Interest rate hikes ?

[brokeone]

Hello everyone,
I haven't been around for awhile because after consulting with the BK attorney I learned for sure that I had too much stuff to file chapter 7.I continue to pay my credit card payments on time,and have never missed a payment.Chase has steadily been increasing my interest rate and when I called them today I was told it was because experian credit report company had notified them that I am carrying high balances on other cards.I do carry other balances,but again ,have never been late or missed a payment with any of them.
How can I get out of this mess? I'm damned if I pay,and I'm going to be getting collection calls if I decide to stop paying.I have always paid my debts but this interest hiking just might push me over the edge.Do any of you have any suggestions other than the proverbial "pay down your cards"? I'll never be able to pay down my cards with the hiking technique the banks are using.Thanks in advance for any responses offered.
brokeone

[HRx]

As you're probably already aware, increasing ones interest rate(s) because of one or more high revolving balances, isn't intended to be of assistance to the debtor. The creditor has apparently determined that you're a credit risk, hence they're going to make as much money as possible off you, in the event you begin defaulting, file for BK or in the event they're unable to collect payment from you. It's always better to file for either a 7 or 13 instead of defaulting on your debts, because if you don't you'll be game to judgments and, what not!

How many BK attorney's have you consulted with? What's your DTI? Do you own a home? Are you willing to make big sacrifices in order to qualify yourself for Chp7?

[brokeone]

Hello Todd,
Thanks for responding.I have seen one BK attorney,but really would like to pay my debt.I am not prepared to give up my home at this time,if I was single I'd do it in a heartbeat.I was hoping there was some way I could stop the bank from raising my interest rates simply because I might default.I MIGHT hit the lotto,but I sure can't begin living like a millionaire until I actually do so.This is criminal for banks to be permitted to raise rates solely on what MIGHT happen.Well,enough whining,thanks for taking the time to help me.
brokeone

[CRK]

chase jacked me up from 13.99 to 28.99 never missed a payment and 2 other cards are doing the same, im caring a lot of debt to, but never missed a payment im going to default now i here they run up fees but settle for less later

[HRx]

It isn't uncommon to sell ones home, to pay off credit card debt with the profit, and buy another home. This is of course, done while your credit is still in decent shape.

Depending upon the type of loan you use, you could also consider rolling a bulk of your unsecured debt into your mortgage (do the math to see if this makes sense)...........which is a practive I don't readily condone. But if the real estate condition continues to appreciate at this pace, rolling debt into one mortgage can actually work towards you advantage.

Worse case scenario...........consider selling some of your personal belongings to make money to pay down your debts. Or get a decent paying part-time job. Sacrafices alongs these lines would probably be more conducive to your objectives.

Good Luck!

[Minnymouth]

Yeah the CC companies are starting to screw everybody over with the interest rates.
I was late on my Chase card 1 day and Citibank raised my lifetime 2% interest rate I had had for 18 years to 29.9%.
When I called they said "sorry", "policy"............
Most of my interest rates were at 7% or lower till I made a late payment to Chase. They it started snowballing with the climbing interest rate. Within 2 months all had raised to 20% or higher. Never late on mortgage,etc, only one time with Chase.
I was struggling working 2 jobs paying everybody on time, and when they started hiking their rates I said "no more" - and filed BK and told them to "eat it".
With them raising interest rates all the time, lots of people will be "forced" into filing BK, no choice. Will be paying double interest rates and never seeing the balance go down on their cc.
CC companies are just doing theirselves in too along with their customers.
People who "can pay their bills" will go back to cash basis and the cc company will be left will people who can't pay and file BK.
"Plastic might be in! But cash wins"!
Minny

[HHM]

Yeah, you are victims of the universal default clause in most credit card agreements, if you default on ANY credit card you have, then they consider that a default and will hike your interest rate (even if you were never late on a payment with that particular card).

About the only good news is that congress is taking a look at this practice, and many companies are implementing "opt" out provisions, because in all likelyhood, there will be legislation that will put an end to this practice.

[robivi3]

the Hell with all of them. Within ten days my last VISA will be paid off. I am closing the "ASPIRE VISA" account. Those little CC's wangle you in after BK with a low limit card (unsecured) that actually LOWERS your CRA score and makes it roller coaster.

I will keep only the VISA with my Credit Union and use it sparingly. TO HELL with Chase Platinum, Providian, Citibank and all the other bloodsuckers. Todd has it right, NOTHING feels better than money in the bank!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I plan to open a CD and borrow against that, that should help my score.

[brokeone]

Hello CRK,Todd,Minnymouth,HHM,& robivi3,
Thanks for your thoughts.We have been thinking about selling our home & downsizing.I am concerned that my FICO score may have suffered due to my credit card debt,and that may make it difficult to get a home loan.I have not tried yet because I'm at a stuck point.Hopefully I'll start doing something to better my situation soon.
brokeone

[edwards2]

Ditto on the Citibank and Providian cards. The first time I was a few days late on my Providian card(I had the card 10 years+) they started calling and harrassing me. They didnt even attempt to play the nice game first and then harrass me;they went right into their act. I am sure all of you know how they push for the instant deduction from your checking account routine. It is scary how they are able to increase the interest rate so much and so fast.

[tinroofrusted]

Good lord... when is someone going to step in and monitor these thiefs......?


I understand that we as creditors are the ones who get into the credit system, but can't something be done to protect us as well?

[brokeone]

Good lord... when is someone going to step in and monitor these thiefs......?


I understand that we as creditors are the ones who get into the credit system, but can't something be done to protect us as well?

Yes,This is worse than thievery.What really irks the pizz out of me is that I purchased things with every intention of paying my debts.When I originated my cards I don't believe there was a "universal thievery clause".I still plan on paying but if they keep raising the rate,I'll run out of money to pay.I sent an email to the senate banking committee asking for intervention before more people lose everything they've worked for,but the email was not acknowledged.I think a whole lot more people will have to get caught up in this before anything meaningful occurs,and the gasoline prices just might do it.

brokeone

[CRK]

i thought the same as you,as long as you pay your bill every month the rates stayed the same,i just blew off my first 3 card payments and i kinda feel guitly,i have always pay every bill i have ever had but there the ones forcing this bk i cant pay these crazy rates,i just cant understand there thinking, there going to get far less money this way ,what a bunch of morons,i mean a least wait till people start missing payments

[CRK]

check out this site lots of infohttp://www.creditinfocenter.com/

[brokeone]

check out this site lots of infohttp://www.creditinfocenter.com/

Interesting site,Thanks.It is very difficult for me to watch myself get clobbered when my only mistake was using the credit card.I never missed,was never late.I still find it hard to believe that this "universal thievery" is legal,but like everyone else caught up in it............I don't know how to stop it.
brokeone