PDA

View Full Version : Just read what my credit card company is going to do to me!!!!!!!!!!!!


ShellyLynn3630
06-26-2009, 09:00 PM
Me and my husband have a 8,000 dollar balance on a chase credit card with a very low apr and it gets paid every month on time, each month with a automatic draft from our checking account. This works well as the balance is going down each month and nothing is getting added to this account with the exception of very little interest. Our payment is like 160 a month and goes down about 4 bucks each month. We'll they sent me a change of terms in the mail today telling me that as of my September statement date they will increase my minimum payment from 2% to 5%. That will go from 160 to 400 dollars a month. And they told me that I CANNOT opt out!!!! I will either have to transfer this balance elsewhere or really consider bankrupcty. I mean, they will possilby go from getting a payment on time each and every month to possibly getting little of nothing. I can't believe this crap! It even state this change is a direct result of my apr. Basically meaning that they are not making enough money on me. We'll they may just lose out all together if I file bankruptcy.

Lucky4me
06-26-2009, 09:20 PM
Are you saying the balance only goes down $4 a month on a $160 payment?

Oops nope I see that's not what you're saying.
The payment goes down that much because you're paying the same every month and lowering the balance.

Yeah it stinks and they're doing it a lot now.
I'd do everything I could to avoid bankruptcy, as it won't hurt the bank any, but will ruin your financial life for ten years.

melanie18
06-26-2009, 09:23 PM
No, I think she's saying the payment will go up from $160/month to $400 per month. Yikes!

I just got a notice from Disney Chase informing me that our interest rate will go up to 13.99% in August. Even though I love having the Disney visa, I'm looking into other cards at this point.

debf
06-26-2009, 09:24 PM
Any chance you can get a home equity loan and cancel your Chase card?

ShellyLynn3630
06-26-2009, 09:32 PM
Are you saying the balance only goes down $4 a month on a $160 payment?

Oops nope I see that's not what you're saying.
The payment goes down that much because you're paying the same every month and lowering the balance.

Yeah it stinks and they're doing it a lot now.
I'd do everything I could to avoid bankruptcy, as it won't hurt the bank any, but will ruin your financial life for ten years.

No, I mean the minimum payment goes down about 4 bucks a month. The balance goes down about 140 dollars a month. I can't believe though that I can't opt out of it though and close this account.

mistysue
06-26-2009, 09:33 PM
Up front, I don't think $240/month is worth filing bankruptcy for.

Not that it is good information, but my husband had a card he stopped making payments on in fall of 2004. They eventually filed to get a garnishment against him in Spring of 2008. You might have a while and worst case scenario if you stop paying them, they might be more willing to setting something with you. We don't have balances on cards anymore so I haven't looked myself but I thought something was passed as part of a stimulus that you can settle to get a huge portion of credit card debt forgiven. It looks bad on your credit and you may get a 1099, but will not look as bad as bankruptcy or cost you nearly as much.

Is your payment going up because they are changing your interest rate? You can say no to a rate increase if you stop using the card.

Blue.Fairy2
06-26-2009, 09:36 PM
Seven to ten years from the date of discharge.

All discharged bankruptcies whether a state or federal filing remain on a CR for 10 years. A dismissed chapter 13 remains for 7 years, a dismissed chapter 7 remains for 10 years.

Chapt.7-11-12 will remain for ten years. A chapter 13 will remain for seven years if successfully completed, for 10 years if dismissed.

Ten (10) years for a discharged chapter 7 or 13. Seven (7) years for a dismissed chapter 13, ten (10) years for a dismissed chapter 7.

Although it is true that the federal Fair Credit Reporting Act does provide that bankruptcy entries will remain for 10 years, there are some creditors that will only leave a chapter 13 bankruptcy on your record for 7, rather than 10 years. They do this to encourage people to pay part of their debts rather than discharge it all under a chapter 7. More importantly, the effect of bankruptcy on one's ability to get credit is vastly overstated. The key to getting the credit you need has far more to do with the amount of present income you have rather than any negatives on your credit report. In short, if you have good present income, the creditors will look past your credit report to your wallet in the sense that it is possible, even with a bankruptcy on one's record, to get credit for cars and new credit cards as soon as you are discharged in a chapter 7 (about four months after you file), and after a year or so, you can even get a mortgage on a house. They may not give you the best rate, but if you have good present income, even a person with a bankruptcy on their record can get the credit they want in almost all cases.

You will not qualify for a FHA until a chapter 7 has be discharged for 2 years. A chapter 13, you will only have to wait a minimum of 1 year from filing date.

This is not my opinion copy and pasted it for you.

dtauer
06-26-2009, 09:58 PM
File bankruptcy for $240/month? :scared1:

Can someone in your family deliver pizzas, newspapers in the early morning, work for $8/hr at a convenience store?

Just some ideas, but if $240/month forces you into bankruptcy, I'm afraid you have bigger problems then Chase changing the terms of your credit card.

Also remember that the bankruptcy costs you in a lot more ways than just wrecking your credit and preventing you from getting more credit. Some insurance companies, in some states, now use your credit score in the calculation of your rates. Also, if you look for a new job, some employers pull credit reports looking for problems with money management skills that are highlighted by a bankruptcy.

I would avoid it at all costs. Unless you have significant other debt, $8000 is not enough to file bankruptcy over.

ShellyLynn3630
06-26-2009, 10:00 PM
Up front, I don't think $240/month is worth filing bankruptcy for.

Not that it is good information, but my husband had a card he stopped making payments on in fall of 2004. They eventually filed to get a garnishment against him in Spring of 2008. You might have a while and worst case scenario if you stop paying them, they might be more willing to setting something with you. We don't have balances on cards anymore so I haven't looked myself but I thought something was passed as part of a stimulus that you can settle to get a huge portion of credit card debt forgiven. It looks bad on your credit and you may get a 1099, but will not look as bad as bankruptcy or cost you nearly as much.

Is your payment going up because they are changing your interest rate? You can say no to a rate increase if you stop using the card.

No, they can't change my interest rate. It is locked in for the life of the loan and it is very low. I just can't believe I can't opt out. I thought I could close the account and just keep my current terms the way they are. We do not have another 240 dollars a month to give them, so I may look into settling the account possibley. I have to get off of here now, until tommorow, but EVERYONES help in appreciated. Thanks, get back tommorow!

dvcgirl
06-26-2009, 10:07 PM
Me and my husband have a 8,000 dollar balance on a chase credit card with a very low apr and it gets paid every month on time, each month with a automatic draft from our checking account. This works well as the balance is going down each month and nothing is getting added to this account with the exception of very little interest. Our payment is like 160 a month and goes down about 4 bucks each month. We'll they sent me a change of terms in the mail today telling me that as of my September statement date they will increase my minimum payment from 2% to 5%. That will go from 160 to 400 dollars a month. And they told me that I CANNOT opt out!!!! I will either have to transfer this balance elsewhere or really consider bankrupcty. I mean, they will possilby go from getting a payment on time each and every month to possibly getting little of nothing. I can't believe this crap! It even state this change is a direct result of my apr. Basically meaning that they are not making enough money on me. We'll they may just lose out all together if I file bankruptcy.

This type of practice is happening to millions of Americans these days. There have been endless threads here on the Budget Board on this topic alone. Many are also seeing their credit lines cut in half or seeing their credit cards shut down altogether.

I'd hardly say that an additional $240 per month means that you'll need to file for bankruptcy. Pick up a second job and pay the thing off as quickly as possible....or transfer the balance to another card where you can afford the monthly payments. And then never forget how the lovely folks at Chase treated you.

minnie1928
06-26-2009, 10:09 PM
For $240/month, I'd look at something other than bankruptcy. The thing to remember is that you'll be paying the principal down much quicker, so instead of your payment dropping $4/month it should be dropping closer to $10/month. So, if my assumptions are correct the $400/mth payment is the max and it will only continue to drop at a rate that is faster than what it was currently dropping.

I know how frustrating it can be, but really consider other alternatives...

delmar411
06-26-2009, 10:09 PM
I don't believe this is just Chase trying to 'get' you personally. Google Chase 2% 5% minimums and you'll find a TON of hits on it. Everyone with a low rate seems to be getting this.

NancyIL
06-26-2009, 10:16 PM
When money is tight, I can certainly see how coming up with an extra $240/month would be difficult. However, if I were you and I owed $8000 on a credit card, I wouldn't plan on staying at Coronado Springs in 2010 - free dining or not.

ShellyLynn3630
06-26-2009, 10:33 PM
When money is tight, I can certainly see how coming up with an extra $240/month would be difficult. However, if I were you and I owed $8000 on a credit card, I wouldn't plan on staying at Coronado Springs in 2010 - free dining or not.

We'll I can see your point, but I am not going to put off a family vacation unless I just have to. And you never know, I may just have to. I am going to bed now, I promise!:laughing:

HeyIt'sMe
06-26-2009, 10:44 PM
When money is tight, I can certainly see how coming up with an extra $240/month would be difficult. However, if I were you and I owed $8000 on a credit card, I wouldn't plan on staying at Coronado Springs in 2010 - free dining or not.

ITA. If I had an $8,000 credit card balance there is no way I'd even be thinking about vacation, Disney or not. My focus would be to get rid of that debt.

mistysue
06-26-2009, 10:46 PM
That is actually a really great point. I hadn't even looked at your signature. If you can't come up with $240/month without considering filing for bankruptcy, how were you going to pay for disney?

Maybe whatever you were going to do to pay for disney could pay off your credit card.
We have never gone on a family vacation before, not even a weekend away somewhere because we had debt. If we couldn't afford normal life, we certainly couldn't afford to go on some elaborate trip. If you are thinking bankruptcy over $8,000 with a $400/month payment, what sort of amazing Disney deal are you getting that you could afford? If you are saving the money up maybe you could use that to pay debt down, and if you were going to finance it how would you make that payment?

mjejj
06-26-2009, 10:46 PM
I just saw a story on the news about this tonight, this woman had a small payment and Chase is changing her rate and now her payment is going to be $1200/mo. I'm sure there is more to the story than I remember, Anyway, a bankruptcy attorney they interviewed said that about 90% of people who file bankruptcy have a least one Chase card (her words, not mine).

Maybe you could take out a Home Equity loan to pay it off. Not a great alternative but better than getting stuck with a higher rate. It's really a bad situation for many people (not that that makes you feel better). Good luck!!

Oh, I just noticed you are from GA. It was on Fox5 news if you are interested in the story.

disneymom2003
06-26-2009, 10:48 PM
I am with the poster above. Canceling a vacation is much better than filing for bankruptcy believe me I know. We lost our business and our house in 1992 and had to file for bankruptcy. I NEVER want to do that again. If you can pick up a part time job and pay it off as soon as possible I agree with every one else that is the way to go.

msmayor
06-26-2009, 10:49 PM
Credit card companies are doing this in response to the outcry over such low minimum payments that would drag debt out for years. Some folks could have debt that would take over 40 years to pay off with such low minimum payments, allowing CC companies to rake in interest rates.

Raising minimum payments is a benefit to consumers, making it more realistic for them to actually see progress in reducing their debt and giving them hope of getting out from under it.

Ciciwoowoo
06-26-2009, 10:56 PM
:goodvibes

I would contact the credit card company and tell them you are unable to pay that amount. They will likely work with you to make the payment reasonable, rather than risk you not paying at all.

I have run into this situation with a credit card myself (GM Card) and the company is very good about closing the account for hardship and just letting me pay a set amount every month with a 0 % apr until it is finally paid off.

Good luck!

wall*e2008
06-26-2009, 11:00 PM
I just saw a story on the news about this tonight, this woman had a small payment and Chase is changing her rate and now her payment is going to be $1200/mo. I'm sure there is more to the story than I remember, Anyway, a bankruptcy attorney they interviewed said that about 90% of people who file bankruptcy have a least one Chase card (her words, not mine).

Maybe you could take out a Home Equity loan to pay it off. Not a great alternative but better than getting stuck with a higher rate. It's really a bad situation for many people (not that that makes you feel better). Good luck!!

Oh, I just noticed you are from GA. It was on Fox5 news if you are interested in the story.

Since the payments are going to be 5% that means she owes Chase $24K.

Blue.Fairy2
06-26-2009, 11:08 PM
ignore me i am sleepy. lol

P.I. Squirrel
06-26-2009, 11:11 PM
This is due, in large part on our government. The OCC (Office of the Comptroller of the Currency) has begun cracking down on credit card companies for various reasons. In response, virtually ALL of the credit card companies are raising the minimum payment required.

