Is It Worth Taking A Lower Rate In Exchange For Closing Your Credit Card?

Amy and her husband are drowning in high-interest credit card debt. When she asked Chase to lower her nasty 28-percent APR, they offered her an indecent proposal. She doesn’t know what to do.

Let her explain:

Hi Consumerist. I’m hoping you can help me out with a little dilemma.

My husband and I have several credit cards with high balances and, though we’re trying hard to pay down our balances, we’re finding it difficult to make all of our bills every month. I called Chase (I have two high-balance cards with them) to see if I could get one of my APRs reduced from 28% (the other card is at a more manageable 11%). I’ve been trying since January to get the rate reduced to no avail. This time they told me that, under their hardship program, they could reduce my rate from 28% to 6%, but that would require that they close my card.

Now, my dilemma is this: If I go for the hardship program, it will bring down my APR and my monthly payments, and I’ll be rid of the balance within 5 years. But what will this do to my credit? Also, can I trust a program like this coming from Chase, who could care less about me?

Any advice you could offer would be immensely appreciated.

Well, since it’s IMMENSELY appreciated I’ll go ahead and say she should take the lower rate and get rid of the card, since it seems the less plastic Amy and her husband have at their disposal, the better. Any credit hit would be incidental because this couple has bigger spending issues to deal with. Your thoughts, commenters?

(Photo: frankieleon)