If I cancel my credit card (interest is ridiculous), will my interest charges stop also?

Answer 1

You sound you got yourself in the trap so many have gotten in, in the past! The best thing to do is to absolutely stop using your credit card for any purchases at all! I don't know how much you owe; but the credit card companies want to keep you hooked on and dependent on them for as long as they possibly can! We ran up a disastrously high credit card bill in the late 1970s and somehow managed to pay it off and then cut up the card; but it took a lot of self-discipline on our part! Our son, in college, did the same thing in the mid-1980s and did the same thing. As long as you have a balance, they will continue to charge you exorbitant rates of interest; so you cannot solve the problem by simply cancelling your account. There are many legitimate (and some *not* so legit) organizations which will help you manage, control and limit your debt; but many of them will only help you if your debt is at least $10,000! In today's world, you seemingly cannot avoid having at least one credit card; but you have to learn to not use it unless absolutely necessary!

We currently have several credit cards; but it doesn't matter what the rate of interest is, as we pay the amount owed in full each month and *never* use them to get cash advances. A cash advance incurs interest even if you pay it off in full in 30 days time! One or two of the cards we have allow us 90 days to pay with no interest due if regular payments are made on a timely basis and the entire amount is paid by the end of the period. A couple cards we have actually allow a longer period of tme to pay without incurring interest. These are potentially dangerous to use, if you do not have a lot of self-discipline, in that a lot can happen in a longer period of time and if you miss or are late making one payment; you are suddenly liable for interest payment from Day one!

Answer 2

Closed or leave the card open has nothing to do with the rate. What you may want to do is make payment arrangement with credit card company to prevent the account go farther past due. They may require a certain amount in 3-6 months depends on the company. If you have bad credit, you will find yourself in the same predicament with another credit card company. If the reason you pay the default rate because you're late once, you still be able to negotiate with the credit card company to lower the rate. If they don't agree, get a new card with other company and transfer the balance.

There is no solution for lower the rate if you're constantly late on the account. People knew about it but they're continuing late on their payments. They get trapped in this vicious cycle. Discipline is the key. Don't have the money to pay back, don't buy. They only make credit card company get richer and raise the national debt to trillion of dollars each year.

Answer 3

The bank will continue to charge interest on your card untill the balance is paid out in full. You will find if you try to cancel your credit card that your bank will request you to pay out the owing balance in full before they will cancel the card. I would also recommend that if you want to get rid of the card find another bank that charges a lower rate of interest. If your are prpared to do some serious research you can find a credit card with an exceptionally low rate. Good luck

Answer 4

Your interest will continue until your card has been paid of for a full statement cycle. 28-30days, depending on your card, However, don't close the card until its completly paid off. If you do that other creditors may raise your interest on you other cards thinking the may be a problem.List you cards and balances smallest to highest. Pay off the card with the smallest balance first. Do minimum paymnts on all but the card on the top of you list(smallest). Once that one is knocked out apply that money to the next one and add the money to the minimum payment of that one. Keep going until they are all gone. Its called the "Debt Snowball". It will pick up speed as you pay off more and more and you will get increasingly happier (stress drops too!!)since you get to call those scumballs call credit card companys and close you cards. ITS A GREAT FEELING TO CLOSE CARDS! For more info go to the website below...

Answer 5

Of course not! Interest will continue to accrue until the balance is paid in full.

One warning though. Some credit card issuers will raise your interest rate to the default rate if you close the account with a balance outstanding. Keep the account open until you pay it off and then close it if you wish.

Answer 6

pay it off in full then close acct or put up with it [they want u for life dont u see>?

try to stay out of debt
in future

banks will going belly up too someday too
like in the 30,s

there is no more bk
unless your a company [ not very democratic is it]
people in 2007 are defaulting badly
and will owe for their entire working carreer

interest sucks

the real bad news is
forclosures, garnishments and levies etc are already happening more than ever [exceeding great depression of the 30,s levels]

and yes u will have to continue interest
may as well keep card and go for increase on limits!

Answer 7

No, cancelling a credit card will not cancel interest charges.

If this is your only credit card, try to get another card--hopefully a better one with a lower APR, higher limit, and no annual fee.

Answer 8

When you pay off the debt you will still have interest from the time since the statement you paid from.
So if you owed some on the prior statement date you might have a couple more weeks of interest.
If you don't pay it off of course you will still pay interest since you still owe money.

Answer 9

No. The interest will continue to accrue until you have a zero balance.

Answer 10

No, interest will continue to accrue, unfortunately