Two years ago, I graduated and moved to the Northern Territories for a practicum. It was my first real job, and even though the pay was low and living expenses were high, I needed the experience to grow my career.
To cover my expenses, I went to the bank to request an increase to my $5000 student line of credit. The advisor didn’t quite understand me and instead increased my credit card limit to $30,000 (RBC Visa).
Last year, I tried finding another solution through the bank since credit card interest is so high. The advisor wasn’t much help and suggested I call customer service. After being passed between four different departments, I ended up back at the branch with no answers.
I missed a payment in February, and their collections agent offered me a Hardship Program: $200 monthly payments for a year. Meanwhile, I’ve managed to pay off smaller debts and now only owe on this credit card, a car loan (2.5%), and a government student loan (no interest). My credit score is up to 680, but I still have $30,000 on this credit card.
Should I talk to RBC again, or is there another way to reduce the debt with less interest? Any advice is appreciated.
Focus on paying it off as fast as you can. Cut your spending and find ways to make more money. Interest will eat you alive if you don’t tackle this hard.
Avery said:
Focus on paying it off as fast as you can. Cut your spending and find ways to make more money. Interest will eat you alive if you don’t tackle this hard.
Exactly. If you’ve already reduced your expenses, now’s the time to focus on earning more.
Dev said: @Skyler
Even if they let you pay $200, it’s barely covering the interest. You might need to throw more at it to stop the balance from growing.
Yeah, I know. For now, paying less has let me clear smaller debts, but the interest will hit hard when this program ends. I’m exploring balance transfer options.
@Skyler
Maybe you could get a line of credit with a lower interest rate and transfer the balance there. If that’s not possible, you might want to look into debt consolidation or other options.
Just pay it off. There’s no trick to it. Also, why bring up the advisor’s background? That detail doesn’t help your case. Pay more than $200 a month if you can. If you can push it to $500 or even $1000, you’ll be debt-free much faster.
Try calling your bank’s financial hardship line and explain your situation. They might offer you a lower interest rate. They may close your account, but it could save you money in the long run.
Drew said:
Try calling your bank’s financial hardship line and explain your situation. They might offer you a lower interest rate. They may close your account, but it could save you money in the long run.
That’s what I’m doing now. The account is closed, and I’m only paying $200 a month.