For those battling credit card debt, a call to your credit company could help lower your bills

Typical U.S. household pays $1K per year in credit card interest and fees
Published: Oct. 25, 2022 at 9:26 AM HST
Email This Link
Share on Pinterest
Share on LinkedIn

InvestigateTV - Americans pay $120 billion in credit card interest and fees each year according to the Consumer Financial Protection Bureau, which is roughly $1,000 per year for every American household.

Ted Rossman, Bankrate’s senior industry analyst, said you should look at your statement each month, and see how much interest you are paying. If your APR is 17% or more, call your credit card company and ask for it to be lowered.

”It never hurts to ask for help, the worst they can do is say ‘no’,” said Rossman. “A lot of times lenders will work with you. I think a lot of people are reluctant to ask for help because they think it shows weakness and the card companies are going to be mad at them. They would rather get some of your money than none of it.”

Credit card debt is unsecured debt, meaning there are no assets used as collateral. Rossman said because of this, your credit company might be willing to work with you, especially if you have a history of paying on time.

Some companies may rearrange your due date or let you skip a few payments with or without interest.Another option is hardship programs. While popularized at the start of the pandemic, they have always been available for those in need.

If you need help managing your debt, USA.gov has free resources available to you.