Chase writes me, and tells me my minimum payment has gone up from 2% to 5%

[krmathis]

Does not seem right.
I bet you can get better conditions elsewhere, so simply move on..

 

[Edwood]

Quote:

Originally Posted by Uncle Erik /img/forum/go_quote.gif Go get a personal loan at your nearest credit union. Use it to pay off Chase, then screw Chase and never do business with them again.

Aaron, this is the best advice in this thread so far. If you know you're in for debt for a longer haul, go for a loan with fixed rate terms if possible.

Otherwise look into American Express. They are probably the only Credit Card that hasn't actively tried to screw me. But I also have a business account with them.

I'm not exactly happy with WaMu being bought out by Chase either. But I don't have any debt with them. But my Money Market (demand savings) interest rate with them is a complete utter joke now.

 

[immtbiker]

Wells Fargo holds my mortgage. They have always been great since buying out my original mortgage company (NatWest).

They solicited me for a balance transfer but I found their interest rate to be less desirable.

Also, not sure if I want to put all of my eggs in one basket. I have an aching suspicion, from past experience, that if one CC company is changing their minimum payment fro 2-5%, then all of the other major banks will eventually follow suit and then I will invoke another $400 transfer fee and still be in the same boat.

 

[coredump]

Transfer fees are such BS.

My wife got a loan to consolidate all her credit cards and it worked out well for her. I'm not sure how helpful that would be for you though since you only have the one card and the bank payment would probably be greater than your minimum.

Call the credit company and threaten to cancel the card. The bill for one of my credit cards always came in the mail just a few days before the payment was due. I kept missing my payment dates and got charged fees. When I called the company and said I wanted to cancel the card they offered refund all the fees from the last 6 months. I was so angry I said no and still canceled the card.

 

[immtbiker]

I haven't used the card for years (been buying everything cash only since falling into the debt well). It was only to utilize the low interest transfer.
They will see that and not be affect by that particular threat.

 

[mrarroyo]

Aaron a personal loan at a CU is indeed a good idea.

If you are allowed to get a loan against your 401K you may want to talk to your accountant of this possibility since the interest you pay back is theoretically to yourself. Good luck.

 

[roadtonowhere08]

I definitely recommend the loan from a reputable credit union to pay off the credit card. I read that the credit unions have not been hit nearly as hard as the major banks because of the financial conditions because they are smaller and do not play fast and easy with customers deposits. Therefore, I believe that they will not try to jerk you around with interest rate changes if you commit to the loan from them. You can get out from under your credit card obligations, give Chase the finger (that will feel great), and have a predictable bill you can budget around easier.

If it were me, I would not even grovel to Chase. They have played their hand, now you must do the same...

 

[Uncle Erik]

Quote:

Originally Posted by immtbiker /img/forum/go_quote.gif I haven't used the card for years...

That's probably why they're trying to get rid of you. I've heard about all sorts of inactivity fees and cancellation of unused cards in good standing lately.

I'll second Amex - they've been good to me. However, I prefer their charge cards. Keeps me on budget, just like cash.

 

[tenzip]

Do the line of credit, or a straight loan, don't borrow from your 401. Here is a site that gives pros/cons, which may or may not apply to you, but it's something to think about.

 

[DanTheMiataMan]

This just happened to my Roommate from Bank Of America. She called them and they said "if you dont use the credit card anymore your rate will stay the same but if you use the card then you agree to the new rate". If you have not touched the card in forever see if they have some sort of thing like that. After we found that out we went and cut up her card to make sure she didnt use it by mistake.

 

[bozebuttons]

Quote:

Originally Posted by DanTheMiataMan /img/forum/go_quote.gif This just happened to my Roommate from Bank Of America. She called them and they said "if you dont use the credit card anymore your rate will stay the same but if you use the card then you agree to the new rate". If you have not touched the card in forever see if they have some sort of thing like that. After we found that out we went and cut up her card to make sure she didnt use it by mistake.

You are talking about the interest rate,not the minimum monthly payment.
I got the same notice from chase on a account I locked in the rate & never use the card.

As for capitol one ,They jumped my interest rate from 8.9% to 17.9 % on a
card I use for my business & make regular payments for no reason other then they can.
I called & they dropped it down to 12.9% for 6 months,I stopped using the card .
The thing that kills me is I take credit cards at my business,it cost me about $700.00-$1,000 in fees to accept the credit cards a month.
Rewards cards cost me more to accept,so credit card company's do not give you anything back,the retailers who you give the card pays for your rewards.
So credit card company's make out on both ends from users & retailers.

 

[immtbiker]

You guys are giving, great, unbiased advice. Thanks for that.

If I can survive the first 3 months of 5% then it will knock my remaining amount down considerably, enabling the minimum to come down to what I have been paying thus far.
This might be a blessing in disguise to force me to clear up this debt (if I can swing it).
I just sold my Blue Circle Audio amp (one of the best that I've ever heard) and that should supplement my payment plan for 3 months over what I was already giving them.

I am really livid about the nerve of a company to jump from 2 to 5%. What ever happened to 1%. The timing is bad due to the missus unemployment situation, and I just bought the 800's and a new motorcycle (before her dismissal).

In the long run, provided there aren't any unforseen emergencies, this might turn out to be a godsend. Chase stands to make a lot of liquid income, if others cannot pay, and will get hit hard with fees and higher interest rates.

 

[DanTheMiataMan]

Quote:

Originally Posted by bozebuttons /img/forum/go_quote.gif You are talking about the interest rate,not the minimum monthly payment. I got the same notice from chase on a account I locked in the rate & never use the card. As for capitol one ,They jumped my interest rate from 8.9% to 17.9 % on a card I use for my business & make regular payments for no reason other then they can. I called & they dropped it down to 12.9% for 6 months,I stopped using the card . The thing that kills me is I take credit cards at my business,it cost me about $700.00-$1,000 in fees to accept the credit cards a month. Rewards cards cost me more to accept,so credit card company's do not give you anything back,the retailers who you give the card pays for your rewards. So credit card company's make out on both ends from users & retailers.

Oh balls then =(

 

[Billyk]

Quote:

If I can survive the first 3 months of 5% then it will knock my remaining amount down considerably, enabling the minimum to come down to what I have been paying thus far.

Glad to hear this should work for you. Sorry to hear about having to sacrifice that great piece of gear. I know where you are comming from, I lost, some Theils, a c-j Art, and 2 premier 8s when my ex left me 14 years ago!!

 

[immtbiker]

See? This is a perfect rationale as to why you should stockpile equipment when going through better times.

"Rainy Days" seem to be becoming the norm, rather than the exception.