     Hanks (Hanks) | Thursday, June 01, 2000 - 11:20 am 
I am currently owning on 3 credit card's with balance's of 37,000 dallors altogether.I have tried to reduce the rates on these 3 cards with other credit card companies,with a rejection statement saying that my credit to income ratio is to high.The banks that I owe this money to have refused to lower this rate,(whice has gone up a 12% APR over the last 2 years)despite me paying these cards in a timely matter for the last 5 years.I see my only option's is to file with a non-profit credit card consolidation company who negiotates a lower rate and takes a automatic payment from my payroll for the lenght of the contract,plus lowering my score with the 3 credit reporting agency's.Any advise would be greatly help on this matter.I do not own a house so therefore I cannot take a second to consolidate these cards. |
| Anonymous (Anonymouse) | Thursday, June 01, 2000 - 02:54 pm
Never ever go with one of the CCCS type organizations - will your bank give you a loan? Find another option - CCCS is funded by the credit card companies, and lives to rip you off. |
| Hanks (Hanks) | Thursday, June 01, 2000 - 04:51 pm
I still don't have enough assest's to cover the loan amount.The only thing I can prove is that I am making my monthy payment on time.It really is upsetting,figuring that I am making over 554.00 a month in credit card payments(all 3 combined)and no one will approve a balance transfer for the total 3 amount,to reduce the payment by say 100.00 dallors month.This would allow me to use the difference to apply towards the balance also. |
| Anonymous (Anonymouse) | Thursday, June 01, 2000 - 05:03 pm
This is EXACTLY what they do not want. They WANT that extra $100 out of you a month - have you tried getting another card from someone else at a lower rate? Some card companies want your business, and will transfer existing debt from other cards. Even if you can only consolidate two of them, this would help, right? |
| Christine Baker (Admin) | Friday, June 02, 2000 - 12:32 am
I'm wondering where the money went, and whether there are any other assets.
How did you get to owe that much?
Do you have a budget? A plan? Did you calculate how long it will take to pay off the balance at current terms as well as the lower rates you'd like?
At first I thought the rate was 12%, then I read the E-mail and relized the rate had gone UP 12%. That's very typical.
I watched a relative accumulate a lot of credit card debt in the late 90's. First she got the balance transfer offers, then those offers stopped, then many cards raised the rates. By the time I loaned her $30K to pay off much of the debt she had one loan at over 25%.
What is your current total available credit?
Without a LOT more info I don't have a recommendation. It all depends ....
And applying for more cards is going to bring the credit scores down, resulting in rate INCREASES!
I know I'm asking a lot of questions, but without a complete background it's impossible to give GOOD advice. |
| Anonymous (Anonymouse) | Friday, June 02, 2000 - 07:02 am
Yeah - my advice does hinge on knowing you're not going to be turned down, that WOULD be a bad thing. With the limited amount of information I have, I'm wondering about a bank loan - secured by your car, or other assets if you have them. |
| Hanks (Hanks) | Friday, June 02, 2000 - 07:44 am
The credit card debit was for various things that were needed at the time,nothing as far as assest's goes.The rate on the two big cards MBNA,First USA were at 5.9%.With my credit score they set limit at 15,000 apiece.I continued to not charge with the cards after the needed item's were purchased,and started to pay the cards down.But as the Feds continued to raise rates in order to cool the market.They started to make rate change's faster than I could pay them off.They saw I wasn't using the cards anymore,thats when they jumped the rate's,when I called them on the telephone,they said they would look in to it.I am waiting for there reply.When I started getting credit card offer's in the mail,they would not take the balance transfer because it was to much they said to loan,so they would only take about 1/3 of each card.Or reject the entire balance amount,this inquirer would lower my credit score,and now it's seems I am trapped,my last payment only cover the interest only,with a 2.00 dallor increase in balance after the payment.My total available credit is about 2000.00 dallors on each card.Both cars I own are leased for tax purpose's.I have filed a complaint with the Federal Trade Commission,and said they will look into the matter to see if the 2 banks were being unreasonable with their rate hike's,due to my good credit,and for the most on time payments with both these banks.They hinted that the banks were gouging the balance's in order to make more profit,and wonder how many others were also being hit with this excessive rate hike's. |
| Christine Baker (Admin) | Friday, June 02, 2000 - 11:27 am
You got it all figured out, the banks are screwing you royally because they can.
And because YOU can, you might want to look into bankruptcy if they don't lower your rates.
You didn't state your income, but it's only reasonable to assume that you would need *extra* money for things you need again in the future.
I have seen this so many times, the low start rate, then they up the rate, people can't get new cards because they're maxed out and in combination with the inquiries the scores become too low to get a reasonable rate anywhere.
The only REAL question is how long it will be until you "need" something, have an emergency, and you can't pay the credit cards anymore.
This is a great example of Credit Scores being the CAUSE of a default, not the prediction.
Find out what the bk rules for your State are, make informed decisions. Due to pending bankruptcy law changes, I recommend you set up a couple of free consultations with bk attorneys ASAP.
The CCCS is definitely NOT the way to go
Unless you want to post more info on your income and expenses, there's not much else I can say.
And I'd REALLY like to know what the FTC has to say, would much appreciate an update when you hear from them. |
| Hanks (Hanks) | Friday, June 02, 2000 - 12:08 pm
Christine-I was told by my attorney,that even bankruptcy is even a option,he said with the new changes to the various chapters,that they will just settle with you with a lower payment and agree to a freeze at a lower rate,but you still must make the payment and the account is closed.It is reported to their credit report agency.This is because we are still employed and able to make the monthly balance's.I am currently looking into robbing both MNBA main branch in New York and First's main branch in Delaware and then send in the loot in the form of a payment on both the credit cards.Whatta think...I sure wish the FTC would stop this maddness,increase credit limits and then increasing credit rates..Very hard on the working stiff's and the economny. |
| Shylock (Shylock) | Friday, June 02, 2000 - 12:25 pm
Don't you mean the federal reserve raising rates? |
| Hanks (Hanks) | Friday, June 02, 2000 - 01:39 pm
Yes,and passing it on to me,despite the Dow gaining another 128 points yesterday.I sure can't wait to see what the 4 major banks will record for profits this and the next quarter. |
| Hanks (Hanks) | Friday, June 02, 2000 - 01:51 pm
Oh and to your other question I wish the Federal Trade Commission would step in and say over the year the banks can only raise interest rate's on credit card,but a principle to interest ratio must be maintain so that the consumer can pay the card off in a timely matter.Say 75% of the payment goes to principle and 25% is loan interest (profit).Right now with one bank my last payment made only the principle and the balance still went up 2 dallor's.I just wish the Federal Trade Commission could do something about this. |
| Christine Baker (Admin) | Saturday, June 03, 2000 - 11:40 am
Shylock: The federal reserve raised rates 12%? What are the fed rates now?
Hanks: If 75% of your payment would go to principle, your payments would be HUGE!
Many people wouldn't borrow if they had to make big payments like that. So they wouldn't buy a lot of stuff they don't need.
Not only would the banks lose out, but the entire junk economy, which really is at least 50% of all products.
Just about all that stuff is imported, so I don't know how it would impact on employment. But I'm sure corporate wouldn't like it, and tax revenues would fall substantially too.
All 4 corner stones of this society are the working stiffs who go to work, pay taxes, watch TV after work, and BUY the stuff that's advertised.
You mess with just a small percentage of this setup, and the economy will collapse.
The FTC is absolutely NOT protecting consumers. Their only function is to PRETEND to protect consumers, so that consumers feel warm and fuzzy and continue to charge and consume and charge and consume and charge and consume. |