See the ABC News story here. (http://i.abcnews.com/GMA/MellodyHobson/Story?id=954593&page=1)

dvcgirl
06-26-2009, 11:15 PM
We'll I can see your point, but I am not going to put off a family vacation unless I just have to. And you never know, I may just have to. I am going to bed now, I promise!:laughing:

If I had a nickel for each and every response like this.....well, I'd be wealthy beyond my wildest dreams. And yet so many are still looking at our economy and wondering...."how did this happen?.....how did we get here?".

Sigh.....this is just one little board in the zillions like it on the web. In 2050 I think we're going to have a lot of bitter 50 year olds who wish that their parents (now living in their spare bedrooms) had invested a bit more and skipped the yearly vacation to Disney or (fill in the blank).

disneysteve
06-26-2009, 11:16 PM
Since the payments are going to be 5% that means she owes Chase $24K.

Excuse me?

5% of $8,000 is $400

5% of $24,000 is $1,200

wall*e2008
06-26-2009, 11:18 PM
Excuse me?

5% of $8,000 is $400

5% of $24,000 is $1,200

I can do math. The person who I quoted said a persons payment with case went up to $1200.

Minnie Lor
06-26-2009, 11:36 PM
I don't think the OP was saying that she was considering bankruptcy just that Chase made that stupid suggestion.

I don't think $8000 on a CC that she is making regular and consistent payments on iis reason to cancel a trip in the future. If she was going every other month - maybe. I owe on my house. I make regular and constistent payments and I plan on going on a trip this year and maybe next year.

I personally like Dave Ramsey - I'm a fan. I think people need to get their finances in order but not everyone works that way. Obviously, they were doing fine but Chase changed the rules in the middle of the game. Not playing nice.

OP - Chase raised my interest rate. I use my card every month and I pay it off every month. I've never carried a balance but still they decided to raise my interest rate. They're going after everyone and all the CC companies are getting nasty about it. I'd call them back with an offer to send in $20 more ($180).

disneysteve
06-26-2009, 11:45 PM
I can do math. The person who I quoted said a persons payment with case went up to $1200.

My apologies. I totally missed the object there.

ctinct
06-26-2009, 11:45 PM
The change in absolute minimum payments has been around for quite a while. The story referenced in an earlier post is from 2005. All those increases have already occurred.

What Chase seems to be doing here, judging from the posts on another board I follow, is raising the minimum payment on very low balance transfer rates. I believe the op said Chase gave this as the reason they were raising her minimum. They can't make much money off of a 0% or 2.99% balance, so they want to get rid of those customers as quickly as possible. Since many of these low interest transfers were for the life of the balance, Chase CAN'T change the rate, so they are raising the minimum payment, and like the op said, the customer CAN'T opt out.

I can see several problems with this. Some people transferred money to low interest accounts to get away from onerous interest rates. There are a lot of people living close to the bone now, because of job loss or other life circumstances. Maybe they can make the payment now, but to raise it by 150% will put them over the edge. There have been times I would have been in serious trouble if this had happened to me.

The other situation I see a problem with is people who moved a lot of their debt over to Chase, thinking they were being smart. Not all that long ago there were no or very low balance transfer fees, and Chase gives some people some very high credit limits. My own limit is obscene. (They've been cutting those lately, too, though.) Anyhow, suppose you moved a new car purchase and some other debt over to them at 0%. The minimum payment would have been $600 to start, and as long as you kept paying an average of $500 over 5 years, your car payment and other debt would be retired in 5 years. Now suddenly, instead of your $600 payment, the payment would be $1500 for the initial $30,000. Of course it would decrease as your balance goes down, but that's a huge increase. I think that would be tough for a lot of families, even if they aren't on the edge....and remember, these people thought they were doing the smart thing financially by lowering their rate, and now the game has been changed.

Granted, if people had read the terms of service, they might have noticed that nowhere does it say 2% will always be the minimum. But even when the government mandated a change, which for most people was not very big, they gave several months warning. I just don't know how some people will manage. Don't worry about Chase though. If they lose money through people defaulting, they can just raise their other customer's rates a few more percentage points, as long as they do it before the new credit card rules take effect.

SandrA9810
06-27-2009, 12:04 AM
yeah, it was a few years ago that rules changed a bit. And that the user had to pay a certain percentage in the minimum payment. Originally CC would create a min payment that was less than the finance charges. So not only were you not paying off the balance, it was going up because the finance charges were being tacked on.

They finally changed it so your min payment was enough to cover the finance charges and about 1-2% of the actual balance. It increased our payments by like 15$ or so when this took effect on some of our larger balances. Of course when we were paying the same amount every month, 150$, the min went down. So that meant a few dollars more was going towards the balance rather than the finance charges.

But I can see how changing from 2% to 5% could impact you quite a bit. And 240$ is a lot of money each month to come up with. If anything like that happened to us, we'd be hurting big time. And I wish it was easy as saying getting a part time weekend job, but it's not that easy. Especially if there was issue of kids. And people do need thier rest you can't work 7 days a week without getting burned out in a couple of weeks. And then there's still taxes to take out on top of it. You're talking an extra week's worth of income just to cover it.
I hope you can find something that'll work for you. And if this isn't your only CC, can you go back to the bare min on the other cards to put towards this one?? At least you'll have it paid off faster.

NancyIL
06-27-2009, 12:32 AM
I don't think the OP was saying that she was considering bankruptcy just that Chase made that stupid suggestion.

I don't think $8000 on a CC that she is making regular and consistent payments on iis reason to cancel a trip in the future. If she was going every other month - maybe. I owe on my house. I make regular and constistent payments and I plan on going on a trip this year and maybe next year.



There's a difference between mortgage debt and credit card debt. Everyone needs a place to live - whether you have a mortgage or pay rent. On the other hand, many of the things purchased with credit cards are consumable items - like food, entertainment, and travel. I can understand the OP's anger about the minimum payments more than doubling, and I would be unhappy, too. I would also do whatever it took to cut expenses and increase income, including reevaluating vacation plans. Trip memories are wonderful, but you don't have to go to WDW to enjoy a getaway with your family.

sk!mom
06-27-2009, 12:38 AM
We'll I can see your point, but I am not going to put off a family vacation unless I just have to. And you never know, I may just have to. I am going to bed now, I promise!:laughing:

So you're discussing bankruptcy while planning a vacation...What's wrong with this picture??:confused3

I'm sorry, but seriously an $8000 debt could be taken care of by selling a second car or working a second job for a short time. If you're considering bankruptcy because the Chase debt is only the tip of the iceberg, then you need to take a step back and reorder your priorities. You're living on the edge! I'm scared for you!

dopeyone
06-27-2009, 01:00 AM
I went through the BBB when Chase decided to raise my APR by over 10% on 2 seperate cards. I always paid on time and always paid more than the min. I thought this extremely unfair, especially after we (taxpayers) just bailed them out.
Anyhow, after I reported them to the BBB they decided to offer me option 1: Close my accounts, get my old rates back and continue paying until paid off. Option 2: keep accounts open get old rates back for 1 year then they could raise them!
I took option 1. Before going to the BBB, I called and spoke to countless managers to no avail, all I wanted were my old rates back and to be done with them. It took me going through the BBB to get that. Bad business!

CLR4321
06-27-2009, 01:08 AM
Bank of America/FIA Card Services did that to me a couple of years ago for no reason too. It was painful at the time to go from $60 a month payments to $140 a month. Credit card companies are tightening up anywhere they can to make more money and to get people to pay more of their debts off faster.
I wish you the best in the situation. Perhaps you can take out a loan to cover it or find a new card and do a balance transfer. Good luck!

CLR4321
06-27-2009, 01:11 AM
I went through the BBB when Chase decided to raise my APR by over 10% on 2 seperate cards. I always paid on time and always paid more than the min. I thought this extremely unfair, especially after we (taxpayers) just bailed them out.


Try going from a 7.9% FIXED rate to 21.99%! :scared1: I was in the same shoes as you, except I never got the supposed opt-out notice they sent....I moved right at the same time they claimed to have sent it. Luckily I was able to transfer the balance.

dopeyone
06-27-2009, 01:23 AM
Try going from a 7.9% FIXED rate to 21.99%! :scared1: I was in the same shoes as you, except I never got the supposed opt-out notice they sent....I moved right at the same time they claimed to have sent it. Luckily I was able to transfer the balance.

That's exactly what they were doing to me. I told them i never saw the opt out letter. I think I got lucky with reporting to the BBB, chase was getting a lot of bad publicity at the time.

goopysolelady
06-27-2009, 03:14 AM
If I had a nickel for each and every response like this.....well, I'd be wealthy beyond my wildest dreams. And yet so many are still looking at our economy and wondering...."how did this happen?.....how did we get here?".

Sigh.....this is just one little board in the zillions like it on the web. In 2050 I think we're going to have a lot of bitter 50 year olds who wish that their parents (now living in their spare bedrooms) had invested a bit more and skipped the yearly vacation to Disney or (fill in the blank).


EXCUSE ME !!!!!!! :hippie: This "bitter 50 year old ... actually 58 year old" would like to say something. We HAVE "invested a bit more" ... have you checked the stock market lately? We HAVE skipped Disney vacations when money was tight and done a weekend at "fill in the blank" but ya know what? I wouldn't trade those family memories for anything; they mean more to all of us than the $20,000 - $30,000 whatever ... we'd have in the bank (which would now be probably $5,000 thanks to Wall Street) had we skipped the FEW Disney trips we've made over the last 30 years.
Would you like to know how ... and why ...our credit card balance grew? Our 28 year old son-in-law DIED after an 18 month illness. His insurance went into effect 2 weeks after he became ill (after being on a job for 3 months he'd worked towards the past 8 years) which meant about $25,000.00 in medical bills to start with! THEN, after insurance coverage began there were co-insurance deductables; yearly deductable; prescription co-pays; non-covered charges; gas and meals to and from doctors/hospitals; MONTHLY INSURANCE PREMIUMS of $450.00 after he lost his job, regular monthly bills that had to be paid with my daughters salary ... and his FUNERAL.
Our daughter, now a 26 year old widow, needed help; son-in-laws parents offered NOTHING. Her TWO credit cards maxed out FAST ... a year ago OUR credit card interest was very, VERY reasonable ... not anymore. CHASE has also pulled the same stunt with us and YES I am angry! Our home equity loan is in the works and this "bitter 50 year old" is just thankful DH and I were able to help our daughter during very trying times.

kydisneyfans
06-27-2009, 06:24 AM
My parents received the same 2 to 5% change on their CC the same day we received our $150 rewards check from the same company. We have 3 CC accounts through Chase, no terms have changed, and we carry 0 balances on all. We also have a vehicle loan and home equity loan though Chase, so they are making the money from us on those loans.

We had 10K in CC debt directly after relocating to KY. We devised a 5 year plan to get out 100%, we hunkered down and got it done in 3 years. That meant basic cable, driving older vehicles, working extra, and making sacrifices. The Disney trip went from staying onsite to offsite.

The change to 5% may be a blessing in disguise.

kacaju
06-27-2009, 06:29 AM
What Chase seems to be doing here, judging from the posts on another board I follow, is raising the minimum payment on very low balance transfer rates. I believe the op said Chase gave this as the reason they were raising her minimum. They can't make much money off of a 0% or 2.99% balance, so they want to get rid of those customers as quickly as possible. Since many of these low interest transfers were for the life of the balance, Chase CAN'T change the rate, so they are raising the minimum payment, and like the op said, the customer CAN'T opt out.


Well maybe Chase should have thought of this before THEY send out the 0% and 2.99% checks!!
We have two Chase cards and I swear we get at least two letters a month (one for each card) with those checks in them.

dvcgirl
06-27-2009, 07:14 AM
EXCUSE ME !!!!!!! :hippie: This "bitter 50 year old ... actually 58 year old" would like to say something. We HAVE "invested a bit more" ... have you checked the stock market lately? We HAVE skipped Disney vacations when money was tight and done a weekend at "fill in the blank" but ya know what? I wouldn't trade those family memories for anything; they mean more to all of us than the $20,000 - $30,000 whatever ... we'd have in the bank (which would now be probably $5,000 thanks to Wall Street) had we skipped the FEW Disney trips we've made over the last 30 years.
Would you like to know how ... and why ...our credit card balance grew? Our 28 year old son-in-law DIED after an 18 month illness. His insurance went into effect 2 weeks after he became ill (after being on a job for 3 months he'd worked towards the past 8 years) which meant about $25,000.00 in medical bills to start with! THEN, after insurance coverage began there were co-insurance deductables; yearly deductable; prescription co-pays; non-covered charges; gas and meals to and from doctors/hospitals; MONTHLY INSURANCE PREMIUMS of $450.00 after he lost his job, regular monthly bills that had to be paid with my daughters salary ... and his FUNERAL.
Our daughter, now a 26 year old widow, needed help; son-in-laws parents offered NOTHING. Her TWO credit cards maxed out FAST ... a year ago OUR credit card interest was very, VERY reasonable ... not anymore. CHASE has also pulled the same stunt with us and YES I am angry! Our home equity loan is in the works and this "bitter 50 year old" is just thankful DH and I were able to help our daughter during very trying times.

