Citibank raised my interest rate! What do I do?
Guys here’s my situation: When times were good I had a 28,000 credit line and citigold status. The last 2 years have been extremely difficult and I’ve unfortunately ran up my credit card to the limit. The problem was my APR was at 4.99% but because of one purchase that went over my credit line by 10 dollars, they have slapped me with a new rate of 25.99%!!
Now my minimum finance charge has gone up from 100 dollars to 500 and my minimum payment from 450 to 1400.
I’ve contacted them about this and the nice receptionist lady sent in an appeal for me to get my original rate…which ofcourse was turned down with the promise of getting a lower rate in 12(!) billing cycles.
I have been referred now to accounts resolution. What should be my strategy now? Ive gone back to school and left my job the last few years and plan to be in school for the next 5-7 years.
Should I close my credit card and ask for my original APR of 4.99? Should I take a debt reduction?
Please help me! 
Citibank isn’t going to lower your rate or give you any kind of settlement. Folks who carry large balances for long periods are now considered higher risk.
You might try opening a new lower interest card elsewhere and transferring or you might contact an NFCC credit counseling company: http://www.nfcc.org/. These are legitimate, non-profit companies offering debt management programs for a nominal fee. They negotiate lower interest and payments so you can pay off your debt.
