    • I understand the concern about guilt and meeting your obligations. And what I am about to say is not an excuse for you to take action that limits what B of A or any creditor will get paid, even if the debt is discharged in bankruptcy. But, I want you to consider that airlines, car manufacturers and large retailer turn to corporate bankruptcy and routinely break their commitments to shareholders and retirees in order to have a better chance of moving forward. Just because a decision is hard, does not mean it is wrong.

      Why is it that when big companies make those hard decisions that we applaud them for stepping up and taking responsibility for their situation, but when individuals do the same things the banks get upset? Double standard?

      If you are struggling with your current jacked up interest raters and Bank of America is sending you to one of their “credit counselors” just be careful about the path that you elect. Bank of America is steering you to credit counselors in order to collect money from you, not necessarily because a DMP has a high success rate in getting people out of debt.

      I don’t know enough about your situation to advise you specifically, but all I ask is that you don’t let your emotions make your decisions for you on this. Do all your homework and research all of your options and then decide what you want to do.


  2. Melinda also needs to commit to making on-time payments. She can do that manually, set up repeat payments through her bank’s bill pay or the credit card company may have a program for automatic debits of the minimum payment from her checking account.

    These may be problematic for her current situation but she needs to recognize the absolute importance of making payments on time. I don’t see that level of resolve in her question.
    .-= Cindy Morus, The Money Mender´s last blog ..Unemployed? Top 5 Tax Traps! =-.


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