Well, I'm very sorry that your family was hit with a perfect storm of events. That's a terrible and sad set of events.

However, I was referring specifically to the OP and the many other posts that we see like hers. Ones where there are thousands (sometimes tens of thousands) in consumer CC debt and yet there's almost always a trip to Disney in the works, one that has just been taken. It doesn't even faze me anymore. For Pete's sake, if your entire financial world is flipped upside down by seeing your minimum CC payment go from 2% to 5% and you're contemplating bankruptcy....that alone shows severe financial stress.

I'm really sorry, but trips to Walt Disney World don't belong in that world. That's not even being judgmental in my opinion, just a good hard look at the facts.

Shelly F - Ohio
06-27-2009, 07:15 AM
And they wonder why banks are in such deep trouble. They are just bringing all the termoil on themselves. At this rate the ecomony will never turn around. My husband and I have excellent credit and steller payment history and we tried to refi our mortgage and 2 banks turn us down. They both said we should looking into the new program that the President put into place. Well in order to be considered for those programs you have to be very close to foreclosure! So if I can't make a payment sure they will refi with no problem but for someone like me and DH we can make our payments we just want to lower our interest rate. It makes no sence allow people who have missed more than 3 mtg payments to refinance and thoses who pay extra on their principle can't. I just don't get it.
I really see us not getting out of this mess for quit awhile.
Shop around and transfer Why should Chase get your business after that little stunt!

bratmomma
06-27-2009, 07:17 AM
My Mom has a Chase card and recently had her interest rate raised considerably (I don't know the exact numbers and don't want to provide inaccurate info) because she made a late payment on another CC to a DIFFERENT company!!!!!

After hearing all these stories, I am really happy I didn't apply for that Disney Visa now.

wall*e2008
06-27-2009, 08:02 AM
I got the letter too. It is a form letter type mailing. My interest rate is now 9.9% plus prime with Chase. Guess what arrived on the same day - a letter with the same wording with a new interest rate of 10.99% plus prime.

This is unsecured debt and historically that always carries a higher interest rate.

When we bought our home our interest rate was almost as high as our new CC rate. During the Carter years people were getting 18% home mortgage .

denisenh
06-27-2009, 08:57 AM
Credit card companies are doing this in response to the outcry over such low minimum payments that would drag debt out for years. Some folks could have debt that would take over 40 years to pay off with such low minimum payments, allowing CC companies to rake in interest rates.

Raising minimum payments is a benefit to consumers, making it more realistic for them to actually see progress in reducing their debt and giving them hope of getting out from under it.

That may be true, but judging by what CC companies have pulled out of their bag of tricks in the past, its not likely. OP has a low interest rate so the CC company is looking to raise it...by causing a default.

This is due, in large part on our government. The OCC (Office of the Comptroller of the Currency) has begun cracking down on credit card companies for various reasons. In response, virtually ALL of the credit card companies are raising the minimum payment required.

See the ABC News story here. (http://i.abcnews.com/GMA/MellodyHobson/Story?id=954593&page=1)

That article is from 2005.

Best of luck OP...times are tough for lots of folks.

EthansMom
06-27-2009, 09:07 AM
Sorry, OP, but changes in credit cards is the next ripple in our changing financial system. Because the economy isn't doing well, people aren't paying on their credit cards, which means that credit card companies are losing money, and they have to make that money up somewhere. So, they're raising the rates on the folks who ARE paying. They are also cancelling card accounts to get some of the open-but-unused debt off their books and will likely begin instituting fees for folks who use credit cards (for the perks) but pay them off monthly.

IMO, the best thing you could do for yourselves is to sit down and figure out what you can cut in your plans/budget/lifestyle to pay the vampires off as quickly as possible. I'd put vacation plans on hold, cut cable packages, phone packages, eat at home more, trim back on pricier family outings for summer.... whatever I needed to do to trim the fat and pay that sucker down. Any extra money your family can get by making cuts or by making more money should go towards that credit card. Because the lower the principal balance on that card, the lower next month's payment will be.

Once you've made other cuts, if necessary, could you lower contributions to retirement/college savings? I'd do that before I'd declare bankruptcy.

If you make paying off this debt (and not running it back up again) a priority, you CAN get it paid off!

Good Luck!

mooneyda
06-27-2009, 09:28 AM
I have had the same issues once just recently with Bank of america and previously with ChaseThe one recently with bank of america they informed me they were going to raise my interest rate in a month if I do not respond. I responded and I locked in my interest rate.As I got off the phone I just tore up the card. As for Chase I was late on a payment and they jacked my interest rate to like a 25% you know what I never used that card again. When they are finally paid off in full I am tearing them all up.

disneynuts777
06-27-2009, 09:58 AM
EXCUSE ME !!!!!!! :hippie: This "bitter 50 year old ... actually 58 year old" would like to say something. We HAVE "invested a bit more" ... have you checked the stock market lately? We HAVE skipped Disney vacations when money was tight and done a weekend at "fill in the blank" but ya know what? I wouldn't trade those family memories for anything; they mean more to all of us than the $20,000 - $30,000 whatever ... we'd have in the bank (which would now be probably $5,000 thanks to Wall Street) had we skipped the FEW Disney trips we've made over the last 30 years.
Would you like to know how ... and why ...our credit card balance grew? Our 28 year old son-in-law DIED after an 18 month illness. His insurance went into effect 2 weeks after he became ill (after being on a job for 3 months he'd worked towards the past 8 years) which meant about $25,000.00 in medical bills to start with! THEN, after insurance coverage began there were co-insurance deductables; yearly deductable; prescription co-pays; non-covered charges; gas and meals to and from doctors/hospitals; MONTHLY INSURANCE PREMIUMS of $450.00 after he lost his job, regular monthly bills that had to be paid with my daughters salary ... and his FUNERAL.
Our daughter, now a 26 year old widow, needed help; son-in-laws parents offered NOTHING. Her TWO credit cards maxed out FAST ... a year ago OUR credit card interest was very, VERY reasonable ... not anymore. CHASE has also pulled the same stunt with us and YES I am angry! Our home equity loan is in the works and this "bitter 50 year old" is just thankful DH and I were able to help our daughter during very trying times.

:grouphug:
Family is the most important thing on earth. Money and material possessions come and go but family and those memories last forever.
Bless you for helping your daughter even if it meant financial stress for yourself! Alot of people are quick to judge. Unless you have walked a mile in there shoes nobody really knows how someone got to where they are today.
:flower3:

crisi
06-27-2009, 10:39 AM
One of the horrible things about debt is that its debt. That sounds obvious, but there are a lot of connotations to the word that we overlook because debt is so common. Its an obilgation. Very often, in those complex terms few of us read, we give the companies loaning us money a lot of power over the terms.

When we take on debt we like to think things won't change. They won't change with us ("I can afford a $300 payment" - and maybe I can, until I add another $200 because the funance went out and my hours get cut at my job). They won't change on the terms of the agreement. And, honestly, in normal times with 'responsible' debt - these are ok bets ('responsible' in quotes because not everyone here believes there is such a thing.) But these have not been normal times. The previous decade a lot of people got into "irresponsible" debt situations (a lot of people always had) - one paycheck away from not being able to pay their bills. And credit card companies are businesses, trying to make sure they don't fail and changing their policies as quickly as they can (and before new laws take effect) to try and get their balance sheets looking like something other than a CSI murder scene.

We gave them the power when we signed the agreements. And if we can't free ourselves from the obligation by meeting it in full when we no longer like the terms, we are really stuck.

I really dislike obligation. It keeps me from being able to do what I want. And for me, its whether I'm "obligated" to attend a wedding I'd rather not, or "obligated" to pay down a credit card - my time and money is too valueable to me in the now to be obligated by the past. There are obligations you can't shake, but I think you should try and avoid them where possible and discharge them as soon as you can.

friskykitten
06-27-2009, 11:01 AM
I could be wrong, and usually am, but I find it very hard to believe that the cc companies are actually losing money. They may have quite a few people no longer paying their cards due to the economic influences that may have affected them BUT most of the consumers who have stopped paying or have had to declare BK have probably already paid the cc company the original balance of a purchase plus several years of interest and possibly fines. Therefore the cc companies have already been paid back for their loan, plus interest, plus fees many times over. I saw this statement in some financial literature so it has to have at least a smidgen of truth to it.

Even those who pay on time, every month, and have an unblemished credit history, as we do for now, BUT still had a balance on their cards have paid them 2-20 times what the original balance was. Not the smartest thing for the purchaser, including myself, to do but the cc card has been paid and repaid for the original 'loan'. So are the cc's losing money on what they loaned out? No, they are losing it because they are not getting paid for interest that is probably based mearly on unpaid interest accumulated so far. Two years ago, long before DH and I lost our jobs, Discover took our 8.99% rate and raised it to 29.99%. I had NEVER had a late payment or missed payment on ANY card or loan in my life so I was really irrate about it. The explanation Discover gave me was that they were going to start offering other services to everyone and in order to pay for the extra services they were raising the interest. It had nothing to do with anyone's credit history or ratings.

I don't think the OP is really considering BK. She is just trying to show how upset she is about having to come up with 150% increase in her monthly payment/budget. If it was easy to get a second job to cover the additional money every month there wouldn't be so many people out of a job right now. So although it is wonderful advice it is almost impossible to put into action. I can't even get a first job right now, let alone a second one. Many others are also in the same position. And due to the way the cc companies are treating everyone, including those who have done everything right from paying off their cards every month to those always paying on time and at least the minimum payment I don't have any sympathy for them if they are being defaulted on left and right. Just as a lot of people got ourselves into financial trouble, so did the cc companies.
We all need to live within our means now, consumers and cc companies, but at least most people are doing it without being shady, unlike the cc companies. I didn't say illegally, I said shady.:rolleyes1

dvcgirl
06-27-2009, 11:45 AM
I could be wrong, and usually am, but I find it very hard to believe that the cc companies are actually losing money. They may have quite a few people no longer paying their cards due to the economic influences that may have affected them BUT most of the consumers who have stopped paying or have had to declare BK have probably already paid the cc company the original balance of a purchase plus several years of interest and possibly fines. Therefore the cc companies have already been paid back for their loan, plus interest, plus fees many times over. I saw this statement in some financial literature so it has to have at least a smidgen of truth to it.



There were a couple of quarters there where a few of the mega-banks reported quarterly losses, but have since returned to profitability. However, those profits are *substantially* lower than they were just two years ago.

When a bank is showing profits of say.....10 Billion dollars a quarter, that gives them the ability to *lend* roughly 10 times that amount....so they can extend 100 Billion dollars in credit to its customers.

Now, they're earning far, far less....say, to keep things simple.... 1 billion dollars a quarter....and so they can only extend 10 Billion credit, a 90% decrease from what they put out there in the past.

But they've already got far more than 10 billion in credit lines out there in the wallets of the American Consumer. And so they've got too much in liabilities out there in their customer's wallets and not nearly enough capital to cover the losses if defaults continue to rise. They see unemployment skyrocketing, and foreclosures continuing to climb. And where do broke people turn when they run out of money.....they pull out their credit cards. So, the banks are simply trying to get ahead of the curve and cutting lines/raising rates to protect themselves from rising defaults.

This is a very simplistic explanation of why the banks are reeling in credit and raising rates as quickly as they are.....but there you have it.

Minnie Lor
06-27-2009, 11:53 AM
In a way...in a sad way, many of you crack me up. No one was discussing bankruptcy except Chase. But many of you read that and started to assume that OP was considering that and taking a trip to WDW in the future.

I'm sure OP has unsubscribbed from this thread as I'm about to do. I can't believe the 'holier than thou' additudes. So what that she has $8000 in debt. She had a plan and was making consistent payments. Life doesn't need to be put on hold while she has CC debt. If she has multiple CC, was over her limit, and was still charging then yeah - she's out of control.

