As I posted last night, I'm borderline screwed here, about 14k in debt on about 20k available. Other than a false 60 day late on Cap1 that's had 0 bal for 2 years, and high balances, my credit is "perfect". No derogs except the above, and Cap1 has apologised and promised to have that off in the next 30 to 60 days or so. Anyway, I am moving in with family for 6 months, will throw about 1700 a month at this, and get it down to a reasonable 4 to 5k. Is there a better way than paying the CC companies? Consolidation loan? I'm afraid I wouldn't qualify with my high balances, but I would sure like to get rid of the higher interst rates. For obvious reason of aparently limited self control ;-), I don't want to try for anymore low interest cards to do any BT's. Oh, I just went over the limit on my citi plat select by 6 dollars. How do they usually respond to such a thing? Will this show as a derog on my report? Will citi jack up my rates, or is it just a matter of a penalty? Thoughts?
I would steer away from consolidation companies because most of the time they will be the ones who call each creditor and ask for balance or interest rate reductions and this hurts your credit. Just go with your plan...put as much to the higher interest debt first and work down from there according to interest rates. Another thing is call the creditors and ask for reviews on your credit card accounts for lowering of the interest rates. This will help get a larger chunk to the principal each month. I called about our Chase Platinum card and they lowered my interest rate by 5%!!! So, heck it's worth a shot. BTW: I went over on my Capital One card a few months back because I cancelled our cruise and the credit didn't show up and the travel agency charged a 50.00 fee which made my general purchase side go over by like 10.00...they added a 29.00 over the limit fee. But my next payment I paid like 3x's my minimum and the credit also came thru for the cruise so now I have like 2k available LOL..... It all depends upon the lender. Some will charge you and that's that and some will raise your interest rate and look bad at you. You may want to call them and explain the reason why you went over and just pay the fees and get it below the CL as soon as you can. Hang in there! Make a plan and you'll be fine!
Have you tried opening any new CL's with 0% interest BT's? How about calling "R" and asking for a lower interest rate? You could tell them you have several high interest rates on other CC's and are planning on transferring your balances to a 0% card for those who don't want to work with you.
Consolidation loan? I'm afraid I wouldn't qualify with my high balances, but I would sure like to get rid of the higher interest rates. danrs ----------------------------- This is the way utilization is used as a means of entrapment to lock you into the higher rates. THE END ** *** ** LB 59
