I would strongly suggest watching the PBS Special Report, THE SECRET HISTORY OF THE CREDIT CARD to get a very good understanding of how the credit card industry and how they are really out for themselves. I’ve had people call me and tell me that they had been with a bank for 25 years and suddenly they ran into some trouble.
Did the bank take into account the fact that they were customers for 25 years and that they had an excellent payment history?
Naa. The bank instantly increased the interest rate of the credit cards and pretended to give sympathy.
Sometimes the bank will seem to reach out and help if you run into financial trouble. They will lower your interest rates and lower your payment.
But, the key thing to look at when you have your credit card bill is how much of your payment is going to the principle. What I’ve seen done is that when the interest rate is lowered, so is the monthly payment but the actual percentage of money going to the principle is the same as it was before they lowered the interest rate.
So, take a look at the percentage of the payment going to the principle of your debt.
You can have lower payments without changing the percentage of that payment going to the principle even though the interest rates are lower.
See, the banks watch out for themselves. They are out to make a buck and will gladly use smoke a mirrors to make you think otherwise