CC debt is not the new shame we must bear. Unreasonable spending and begging for a hand out is but not just because you carry one CC debt.

This is the reason that the Dis has it's reputation (yeah it really does) of being an unfriendly place. Too many assume and then just blast opinions.

I'm staying off the budget forum from now on. You all don't play nice.

HayGan
06-27-2009, 12:16 PM
In a way...in a sad way, many of you crack me up. No one was discussing bankruptcy except Chase. But many of you read that and started to assume that OP was considering that and taking a trip to WDW in the future.

I'm sure OP has unsubscribbed from this thread as I'm about to do. I can't believe the 'holier than thou' additudes. So what that she has $8000 in debt. She had a plan and was making consistent payments. Life doesn't need to be put on hold while she has CC debt. If she has multiple CC, was over her limit, and was still charging then yeah - she's out of control.

CC debt is not the new shame we must bear. Unreasonable spending and begging for a hand out is but not just because you carry one CC debt.

This is the reason that the Dis has it's reputation (yeah it really does) of being an unfriendly place. Too many assume and then just blast opinions.

I'm staying off the budget forum from now on. You all don't play nice.


:thumbsup2 Well said!

crisi
06-27-2009, 12:19 PM
I could be wrong, and usually am, but I find it very hard to believe that the cc companies are actually losing money. They may have quite a few people no longer paying their cards due to the economic influences that may have affected them BUT most of the consumers who have stopped paying or have had to declare BK have probably already paid the cc company the original balance of a purchase plus several years of interest and possibly fines. Therefore the cc companies have already been paid back for their loan, plus interest, plus fees many times over. I saw this statement in some financial literature so it has to have at least a smidgen of truth to it.

Did you miss the banks going under last Spring and Fall? The news on Bank of America? The concern over Citibank - sitting at $5 a share and considered a risky buy?

It isn't like these companies have taken all the money you gave them last year and banked it - they've been just as irresponsible as others - they paid it out in big bonuses to executives. They invested it in a climbing stock market and real estate funds. which have all needed to be reevaluated. Their balance sheets look BAD.

MissNurse
06-27-2009, 12:35 PM
I personally cannot stand Chase. We had our home loan through them and had endless problems even before the whole economy stuff. We transferred our home loan to a local bank, and vowed to never use Chase again. (Our escrow money that paid taxes/insurance was constantly being increased excessively making our payment go up. Our tax and insurance bills remained near the same amount each year, though). After several attempts to rectify the situation we were hit with brick walls. We even had our county tax collector call them. That is the only reason we do not hold a Disney Visa. We had a Chase credit card that we got rid of too when we transferred our loan. They have very crooked business practices! I discourage everyone I talk to from using them. I am so sorry for what happened to you!

crisi
06-27-2009, 12:37 PM
Did you miss the banks going under last Spring and Fall? The news on Bank of America? The concern over Citibank - sitting at $5 a share and considered a risky buy?

It isn't like these companies have taken all the money you gave them last year and banked it - they've been just as irresponsible as others - they paid it out in big bonuses to executives. They invested it in a climbing stock market and real estate funds. which have all needed to be reevaluated. Their balance sheets look BAD.

And here is something else - WE borrowed THEIR money - and when we borrowed it we agreed that THEY could change the terms. They aren't required to be fair - even if they are making money hand over fist. In fact, they have a responsibility to their shareholders to make as much money as they can - not to give their customers a break.

As consumers, our options are to meet the terms of our contract, close the account, and give our business to their competition. No one forced us to use their cards under their terms. And if we felt the terms were bad when we signed on (including the 'we can change your minimum payment or interest rate clause) we could have taken our business elsewhere or chosen not to use credit.

Miss Kelly
06-27-2009, 12:39 PM
In a way...in a sad way, many of you crack me up. No one was discussing bankruptcy except Chase. But many of you read that and started to assume that OP was considering that and taking a trip to WDW in the future.

I'm sure OP has unsubscribbed from this thread as I'm about to do. I can't believe the 'holier than thou' additudes. So what that she has $8000 in debt. She had a plan and was making consistent payments. Life doesn't need to be put on hold while she has CC debt. If she has multiple CC, was over her limit, and was still charging then yeah - she's out of control.

CC debt is not the new shame we must bear. Unreasonable spending and begging for a hand out is but not just because you carry one CC debt.

This is the reason that the Dis has it's reputation (yeah it really does) of being an unfriendly place. Too many assume and then just blast opinions.

I'm staying off the budget forum from now on. You all don't play nice.

::yes::::yes::::yes::

ShellyLynn3630
06-27-2009, 12:48 PM
No, I am still here. Thanks for all replies. I agree on a lot of what many have suggested. You know, it really is sad, I have a husband who refuses to budget, buys any and just about everything he wants, and I get really nothing much, except the three vacations to Disney in the past few years. I do guess it might be hard to believe that we have a 2000 sq. ft house with a full nice basement for his man cave paid for in full, and we do not have a car loan at all out. Yes, we do owe like 80 grand on 15 acres of land behind the house we borrowed to fininsh it two years ago, but the house and 15 acres of land are paid in full. A big chunck of my next vacation will be paid for with Disney reward dollars, irony is'nt it. (If we go) I pay that bill in full each and every month, and chase is making no money on that one. I am just collecting the reward dollars. I am very depressed not only about this, but my finiancial life with my husband too. He makes great money, and I make good money, but his needed lifestyle is making it really hard on me. I do believe though that this is going to be a blessing that I really can't see right now. He just bought himself a 4 wheeler just last night with cash, 800 bucks and there is nothing I can do about it. We are a ticking time bomb just waiting to blow, but I feel as though that time bomb really is going to have to blow in order for him to see what I have known for years. Our credit has always been great, and I mean great, but good things do come to an end.

friskykitten
06-27-2009, 12:53 PM
Did you miss the banks going under last Spring and Fall? The news on Bank of America? The concern over Citibank - sitting at $5 a share and considered a risky buy?

It isn't like these companies have taken all the money you gave them last year and banked it - they've been just as irresponsible as others - they paid it out in big bonuses to executives. They invested it in a climbing stock market and real estate funds. which have all needed to be reevaluated. Their balance sheets look BAD.

Exactly, they are losing money on their own bad decisions but not necessarily from credit cards. Bonuses, bad investing, raising salaries, etc. Not because they haven't made money from the credit card holders. The credit cards are probably a good generator of income for them. And unfortunatley, whether one has followed the rules or not, everyone will be paying for it. Even those who do not use credit may have to "pay" for it eventually in higher prices for all goods in general. I haven't studied their financial statements, nor am I going to on a beautiful Saturday afternoon, but from the news I have read their money problems do not come from credit card holders but from their own bad financial managment. At least they were able to be bailed out by the taxpayers. The taxpayers, on other hand, are either in sink or swim situations. A lot of us who were not as "smart" as others will probably drown.

Disclaimer: Talking generally here, not about the OP or anyone else in particular.

SnowandMittens
06-27-2009, 12:58 PM
National City has a lot of really good balance transfers going on right now as a direct result of Chase's min pamynets going up...

flying_babyb
06-27-2009, 12:59 PM
believe this crap! It even state this change is a direct result of my apr. Basically meaning that they are not making enough money on me. We'll they may just lose out all together if I file bankruptcy.
Call and tell them how this makes your life a hardship. I owed $4,000 and called them. They put me on a hardship plan and made my payment lower ($60 a month) and changed my intrest rate to 0.0%. All I have to do is make my payments on time through my checking account.

ShellyLynn3630
06-27-2009, 01:12 PM
My husband told me a bankrupcty lawyer would laugh at me. This is all we owe on actual loans, 80,000-land payment, 8,000-chase, 5,000-furniture loan, and a very small loan on my inlaws land that will be paid for in six months. Thats it. He currently makes 22-24 bucks a hour and me 14 and hour, full time. He even gets overtime some.

dvcgirl
06-27-2009, 01:26 PM
My husband told me a bankrupcty lawyer would laugh at me. This is all we owe on actual loans, 80,000-land payment, 8,000-chase, 5,000-furniture loan, and a very small loan on my inlaws land that will be paid for in six months. Thats it. He currently makes 22-24 bucks a hour and me 14 and hour, full time. He even gets overtime some.

Exactly....you're not bankrupt....not even close. You just need to get on a budget so you know where your money is going.

NancyIL
06-27-2009, 01:42 PM
No, I am still here. Thanks for all replies. I agree on a lot of what many have suggested. You know, it really is sad, I have a husband who refuses to budget, buys any and just about everything he wants, and I get really nothing much, except the three vacations to Disney in the past few years. I do guess it might be hard to believe that we have a 2000 sq. ft house with a full nice basement for his man cave paid for in full, and we do not have a car loan at all out. Yes, we do owe like 80 grand on 15 acres of land behind the house we borrowed to fininsh it two years ago, but the house and 15 acres of land are paid in full. A big chunck of my next vacation will be paid for with Disney reward dollars, irony is'nt it. (If we go) I pay that bill in full each and every month, and chase is making no money on that one. I am just collecting the reward dollars. I am very depressed not only about this, but my finiancial life with my husband too. He makes great money, and I make good money, but his needed lifestyle is making it really hard on me. I do believe though that this is going to be a blessing that I really can't see right now. He just bought himself a 4 wheeler just last night with cash, 800 bucks and there is nothing I can do about it. We are a ticking time bomb just waiting to blow, but I feel as though that time bomb really is going to have to blow in order for him to see what I have known for years. Our credit has always been great, and I mean great, but good things do come to an end.

I'm sorry, ShellyLynn - you have a bigger problem with your husband than you do with Chase. If he won't get on the same financial page as you, I fear for your future together.

sk!mom
06-27-2009, 01:45 PM
My husband told me a bankrupcty lawyer would laugh at me. This is all we owe on actual loans, 80,000-land payment, 8,000-chase, 5,000-furniture loan, and a very small loan on my inlaws land that will be paid for in six months. Thats it. He currently makes 22-24 bucks a hour and me 14 and hour, full time. He even gets overtime some.


I'm very sorry for your stress and I understand it. You sound like a person who can tolerate little debt who married a person with a mindset of, "hey, I make good money- we're fine!" I'm like you- I get stressed by financial obligations and the cure for me is to not carry debt. Luckily my DH is like me but I can imagine the stress if he wasn't.

Given your financial picture- I would suggest calling Chase and asking for relief. If that doesn't work, then start looking for a card to transfer to. If that doesn't work maybe sit down with your DH and the bills and help him see that you need to part with some of the stuff he buys to pay down the $8000 to a balance that you can afford the payment on.

Best of luck!

ShellyLynn3630
06-27-2009, 01:55 PM
I'm sorry, ShellyLynn - you have a bigger problem with your husband than you do with Chase. If he won't get on the same financial page as you, I fear for your future together.

Well, we talked about it, and this has opened his eyes! :banana::banana:This is a blessing in -well I don't know how to spell it!:lmao: You now what I mean! He realizes he is going to have to work more with me. This is my only complaint of him, hes a great dad, a great son to his mother, a hard worker and he really does love me. And I do know where our money is going. Every single month I have a list of what we made and where it went, believe me I am very good at this. We are going to pay it every month and not let Chase get the better of us!! He realizes he is really going to have to get on the same page with me now.

sk!mom
06-27-2009, 01:57 PM
In a way...in a sad way, many of you crack me up. No one was discussing bankruptcy except Chase. But many of you read that and started to assume that OP was considering that and taking a trip to WDW in the future.

I'm sure OP has unsubscribbed from this thread as I'm about to do. I can't believe the 'holier than thou' additudes. So what that she has $8000 in debt. She had a plan and was making consistent payments. Life doesn't need to be put on hold while she has CC debt. If she has multiple CC, was over her limit, and was still charging then yeah - she's out of control.

CC debt is not the new shame we must bear. Unreasonable spending and begging for a hand out is but not just because you carry one CC debt.

This is the reason that the Dis has it's reputation (yeah it really does) of being an unfriendly place. Too many assume and then just blast opinions.

I'm staying off the budget forum from now on. You all don't play nice.

I'm truly sorry that some always feel that the BB is judgemental. I respectfully disagree.

I fail to see how responding to the threads of people who feel that they are in financial crises (whether they actually are or not) with, " go on vacation, you deserve it, it will be fine" is helpful. Pixie dust is nice but unfortunately doesn't pay the bills! The OP originally said that $8000 had her considering bankruptcy. If that was the case, then it's past time to cut every extra.

