I am wondering – we don’t qualify for the lowest APR, but some of our cards have crept up (thank you FED for raising int. rates) and some are over 20% now….24.3%, 25.95%, 21.9% …. my hubby is the primary cardholder, although I handle all our bill paying, so he will need to call the banks. I am going to ask him to request a lower rate. Hubby had a bankruptcy that just came off his credit report this month and other than that, all of our bills are paid on time. We just have a mountain of debt (again). He has cards in his name and I’m a user, so they show up on my credit report too. Those total about $24k and then I have some card debt, about $4k that are solely in my name. I had a bankruptcy myself two months before I married him, and it’s now been just over 7 years, so my credit isn’t the best either.
We have talked about a plan to get out of this debt on our own, because there are no other acceptable options. My first goal is to get us where were we aren’t using the cards (except for emergencies) and putting every extra $ on them like Dave Ramsey recommends.
A first step is to get the interest down, but what is a reasonable interest rate to ask for when he calls? There are others that are in the 14-19% range, but I’m not too worried about those right now. He just got an offer from Chase for 0% until March 2017, then it goes to 20.99% after that. I thought maybe he could use that offer as leverage to get the other banks to lower their rates.
Please offer your thoughts on rates and how best to negotiate.
Your rates haven’t crept up because of the FED, your rates have crept up because you have to many cards with to much on them. It doesn’t matter if you are on time, if you pay more than the min payment, bottom line you need to cut the credit cards all up, you need $1000.00 in the bank for any emergency, if you must keep one put it in the freezer, and start paying them off smallest to biggest. You don’t have a APR issue you have a debt issue, and at least you know that now. Good Luck.
PS if your name is on the card, primary or not, you can talk to the companies on behalf of both your husband and yourself.
You know, I appreciate you responding. However, this does not answer my question, and I don’t find it helpful. This feels a little condescending, as we both know we have a debt problem, or I wouldn’t be on this support group. Stating the obvious doesn’t feel supportive, which is what I thought this group was about. It took a lot for me to come out and admit and put into writing the situation in which we find ourselves. By the way, the APR on the 3 cards I mentioned ARE tied into the prime rate, so they actually have crept up partially due to the interest rate going up over the past year. We were able to get one of our card companies to lower the rate to 14.90 a few months ago, which was the original rate we had with them.
My question was and is…. “what is a reasonable amount to request for APR when negotiating a lower rate” which means more of our payment goes to principal. We have started lowering our living expenses as a part of our master plan.
By the way, I have tried talking to the card providers that I am a user on, and unless my husband has given them permission to deal with me, they refuse to discuss any changes to the account.
If anyone else has any helpful suggestion about where to start in lowering APR as part of the overall payoff plan, I would appreciate it.