High interest rates on credit cards are becoming a serious problems. When the economy goes bad, credit card companies do more detailed regular credit checks on their customers, and at the first sign of trouble they will often raise the interest rates without warning.
That’s a big shock: everything was going well, and you were managing to meet your payments at 11% interest, and then all of a sudden the interest rate jumps to 22%, and you can’t even afford the minimum payments. What should you do?
First, talk to your credit card company. Perhaps they will agree to lower your interest rate, or convert your card into a loan with fixed terms of repayment, at a lower interest rate.
Second, talk to your bank about getting a debt consolidation loan. Use our free debt consolidation loan calculator to determine how much you can save.
Finally, if that doesn’t work, you may need to consider a consumer proposal as a way to consolidate your debts. You have options, so review your options now to keep your interest rates low.
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