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Interest Fees eating up payments, working to lower balance

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Anonymous
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Interest Fees eating up payments, working to lower balance

I have a high-interest credit card due to rebuilding my credit after bankruptcy.  However, I have been making payments on time and paying over the minimum but I noticed my fees are eating up the progress of paying down the balance.  What should I do so the payments I make actually work toward lowering the balance?

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Anonymous
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Re: Interest Fees eating up payments, working to lower balance


@Anonymous wrote:

I have a high-interest credit card due to rebuilding my credit after bankruptcy.  However, I have been making payments on time and paying over the minimum but I noticed my fees are eating up the progress of paying down the balance.  What should I do so the payments I make actually work toward lowering the balance?


Well let's get the obvious out of the way.....pay more.  I don't know what card you have but you may be able to call in to get a temporary APR reduction.

Message 2 of 4
Anonymous
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Re: Interest Fees eating up payments, working to lower balance

Thank you for replying, I am paying what I can.  I have a child in college so I am doing the best I can to work to lower the balance.  I do plan on contacting the credit card company to see what they can offer.  As I hate to keep making payments and most if it is going up in smoke towards fees that really don't help the customer nor the account.

Message 3 of 4
Anonymous
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Re: Interest Fees eating up payments, working to lower balance

Like PP said, pay more.

Who is the creditor? Some offer reduced interest rates during hardship.

Other options depending on your credit include taking out a personal loan with a lower interest rate and paying off the high rate card. Just make sure you don’t use the card again until the loan is repaid.

Or

If you qualify for a new card with an introductory 0% APR offer for balance transfers and you can pay it off during the offer period that would save a lot of money.

However, these options could lead you into more debt if you’re not careful. A savings is essential for situations such as this.
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