Increase in limit....

iVillage Member
Registered: 04-30-2003
Increase in limit....
20
Mon, 12-06-2004 - 1:49pm

At first, I thought this was a bad thing.....but, I started to think....and I was wondering your opinion on this.


I have one card that has $7k on it with 25% apr. I plan on paying off the card that just got the increase ($2k @ 14%) and another one ($1k @ 13%).


Would it be smarter to concentrate on OTHER cards that I have (I have like another 5 or so), or should I start doing the "transfer" game? As in transfer say, $3k to the 14% card and 1500 to the 13% card and pay those off, and keep transfering from the $7k card until the balance is paid off..........


and leave my other cards just where they are (pay minimums, but get rid of that 25% card)?


ugh. lol. I never know what is the best route. I mean, at least that is 10% difference.


Any suggestions? Your thoughts? Did I totally lose you?





my pet!

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iVillage Member
Registered: 02-19-2004
Mon, 12-06-2004 - 2:04pm
What are the balances and APR's on the other 5 cards? How much do you have each month to put towards your debts? They key is to see how much you'll pay in interest and how long it will take if you pay different one's off first. But it's hard to say without knowing your other balances, APRs, minimums and amount you pay each month.

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iVillage Member
Registered: 03-28-2003
Mon, 12-06-2004 - 2:18pm
Have you tried calling the bank that is charging you the 25% interest and telling them that if they wish to keep your business then they will need to make your rate a bit more competetive? i would try that first, because I've hadd cc companies lower my interest rate on the spot, and none of my cards were over 14% in the first place. The highest rate I have is 9.9%, and i feel like I'm getting ripped off. If you do decide to transfer your balance, and that may be a very good idea for you, watch out that balance transfer fees do not eat your savings. Good luck. Heather
iVillage Member
Registered: 04-30-2003
Mon, 12-06-2004 - 4:40pm

Well, I could do a snowball chart, I have downloaded that, but the hard part is that I'd have to adjust it EVERY month to accommodate the transfers, versus just putting them in.


As for all the balances and stuff, ugh. Do you REALLY need me to list them all out? Because I am not getting rid of them in a specific order (like highest balance, or highest apr), its' in order of importance.


I guess I was wondering if anyone thought it'd make an impact, otherwise, as I said above, I'd have to do the snowball chart, and change it over and over again to figure out the accurate time




my pet!

iVillage Member
Registered: 04-30-2003
Mon, 12-06-2004 - 4:42pm

For sure I will see what the balance transfer rates are. That or I may just "purchase" the debt. Meaning, using my card to pay off debt, so the apr is lower.


I have talked to them, they put it down 1% and said to call them in 6 months to go down more, they can only change it every 6 months. And during that 6 month time, it went up another 3%. so, down 1, up 2, down 1, up 3, down 1, up 4. Ah, you get the point. I quit asking after they raised it to where it's at. Cuz if they put it down say, a few %'s, they could just raise it up again HIGHER and I can't do anhthing for another




my pet!

iVillage Member
Registered: 02-19-2004
Mon, 12-06-2004 - 4:57pm
No, you don't have to list them all. I have a worksheet all put together (not a snowballing chart, I don't know what a snowballing chart is) and could figure it out for you in about 15 minutes if you wanted to list balances, APR's, minimums and the amount you pay each month. But you certainly don't have to. If you do, I can tell you how much it will cost you and how much faster you could pay them off by doing it in various different orders.

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iVillage Member
Registered: 03-28-2003
Mon, 12-06-2004 - 5:11pm

so, down 1, up 2, down 1, up 3, down 1, up 4.

That sounds very shady to me...I would transfer the balance whatever it takes and then just close this card completely!!! Usually, when cards change their terms, they give advance notice so that you can opt out of the changes. Unless you are late on your payments, it doesn't even sound like what this company is doing is legal!!!

iVillage Member
Registered: 04-30-2003
Mon, 12-06-2004 - 5:15pm








my pet!

iVillage Member
Registered: 04-30-2003
Mon, 12-06-2004 - 5:22pm

Oh, they announce it. It's like this. "you can accept these terms, but if you don't, you are stuck with your high rate, and that's that, no changeing it ever again" and then I don't, but then I ask them to put it down, and in that 6 months, it goes back up. I should've shut down the account, and NOT believed them about it going up again....when it was around 18%. kicking myself in the butt.


BTW, it's MBNA, and we ALL know how shady they are. They did send something out this time, and again, I called to find out how much it was going to go up and if I could lower it. They said at most 2%, um, mine went up about 5%. And nope, I can't lower it. They refused. Not cuz I was late, but because of my "high limit". It's maxed out.


So, while it's maxed out, I cna't do anything. time for me to close it, but that will lock in that lovely 25%.


Thoughts? fight it more? or jsut close it and lock in what i have before i hit 30%?







my pet!

iVillage Member
Registered: 03-28-2003
Mon, 12-06-2004 - 7:05pm
I guess I would transfer as much as I could off of that card, so that at least they would not be making so much money off of you!! Sheesh! Its sort of a matter of principle thing. Maybe then they's panic and lower your interest rate? But then, I would still close it, just because you know their history. MBNA is shady...but they are one of the ccs I've never really dealt with because their terms never did seem all that great. I noticed a lot of your balances are relatively low...any wiggle room? Maybe you could ask for a credit line increase from one of the cards you've been with and have a good record with...just explain you want the money to transfer a balance over...hey, its worth a shot. I remember back about six years when all of our ccs were 18-20% It took a few years, but now the companies fight over us and we get really good rates. Maybe you can get them interested in competing for your business? You can call to close some of your accounts (which menas you'll have to pay off under current terms and will not be able to use the cards for new purchases anymore), and chances are they'll ask you why, and you might be able to get a better deal. But always ask for a supervisor, that way the person you are talking to won't be looking at a script, and it shows you mean business!! Again, good luck!
iVillage Member
Registered: 04-30-2003
Mon, 12-06-2004 - 7:23pm

Thanks for all the info. With most my cards, the amounts are low, but so are the limtis. All those cards are pretty much maxed out, and I have so much debt, w/o enough income that I don't know if I can get an increase. I don't want to ask as if they deny me, it'll show on my credit report. So, for the most part, I don't try to do anything. lol. Except lower the interest rate, which they don't do, cuz my balances stay high and don't go down.


I think I'll have more to negotiate when I start my whole pay off plan, which will be coming into effect in Dec/Jan. Yay!


I'll keep what you wrote though in my files of "things to do for money stuff". =)







my pet!

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