Watch out

[Amelia]

I am one of those unfortunate souls that had to take out loans when my husband asked for a divorce. At the time there were great low interest loans to be had. Recently the institution I have a loan with recalled the low interest rate (which they can do at any time as per the fine print) and instead reverted them all to a regular 29.9% rate. ACKKKKKKK I think it's fair to say that the old adage "The devils in the details" really applies here.

[rush4hire]

Well what institution was this? If they do things like that, no one should trust them ever again and they should lose their business and go back to flippin' burgers.

Trust is everything.

[cricket]

As long as it was in the initial contract, the institution is wholly within their rights. Nothing dishonest about it.

[Amelia]

I'm just point out that this is in direct relation to all the other credit problems our system is having. So anyone else out that that has an outstanding loan, watch out.

[Woody]

Amelia ... I am so sorry to hear this. These are tough times. What are you going to do? Surly you can't pay that high of interest rate? Soon we will have a nation that can neither buy nor sell if the bail out is not accomplished.

[rudywoofs (Pam)]

I had a credit card that raised my interest rate to 29.9% - all legally, of course. I called them though, and told them I thought it was usury. They reduced the rate back down to the original - which wasn't all that great to begin with (19.9%) and told me they were closing my account. That was fine with me since I wasn't using it anyway - but I still have to pay off the balance.

[Woody]

Sometimes the terms state that if you are ever late with a payment ... even only one time .... that you will be charged the higher rate.

But, like you did Pam ... often times if you contact them ... they will reduce it for you if you ask.

[phkrause]

I had a credit card that raised my rate plus cut the amount that I could charge because I was late to another card. When I called them they would not lower the rate. So I transfered what I owned to another card. And canceled that card.

pk

[Nan]

And I thought credit card rates in this country were scary, I have not heard of any up near 30%. I think most are in the high teens.

Amelia, I hope you can find a way round your dilemma.

[CyberGuy]

I had a credit card that raised my rate plus cut the amount that I could charge because I was late to another card. When I called them they would not lower the rate. So I transfered what I owned to another card. And canceled that card.

pk

I have read that whenever you tranfer balances to another credit and or when you cancel a credit card your credit rating takes a ding meaning that they your credit rating is reduced. Not fair but that is how they operate.

[CyberGuy]

And I thought credit card rates in this country were scary, I have not heard of any up near 30%. I think most are in the high teens.

Amelia, I hope you can find a way round your dilemma.

I had one of my credit cards go from 16.9 percent to 24.9 percent. I am paying off the whole balance as I have the funds now to do that. I am not using that credit card again.

I have read that with the credit crunch that credit limits are being lowered and if you do not use a credit card it will be canceled on you. Maybe that is a good thing for many of us with too many credit cards.

[Neil D]

I was talkin to my realitor last week...I had made an offer on a house, and I did not get the house....However, in our discussions, she said that, to make your credit rating go up, to pay your credit card twice a month. The total will still be the same and the credit checks do not look at the amount that is being paid.

So, if you have a credit owed of $1000 a month, and the minimun payment is $50 dollars and you make the commitment to pay $140...just divide it in half, and pay $70 twice a month. The result is that it looks like you are doubling up on your payments [which you are.]

[CyberGuy]

No I go one better. If the minimun payment is 50 I pay $500 once a month. I figure I will have my credit cards paid off by the end of 2009. From what I read credit card interest will go up and credit card limits will go down and unused credit cards will be cancelled. I am prepared for that. I will keep about three credit cards open and paid off and keep one credit card with any balances to be paid off. If they move the interest to high I will move it to a lower interest credit card all the while paying the balance down.

Looks like cars interest rates are 10 percent even with good credit. Down payment are $3000 for a car now. If you can pay cash for a car or half the balance all the better.

[Neil D]

I was talking about your credit rating. Those people who check your credit cards look at how many times you pay on your credit cards but NOT HOW MUCH. So, by paying twice a month, it looks like [and they assume] that you are making 2 regular payments.

So, go ahead and pay your %500/month, but to increase your credit rating, pay $250 twice a month...

Your way will NOT raise your credit rating...or at least, it doesn't hunder your score. It shows that you are making payments and you are doing so on time. It doesn't tell how much you are making, only that you are making payments.

But to make two payments, it looks like you have extra income, and that you are making at least minium payment twice, which means that you are actually making progress on your bill.

[Woody]

Originally Posted By: pkrause

I had a credit card that raised my rate plus cut the amount that I could charge because I was late to another card. When I called them they would not lower the rate. So I transfered what I owned to another card. And canceled that card.

pk

I have read that whenever you tranfer balances to another credit and or when you cancel a credit card your credit rating takes a ding meaning that they your credit rating is reduced. Not fair but that is how they operate.

I've heard just the opposite. Having too many credit cards on record that you are not using just makes it look like you have too much credit so the banks figure you have too much potential risk. So, get rid of those credit cards you are not using.

[phkrause]

I think that you are right. that's what I have also always heard.

pk

[CyberGuy]

Originally Posted By: CyberGuy

I have read that whenever you tranfer balances to another credit and or when you cancel a credit card your credit rating takes a ding meaning that they your credit rating is reduced. Not fair but that is how they operate.

I've heard just the opposite. Having too many credit cards on record that you are not using just makes it look like you have too much credit so the banks figure you have too much potential risk. So' date=' get rid of those credit cards you are not using. [/quote']

Except for one small point. People have had those credt cards for years even decades. I have some credit cards I have not used in 10 years and they have not been canceled yet. I expect them to be now that the credit crunch is underway. No loss if they are canceled. I do not need them anyway.

[LifeHiscost]

regular 29.9% rate. ACKKKKKKK I think it's fair to say that the old adage "The devils in the details" really applies here.

Amelia, here's a couple of url addresses that might prove to be helpful, probably depending on the amount of indebtedness.

http://www.freedomfinancialnetwork.com/c...reduce%20credit

http://www.creditadvisors.org/index.asp?ref=google2&kw=reduce_interest

I understand that there are some government institutions that will offer help in this field also, with little or no extra cost to you. Be extra careful of any private institutions offering help. Ask any questions that establishes whatever costs might be related to a contract. Then insist on a sentence that specifically states there will be no extra charges beyond what's plainly written before you sign on the dotted line.

Pray a lot. Especially for patience to think things through. I like this promise___

"If any of you lacks wisdom, you should ask God, who gives generously to all without finding fault, and it will be given to you." James 1:5 TNIV

Blessings!

[Amelia]

Thank you LHC. I have been praying alot. I have several financial situations facing me aside from this credit one. It's just the nature of the beast in the world at this time. I praise God that I still have employment and have been able to meet all my debts on a monthly basis. Not too worried about the eating end of things. I have fat to spare. teehe

[Neil D]

Dear Lord,

If ever there was a time where you wanted your people to be debt free, I think now is the time....Could you arrange it for one of us to win the lottery and could that person give most of the money to us to help us out of our debt?

Thanks....I know, it's wishful thinking....