Just read what my credit card company is going to do to me!!!!!!!!!!!!

[ShellyLynn3630]

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]

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]

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]

Any chance you can get a home equity loan and cancel your Chase card?

 

[ShellyLynn3630]

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]

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]

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]

File bankruptcy for $240/month?

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]

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]

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]

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]

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]

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]

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!

 

[HeyIt'sMe]

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]

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]

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]

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]

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]

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!