Advice for Senior with large balance on high interest rate credit card
They don't really have any assets - though , they also have no other debts. The 19.99% credit card is with CIBC - though they don't do any other banking with CIBC. I believe they have had the credit card for about 15 years - though most of the balance was put on card about 4 years ago. They have a TD Bank account and do most of their banking (which is not too much) with TD. I believe they have been paying around $200 month on the credit card for last 2-3 years. This $200 payment would just be covering the interest. I know this is not a good situation I believe they have good credit - though I do not know their actual credit score.
I suggested they could try and get a lower interest rate credit card. Perhaps, say with a 12.99% interest rate
and then up their monthly payment to $400. Paying $403 per month at 12.99% would pay of the $12,500 balance in 38 months. Or perhaps they should try for personal /unsecured $12,500 loan with TD ? Or possibly apply for a TD low interest rate credit card ? Are some credit cards (perhaps MBNA, or Amex) more likely to approve and offer a lower interest rate credit card ? Perhaps even offer a lower rate for 6 month period as promotion? Any other advice is appreciated - thx.