Ramit Sethi explains how a single five-minute call to your credit card company can lower your APR and save thousands in interest. A $50,000 balance at 27% APR costs over $1,000 per month in interest alone. Use your customer history as leverage when you call.
You actually have an interest rate problem, and until you fix that, nothing else you do is going to matter. Remember, at 27% interest from your credit card, your $50K in debt is costing you over $1,000 a month in interest alone. That money disappears before a single dollar touches your balance. So the house is on fire, and right now we need to stop pouring gas on it. There is a better move that can change the game entirely. We're going to try to lower your interest rate. Because at a lower interest rate, every single dollar you pay works harder. Call your credit card company and ask for a lower APR. That 5-minute call could save you thousands of dollars over the lifetime of your loan. You can say something like, I've been a customer for 7 years. I'd like to request a lower interest rate on my account. That's it. Simple and direct. And while you have them on the phone, ask if they offer any hardship programs.
