reducing cc interest rates

[howdidithappen]

I have a few cc accounts that have been closed by the creditor. The interest rates are around 30%. Do you think I can get them to reduce those outrageous rates? Amounts owed are under 10K.

[magyar123]

Keep pn dreaming. They will NOT lower your interest rate.

[StartingOver08]

I have a few cc accounts that have been closed by the creditor. The interest rates are around 30%. Do you think I can get them to reduce those outrageous rates? Amounts owed are under 10K.

Actually, you can try the hardship dept. Don't know if that will work for you because the cc's are already closed - but it is worth a phone call or even several calls. Got mine reduced from 30% to 2% on Chase and 19% to 4% on BOA/MBNA about a year before I filed BK. The hardship dept is not the CSR that answers the phone - you have to ask for the hardship dept. Sometimes just getting to that dept is a trial...but really, what have you lost if they say no, you are in the same spot. Have your hardship info ready.

[HHM]

Yeah, if they already closed the account and you are at default interest rates...there is not much you can do. Depending on your other circumstances, you may want to contact a consumer credit counseling firm.

[magyar123]

Actually, you can try the hardship dept. Don't know if that will work for you because the cc's are already closed - but it is worth a phone call or even several calls. Got mine reduced from 30% to 2% on Chase and 19% to 4% on BOA/MBNA about a year before I filed BK. The hardship dept is not the CSR that answers the phone - you have to ask for the hardship dept. Sometimes just getting to that dept is a trial...but really, what have you lost if they say no, you are in the same spot. Have your hardship info ready.

Personally I don't think that banks are now willing to consider hardship reductions in any of their loanshark level interest rates. They just got bailed out by the govt. Do you realistically think that they want to give you a break, bail you out??

[howdidithappen]

What hardship info do I need to get together?

[howdidithappen]

What hardship info do I neeed to get together? I pay a minimum payment of $75 per month on a $2300 balance when $60 goes to interest. What's the incentive to pay?

[StartingOver08]

Usually they want to know what caused the hardship - when you make the arrangements you need to have a figure in mind that you can do. Many times taking the principal balance and dividing by 60 will get you to the payment that the cc people are looking to receive. If you choose to do this, naturally this is just as long as a BK - I don't know if you have filed yet or not - so the numbers you want to do for yourself involve the pros and cons of filing BK against the self imposed payments in a hardship program. Two different results for two different purposes.

If you have nothing to lose by filing BK and your numbers are too big to work out with a hardship program - consider the CH 7 BK. BK is easier - it just lasts longer on your CR. But at the end it is a more final approach if you have issues with lots of debt you can not repay.

The hardship programs are for people that can recover without the court system. Or that can not file BK again because it is too soon from their last filing.

See now, if you only problem is $2300 balance. Then have them reduce the interest to 2% or even zero - divide the payments by 36 or 48 (whatever payment you can handle). Have them draft a separate acccount (preferably not in your main bank - open up a small sep account with no fees). They can draft the payment monthly. You make your deposits timely in accordance with your paychecks - you might even want to try this on a pre-paid card rather than a bank account. Just keep your personal financials sep so they can't tap into your regular accounts.
Then you don't have to file BK - save it for a systemic issue. BTW, they will ask for all of your bank account information at every institution - it is my feeling that it is none of their business. If I am providing an account (even if it is a small sep account) for them to draft their payments - they don't need the rest of the info IMO.

[Genenco]

What hardship info do I neeed to get together? I pay a minimum payment of $75 per month on a $2300 balance when $60 goes to interest. What's the incentive to pay?

Man do I remember those days. I actually enrolled with CCCS (Consumer Credit Counseling Service) from the first moment, I knew they were a "No BS Permitted" group.

I would get my statements (Remember, I had 30K plus, mostly gambling debts in default) and I was paying $492 a month. All but one card dropped their interest rate. Try as they would, CCCS couldn't get GM credit to lower the rate.

It didn't matter though, job ended, I didn't get another for 2 months and after I did, I was told "You're not welcome to return" from CCCS (Even though I told them when I made my payment, I was losing job following day) I never found out the reason, but didn't care. Filed 2 months later anyway...

[StartingOver08]

[QUOTE=Genenco;227078]Man do I remember those days. I actually enrolled with CCCS (Consumer Credit Counseling Service) from the first moment, I knew they were a "No BS Permitted" group...
QUOTE]


Thats why I think it is better to work directly with the credit card company's hardship dept - not CCCS. Why pay someone else to negotiate for you when you can do it yourself?

[BigJohn]

I have a few cc accounts that have been closed by the creditor. The interest rates are around 30%. Do you think I can get them to reduce those outrageous rates? Amounts owed are under 10K.

You could use reverse philosophy which states if they stick you with 30% interest, then the government should stick them with a 40% interest on the bailout which means they pay you on the principle at 10% (40%-30%) plus a 2% fee to administer the loan which is 12%. But being they are over their limit, you can an extra $45.00 per month plus a $39.00 late fee each month.

If they haven't paid you in 3 months, sell the debt to 100 JDB for $30.00.

[Genenco]

Thats why I think it is better to work directly with the credit card company's hardship dept - not CCCS. Why pay someone else to negotiate for you when you can do it yourself?

Well, to admit it, I never spoke to them in detail (This was in 1995) about "Hardship"

But I wasn't "Paying them" They were being paid, but by the credit agencies, not the consumers.

And they did reduce (Or even eliminate) the interest from the debt. Sure, some of the creditors were hardasses, but most were willing to bend over backward to be able to get something.

So, instead of phoning each creditor, they took over that, I paid one set "Amount" each month and that was it.

Basicly a type of Ch 13 program, without lawyers, trustees or filing fees.