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Can You Reduce Your Credit Card Interest Rates To Help Pay Down Debt?

Reduce Credit Card Interest Rates

Reduce Credit Card Interest Rates

One major concern of any prudent person approaching retirement is finding ways to pay down debt, particularly unsecured debt with high interest rates. Paying down these high interest credit cards is much easier if you can lower your interest rates. That is a bit tougher than it was a few years ago when a simple phone call would do the trick, but it can still be done.

When debt is paid off, it is a lot easier to stop worrying about retirement savings or having a comfortable lifestyle.

  • If you owe $5,000 on your credit card, it will take you 32 months to pay it off making $200 a month payments at a 19% interest rate.
  • If you owe the same $5K, it will take you only 27 months to pay it off at a 5% interest rate.
  • Find a 0% credit card balance transfer, and you could pay it off in 25 months. Of course, it is unlikely that that one balance transfer offer will last 2 years, but you could keep switching if your credit is good.


Try Calling Your Credit Card Company

This almost always worked a decade ago for anybody who made their minimum payments on time. Credit card companies would have promotions to attract new customers, but old customers could get the special deals by calling and asking for them. These would be temporary promotions for things like 6 months of very low (sometimes 0%) interest rates. The financing companies would allow the old customers to enjoy the promotion in order to retain their business for the future.

Credit card companies still offer these special rates, but they are less likely to offer these deals to their current customers Still, it might be worth your time to try. If you can reduce your credit card interest rates, the same amount of money you are already paying will go a lot further towards reducing your balance.

Find 0% Interest Rate Credit Card Promotions Elsewhere

There has to be a credit card that you don’t already have, so try to find a 0% interest rate balance transfer. This works best if you still have decent credit. Just be sure you use this opportunity to pay as much of your credit down as possible, and do not use it as an excuse to start charging more stuff you don’t need. Of course, if you have a temporary setback like a job loss, this could be a way to keep your finances afloat.

Look For Secured Loans

Banks and other financing companies are likely to offer you better interest on a loan that is backed by some asset. These are called secured loans. The most common type of secured loan is probably a home equity loan, but there are other assets that can be used. Be aware that you are putting your asset at risk if you cannot make timely payments.

P2P (Peer to Peer) Loans May Have Lower Interest Rates

Websites like Prosper.com act as a middle man between individual borrowers and individual investors. This gives investors a way to make some money, and it also gives borrowers a way to get lower interest credit. Understand that you have to treat these loans like you would treat loans from any borrower. They have to be paid back with timely payments. But they can give you a chance to pay off higher interest rate credit card debt with a lower interest rate loan.

Credit Counseling

There actually are legitimate credit counseling services out there that can help you negotiate your loan payments. You might also stumble across your share of shady ones. This website, from the U.S. Department of Justice, provides a way to find government approved credit counseling services in your area.

Personal Loans

You might take the route of asking your friends or family members for a loan, but I mention it last. Relationships have been destroyed over debt before. On the other hand, you might have a person in your social circle who will be willing to pay you back if you are reliable.

Get Those Credit Card Interest Rates And Balances Down!

The key to a comfortable retirement is usually having very little debt – especially unsecured, high interest debt. It might be worth a little effort and sacrifice now.


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