X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

<p>WASHINGTON-According to a report by the U.S. Public Interest Research Group (U.S.PIRG), a recent survey found that more than half of consumers who called their credit card company to complain about the interest rates were successful in cutting them by an average of one-third. In 2000, American households carried revolving credit card balances of $574 billion, or about $10,000 for each of the estimated 55% of households that carry debt, according to analysis of Federal Reserve Board data. A household making the minimum required payments on this debt, typically the greater of 2% of the balance or $20, would pay nearly $1,500 in interest in the first year. Key results from a national spot survey of 50 consumers demonstrated that: With one five-minute phone call, 56% of consumers who called their card company lowered their APRs; Those who were successful reduced their APRs from an average of 16% to 10.47 %; Factors improving the caller’s success rate included longer relationships with the company, a low unpaid balance compared to credit limit, and a history of no late payments. According to U.S. PIRG, a household with a $5,000 credit card balance making only minimum payments each month could save up to $278 in interest in the first year and $4,982 in interest over time by deflating its rate by one-third, reducing total interest payments from $8,350 to $3,368. The same household could also reduce its total interest paid (from $8,350 to $743, for a savings of $7,607) by increasing the size of the monthly payment to 10%. [email protected]</p>

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.