I do not mean to be judgemental. I'm truly frightened by this economy and very fearful for family and friends who continue spending as if nothing has changed. I have made changes to save more and spend less to try and make myself feel more secure.

RachaelA
06-27-2009, 02:17 PM
If your husband returned the 4-wheeler he just bought, you could put that 800 dollars right towards the card. I think its more then just opening his eyes to the problem, he essentially is the problem and he needs to realize that.

Good luck! :cheer2:

NancyIL
06-27-2009, 02:27 PM
Well, we talked about it, and this has opened his eyes! :banana::banana:This is a blessing in -well I don't know how to spell it!:lmao: You now what I mean! He realizes he is going to have to work more with me. This is my only complaint of him, hes a great dad, a great son to his mother, a hard worker and he really does love me. And I do know where our money is going. Every single month I have a list of what we made and where it went, believe me I am very good at this. We are going to pay it every month and not let Chase get the better of us!! He realizes he is really going to have to get on the same page with me now.

I'm glad to read this! Best of luck to you and your husband in getting your finances under control. :)

ShellyLynn3630
06-27-2009, 02:28 PM
If your husband returned the 4-wheeler he just bought, you could put that 800 dollars right towards the card. I think its more then just opening his eyes to the problem, he essentially is the problem and he needs to realize that.

Good luck! :cheer2:

Well hes not going to return that, but he realizes that changes need to be made. And that is a blessing. God has truly blessed us beyond measure and believe me I can't understand that everyday, but maybe this is his way of getting my husband attetion. He has ssooooooooooo many "toys". Two horses, horse trailor, tractor, trucks, very nice camper, boat, chuckwagon, bobcat, and others, and they are all paid for. And I do admit, he does work his butt off, and has used some of these items to make money, but gosh. I will add that he did work on a previous home we owned for nine years, had to resell it and make the money we had to build our new home. He is a hard worker. I don't know if growing up not having nothing made him this way, but I did'nt have anything growing up either. I just needed to vent a little.:laughing: I think he is starting to see my way of money is really the smart way.

Green Tea
06-27-2009, 04:24 PM
In a way...in a sad way, many of you crack me up. No one was discussing bankruptcy except Chase. But many of you read that and started to assume that OP was considering that and taking a trip to WDW in the future.



In the original post the poster did say she may have to consider bankruptcy because her minimum payment was going from $160 to $400. She put it on the table for discussion. I don't see anyone being holier than thou.

crisi
06-27-2009, 05:49 PM
I think it would help if you stopped thinking that "my husband makes good money" - you guys have a little over the MEDIAN household income in the U.S. You are better off than more than half of Americans. And that's great - you have the advantage of jobs that can offer you security. But the reason I suggest you stop thinking this, and HE stops thinking this, is that it becomes a horrible trap of "we can afford that - we make good money!" I suspect your husband is particularly prone to this.

disneysteve
06-27-2009, 06:25 PM
No one was discussing bankruptcy except Chase. But many of you read that and started to assume that OP was considering that and taking a trip to WDW in the future.
With all due respect, I think you may have misread the original post.

In her first post, OP said:

I will either have to transfer this balance elsewhere or really consider bankrupcty.

That's why many of us "assumed" that she was considering bankruptcy - because she said so herself. I don't think, at that point, it was unreasonable for folks to suggest she reconsider her planned Disney trip.

fussymonkey
06-27-2009, 06:34 PM
OP- you mentioned that your husband owns a chuckwagon? What on earth is a chuckwagon? I assume we're not talking about the thing a cowboy bellies up to at the end of the day for grub before snuggling by the campfire with his can't-quit-you boyfriend?

HighClass
06-27-2009, 06:45 PM
He has ssooooooooooo many "toys".

Two horses, horse trailor, tractor, trucks, very nice camper, boat, chuckwagon, bobcat, and others, and they are all paid for. .

Sell one or two of the toys and pay down your $8000 credit card-down to $4000-then you can afford the monthly payment.

sk!mom
06-27-2009, 06:46 PM
OP- you mentioned that your husband owns a chuckwagon? What on earth is a chuckwagon? I assume we're not talking about the thing a cowboy bellies up to at the end of the day for grub before snuggling by the campfire with his can't-quit-you boyfriend?

Not the OP, but where I live that's pretty much what it is. I don't own one but I'm considering hiring one to come out for a holiday party. They cook your grub and then play fiddles, dulcimers, guitars while you eat.

ShellyLynn3630
06-27-2009, 06:51 PM
OP- you mentioned that your husband owns a chuckwagon? What on earth is a chuckwagon? I assume we're not talking about the thing a cowboy bellies up to at the end of the day for grub before snuggling by the campfire with his can't-quit-you boyfriend?

:lmao::lmao::lmao: Its like a golf cart thing that you can travel your property in. Its called a chuckwagon. Both of our girls just love it, I can live without it though!

ShellyLynn3630
06-27-2009, 06:53 PM
Sell one or two of the toys and pay down your $8000 credit card-down to $4000-then you can afford the monthly payment.

If I could I would, believe me. Would have done that a lonnnnnnnnnnnngggg time ago.

ShellyLynn3630
06-27-2009, 06:56 PM
I think it would help if you stopped thinking that "my husband makes good money" - you guys have a little over the MEDIAN household income in the U.S. You are better off than more than half of Americans. And that's great - you have the advantage of jobs that can offer you security. But the reason I suggest you stop thinking this, and HE stops thinking this, is that it becomes a horrible trap of "we can afford that - we make good money!" I suspect your husband is particularly prone to this.

Well, I am thinking that that is good money for where we live. I have no education, and he does have some. What is the median income level? Just curious?

fussymonkey
06-27-2009, 07:09 PM
No offenses ShellyLynn, but Sk!mom's chuck wagon sounds way more entertaining than yours. Hers comes with a dulcimer and duling banjos. I'd trade your boring one in for one of her entertaining ones.

OMG , I can just picture a literal chuck wagon and how it would be welcomed up here in hip hop country. :rotfl2:

crisi
06-27-2009, 07:29 PM
Median is a little over $50k.

I'm not saying you guys are broke - I'm saying watch the trap of thinking "we make good money, we can afford....." Its a psychological thing. Especially when a person is married to a spouse who enjoys his (or her) toys - that money spends fast.

ShellyLynn3630
06-27-2009, 08:21 PM
No offenses ShellyLynn, but Sk!mom's chuck wagon sounds way more entertaining than yours. Hers comes with a dulcimer and duling banjos. I'd trade your boring one in for one of her entertaining ones.

OMG , I can just picture a literal chuck wagon and how it would be welcomed up here in hip hop country. :rotfl2:

No offense taken. :laughing: My husband is a farmer brown! I wish I had a picture of my kids on it.

Green Tea
06-27-2009, 08:32 PM
I was picturing a chuck wagon as something laura Ingalls rode across the prairie on, except with a red and white checkered top and lots of food everywhere.

ShellyLynn3630
06-27-2009, 08:51 PM
I have been googling this, and yes chase is doing this to a LOT of people. Many payments going way beyond ours. There is even talk of class action law suits. I did'nt even hear tale of this until I got my notice yesterday in the mail, and I watch the news every day. Well I am fixin to give up this computer to go clean my house. See yall tommorow.:)

hentob
06-27-2009, 10:05 PM
I have no education....


.and yet you spell/articulate better than most of the DISers:goodvibes

You need to get your DH on board. He needs to start selling stuff. Period.

Is he immature? He seems to have issues:confused3

Mrs.Reese
06-27-2009, 10:31 PM
Please don't take this wrong way but your DH needs to grow-up. It's just stuff. Tell him he can get new toys once things are in better shape. Are you paying the bills together? Pull-up all your account information and make him sit through the bill paying ritual. My DM did this with my DF and it finally got him out of just buying things. Do you have long-term financial goals? Write them down. Then make your plan of attack.

You will never have financial peace unless both of you are on the same page. Right now you are a prisoner to Chase. Yes, what they are doing to you is wrong but they are loan sharks. Loan sharks with nice commercials and no brass knuckles. Your money is controlling you. You are not controlling your money.

Money problems is one of the top things that couples fight about. It's often not adultery that destroys marriages but money. Maybe your DH should read some of these posts.

crisi
06-27-2009, 10:51 PM
Yes, what they are doing to you is wrong but they are loan sharks.

Ethically wrong - but it isn't illegal (it will be shortly) and something we all agreed to when we signed our credit agreements.

I don't think a class action suit is going to get very far for that reason. Credit card agreements are dense, but they are not misleading.

goopysolelady
06-28-2009, 01:04 AM
And they wonder why banks are in such deep trouble. They are just bringing all the termoil on themselves. At this rate the ecomony will never turn around. My husband and I have excellent credit and steller payment history and we tried to refi our mortgage and 2 banks turn us down. They both said we should looking into the new program that the President put into place. Well in order to be considered for those programs you have to be very close to foreclosure! So if I can't make a payment sure they will refi with no problem but for someone like me and DH we can make our payments we just want to lower our interest rate. It makes no sence allow people who have missed more than 3 mtg payments to refinance and thoses who pay extra on their principle can't. I just don't get it.
I really see us not getting out of this mess for quit awhile.
Shop around and transfer Why should Chase get your business after that little stunt!

::yes::I agree 100%. Why is it those of us who are responsible always get the short end of the stick? :rolleyes::rolleyes: Don't you just love this "yes we can change"?

Bribrittmom
06-28-2009, 01:24 AM
:thumbsup2 Well said!

I agree.Many on this forum are way too judgemental.No, you shouldn't live way above your means, but without a little fun and relaxation than life isn't really worth living.

goopysolelady
06-28-2009, 01:55 AM
:grouphug:
Family is the most important thing on earth. Money and material possessions come and go but family and those memories last forever.
Bless you for helping your daughter even if it meant financial stress for yourself! Alot of people are quick to judge. Unless you have walked a mile in there shoes nobody really knows how someone got to where they are today.
:flower3:

:lovestruc Hey ... thanks for the support. I've posted your kind words on my bulletin board along with other good wishes from family/friends. It helps to have "support notes" visible on the days I have to fight the depression.
It looks like you have a super WDW trip planned in the near future. I'm jealous! There is nothing more magical than a Disney vacation with "extended" family and/or friends. Some of our fondest memories are chaperoning high school band trips to Disney's Magic Music Days. I think we had more fun than the kids.:lmao: ... and the trip with my sister, her 3 kids and "Aunt Sissy" ... after 20 years we still refer to that visit as the "vacation in hell" (long story ... you have to know "Sissy" to understand!) :rolleyes1 But ... the most special trip of all was last September with my 2 granddaughters:yay:. They'll be going back in September, without us. (DVC members so we'd have "free rooms".) It breaks our hearts but younger DD and her husband spent their honeymoon at Disney World and she's just not ready to go back without him. The "up-side" to it all is that maybe by next year we'll be in better financial shape and the sadness of the last few months will be subsiding.
Celebrate that Princess birthday and cherish your time together :hug:! Those memories will never be taken away from you.:tinker:

jpeppers
06-28-2009, 05:46 AM
I just received the notice from Chase also and my minimum will be going from $150 to $375 a month. I went through a divorce a couple of years ago and since I was being bombarded with the low interest check offers I decided to call and see about consolidating some bills at the 2.9% they were offering (offers I'm still bombarded with). I even asked them at the time if there was a chance they would raise the minimum because I had read about this possibility somewhere and they assured me it wouldn't happen and tried to talk me into utilizing more of my credit limit of $25,000. I have a credit score around 750. I think what they are doing is horrible and almost criminal. I had faith in this company when I took the loan and was totally deceived by them. I was so pissed off when this happened but instead of calling and *****ing I have decided to take it as a positive and tighten the belt for the next year and work to get this crap paid off. It is going to be a very tight year but as soon as I get this paid off I can cancel the card plus the other 2 Chase cards I have (including Disney Visa) and then I will never deal with Chase again.

dvcgirl
06-28-2009, 09:15 AM
I agree.Many on this forum are way too judgemental.No, you shouldn't live way above your means, but without a little fun and relaxation than life isn't really worth living.

Well, obviously we all need to have fun and relaxation in our lives. I just think that there are still a few Americans out there that think you shouldn't live anything close to "way above your means"......or (gasp)....even *at* your means. If you're not living *below* your means and saving and investing for the future, relaxation won't be a part of your future.

