The number 1 "con" is that you would have to pay the balance due in full to "close" the acount. Until you have paid the full balance, they can keep the interest rate running. If you can afford to do it, then that is probably the best financial decision (based upon a 30% interest rate). Your best option may to be find another CC with a 0% BT option, and pay it down as quickly as possible. If your credit score are sufficient to do this, then I would BT the full balance out, and then close the account. I don't know if you have any other options like a home equity line of credit or loan to just pay this off and move on.
I doubt I can get a CC with 0% (or even low %) BT offer. I'm sure the rate on this card is getting jacked up because of poor credit scores - which would probably prevent me from getting a 0% BT offer. Having said that, any suggestions for where I can find card offers with 0/low BT rate? Also, it's my understanding that if I reject their change, my rate will stay at 12.99%, but the account will close. I don't need the card and don't care if it's closed, other than the effect it will have on worsening my credit score (utilization). Damn, I haven't used any of my cards in several months, except for work-related expenses, which I pay off as soon as I'm reimbursed. They don't make this kind of mess easy to fix, do they? I am looking into the possibility of home equity loans. I've only been in my house for 3 years, so I don't know how much equity the bank will think I have, and I'll have to find something that allows greater than 80% LTV. I applied with my bank yesterday as a feeler. Haven't heard anything yet.
I wouldn't put your house at jeopardy because of the CC debt. If they will not work with you then you will inevitably not be paying them. If your minimum payments do not get the balance down then you will eventually see the bigger picture. You are paying very high interest and the balances are staying high and your credit scores stink. If you default, your credit scores will stink worse but you will have cash flow. Save that money for the future when you can settle with them for a lower amount. I don't think you can stop this scenario from happening, unless you come into a large amount of cash soon to pay off osme of these cards. This will take a few years to sort out but you can get your scores back up. Just don't get into debt again. As you have found out, the rules are on the CC comapjnies side before you default. Good luck.
