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How to qualify for lower credit card payments
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Credit card debt can be overwhelming, especially in today’s high-rate environment. And, since the majority of a credit card’s minimum monthly payment is interest, rising interest rates can result in larger credit card bills.
Combine that with the increasing costs of consumer goods and it’s easy to see how many people are facing financial hardship. So, what can you do if your credit card minimum payments are too high? There are a few ways you may qualify to reduce them.
Get in touch with a debt relief expert now.
How to qualify for lower credit card payments
If high credit card minimum payments are weighing on your budget, there are a few things you may be able to do to lower them, including:
Sign up for a debt relief program
If you’re having a hard time making your credit card minimum payments, a debt relief program could make sense. Debt relief can include the following programs:
- Debt management: With debt management programs, the debt expert works with your lenders to try and reduce your interest rate and improve your payment terms to make it easier for you to afford your payments. After you enroll, you send a single monthly payment to your debt relief provider and they’ll make payments to your lenders on your behalf.
- Debt forgiveness: Debt forgiveness typically requires you to stop making monthly payments to the credit card companies and make payments to your debt relief provider instead. The money is saved in a special purpose account until enough accrues to start settling your debts. That process typically involves negotiations with your lenders to get them to accept a lump sum payment that’s lower than the total balance owed. Debt forgiveness can have a detrimental impact on your credit report, but it could also be an effective way to avoid bankruptcy.
Start on your path to debt relief today.
Consolidate your credit card debt
If you’re not struggling to make your minimum payments but still want relief, consolidation could reduce your credit card payments.
When you consolidate your credit cards, you take out a new loan at a lower rate — typically a personal loan, home equity loan or home equity line of credit (HELOC) — and use the new loan to pay off your credit card debt. You then pay off the new loan according to the terms of your loan agreement.
Transfer your balances to a new credit card
Another way to reduce your credit card minimum payments is to transfer your balances to a new card. There are lots of choices for balance transfer credit cards that come with 0% or low promotional interest rates for a set period. While it varies, most balance transfer cards offer a promotional period of at least six months.
The promotional period allows you to pay down your principal balance without excess interest charges. However, there are a few potential drawbacks to consider:
- Promotional interest rates will expire and it’s important to pay down your debt before they do. Otherwise, your debt will accrue interest again at the new card rate.
- Balance transfer cards typically come with transfer fees, which are important to consider before transferring your current balances to the new account.
Ask your lender for a lower payment
Getting a lower minimum payment on your credit cards may be as simple as asking for it. When speaking with a customer service representative, it may help to inform them of the financial difficulties you’re facing (if any) and ask what help is available to lower your minimum payments. If warranted according to the financial institution’s guidelines, you may be able to lower your interest rate or minimum payment during the call.
The bottom line
Many people are having trouble affording their minimum credit card payments in today’s high interest rate environment. But that doesn’t mean you have to struggle to keep up with what you owe. Consider reaching out to a debt relief expert, consolidating your debt, transferring your balances or asking your lender for help instead.
NEW YORK — Former New York Gov. David Paterson and his stepson were attacked in New York City on Friday night, authorities said.
The incident occurred just before 9 p.m. on Second Avenue near East 96th Street on the Upper East Side, according to the New York City Police Department.
Police said officers were sent to the scene after an assault was reported. When officers arrived, police say they found a 20-year-old man suffering from facial injuries and a 70-year-old man who had head pain. Both victims were taken to a local hospital in stable condition.
In a statement, a spokesperson for the former governor said the two were attacked while “taking a walk around the block near their home by some individuals that had a previous interaction with his stepson.”
The spokesperson said that they were injured “but were able to fight off their attackers.”
Both were taken to Cornell Hospital “as a precaution,” he added.
Police said no arrests have been made and the investigation is ongoing.
The 70-year-old Paterson, a Democrat, served as governor from 2008 to 2010, stepping into the post after the resignation of Eliot Spitzer following his prostitution scandal. He made history at the time as the state’s first-ever Black and legally blind governor.
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A 17-year-old boy was critically injured and a person is in custody after a gunman opened fire on a SEPTA bus in North Philadelphia Friday evening, police said.
At around 6:15 p.m., Philadelphia police were notified about a shooting on a SEPTA bus traveling on Allegheny Avenue near 3rd and 4th streets in North Philadelphia, Inspector D F Pace told CBS News Philadelphia.
There were an estimated 30 people on the bus at the time of the shooting, Pace said, but only the 17-year-old boy was believed to have been shot. Investigators said they believe it was a targeted attack on the teenager and that he was shot in the back of the bus at close range.
According to Pace, the SEPTA bus driver alerted a control center about the shooting, which then relayed the message to Philadelphia police, who responded to the scene shortly.
Officers arrived at the scene and found at least one spent shell casing and blood on the bus, but no shooting victim, Pace said. Investigators later discovered the 17-year-old had been taken to Temple University Hospital where he is said to be in critical condition, according to police.
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Through their preliminary investigation, police learned those involved in the SEPTA shooting may have fled in a silver-colored Kia.
Authorities then found a car matching the description of the Kia speeding in the area and a pursuit began, Pace said. Police got help from a PPD helicopter as they followed the Kia, which ended up crashing at 5th and Greenwood streets in East Mount Airy. Pace said the Kia crashed into a parked car.
The driver of the crashed car ran away but police were still able to take them into custody, Pace said.
Investigators believe there was a second person involved in the shooting who ran from the car before it crashed. Police said they believe this person escaped near Allegheny Avenue and 4th Street, leaving a coat behind.
According to Pace, police also found a gun and a group of spent shell casings believed to be involved in the shooting in the same area.
“It’s very possible that there may have been a shooting inside the bus and also shots fired from outside of the bus toward the bus,” Pace said, “We’re still trying to piece all that together at this time.”
This is an active investigation and police are reviewing surveillance footage from the SEPTA bus.