In need of advice quick on Chase & Citibank
Date: Mon, 04/20/2009 - 05:37
upto date on all my cards. I am actually in a position were I have great rates on all (0%, 2.9%, amd 5.9%)
I owe 21K to citibank (2.9%)
I owe 6k to Chase (5.9%)
I owe 2K to Discover (0%)
I also have 2 mortgages on our home 103K on a 30yr fixed 5.5% and about 18K on a 10yr at 8.9%
We have NO savings (had to cash it in a few years ago due to emergency) As of this morning only $100.00 in checking account.
My income has gone down ALOT and my wife has been unemployed for about 6 months with no hope of finding one in our area. We have 2 children (4 and 4 months)
I would like to settle with the CC companies but am extremely nervous about what to do. I don't want to lose our home. I called citibank to try and be "proactive" but was told all they could do is lower my APR BUT my APR was already lower than what they could offer me...
I have paid all of this months bills except for $101 more owed to Citibank on Friday. Should I not make payment and just wait to get letters?
I've been reading on this site for a few days, but the more I read the more confused I get. I would love some advice from someone experienced in dealing with either Chase or Citibank. What are my options???
Mortgage = $700
Second Mortgage = $250
Auto = $235
Insurance = $91
Phone (used for work) $140
Child Support $350
Cable/Net (for work) $90
Water Bill $45
Electric $150
Groceries $250
Gas $150
Thats 2450 BEFORE CC DEBT
Income = 590 a week (thats with going tax excempt for more income)
CC debt
Citibank = $325
Chase = $105
Discover = $50
HELP.
I would suggest you miss a payment or two with Citibank, Chase a
I would suggest you miss a payment or two with Citibank, Chase and Discover, and then call them next month and ask to be put in their hardship program. They won't offer it unless you are late, and also they will want to know why. Tell them your income has been reduced drastically due to your wife losing her job. Your minimum amount due should be about a third of what it normally is. They will probably offer a year program. Then my next suggestion is to save save save for that entire year any way you can. After the one year of hardship, you can then decide if you want to pursue debt settlement, and hopefully will have a small nest egg to at least start working with. Even if you decide against settlement you will be able to save some money and it should not really affect your credit score to be in their hardship program because you are still making monthly payments.
Good luck.
follow up
I called all three yesterday. Citibank set my interest to 0% for 12 months and said at the end of the 12 months I could reenroll in the program 2 more times. They also lowered my minimum from $325 to $213.
Chase on the other hand told me flat out that there was nothing that they could do for me and even told me I should be thankful I have such a good interest rate as it is. (She told me this after I noticed they bumped my rate from 5.9 to 9.9...UGH. after about 30 mins on the phone it was obvious they had no interest in helping at all...
Was never able to get through to anyone at Discover. Everyone I talked to said they had to transfer me to another department. That went on 4 or 5 times then I was on hold for abuot 20 mins the last time so I just hung up.
Citibank was alot more helpful then I ever thought they'd be, while I got the run around with Chase & Discover....
Hello again. Yes it is unfortunate that so many credit card com
Hello again.
Yes it is unfortunate that so many credit card companies will not offer any lower interest rates until AFTER you have missed a couple of payments. I myself am in a hardship program with Discover. They were great actually, but I think I was 60 days late when they offered it. I am certain that Chase has a program too, but again they probably won't budge until you miss a payment. Don't give up though, you will save yourself a ton of money by getting into their programs.
thanks
My wife may have found a job from home that will give us a little more income. We are going to concentrate on paying down the other cards while citi is on 0%. I don't want to miss any payments because we don't want to effect our score long term
For the record Chase DID put me on a hardship program PRIOR to m
For the record Chase DID put me on a hardship program PRIOR to missing a payments, I simply called and explained the loss of employment, answered 3-4 financial questions and was enrolled in BLP accordingly.
RAN
Chase didn't budge for me until I missed like 4-5 mos of payment
Chase didn't budge for me until I missed like 4-5 mos of payments. Then, they set up a plan at 2% interest for 5 years - but the monthly payment was still unrealisticly high. I agreed to it because they said I could "just call if I was ever going to be late" - well, the first time I called they sent me through to a "knee breaker" who told me to "borrow the money from my family to make that payment on time" When I said no way - I just need a few days, he immediately sent my file to a collection agency. They threatened me pretty frighteningly for a few weeks, now they are sending letters that the client has authorized them to settle for 60% - Chase could have just done that themselves without calling in the sharks. Now, since I have had time to become educated about BK I will wait for them to go down to 30 or 25% before I agree to anything else.