Manage Your Debt - Let's Explore Your Options


Act Fast In Order to Reduce Your Interest Rate?

Hello. This is Rachel from Cardholder Services. There are no problems with your credit card account but it’s important that you act fast in order to reduce your interest rates.”

Sound familiar? Thousands of consumers across the U.S. are receiving these robocalls offering to reduce the interest rate on their credit card. While this may sound like a great idea, the service being offered is anything but beneficial.

Sign up for the service and your credit card will be charged a fee (sometimes up to $1590 (Federal Trade Commission, 2010)) for assistance in reducing your interest rate. How does that work? It doesn’t.  If you are lucky, all you will lose is the fee charged to your credit card. In exchange, the company may provide you with instructions on how to pay down your debt quickly, thereby reducing the amount of interest you will pay. These companies may offer a guarantee that their services will work, but if not, good luck getting a refund.

Robocalls are illegal in the U.S. If you receive this type of call, it should be your first clue that the service being offered is NOT legitimate. According to an article by, “if this is a legitimate outside company, it can’t do anything you can’t already do for free.” If you are looking for lower interest rates, you can always call and ask your credit card company to reduce the rate. The chance that you will succeed is much higher than that of a business with no ties to your credit card company.

Finally, if you are looking for a faster way to repay your debts, find out what your real options are by talking with a certified credit counselor today.

Published Dec 28, 2010.