Took
06-28-2009, 12:21 PM
Well, obviously we all need to have fun and relaxation in our lives. I just think that there are still a few Americans out there that think you shouldn't live anything close to "way above your means"......or (gasp)....even *at* your means. If you're not living *below* your means and saving and investing for the future, relaxation won't be a part of your future.

dvcgirl, the last part of your statement is the way I feel. I honestly can't really "relax" if I am in debt to any degree (we have a home loan and have had a no-interest car loan, too, at one point). I really am able to relax and and enjoy myself much more if I know I'm being fiscally responsible.

However, I don't have the OP's situation with a spouse whose spending habits are more "spendthrift" (although I hate to label him). I certainly would try to avoid bankruptcy, and, instead, really work on the spouse (with solid numbers and adult-to-adult conversation). I hope the two of them can work together on this. There's a joy from having financial "peace" that is so much happier than any toy can offer, IMHO.

Good luck to the OP,

Took

crisi
06-28-2009, 12:46 PM
Well, obviously we all need to have fun and relaxation in our lives. I just think that there are still a few Americans out there that think you shouldn't live anything close to "way above your means"......or (gasp)....even *at* your means. If you're not living *below* your means and saving and investing for the future, relaxation won't be a part of your future.

My parents are retirement age, and they have friends who are a few years older than they are. Beth and John prove that "wanting it all" "wanting it now" and "willing to live above your means" are not attributes merely reserved for "those kids nowadays." They took expensive vacations. They drove expensive cars. They lived in expensive houses. He was self-employed and hated paying taxes - so he hid as much income as he could from the government. About three years before they were to retire, the audit finally hit. They can't afford to retire - they are almost 70 years old and they owe on their house, they owe on their cars, they owe on their credit cards, and they owe a ton of back taxes.

It IS important that we all get a chance to relax and kick back. As anyone who has done it knows, living at a subsistence level only is soul draining. But think about how hard your grandparents or great-grandparents worked and what their vacations and weekends were like. My mother's parents farmed - there weren't vacations (who would milk the cows) and even on Sundays they needed to work - just less work that the other six days of the week - milk the cows, feed the livestock, gather the eggs.

sk!mom
06-28-2009, 12:52 PM
I agree.Many on this forum are way too judgemental.No, you shouldn't live way above your means, but without a little fun and relaxation than life isn't really worth living.



Absolutely true but fun and relaxation doesn't have to be an expensive vacation that you cannot afford. You can relax and have fun in your own backyard.

I never understand those who respond to these "crisis" threads with "go, have fun, relax." To me, taking an expensive vacation when I was already overwhelmed by finances would be anything but relaxing. It would only increase my stress.

Crisis is in quotes because I don't believe that this OP is really in crisis. She has a relatively small debt and lots of assets that could be sold to reduce it.

minnie1928
06-28-2009, 01:12 PM
If you're not living *below* your means and saving and investing for the future, relaxation won't be a part of your future.

This is COMPLETELY my parents. I am getting ready to spend a week with my mom trying to find her a cheaper place to live. At 63 years old, she has virtually no money saved for retirement. She can't rely on my dad because he is in a nursing home on Medicaid. Mom gets to keep only $15/month of his monthly pension income, the rest goes to the nursing home. She's currently in an apartment and now she has to move again for the 4th time in less than 5 years. She's spent a considerable amount of time during the past 2 weeks crying because she realized that she can't afford her current apartment that she loves and feels safe in.

My parents lived beyond their means my entire life. They bought a house, lived in it for over thirty years. During that time they refinanced the house every time the credit card balances became too much to handle. At the end of the road, when dad became too sick to help maintain the house, they sold it. After 30+ years, they walked away with only $8000 in equity. The house only cost $18,000 when they originally bought it!!

The stress this situation has placed on me and my family over the years has been....a lot. If anyone else is living in this way, please think about the burden you will be placing on your children in the future. I do not financially support my parents (I can't afford to) but the emotional drain is considerable.

sk!mom
06-28-2009, 02:05 PM
This is COMPLETELY my parents. I am getting ready to spend a week with my mom trying to find her a cheaper place to live. At 63 years old, she has virtually no money saved for retirement. She can't rely on my dad because he is in a nursing home on Medicaid. Mom gets to keep only $15/month of his monthly pension income, the rest goes to the nursing home. She's currently in an apartment and now she has to move again for the 4th time in less than 5 years. She's spent a considerable amount of time during the past 2 weeks crying because she realized that she can't afford her current apartment that she loves and feels safe in.

My parents lived beyond their means my entire life. They bought a house, lived in it for over thirty years. During that time they refinanced the house every time the credit card balances became too much to handle. At the end of the road, when dad became too sick to help maintain the house, they sold it. After 30+ years, they walked away with only $8000 in equity. The house only cost $18,000 when they originally bought it!!

The stress this situation has placed on me and my family over the years has been....a lot. If anyone else is living in this way, please think about the burden you will be placing on your children in the future. I do not financially support my parents (I can't afford to) but the emotional drain is considerable.

I feel your pain. We have sent DH's parents a check every month for a few years. They never saved anything for retirement and never finished paying for a home. Their retirement has been living in a small apartment burdening their children. Even with their three children, who are able, chipping in it is a dreary existence. DH's mom passed in April and we will continue to help his dad as long as necessary.

My parents are 10 years younger- late 60's but headed in the same direction. They both still work and will have to as long as they are able. At least they own their home free and clear and can sell it when they are no longer able to work.

I have to say watching our parents has been a lesson for us. They are largely responsible for us having so little tolerance for debt and being determined to be financially secure.

minnie1928
06-28-2009, 02:14 PM
I have to say watching our parents has been a lesson for us. They are largely responsible for us having so little tolerance for debt and being determined to be financially secure.

Ditto. As a child my parents would have me or my brother answer the phone (no caller ID then :scared1:) because collection agents wouldn't talk to kids. I REFUSE to have my kids grow up in an environment like that. I teach my kids about money, not to spend more than you have, to save money for a rainy day, etc.

swissfamilyrobinson
06-28-2009, 02:49 PM
sk!mom and minnie1928 - thank you for having the courage to post your parents' financial troubles. It will surely help those of us who might be tempted to live above our means. It is hard to deny yourself pleasure now for peace later. What eye-opening posts!

TagsMissy
06-28-2009, 03:04 PM
ITA. If I had an $8,000 credit card balance there is no way I'd even be thinking about vacation, Disney or not. My focus would be to get rid of that debt.

I am sorry you are in this sitation OP but people wonder why they are in debt and there are so many people with money problems... priorities need to be set and a vacation to Disney World should be at the bottom. Feeding your kids, having a place to stay and getting rid of debt is what is important. Teach your kids what is right as you lead by example.

BridgetBordeaux
06-28-2009, 04:08 PM
minnie1928,
You have done many a great service by sharing your parent's story. It is not all that unusual and often occurs behind the scenes away from those in their 20's and 30's. My grandparents, my parents, and my DH and I have all lived beneath our means as a method of planning for the future and having a safety net in case of an unforseen circumstance (like a medical crisis).

Just a few days ago, DH had to replace our 27inch TV in the master bedroom. We bought it it 1990. My car is a 2002 and his truck is a 1998. We know that our sacrifices now will pay us dividends in the future.

Don't think we have been roughing it all our lives. We have not. We have owned a very nice boat in the past and as my signature shows, we have visited WDW quite a few times......

richmond282
06-28-2009, 05:40 PM
In a way...in a sad way, many of you crack me up. No one was discussing bankruptcy except Chase. But many of you read that and started to assume that OP was considering that and taking a trip to WDW in the future.

I'm sure OP has unsubscribbed from this thread as I'm about to do. I can't believe the 'holier than thou' additudes. So what that she has $8000 in debt. She had a plan and was making consistent payments. Life doesn't need to be put on hold while she has CC debt. If she has multiple CC, was over her limit, and was still charging then yeah - she's out of control.

CC debt is not the new shame we must bear. Unreasonable spending and begging for a hand out is but not just because you carry one CC debt.

This is the reason that the Dis has it's reputation (yeah it really does) of being an unfriendly place. Too many assume and then just blast opinions.

I'm staying off the budget forum from now on. You all don't play nice.

I agree.Many on this forum are way too judgemental.No, you shouldn't live way above your means, but without a little fun and relaxation than life isn't really worth living.

With all due respect, this is the BUDGET board. You shouldn't post on here if you don't want a budget-smart, money-wise answer. (I think the OP knew that, though.) I don't think anybody who suggested canceling a vacation was being mean or vindictive. If you can't handle somebody saying "cancel your vacation" or "live below your means" perhaps this board isn't for you.

To the OP, I think it sounds like you have taken the first step which is talking to DH about the issue. He needs to understand that he can't just spend whatever he wants on whatever he wants. Now sit down w/ him and make a budget. There are tons of websites that can help you with that. I think you sound like a smart woman and I think you'll work it out (and still take your Disney vacation.) Good luck!

P.S. I have a Chase card too. I'm keeping my eyes on the mailbox to see if we get a letter too.

MrsPooh
06-29-2009, 03:18 AM
This happened to us a few years ago. In January 2006 the credit card companies began doing this. We were way in debt (still are) because of a business partner who took the money, ran and ended up in jail leaving us with bills and we had some major medical issues & job loss all at the same time.

We had six major credit cards with huge balances but we were current because most had $150/month min. payments. We were just getting by and then five of them upped the min. pymts to about $450/month. We barely could pay $900/mth but there was no way we could come up with $2,700/mth.

It seemed very unfair. I know we got into the mess ourselves but they changed the game in the middle.

Just be thankful you're only dealing with this on one card.

MagicalMom
06-29-2009, 07:35 AM
This is COMPLETELY my parents. I am getting ready to spend a week with my mom trying to find her a cheaper place to live. At 63 years old, she has virtually no money saved for retirement. She can't rely on my dad because he is in a nursing home on Medicaid. Mom gets to keep only $15/month of his monthly pension income, the rest goes to the nursing home. She's currently in an apartment and now she has to move again for the 4th time in less than 5 years. She's spent a considerable amount of time during the past 2 weeks crying because she realized that she can't afford her current apartment that she loves and feels safe in.

My parents lived beyond their means my entire life. They bought a house, lived in it for over thirty years. During that time they refinanced the house every time the credit card balances became too much to handle. At the end of the road, when dad became too sick to help maintain the house, they sold it. After 30+ years, they walked away with only $8000 in equity. The house only cost $18,000 when they originally bought it!!

The stress this situation has placed on me and my family over the years has been....a lot. If anyone else is living in this way, please think about the burden you will be placing on your children in the future. I do not financially support my parents (I can't afford to) but the emotional drain is considerable.

When my children complain because they cannot have all of the things that their friends have, I always remind them that their father and I are working very hard to be able to support ourselves in the future without having to rely on them for financial support. Sometimes I like to add that I will consider buy that "way too expensive" item as long as they understand that we will be living with them in the future!

dvcgirl
06-29-2009, 08:09 AM
This is COMPLETELY my parents. I am getting ready to spend a week with my mom trying to find her a cheaper place to live. At 63 years old, she has virtually no money saved for retirement. She can't rely on my dad because he is in a nursing home on Medicaid. Mom gets to keep only $15/month of his monthly pension income, the rest goes to the nursing home. She's currently in an apartment and now she has to move again for the 4th time in less than 5 years. She's spent a considerable amount of time during the past 2 weeks crying because she realized that she can't afford her current apartment that she loves and feels safe in.

My parents lived beyond their means my entire life. They bought a house, lived in it for over thirty years. During that time they refinanced the house every time the credit card balances became too much to handle. At the end of the road, when dad became too sick to help maintain the house, they sold it. After 30+ years, they walked away with only $8000 in equity. The house only cost $18,000 when they originally bought it!!

The stress this situation has placed on me and my family over the years has been....a lot. If anyone else is living in this way, please think about the burden you will be placing on your children in the future. I do not financially support my parents (I can't afford to) but the emotional drain is considerable.

Just wanted to thank you for sharing this. I'm sorry for the stress that it puts on you, I can't imagine. In all honesty, I believe that we're going to have millions and millions of Americans in your parents' shoes in the not too distant future. And it's a topic that we should all worry about. And it's a story that should motivate folks to wake up and take charge of their own destinies.

I really think we're going to see a big shift in family dynamics where we go back to living the way that we did in this country in the early 20th century....with three or more generations under the same roof....simply out of necessity.

dvcgirl
06-29-2009, 08:21 AM
With all due respect, this is the BUDGET board. You shouldn't post on here if you don't want a budget-smart, money-wise answer. (I think the OP knew that, though.) I don't think anybody who suggested canceling a vacation was being mean or vindictive. If you can't handle somebody saying "cancel your vacation" or "live below your means" perhaps this board isn't for you.



