Why don’t you go to the Federal Reserve’s site

Why don’t you go to the Federal Reserve’s site and see what the current rate for loans to banks is? That gives you a ball park figure. I would ask for that rate even though you will not get it.

I would climb to what is accepted for good credit risks at a national bank, like Citibank. I was taught my senior corporate law partners to ask low, ridiculously insane low. I could not understand why but I trust their judgment. I don’t know the current rate because I had to default which is one of major tragedies of my life. I don’t believe in credit at all. Not even for a car. The good old fashioned way of saving for it is sobering.

Seems to be the case here too. I was thinking if I did that, the interest and all would be locked into a figure and just left at that.

I like the other thing I read,”Get mad enough at them and pay them off more quickly. Anger is a good motivator to getting out of debt” or something to this effect. I have to agree.

Yes, get mad and pay them off! I have been here since June 4th. I have online bill pay. Everytime I get an extra $8 or so, I just send it to them. I tried to get my Discover down with the interest rate. I was at 17.99% and on a payment plan for 6 months.

Now I am off the plan, the interest rate jumped to 25.99%. I called and they said they had to send me a form to sign to get the rate lowered. I called two days later and got it to 23.99%. I am mad as heck to them. My Citi is 30%. I called and the sent me a letter and said I was late in Sept 2004. So I am at the default rate. They won’t budge. The hell with them. I am just paying them off one by one with the debtsnowball. Exxon is gone sice June 4th. Now Boscov is going to be attacked. I do not know what else to do. Guess this is the right measure. Imput is appreciated.

And also make sure you state in the certified letter “at my request” please close my account and you better make dang sure it shows at my request on my credit report.

Prior research is the key to successful negotiations

Prior research is the key to successful negotiations. I would check my state rates and see what are the lowest and highest rates issued for your type of card (Gold, Plat, etc). Bankrate.com is a good start.

That’s true, all the ‘cut it up’ advise is already done here at my place. But this brings to mind another question: If, for example I do NOT plan to use the cards again, what WOULD ‘closing’ the account do? This is to say, If I could get the Juniper people to go back to the lower interest rate, and then I close the account out, only paying on it, would this help? They couldn’t change the interest on me again later, could they?

I found out yesterday when my fella’s dad was over for Father’s Day that (according to him) his wife who died back almost 9 years ago, was STILL in his report, even thigh the cards were paid off, they were still on his report too because he never ‘closed’ the accounts she had.

I know when I closed an account at MicroCenter, the payments remained the same for the rest of the payoff, but I was able to sell some Machinists tools and pay it off very quickly. I have a Martin Guitar that has been loved and well used for work from 1974 (I’m fifty now, and gigs aren’t in the offering much anymore, so I’m researching about selling it now. I’d rather get the money, and have it continue to be played by someone else).

But am wondering if that ‘closing the accounts’ would help get at least 2 of her three or four cards down to a dull roar?

Every thing I have read says that it is very important to your credit rating NOT to close an account before you pay it off. Wait until it is totally paid off – then close it. But not before.

Closing the account does a few things.

  1. You can not use it. You would have to go through the application process before re-opening the account.
  2. You have indicated to them that you do not intend to charge anymore to the account and may be in a position to lock in that rate – see below.
  3. You tell the same thing to the Credit Reporting Agencies.

It does NOT prevent them from raising the rate if you violate their policies, i.e. late on one of their payments or someone else’s – see below. Nor does it prevent them from raising the rate as part of their normal review, but if you pick one that guarantees a single rate for the life of the balance transfer, then they can only raise it if you violate a policy.

Why did I say someone else’s? Some cc have written into their policy that if you are late on ANY Credit, then they can raise your rate. Example, you are late with a payment to AMEX, then CHASE can raise your rates.

Not buyer beware but borrower beware!

I understand your question

Dave Ramsey has addressed this question on his radio station.

You need to know what the average interest rate is on each of those cards as well as what other cards are advertising as their normal rate – do not use promotional rates. Then have your husband call and ask to have the rate lowered to the norm. If he does not get a positive response, tell them that you have no alternative then to transfer them all to another account.

If that threat does not work, walk up their food chain (supervisor) as far as you can. If they do not follow through, find another company that will play ball with you. Transfer the debt, close the old account, and do not charge anymore to the new account.

I have done this and they usually will lower it back; although I did not have any tied to prime. I have also transferred everything into a single low interest rate account and then immediately closed that account and set-up automatic payments. Now, before I get barraged with – never, ever, ever give them access to you checking account, let me explain. The cc was with my credit union and was already tied to my checking account. They could not take more than they were allowed to. Any problems, one call was all it took.

A lot depends on your credit standing. If you still have good credit (just too much of it) you have more options. If you have bad credit, your options are limited.

While I still had good credit, I was able to get 5.99% by calling the companies and telling them I had been offered a year of 5.99% on all balance transfers to a new card. They lowered my card to the same to keep my business. (BTW – the new card offer was the truth.)

I’m sorry I didn’t mean for you to take it that way, You can ask for 8.99 or even prime. You can even close the accounts and say you want to pay them off as fast as possible on a payment plan, say $xx amount for 2 years/6 months or faster, you can do what ever you want and can get away with.

I just wanted you to realize the reason the APR’s are going up is because what is on the other cards. Alot of people don’t know that if they are at the max limits or raise limits on the other cards you run the risk of all of you APRs going up, good on time payer or not. And as we all know they got you and keep reeling you in, one offer after another.

Dave says NO CREDIT!

So if you want to follow Dave you gotta cut up those cards. I had to change my way of thinking because of the brainwashing throughout the years. The cc companies have us thinking we can’t do without them. But we can.

Doesn’t quite look like you’re getting the answers you want. I think I’m reading this as you aren’t using your credit cards anymore, you’re just trying to negotiate with the credit card companies to lower your APR. Is that right? So all this advice about not using credit cards would seem pretty pointless…

My suggestion is to look at what the national interest rates are and start there. It doesn’t matter if you qualify for the lowest APR or not, the worse they’ll do is tell you no. But it begins the negotiation process. I believe that’s the starting point. If you have a good payment history with them, they may approve it, and if that’s the case, it’s beneficial to shoot for the lowest you can.

You said you have 3 credit cards, I would concentrate heavily on paying the highest interest rate off first. If there’s enough room on the lowest interest rate card to consolidate them, that might be an option. In that case you could even request an extended line of credit just so you can consolidate them into a smaller interest rate and pay them off faster.

I hope these give you some realistic ideas on ways to move forward. I commend you for taking the steps to acknowledging an debt problem and looking for helpful solutions.

AGAIN…I know we have debt. I know what Dave says.

Is there anyone out there who can answer my question, and not give their own version of what I already know?

I want to lower the APR, not to use the cards, but to get them paid off faster.

This is a tough one. I would have the hubby call and ask for a 12% APR. If they won’t wiggle even a little on the percentage (even Dave says) its ok to surf the balance to a card with a lower APR (though I wouldn’t do the 0 then up to 20 card) Heck even getting a percentage or two will make a significant difference in what goes to prinicple. And just remember if you can’t get them lowered just decide to get mad at them and pay it off quicker. Being angry is the best motivation to getting out of debt. And the creepy, teetering on criminal, credit card companies make me super angry especially when they won’t work with you!!!! Save up a little emergency fund as quickly as you can then cut up them evil plastic cards.

I will be keeping you and your family in my thoughts and prayers. Good luck to you keep us posted!

Credit Card APR – What’s acceptable?

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.