Every Little Bit Helps

As I've mentioned, I am desperate to reduce my debt.

I called all my credit card companies and asked them to reduce their interest rates. I didn't spend a lot of time or energy arguing with any of them, and I went into it assuming I would get a "no" answer from all of them, as I have had several late payments recently. Plus, I find it easier to expect the worst and avoid disappointment, rather than getting my hopes up and feeling crushed if it doesn't work out. But, as they say, "nothing ventured, nothing gained." So I tried.

My basic approach was as follows (after wading through the automated systems and entering credit card numbers and telling them my secret codes and so forth to reach a live person):

Credit Card Company Representative (CCCR): How may I help you today?

Me: Well, you could help me a lot by lowering my interest rate to something more reasonable. Your cost to borrow money is at an all-time low, and I was hoping you could pass along some of the savings.

CCCR: Well, let me just check your account on the computer, please hold for a minute....

As expected, most of them came back from reviewing my rather sad credit history and said "no." But one said "yes," and reduced the rate by 2% (14.24% down to 12.24%). Not a lot, but better than nothing.

I owe $11,500 to that creditor.

According to bankrate.com's credit card calculator, if I continue to pay $230 per month for that card (my current minimum payment), it would take 76 months to pay it off at 14.25% interest, and 70 months at 12.25%. So by lowering the interest rate, I saved 6 months of payments. 6 x 230 is $1380 over the life of the loan. Not bad for a ten minute phone call. Not bad even for the hour I invested in calling all my credit card companies. Yay me!

For the ones that said "no," I did ask, "why not?" and mostly they said due to the recent history of late payments. I asked when it would be useful to inquire again, and most said to check back when I had 6 months of timely payments. So, I'll stay on top of my payments, and try again in a few months. If I could just save a few percentage points on each card....

I wonder if I will do better if I try that "power of positive thinking" approach, and go into it expecting a "yes" from each creditor?