I filed bankruptcy in 2003 and have allowed myself to get into credit card debt once again. This time is not nearly as bad, but it still isn’t good either. It totals nearly $20k and I received a notice from Citibank stating that they are raising my interest rates to 29.99%. There is no way I can afford that and want to take steps to finally get myself and my family out of this mess. I know we need to make changes in our spending habits and standard of living.
What can I do about my credit % rates and balances? I’ve heard about programs that help to talk down your balances and rates for you, but I also know a lot of those places hurt your credit rating. What options do I have? I want to move in the right financial direction for our future.
If you can afford your minimum payments but just want to get the interest rate reduced, explore a debt management program to do that. Contact a debt management company and see what the interest rates can be slashed to.
You can also call Citibank and explain your situation and difficulties you are experiencing. They may place you on a reduced interest payment program for 6 months and may close your card.
The only option you have to lower your overall interest rate and not hurt your credit is going to be a solution like LendingClub where you can get an unsecured debt consolidation loan to payoff the debt.
Consolidating your debt may actually improve your credit since it will keep you out of a debt management program, a creditor internal program, and potentially bankruptcy. Explore LendingClub and see if that might not just be the solution you are looking for.
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.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.