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

[Shelly F - Ohio]

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]

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]

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]

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.

That article is from 2005.

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

 

[EthansMom]

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]

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]

EXCUSE ME !!!!!!! 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.

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.

 

[crisi]

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]

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.

 

[dvcgirl]

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]

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]

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.

Well said!

 

[crisi]

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]

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]

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]

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.

 

[ShellyLynn3630]

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]

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]

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]

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.