I’ve been with this company’s card for years. I was out of the country a couple months back and missed a payment. The interest rate shot up to 27% and they said they could not lower it back. They said, I should try again and ask them in a few months. Anybody else with a better solution? I would switch companies in a heartbeat, but I have quite a sizeable balance, and at this point, I don’t want to apply for another card with someone else as my credit has been blemished in the last 6 months with delayed payments, etc.
I have a couple of Chase cards that I am desperate to pay off-they are really quite wretched. I also had a late payment and my rate jumped from 14% to 24%! One late payment on a card that’s at least 4 years old! On the other card, I paid it off, then was forced to use it again before I closed it. They penalized me for paying it off!! That card jumped to 24% also!!
The one card that I’ve had the longest and have never had any problems with is Capital One. My husband has a card with them for business and it’s the same story. They have been most helpful! I don’t know if they can help you, but it might be worth a try.
Why not just close the card? You can close cards with balances. And as for working with the card company don’t work with just the regular customer service ask for the department that deals with the interst rates. The name is escaping me right now. But keep asking for the next person in line. Be forceful, don’t take the first answer. Tell them you will be taking the card to a credit counselor. What people don’t know is you don’t have to close all of your cards to work with a credit counselor. I go to one. I gave them all the high interest rate cards. And kept all the lower interest rate cards. The credit counselor was also able to negotiate lower interest rates.
But what you need to remember is that now ALL of your credit cards can raise your interest rate based on the reporting of the other companines. I had two cards from the same company, I was late on one, and they raised the interest on both. It was an easy fix though I just called the one that I was never late on they reduced the rate back.
I started out by calling CCC but after reviewing all the info decided to do it on my own. They were only going to be able to lower my interest rates by a couple of points on most of my cards and were actually going to raise my interest rate on one of them.
What I decided to do was take a couple of those credit card offers that have 0% interest and pay as much toward my debt as I can. make sure you check out the interest rate before getting into any debt consolidation program.
You should be careful about using the Debt Management Companies. Most of them have non-profit status, but charge you fees for their service. The service they perform is something you can do yourself, especially since you have managed (you’ve done a great job) to keep your Credit Card payments from being delinquent.
I am concerned about the amount of debt that you owe. Is that all credit card balances..or does it include automobile balances. If you own a home, a refinance or second-mortgage home equity loan may be the best option. There are plenty of programs available even though you just started your new job and your Credit Score may be lower than it was before.
If you don’t own a home yet…then you will need to develop a plan to reduce the interest rate and monthly payments on your cards. You may be able to negotiate some reduced terms with your debtors.
I would pay off the smaller amounts in full, since they should be completely covered with the $1798 you have available. They will be paid off and out of your life.
Then, make regular payments on the remaining one.
I thought closing accounts can hurt you more than help, ie. your debt ratio is affected? It also will affect your credit score. Part of your score is based on Longevity of credit. Your length of credit history comprises about 15% of your score. BUT if you cant resist the use of it and it is open credit… well then you have to decide if keeping yourself out of further financial trouble is more important.
obviously this is not my real name but, i am a real person and am looking for suggestions to the question presented below.
i have a total of $2808 due 5 credit card companies. i have $1798 total to pay towards the $2808 total due. the amounts owed the 5 cards are as follows $270, $1413, $573, 203, and 350.
does anybody have any suggestion on how to either payoff or pay down the total due.
what im asking is, do i pay off some of the cards or do i divide $1798 between the cards and pay them down.
any suggestion would be greatly appreciated.