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Interest Fees eating up payments, working to lower balance

KEBofNJNY
New Member

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?

Message 1 of 4
3 REPLIES 3
Overmedicated
Community Leader
Valued Contributor

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


@KEBofNJNY 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.

FICO 8
Message 2 of 4
KEBofNJNY
New Member

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
cali_alli
Frequent Contributor

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.
March 2018 - EX: 419 EQ: 456 TU: 423
February 2019 - EX: 537 EQ: 547 TU: 509
March 2019 - EX: 625 EQ: 555 TU: 579
April 2019 - EX: 640 EQ: 637 TU: 642

May 2020 - EX: 690 EQ: 688 TU: 700
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