Fox26 Houston: How to reduce high credit card bills
MMI client Edidiong Obot joins Heather Sullivan from FOX26 Houston to discuss how to reduce high credit card debt.
Transcription:
What if you are struggling to keep up with credit card payments? There's some relief headed your way. The Biden Administration has slashed late fees, and that's not the only way you could find some relief and shrink those big bills. Consumer reporter Heather Sullivan [is] here in studio to share some of her Smart Sense. Good morning Heather.
Yeah good morning. A cap on late credit card fees will help many people who are struggling to pay credit card debt, but let's face it, if you are paying late you have bigger problems than just a $30 late payment fee. So I rounded up ways to help you both reduce the fees and the debt that you owe.
“I had bills on there, I had just everyday things…” Edidiong Obot has experience what millions of Americans are facing mounting credit card debt “…and you're thinking that, oh you know, I have this money I'm going to be able to pay it off in the next month and then the next month rolls around and then you don't pay it off.”
Many card holders are drowning in high inflation, high interest rates, and high delinquencies. The New York Federal Reserve reports late credit card payment surged more than 50% in 2023. President Biden just slashed credit card late fees from an average of $32 to a cap of $8. That's a help, but financial expert Matt Schultz writes in his book ask questions “Save Money, Make More”, many card holders who don't regularly pay late don’t realize they could get some late and annual fees waved simply by asking.
“That $10 or $30 is a grain of sand on the beach for a big bank but they know that it'll make you feel really good, keep you around. and keep you spending money.”
A Lending Tree survey found 76% of customers who asked their credit card lenders for a lower interest rate received one - average cut 6%.
“I've been a good customer I like using the card, but my interest rate’s 27% and I just found this card that I can get for 21%, will you work with me?”
Another tool to deal with debt are nonprofit credit counselors which can negotiate for you to lower your interest rate and your debt. Obot turned to Money Management International paying off her debt in three years.
“When I was finally debt free I got a notice from MMI that says ‘you have finished your final payments’. I was like yes!”
To help you with reducing credit card debt on Sullivan Smart Sense on fox26houston.com. So really, really good advice. Is there anything else we can ask to be reduced?
You can ask for just about anything but the CFBB is also looking at cutting bank overdraft fees. Meanwhile though, if you don't overdraft your account very often that is another thing that you can ask your bank to wave. They may wave one or two of those fees because they want to keep you as a customer so the worst they can say is no, right?
Yeah that's true.
All right Heather, thank you.
