If you carry any amount of credit card debt, you're not alone-many people do. It's also easy to find yourself unable to make minimum payments due to rising interest rates and total balances. Bankruptcy is certainly an option in this situation, but it's not the only one. The first thing you can do involves contacting your creditors at the credit card companies to attempt negotiation of credit card debt. If negotiations don't work out, you can always research Minneapolis bankruptcy law and contact a Minneapolis bankruptcy attorney for help.

How to Ask for Lower Rates

If you can negotiate lower credit card interest rates, you'll lower the total monthly amount of your bills and debts. When you pay off the debt with the new interest rate, you will be paying towards the balance actually accrued rather than inflated interest.

Debt can be overwhelming-it helps to simplify. Identify the latest statement from each creditor even if you are not planning to negotiate with all of them. Make a quick spreadsheet detailing a list of credit cards and their interest rates. Note any special rates for cash advances, regular purchases, and transfers.

Look at the interest rates side by side and determine which have the highest interest rates. Some of the higher-interest rate cards may include store cards; these are likely cards you can go without using as you concentrate on eliminating debt on the cards with lower interest rates.

When you've organized your bills and comparison information, call the billing or customer service department of the credit card company. As you call, remember that your customer service rep has likely spoken with many other customers in a difficult situation. Also, you are more likely to get what you want by treating others with kindness.

When you call, politely inquire about lowering your credit card interest rate and be forthright about your reason for the call. Expect the possibility of a negative response. If this happens, ask the customer service rep for clarification on how this decline of request was determined. Ideally, credit card companies and their representatives should make this determination on a customer-by-customer basis. Should the representative offer a better interest rate, retain your polite demeanor and ask about any other options for reducing fees.

Payment Plan Negotiation

Having a past due status on your account can bar you from receiving an interest rate reduction with many credit card companies. In this instance, ask if you can change the terms of your payment plan or make a settlement with a lump sum if you are able. If you've exhausted these options, it may be time to contact a Minneapolis bankruptcy lawyer. Keep all of your records and attempts at negotiation to present to your attorney.