How to Reduce Your Credit Card's Interest Rates From Debt Counseling

Counseling is an excellent way to address problems with credit card debt, the Federal Trade Commission points out. Many credit counseling agencies, such as those associated with Consumer Credit Counseling Services, specialize in restructuring credit card debt, including the lowering of interest rates. The initial consultation for a debt counseling session is usually free. However, a monthly fee will be required if the counseling service manages your credit card accounts on an ongoing basis.

Instructions

1

Gather copies of the account statements for all of your credit cards.

2

Make an appointment with a credit counselor approved by the U.S. Department of Housing and Urban Development. Visit the HUD website to find a counselor near you (see Resources).

3

Show the HUD counselor your credit card statements with the balances and the interest rates. Ask the counselor about formal debt management plans, which allow the counseling agency to take full control of your credit card debt and pay your monthly credit card bills. There is a monthly management fee for this service. If you simply want the counselor to negotiate lower interest rates on a one-time basis, ask about the cost for that.

4

Enter into an agreement with the counseling agency for either a complete debt management plan or for a one-time assignment contacting your card companies to request lower interest rates. Get all the terms and conditions in writing. Sign the agreement authorizing the counseling agency to represent you in discussions with your card companies.