THANK YOU! :thumbsup2 And in all honesty, if that poster who complained that "we don't play fair" here.....and that this board has a reputation for "holier than thou".....I'm sorry, I don't buy that. I think anyone who gives constructive criticism is being fair to posters who begin threads about their financial troubles. And also, I find it interesting that the OP is still involved in this thread....clearly, she came here looking for suggestions and maybe a little help. She didn't bail. And maybe, just maybe, she feels a little better.

I see friskykitten here too.....she recently posted her very difficult financial situation....and she stayed very much involved and I think she got the "wake-up" she needed. Her advice is very useful as she's in the middle of this kind of thing herself.

Sometimes in life there really are no words....for example, when someone posts about the loss of a loved one. Sometimes....a "group hug" is all that one can offer, just that small gesture of support is enough.

But when it comes to difficult financial situations....often there *are* answers. And usually the person posting their dilemma is very emotional about their problem as they are in the middle of it....and sometimes it's tough to adequately and objectively solve a financial problem when it's *your* problem. But for the rest of us, it's not emotional...it's a set of numbers and circumstances and very often there are good suggestions and solutions offered.

dvcgirl
06-29-2009, 08:28 AM
When my children complain because they cannot have all of the things that their friends have, I always remind them that their father and I are working very hard to be able to support ourselves in the future without having to rely on them for financial support. Sometimes I like to add that I will consider buy that "way too expensive" item as long as they understand that we will be living with them in the future!

Good for you! I'm in my early 40s and times were different when I was a kid. And my parents definitely did not have the money to give us everything we wanted. But they did set limits with the money that they had. I went to WDW *once* as a kid...and we drove down from NJ and stayed at my grandparents house. Other than that we did a few summer weekend trips....and that was it. Still, I have wonderful memories of my childhood. DH grew up similarly.

And now I can't even tell you the peace of mind that my DH and I have knowing that both sets of parents are all retired and in a sound financial position. There will be other ways that we'll need to help them as they age, and we'd do anything for them. But we won't have to worry about supporting them financially.

PinkRhombus
06-29-2009, 08:55 AM
What I want to say is not directly meant for this poster. But a few months ago someone was talking about how it was perfectly okay it was to keep a balance on a credit card because they had this awesome rate forever.


What is happening to the OP in this thread is the kind of crap that these companies have been pulling for a while...and will continue to pull.

Don't ever get complacent with your debt situation and think that you're getting a good deal from these companies. They don't give a squat about you or your life. They are in business to make a profit. Period.

disneysteve
06-29-2009, 01:23 PM
few months ago someone was talking about how it was perfectly okay it was to keep a balance on a credit card because they had this awesome rate forever.

True. It is fine to take advantage of a great rate, especially 0%, but only if you hold the money needed to pay it off in full in reserve just in case they change the terms and you need to retire that debt in a hurry.

It is NOT okay to take advantage of a low CC rate and go out and spend the money. That's when you may get screwed by a sudden change in terms.

ccgirl
06-29-2009, 01:50 PM
I am one of the ones that had their rate raised to %13.99 from 3.9%. As you can imagine, that is quite a difference. I could close my card to new charges but I am still responsible for the charges on there (understandibly so). When I called, their explaination was that even though I am NEVER late (I have it automatically deducted from my checking as well) it is the people that are not paying the credit cards that are causing this. They said they have to make their money in some way. If you are late on a payment, I believe they can raise your interest rate so I would keep paying before you get a double whammy. Just think of this as the opportunity to pay off your debt sooner. Maybe cut back on optional spending to try to recoup some of the money? I know it is easier said than done but when I was laid off it was really amazing how much we were able to penny pinch and we're still trying to do that now, even though I have been fortunate enough to find another job. It was also amazing to see just what optional meant. For example, cable, cutting back on the driving I do, eating out once a month rather than once a week and foregoing the expensive vacations for ones we could drive to. I would not use any equity you have in your house as a bank either. That is how a lot of homes are ending up in foreclosure now. Good luck with your situation. I try to remind myself that no matter how bad I have it, there are always people out there that have it worse. Those that can't even afford the macaroni and cheese.

ameraumi
06-29-2009, 03:13 PM
I don't know if this was posted before, but here is a site with many stories like those here: http://www.consumeraffairs.com/credit_cards/chase_credit_cards.html.

CalvaryMike
06-29-2009, 06:10 PM
DW and I live a nice financially secure life. We don't have any debt besides mortgage and one car payment. We use our cc for almost everything possible for the reward points. We pay off all our cc bills every month. We have an excellent credit rating. We've also been receiving the letters from cc companies about raising interest rates. But, I really don't care. As long as they don't lower my rewards or charge me an annual fee.

That being said, in this economy we have decided to forego our annual vacation trip this year. We usually go somewhere nice (i.e. WDW, Hawaii, etc...) My job seems secure, but I can't guarantee it and for how long. So, we've cut back on eating out and vacation for now. We've kicked up the savings, car loan payments and we'll delay that trip for now.

ShellyLynn3630
06-29-2009, 08:08 PM
Hi yall, I back. I am still very worried. I have just got to believe that there will be some good come out of this somehow. I have been reading a lot of the post talking about taking care of older parents and such, and we are in that boat too. Now real badly at the moment, but I can certainly see it coming in the years to come. It does worry me, but I really just try to have faith in God on that one, now if I can just do that with everything.:angel:

My husband has ask me about possilby trying to "settle" the amount but I don't think that Chase will settle for that much less. And if they did'nt I really don't see that being worth it. Give me some feedback on that. Thank you. Well back to cleaning the house!

msmayor
06-29-2009, 08:22 PM
Hi yall, I back. I am still very worried. I have just got to believe that there will be some good come out of this somehow. I have been reading a lot of the post talking about taking care of older parents and such, and we are in that boat too. Now real badly at the moment, but I can certainly see it coming in the years to come. It does worry me, but I really just try to have faith in God on that one, now if I can just do that with everything.:angel:

My husband has ask me about possilby trying to "settle" the amount but I don't think that Chase will settle for that much less. And if they did'nt I really don't see that being worth it. Give me some feedback on that. Thank you. Well back to cleaning the house!

If the account is current, there's no incentive for Chase to "settle" the account. You're paying on time and in full, so Chase has every reason to believe they will get their money. Accounts that go into "settlement" are generally those so far behind and carried by folks that are so far in debt that Chase would be willing to take a lesser amount just to know they'll get SOMETHING. Of course by the time this is an option, your credit history is trashed.

cassandrap83
06-29-2009, 08:55 PM
Maybe I'm reading this wrong, but from what I understand this is a program that has been introduced to get Americans OUT of debt. This way the cc companies aren't making all the money on interest, and you are actually paying on the principal.

disneysteve
06-29-2009, 09:19 PM
My husband has ask me about possilby trying to "settle" the amount but I don't think that Chase will settle for that much less.

With all due respect, what planet is your husband living on? Just days ago, he spent $800 cash on a 4-wheeler and also has "Two horses, horse trailor, tractor, trucks, very nice camper, boat, chuckwagon, bobcat, and others, and they are all paid for."

Despite all of this, he thinks Chase should write off the money you guys owe them? That's insane. He needs to grow up and be an adult. Just the money he spent on the 4-wheeler would cover the increased Chase payment for nearly 4 months. And I'm sure selling the camper or truck or boat would probably be enough to settle the debt entirely. No way should Chase even discuss a settlement here.

I'm curious. What was the source of this $8,000 in debt?

Green Tea
06-30-2009, 06:29 AM
If there is a pool of cash available for your husband to buy toys with, why isn't there a few extra hundred dollars a month to make the credit card payment? If you are paying cash for everything, why can't you cover the minimum payment?

ameraumi
06-30-2009, 07:38 AM
There is no reason why they would settle with you at this point.

I have read some people have called Chase and explained having the min payment go up so much will be a hardship. There is a hardship program, I believe it will raise your APR some but it will lower your payments. You might want to look into that.

And if all else fails, you sell a few items to pay off the bill. You can always buy them back later when you save cash for them.

julandkrz18
06-30-2009, 07:48 AM
I too got the letter stating my payment due would go from 2% to 5% and I told them there is no way i could even afford the first payment. They connected me to the hardship dept and I worked out a payment plan. It is a set amount for a set amount of time as well. I can pay extra or early but I did lose my low apr. Only option, they are calling it a balance liquadation program. My card did get cancelled but who cares since I could not afford the higher payment. Price we pay for being in debt in the first place.

Good Luck

wall*e2008
06-30-2009, 08:14 AM
Hi yall, I back. I am still very worried. I have just got to believe that there will be some good come out of this somehow. I have been reading a lot of the post talking about taking care of older parents and such, and we are in that boat too. Now real badly at the moment, but I can certainly see it coming in the years to come. It does worry me, but I really just try to have faith in God on that one, now if I can just do that with everything.:angel:

My husband has ask me about possilby trying to "settle" the amount but I don't think that Chase will settle for that much less. And if they did'nt I really don't see that being worth it. Give me some feedback on that. Thank you. Well back to cleaning the house!


He can settle the amount by selling off his toys and sending Chase an $8K check.

tnmt
06-30-2009, 08:18 AM
See, this is why our payments and interests are going up, people like this. She wants them to reduce the amount she owes so we all pay for it! He needs to sell some stuff to pay the debt. Sounds like you got a real winner for a hubby.

PinkRhombus
06-30-2009, 08:59 AM
If there is a pool of cash available for your husband to buy toys with, why isn't there a few extra hundred dollars a month to make the credit card payment? If you are paying cash for everything, why can't you cover the minimum payment?

Well...if this is the situation OP's family has put themselves in, then I hope it hurts them to try to make these payments because they, obviously, have no other incentive to be responsible.

RachaelA
06-30-2009, 09:09 AM
I just still can't believe he won't return the $800 toy he just bought that he has absolutely no need for. He hasn't learned anything. If he had he would have returned it!

Green Tea
06-30-2009, 09:18 AM
Incidentally I saw a commercial yesterday for a rental chuckwagon. They would bring the thing to your house and pick it up when you were finished. Sounded like a Pod, looked like the back on a dumptruck.

tonilea
06-30-2009, 10:37 AM
OP, I would really encourage you to buy (or borrow from the library) "Total Money Makeover" by Dave Ramsey. Then get your DH to read it!

Even better, IMO, try to take a "Financial Peace University" class. Again, by Dave Ramsey. The 13 week course (one evening per week) costs about $100, but it changed our lives.

Mrs.Reese
06-30-2009, 10:43 AM
This will come off as being well either vindictive or sneaky but I think the OP should just sell her DH toys. Yes your doing it behind his back but if her situation is this desperate and her husband is such a child that he won't sacrifice then it's time he gets treated like a child.

pixie921
06-30-2009, 12:09 PM
never mind ...:sad2:

m&m's mom
06-30-2009, 02:22 PM
Oh my OP! Now you've gone and done it! Tide is definitely turning. :lmao:
Seriously, settling is proposterous. Why should the bank and all of its customers pay for your "toys"?

nowellsl
06-30-2009, 04:28 PM
I really think you're lucky you got higher minimum payments instead of them jacking your interest rate. At least the money is going towards the balance rather than down the drain in interest!

You will be amazed at how fast that balance will go down once you start making that higher payment.

I had about the same balance on a credit card about 5 years ago decided to get out of debt - I paid as much as I could over the minimum at the time and kept raising my payment every chance I got. I went on a serious spending freeze! It was the best thing I ever did! I was even able to pay cash for a new used car last year when my 95 Buick finally bit the dust. And I have more in savings than I ever have. I say suck it up and pay it as quick as you can! Pay it monthly before DH has a chance to spend that money! Good luck!

ShellyLynn3630
06-30-2009, 10:14 PM
I totally agree about selling this sh*t of his. It is just completely out of my hands. And I am pretty decided on not trying to settle, I don't think it would work anyways. That is kinda funny about that poster talking about selling it behind his back, but that would be an immediate divorce. I do know that he loves me, but sometimes I wonder if he loves his material possesions just as much. And that is not what life is all about.

IDoDis
06-30-2009, 10:59 PM
DW and I live a nice financially secure life. We don't have any debt besides mortgage and one car payment. We use our cc for almost everything possible for the reward points. We pay off all our cc bills every month. We have an excellent credit rating. We've also been receiving the letters from cc companies about raising interest rates. But, I really don't care. As long as they don't lower my rewards or charge me an annual fee.

