Practical first stepsCredit cards
Paying Down Debt: Start With the Highest Rate and Ask for a Lower One
NPR's Life Kit on where to start with credit card debt: asking for a lower rate, whether to save while you pay it down, spending less, and handling the hard money conversations.
Video by NPRPublished April 19, 2023Breakdown updated September 15, 2026
Key moments
“How to deal with debt | Life Kit” by NPR. We didn't make this video; it loads from YouTube when you press play.
What the video covers
Credit card debt is rising at one of the fastest rates ever as prices climb and pandemic stimulus has ended, NPR's Stacey Vanek Smith explains. She pushes back on the idea that debt means someone was careless: in almost every case she has reported on, a big life event set people back. The video covers where to start, how to ask for a lower rate, whether to save, and how to talk about money.
The steps it walks through
- 1
List every debt and find the one with the highest interest rate.
- 2
Pay that debt down first, then work through the others in order of their rates.
- 3
Call the card company to ask for a lower rate, pointing to years as a customer or on-time payments; if a competitor offers less, ask it to match.
- 4
Once the highest-rate debt is handled, put a little into savings each month so emergencies don't go on a card.
- 5
Look for painless cuts, such as charges you'd forgotten about, and try an aspirational budget or cash envelopes.
- 6
Practice declining costly invitations without explaining your finances.
What you can learn from it
Start with the highest-interest debt
Stacey's first step is to list every debt and find the one charging the most interest, because that cost grows fastest. After that, she suggests paying off the remaining loans in order of their rates.
Ask your card company for a lower rate
She suggests calling and pointing to things like years as a customer or a record of on-time payments. If a competing card offers a lower rate, you can ask your current issuer to match it, and she recommends keeping the call factual rather than emotional.
Check balance transfer fees first
Moving a balance to a lower-rate card is one option Stacey mentions. Card companies are permitted to charge a balance transfer fee even on a zero percent rate offer, so it helps to compare the fee with the interest saved.
Keep a small cushion when you can
If you're not facing a high-rate payday loan, Stacey suggests building a small buffer, around $500, so a surprise expense doesn't end up on a credit card.
You don't owe anyone the details
The role plays show ways to turn down a bridesmaid role, pricey dinners and a group gift. Stacey suggests a simple line like "It doesn't feel right to me right now" and sharing money details only as far as you're comfortable.
In their words
“There's a lot of judgment around debt that is not fair and it's not right but it's there”
Keep in mind
Stacey's ideas are general suggestions, not a plan built for any one budget. A card company doesn't have to lower your rate when you ask, and the $500 cushion is her rough example rather than a rule.
Common questions
Can I ask my credit card company to lower my interest rate?
Yes, you can ask, though there's no promise it will agree. The FTC suggests calling the creditors you owe as soon as you're struggling, before a debt collector gets involved, and notes some creditors may be willing to work with you.
Source: consumer.ftc.govIs there a fee for a balance transfer?
There can be. A balance transfer fee is charged to move an outstanding balance to a different card, and the CFPB says a card company is permitted to charge one even on a zero percent rate offer.
Source: consumerfinance.govDoes nonprofit credit counseling cost money?
It can. The CFPB notes that most credit counseling organizations are nonprofits, but counselors may still charge fees for some services, so ask about fees first and get any quotes in writing.
Source: consumerfinance.govSources
By DebtCheckUSAEditorial Team. This is our summary of a video we didn't make, and nobody paid us to include it. It's one person's experience, not financial, tax or legal advice. Advertiser disclosure
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