I have $18k in credit card debt, mostly from putting tuition on my card and getting hit hard with interest. I tried applying for the Wells Fargo Reflect to transfer the balance, but I got denied.
Right now, my minimum monthly payment is $350, and I get charged about $350 in interest every month. To actually make progress, I’d need to pay over $600 a month, but I can’t afford that with rent, bills, and groceries. I even called the credit card company to ask for a lower interest rate, but they said no.
I haven’t used this card in a long time, but the interest is keeping me stuck. What’s the next step? I’m not sure what to do since the balance transfer didn’t work out. I really want to get out of this debt.
Using a throwaway account because I have friends and family on my main one.
Call your credit card company and explain that you’re struggling. If they think you might stop paying altogether, they’ll often work with you. I had a 29% APR on my Discover card ($5k balance), and they dropped it to 10%. With Citi, they lowered it to 0% and set up a payment plan, though they closed my account. Losing the card didn’t hurt my credit much, and the lower rates made it manageable. Companies don’t want to send you to collections if they can avoid it.
@Brooke
Thanks for the advice! I’m definitely calling them again to push for a lower rate. Honestly, if they close my account, that’s fine. I don’t want it anymore. I have student loans that help my credit, and my peace of mind is worth more than keeping a credit card.
I thought I was in a bad spot with a few thousand in debt, but $18k is a whole different level. American credit systems are crazy and seem designed to keep people trapped.
Skyler said:
I thought I was in a bad spot with a few thousand in debt, but $18k is a whole different level. American credit systems are crazy and seem designed to keep people trapped.
It’s rough. Most of my debt came from car repairs and school bills, so it added up fast. I work in non-profit, and my car is essential for my job, so I had to get it fixed. I wish it were from fun purchases—I’d at least have something to show for it. Instead, it’s just bills.
@Addison
That’s tough. I’m in Canada, and while our economy isn’t great, credit is stricter here. You can’t get a card with an $18k limit unless you’re making serious money. It seems like in the U.S., anyone can get a high limit, which just leads to people getting trapped in huge debt.
Having only one card is a good start. Calling the company is a step in the right direction, but even if they lower your rate, it’s going to take time. Check your credit card statement—there should be a section called the ‘Minimum Payment Warning’ that shows how long it’ll take to pay off your balance if you only pay the minimum. It can be a real wake-up call.
Track every dollar you earn and spend, and see where you can cut back to put more toward your debt. Even small sacrifices can add up. If you make more than the minimum payment, call the company and ask them to apply the extra to the principal. It helps speed things up.
Also, be careful with automatic payments for just the minimum—companies love when you set it and forget it. Stay on top of it, and keep pushing. Let us know how it goes!
@Rain
You mentioned student loans… you could check if you qualify for a deferment or forbearance to free up some money. Not ideal, but student loan interest is usually lower than credit card interest.
If that’s not an option, maybe look into part-time work. Something remote, like a call center job, could fit into your schedule. My daughter did that while pregnant, and it helped a lot. It might not be fun, but even a year or two of extra income could make a big difference.
Big banks like Wells Fargo, Chase, or Discover usually don’t lower interest rates unless you’re in a real hardship. The rates are tied to the economy when you apply, and they rarely change them. If you do go the hardship route, just know that your account will likely be closed or frozen, which can hurt your credit.
@Poe
If you’re focused on keeping your credit in good shape and can’t get approved for a balance transfer, you might want to try a lending platform instead.
Fenn said:
If you stop paying for three months, they’ll usually drop your interest rate to zero. Just know that it’ll wreck your credit score.
You don’t have to default to get help. You can ask to have your account sent to collections, which turns it into an unsecured loan. It won’t damage your credit as much as missed payments.