That being said, in this economy we have decided to forego our annual vacation trip this year. We usually go somewhere nice (i.e. WDW, Hawaii, etc...) My job seems secure, but I can't guarantee it and for how long. So, we've cut back on eating out and vacation for now. We've kicked up the savings, car loan payments and we'll delay that trip for now.

We also pay our cc balance in full each month and get the rewards. I read that in a few months when the new rules go into effect, the credit card companies are going to start charging people like us who pay the balance in full each month a $100 yearly fee and/or charge a daily interest rate, so that there's no float time from the date you make a purchase to the payment date.

If that happens, and it seems very likely that it will, I'll open up another checking account with a debit card attached and keep some cash in there so that I can still pay for things online when a credit card is needed. I don't like my main checking account/debit card floating around on the web due to credit theives, so I avoid using that account for purchases online, but would open up a separate account with a Visa debit for that purpose.

The cc companies can then stick it where the sun doesn't shine, because I don't need credit cards. I just use them for the rewards.

robsmom
07-01-2009, 07:19 AM
I totally agree about selling this sh*t of his. It is just completely out of my hands. And I am pretty decided on not trying to settle, I don't think it would work anyways. That is kinda funny about that poster talking about selling it behind his back, but that would be an immediate divorce. I do know that he loves me, but sometimes I wonder if he loves his material possesions just as much. And that is not what life is all about.

Dave ramsey will often tell callers that they have a marriage problem not a financial problem. I think that describes you. Do you have a pastor or someone who could counsel you. If he wants to be the boss make him in charge of all bills. He needs to see this.

crisi
07-01-2009, 09:25 AM
I'm not sure I'd put him in charge of the bills - he sounds like a child. But I do think you need marriage counseling. I think he "hears you" when you talk to him, but that he isn't really understanding what you are saying.

Living with a partner who can always find money for his toys, but isn't interested in paying the bills is a stressful situation if you are not similarly irresponsible. That isn't a good place to be in with a marriage.

Ava
07-01-2009, 11:04 AM
We also pay our cc balance in full each month and get the rewards. I read that in a few months when the new rules go into effect, the credit card companies are going to start charging people like us who pay the balance in full each month a $100 yearly fee and/or charge a daily interest rate, so that there's no float time from the date you make a purchase to the payment date.

If that happens, and it seems very likely that it will, I'll open up another checking account with a debit card attached and keep some cash in there so that I can still pay for things online when a credit card is needed. I don't like my main checking account/debit card floating around on the web due to credit theives, so I avoid using that account for purchases online, but would open up a separate account with a Visa debit for that purpose.

The cc companies can then stick it where the sun doesn't shine, because I don't need credit cards. I just use them for the rewards.
If this happens I'll be really sad - I love my rewards! But it's not worth paying 10+% in interest to get 1-2% in rewards. I may be willing to pay an annual fee, if the amount of rewards I earn in a year is more than the fee, but if they start charging a daily interest rate I'll stop using those CCs in a heartbeat.

Mrs.Reese
07-01-2009, 12:30 PM
It does sound like you need marriage counseling. Unfortunately, I have to agree with many others on this board that it sounds as though you're married to a child. If he would honestly divorce you over stuff, you need some help.

punkin
07-01-2009, 12:49 PM
It does sound like you need marriage counseling. Unfortunately, I have to agree with many others on this board that it sounds as though you're married to a child. If he would honestly divorce you over stuff, you need some help.

OP said he'd divorce her f she sold the stuff behind his back. That's a different story.

nursears
07-01-2009, 11:18 PM
Everyone wants the American Dream but no one wants to pay for it.

You sound like a very nice person, so no harsh feelings intended. BUT, I hope you learn a valuable lesson from this. Rather than negotiating a bailout or arrangement with the CC company, I hope you find a way to make the payments. It is their money after all, they have a right to set the terms. This is a perfect example of how American greed is hurting us all ... from the top to the bottom.

It is very frustrating being someone who plays by the rules seeing others play the victim when asked to live responsibly. I'm tired of paying the price and seeing my benefits be cut because of those who abused theirs. The day is going to come very soon for all of us when we are forced to live in a more conservative way, but until then, I really hope people will take the initiative on their own. Good luck.

ShellyLynn3630
07-02-2009, 06:27 AM
Hey, I have got a balance transfer offer from citibank for 1.9% until like July of next year and I may just take them up on the offer. The only thing is I wonder if they will hike their minimum payments as well. Would do me no good if they did. What do you think?:)

Green Tea
07-02-2009, 06:40 AM
Hey, I have got a balance transfer offer from citibank for 1.9% until like July of next year and I may just take them up on the offer. The only thing is I wonder if they will hike their minimum payments as well. Would do me no good if they did. What do you think?:)

Rather than thinking of ways to make the payment lower, you ought to find a way to make the debt lower-by just getting it paid off.

wall*e2008
07-02-2009, 07:46 AM
Hey, I have got a balance transfer offer from citibank for 1.9% until like July of next year and I may just take them up on the offer. The only thing is I wonder if they will hike their minimum payments as well. Would do me no good if they did. What do you think?:)

Did you read the find print on your Chase letter? It says they have the right to REFUSE a transfer check.

wall*e2008
07-02-2009, 07:50 AM
OP said he'd divorce her f she sold the stuff behind his back. That's a different story.

Nobody should ever sell their spouses belonging behind their back and a nobody should be buying toys without the input of thier spouse.

punkin
07-02-2009, 09:03 AM
Hey, I have got a balance transfer offer from citibank for 1.9% until like July of next year and I may just take them up on the offer. The only thing is I wonder if they will hike their minimum payments as well. Would do me no good if they did. What do you think?:)

I think there is probably a balance transfer fee associated with that offer-somewhere around 3% probably. Unless Citi waives the transfer fee (or there isn't one to begin with), this is not a good deal for you.

Nobody should ever sell their spouses belonging behind their back and a nobody should be buying toys without the input of thier spouse.

Agreed!

eliza61
07-02-2009, 09:16 AM
Nobody should ever sell their spouses belonging behind their back and a nobody should be buying toys without the input of thier spouse.

Absolutely right!! This speaks of so many other issues, way beyond debt.

Op,


Credit card companies are in business to make lots of profit. lately they have been ruthless & devious (IMO) about it. when the new regulations go into effect, they will devise other ways to make profit.
You are not "Selfish, self centered, greedy" or any of the other guilt trips people insist you must be if you have cc debt. You could simply be a good person who made foolish mistakes. EVERYBODY & I do mean everybody makes a mistake if they live. The only way you get out of life without making a mistake is to die young.

I try to learn a lesson from every mistake I make. I never was a person to read all that crap banks sent in the envelopes or on their website. Now I read it like a hawk so if I have to borrow money or use credit cards for some thing, you better believe I pay attention to the rules.

One rule I know remember religiously: Banks are sort of like the casinoes, the house always wins. I too have cc debt, I wascomfortable with the level I have but I don't like the business practices of the banks or this latest economy so I'm paying off my debt and not playing the game any more.

PinkRhombus
07-02-2009, 09:40 AM
Does your husband not know the financial situation you're in?

How could someone see this and...

"This column is our income....this column is our bills.....this is what we owe......this is how much we're short."

and then think "Great. I'll go buy an ATV"

I'd throw this back on him. Tell him that HE needs to be the one figuring out how to dig you out of this mess.

crisi
07-02-2009, 09:53 AM
Does your husband not know the financial situation you're in?

How could someone see this and...

"This column is our income....this column is our bills.....this is what we owe......this is how much we're short."

and then think "Great. I'll go buy an ATV"

I'd throw this back on him. Tell him that HE needs to be the one figuring out how to dig you out of this mess.

I suspect he isn't a numbers guy and that "we make good money" is all the justification he needs for his toys. That's why I'm actively discouraging that line of thought. That presenting him with numbers is going to make him become defensive and suspicious about where it all goes.

I had similar issues with my first husband - and smart man though he was - the idea that one could RUN OUT of money was alien to him. And being disciplined about money was not in his nature. Putting the bills in his hands just meant he didn't pay them - which means I had no car insurance when my car got stolen

To me, giving him responsibility when tied to him by marriage is like tying yourself to someone who can't swim and throwing them overboard and seeing if they learn. You need to untie yourself first. Or teach them to swim. Or just try very hard to get to the other end of the lake without either of you falling in the water.

Green Tea
07-02-2009, 10:11 AM
I have never heard someone mention the "we make good money so...." trap before. It is really quite a smart thought of why people get in over their heads. If someone thinks they make good money, then they should be able to have what they want. But making a good income, doesn't mean you have limitless money. It is a very smart point and I'm glad it was mentioned.

Green Tea
07-02-2009, 10:15 AM
OP. Maybe you can work with your husband to really assess what his NEEDS are for your property. Does a chuck wagon need to be partnered with an ATV vs a 4 wheeler, vs whatever other small vehicles? Would his pick up truck cover all the needs? Or would one off road vehicle be able to do the work of 4 or 5? Have him assess the need of each of the things and see what you could get rid of. That money from selling things goes all to Chase to pay off the $8K. Then you are living on a cash basis, right? You have zero other debt you say?

abeyst
07-02-2009, 11:26 AM
It will be hard at first to pay that 5%, but look at it this way: You'll be paying down your balance that much faster, so each month the 5% will be less. (5% of 7k or 6k is a smaller payment than 5% of 8k) Do what you can to lower other bills/debt (cell phone, cancel house phone, downgrade cable/internet, downgrade insurance, etc.) so you can pay the 5%, and before you know it the minimum balance payment will be small again.

It's tough, I know, but they're forcing you to pay off your cc even faster. So that's good!

rumrunnergirl
07-02-2009, 12:27 PM
.

AlternateEgo
07-02-2009, 01:28 PM
I have a question before I offer up some advice.

Your hubby suggested you speak to Chase about a "settlement" offer. Well, even if they said, "We will settle for $7,000." Do you have $7,000 to settle? Or any amount that you can pay?

Here are my suggestions:

1. Pay off as much as you can. Not just your minimal balance. If you have $400 extra dollar this month, put half into savings and the other half apply to your balance.

I think most people are getting upset that you can't afford the additional money and your hubby goes out spending... but if you just lump a payment of $400, you payment is going to get lower. And a lot faster than making the minimum monthly payment.

2. Yard Sale, eBay, auction... whatever. Get rid of what you don't need. You could even sell an acre of your land.

There are plenty of places to find the money. You are going to have to sacrifice one way or another. Either lets find something we don't need... or we are going to scrimp for change.

3. Create homemade meals. (I don't know if this really effects you)

Don't eat out at restaurants. Make things to take with you for yours and hubby's lunches. Instead of taking the kids out for icecream, make sundaes at home. Instead of getting popcorn at the ballgame, take a ziplock with a handful of chips.

4. Use coupons to purchase items.

Good grief, so you know the amount of people that survive off coupons? Its amazing! You can stretch your food/household budget at least by 50%. If you don't know how to do it, there are plenty of free sites, offering advice and posting deals.

5. Get rid of the extras...

Lower your satellite bill by eliminating the extras, or go without. Lower your minutes on your cell phone ( don't expect you to go without this) Get rid of home phone if you have one (and have a cell). Eliminate extra miles on your car, this will save gas, wear and tear, as well as how often you need an oil change. Change your thermostat one or two degrees to save on electricity. Turn off lights when you don't need them. Wash clothes with cold water. Hang to dry if you can. Don't leave anything on while not in use (computers, tv). Every little can add up.

And last... I want to remind you that no advice is going to worth a dime, unless you take it.

nowellsl
07-02-2009, 01:35 PM
It will be hard at first to pay that 5%, but look at it this way: You'll be paying down your balance that much faster, so each month the 5% will be less. (5% of 7k or 6k is a smaller payment than 5% of 8k) Do what you can to lower other bills/debt (cell phone, cancel house phone, downgrade cable/internet, downgrade insurance, etc.) so you can pay the 5%, and before you know it the minimum balance payment will be small again.

It's tough, I know, but they're forcing you to pay off your cc even faster. So that's good!

Better yet, keep making the higher payment until it's paid off. Once you get used to it and budget for it, it will be easier!

AlternateEgo
07-02-2009, 01:42 PM
I forgot to add, but it looks like someone has... call around and get better rates on your insurance. Be sure to put everything on the same insurance policy. It will keep your rates a bit lower.

GoldieSaysMeep
07-02-2009, 02:27 PM
.and yet you spell/articulate better than most of the DISers:goodvibes



:rotfl: This actually made me laugh out loud.