All started when I had a CC that they raised the % from 7.9% to 27.99%.All I did was miss the due date and I guess they don’t have Grace periods.My mortgage is due the 1st but as long as I pay before the 16th(usually pay around the 12th or so) there is no late payment or anything like that.I guess with a CC if you don’t pay it the day it’s due they can spike the interest.While I didn’t mind paying 7.9 as I can make more then that with my money,there is no way I was paying close to 30%.
I came on here looking for advice but think I was misunderstood as just trying to run from debt when I was really just looking for answers that I didn’t know.I think it’s close to criminal that they can do that but it’s in the fine print so ya have to follow the rules or deal with it.When I called them to ask about it as I Had been with them for about 8 yrs and and never missed a payment or late they were pretty much like sorry.That was kind of frustrating.
Without making a long story short Here is what ya do:
Call your CC company and tell them you have a situation(hardship as they call it) and are not sure if you can make your payment.They will start asking you a bunch of ?'s about your debt to income ratio.HERE IS THE IMPORTANT PART-You have to show that you make enough to cover your bills.To me that seemed like the opposite would be true but if you don’t make enough to cover they won’t work with ya.Even if ya don’t make enough make it look like you do.Your cell phone bill is $125 a month,tell them $50.You get the idea.As long as you make X and it is more then Y(outgoing bill money) you will get the hardship!!!
They do close your cards(at least I had them do mine) and they will do direct pay for free.
My one CC before the call was 27,000 And the payment was $8XX a month and Even if I was to pay off in a year,I would’ve paid close to $9k in interest.
After the Call 4.25% interest and $500 a month for 5 yrs or 30K!!!
I then called my other ones that were 7-9% and are all 5-6.25%.
Now I don’t really like CC Debt as it is a payment that is not Tax deductible but Since most of the money Was spent buying and fixing new properties and well woth paying the 7%.Not worth it if it was 28%
Hopefully many can use this info to your advantage.It literally saved me closed to $1k a month!!!
Derek
I carry usually between 8-15k on 0% cards I think he is in the same boat as me where he makes more $ with his cash then the interest on the card. Most of you would not understand a concept like this. However my cards are both 0% and I dont plan to carry a balance after that. Even if I do its 3.9% BALLIN!!!
As of January 1st, I had $0 on any cards. Not even sure what the % rate is on either card because if I use them I never let them gain interest.
Edit: I did try to call them one time last year I believe and ask for a lower % as I was going to purchase something, but I recall them saying they could not reduce the % so I just paid cash instead.
cougarspeed: he’d have to be beating 7.9% with little to no risk at best just to break even… so in reality he has to be pulling in > 12% returns to make it worth it and if he had something that profitable then he wouldn’t need it in the first place.
but I do understand your 0% game and I have played that a lot in the past when the high interest savings account were giving good returns.
I was in a lil over 10 and got out about a year ago. I opened another card and I have 750 on it and I am going to pay it off in the upcoming 2-3 months. I hate having CC debt
man, seeing credit limits like that scare me. I would never in my life want a CC with a limit over 2K… they are criminals the way they can hike your interest rates like that, but like you said… you agree to it when you take the card.
I think I have 3-400 or so on my card at the moment