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Can I negotiate a lower credit card interest rate?

I don't know if you have any thoughts about this but my wife and I feel like we can get out of our current financial situation without filing bankruptcy if we could just get a little lower interest rate on one card that we owe over $20,000 on. I have other cards with lower interest rates and we are doing OK on paying those. But I'm wondering if it's possible to negotiate on the rate and if so what I should try to do? Is this a legal issue or does it just depend on the card company?

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Of course, you can contact the card company and try to negotiate a lower rate.  There is no legal requirement for the card company to alter the terms of your credit contract, but many will.  One tactic that is often employed with some success is for the consumer to agree to stop using the card and make payments on interest and principal in return for a lower rate.  I can't say if your card company will agree to this type of negotiated compromise, but you can always ask.  The card company may make some other offer that works for you.

One word of caution, whether you attempt the negotiating tactic I mentioned or something else that you or the card company comes up with, it is VERY important that the company agree to continue to report your account as open and current.  The last think you want to do is to agree to some deal that will harm your credit rating and, ultimately, reduce your ability to borrow or increase the cost of that borrowing. Also, depending on how dire your financial situation is, you may want to consider contacting a credit counseling agency.  Good luck.


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