|
Post by havingfunnow on Nov 25, 2008 10:17:33 GMT -5
From CNN: I listened to an interview, and Henry Paulson said it would help Credit Card companies because they have had to raise their interest rates. It has been my experience they raise them whenever they feel like it. And this 'shot' in the arm might not result in a single Credit Card company lowering their existing interest rates. *sigh*
|
|
|
Post by tara on Nov 25, 2008 11:19:56 GMT -5
This is the worst yet. Banks were bad enough but credit card companies? Freaking ridiculous.
|
|
|
Post by Organized Chaos on Nov 25, 2008 14:20:45 GMT -5
Can anyone offer any advice on how to handle a credit card company during time of unemployment? Is there anything that can be done to ease the burden?
I realize with the economy the way it is and big banks hurting, they're not looking to help their credit card holders much, but I'm desperate.
I receive a monthly veteran's newsletter from my state's employment office and they offered tips on how to survive job loss. One said to call creditors and inform them of the situation and try to get on some form of repayment plan.
Anyone have any good advice? If there is something I can do, or at least try to do, I want to be prepared when I call. Thanks a lot.
|
|
|
Post by mscody on Nov 25, 2008 16:17:36 GMT -5
Chaos-Sorry to hear of your difficult times. Would a place like consimer credit counseling help? I know they pretty much just consolodate to pay off debt but maybe they have some tips for you?
|
|
|
Post by Connie on Nov 25, 2008 18:31:51 GMT -5
I tried one of those credit counseling things years ago. It was such a joke.. they don't really "consolidate".. If you are already paying say, $500 a month on bills and it's spread out.. they lump it all together and they talk to your creditors, MAYBE get your interest rates lowered, work out a payment plan and then you pay them say $450 a month to disburse to your creditors.
You can call them yourself and ask for a lower interest rate and hopefully get something worked out.
We have one credit card right now that's just killing us because of interest rates (I was ONE day late a few months ago and they jacked the rate up HIGH).. After dumping $300 into it last month to try and get it straightened out with no luck.. Im seriously considering just letting it go to collections so it will at least STOP growing.. I honestly don't know if that would work or not but I can't keep paying hundreds of dollars a month on ONE account that used to be $50 a month..
|
|
|
Post by Organized Chaos on Nov 25, 2008 21:24:32 GMT -5
I called 1 of those credit counseling services years ago. My monthly payments were maybe $150 (something like that) and they said they could call the CC company, lower my interest and waive a bunch of fees, but they wanted me to pay $275/month. I thought, you idiots, if I couldn't afford $150, what makes you think I can afford $275?
Thanks for the suggestion, mscody, but I dont' think them people will help me right now. Any income I can manage to scrape up right now doing odd jobs, and any savings I have left, have to go to high priority bills and I was just wondering if there was anything I could do to fight off the credit card company right now.
|
|
|
Post by tara on Nov 25, 2008 22:16:14 GMT -5
OC, many will settle for a lump sum if you explain your situation and make it clear that it is the best option for getting anything from you and you close the account.
|
|
|
Post by Connie on Nov 25, 2008 23:56:36 GMT -5
LOL.. You are right Tara, but when I think about my own situation.. On a $2000 credit card.. would they really be willing to take my paltry $200 or so that I could scrape up for a lump sum payment? It's certainly NOT a bad idea at all if he can do it. Im basing my thoughts on the fact that he is talking about being out of work and all that. Some c/c are just awful.. I was really hoping they would let Citibank fall on their faces since I think that is who ultimately owns my one awful card.. I have two other cards through a bank and they are perfectly fine.. another one through a tire company.. zero problems.. just this one awful card that went and raised the interest rates skyhigh for a ONE day late payment.. even though all the other payments were early and for more than the minimum.. I don't know OC's situation with his card but I can sympathize simply because of this one AWFUL creditor.
|
|
|
Post by havingfunnow on Nov 26, 2008 2:15:50 GMT -5
|
|
|
Post by tara on Nov 26, 2008 9:04:11 GMT -5
I was just throwing it out there. I hate credit cards Unfortunately I have too many and was actually okay until they raised my rates for no reason at all simply because they wanted to. They can do that. They can rape you, and it is perfectly legal.
I have never settled, I am bound and determined no matter how long it takes- I will pay them off, they have already been chopped. My stupidity got me in the mess, I have to fix it. I do however have a friend that settled 17,000 (on three cards) for around 5,000 so you might be surprised. ALthough that was before the bankruptcy laws changed and she told them she was filing- so it was that or really nothing.
Unfortunately even if they let Citi go under, it wouldn't change anything for you or me (they happen to be my highest balance card) someone else would buy up the debt and we would see no difference. Now if they let Citi go under and canceled all cc debt owed.....
|
|
|
Post by Organized Chaos on Nov 26, 2008 11:16:19 GMT -5
Being able to settle with a lump sum would be nice, but I couldn't afford that lump sum anyway so I guess that's not an option.
Connie, my one & only card is owned by Citi. I won't even say my interest rate, but it's crippling. I'll just say above 20% and I've only had one, maybe 2, late payments in several years. I called some time back and asked them to lower it. They did, but the SOB's lowered the rate on Purchases (which I don't make anymore) and left the rate on the existing balance the same. Since then, the rate on Purchases went back up too.
Louis, I haven't even thought of talking to any type of lawyer. Don't even know what a NOVA lawyer is. If they did charge for their advice, I couldn't pay.
Thanks for the advice everyone. I know there's no easy way to deal with this. I know it was my own spending that got me into this mess, but I won't call it stupidity. The balance is almost 10 years old, been chipping away at it all this time with little progress. I racked it up during times of unemployment and had no choice.
|
|
|
Post by havingfunnow on Nov 26, 2008 15:34:04 GMT -5
NOVA = National Organization of Veterans Advocates www.vetadvocates.com/If you go to the site and find a NOVA lawyer near you, he/she may give you advice for free. A lot of them are driven to help veterans by more than just money. Did you also know you can get a $500 hardship loan from the Veteran Service Officer in your area? This loan can be paid back when you are able to, and does not have interest attached to it. However, it depends on whether they have funds in their loan account (static amount) to do so. That's why it is important to pay it back, so others will be able to take advantage of it in the future. Hope this helps, Louis
|
|
|
Post by Connie on Nov 28, 2008 21:41:38 GMT -5
OC my interest rate on that one card is over 20% as well.. NO you aren't stupid.. and it wasn't your stupidity... at least I don't believe that to be the case.. like I said I have wamu cards that were opened in the same time period and they DO NO take advantage like hsbc, citbank or even capitol one do.. I have the ONE card that has raised their interest rates to the point that it is impossible to make any head way.. do I think that it's accidental? Nope.. I should NOT have to pay $300 a month to get ahead on a credit card payment.. If I could pay $300 a month on that card, it would be paid off in 3 months.. they are as someone said, "raping and pillaging".. I don't know what options you have available, but I know when my ex was in the military, we were able to get a "real" consolidation loan and pay it off easily.. it had a pretty decent interest rate.. If that is available to you, take advantage and go for it. Being non-military now.. I don't have that option...
|
|
|
Post by Organized Chaos on Nov 29, 2008 16:49:59 GMT -5
Being unemployed, loans aren't an option. No bank will loan me money. Wait a minute *thinks of all the banks who loaned money to people for houses they couldn't afford* maybe they will! LOL
I'd be interested in getting a new CC with a lower rate and transferring the balance, but no one ever sends me card applications. At least that way I could get out from under Citi and their monstrous rates.
|
|