Internet's first get-out-of-debt community - 134,000 members

Stupid · Posted: Wed Jul 11, 2007 3:05 pm Subject: Credit Card Debt Help.

I have a huge amount of credit card debt, $70,000. Yes, you read that right, not a typo. This is all of my debt, no car payments, house payments and only a few other bills.

I was making more than the min. payments, now I'm not going to be able to make even the mins any more. The reason is this: the one card, Citi, I had 34,000 on with a 2.99% rate. I went online to make my payments as usual and my account was locked. It said that my account was reported for possible fraudulant use or theft and was closed. It also said that everything was transfered to a new account number and that I would recieve that info in the mail. I was worried of course and called the CC company. I was told the same thing as I read online. That my account was transfered to another and when I got my new info in the mail I could check the activity to see if anything was on there that I didn't use it for. And I could then make payments again when I recieved the new info. So, I waited about 10 days until it showed up on a saturday. While I was waiting my payment was due for the account. I called saturday and made a payment over the phone. I asked the operator if this would effect my interest rate and if I had to pay a late fee. She said she could waive the late fee but would have to redirect me to another person for info on the rate. The next operator tells me my interest rate had gone up from 2.99% to 32.31%!!! WTF?? Then in very broken english he told me I could have my account reviewed and since I'd never been late or missed a payment that they would probably give me my interest rate back. I was calmed down until I got a letter in the mail again saying my account had been reviewed and that they were sorry but couldn't lower my rate but, if I made all my payments on time they would review it again in 6 months.

Has anyone heard of a company doing something like this before? There was no fradulant use or account theft, there was no abnormal activity on the account. I believe they found a way to make some money off people with large debts and low rates. I refuse to pay $1,000 a month in intrest. Though I just made my second payment. But won't be able to make the next one. Its way past time for me to get my finances together and under control anyway. I need help, what are possible options?

Posted: Wed Jul 11, 2007 5:51 pm Subject:

I would opt for a debt settlement78 program in a situation like this. Since you are expecting to default in your payments next month and your creditors are wasting no time in adding interests and fees on your account, you should speak with a debt settlement company and get the negotiations done for you. A good settlement company will be able to reduce the debt to half or even lower.

Noda X. Pert

Your debt went from $34,000 to $70,000 because of the interest rate?

Is that high rate even legal? Did you get a warning the interest rate was going up? Did you sign an agreement that the rate could go up?

If you outright own your house, borrow on the equity to pay off the credit card, after you get the credit card company to reduce the amount owed.

*Name:
*Email:
*Phone:
*Zip:
*Debt

	* denotes required field

Internet's first get-out-of-debt community - 134,000 members

Credit Card Debt Help.

Members Area

Free Debt Counseling

Ask the community

Featured Discussions

Featured Articles

Question of the Month

Also See

Recent Forum Discussions

Recent Blog Post