What happens to the APR's and balances when you do debt consolidation?
Date: Wed, 12/02/2009 - 12:27
We have $34,080 in credit card debt. We are some how managing to be current (even though we have been a few days late on some which has driven one APR up) but it is causing us to be late on other bills.
When you do debt consolidation, what typically happens to the APR's and balances? Do they usually lower the APR and if so, is there a general rule to what they % lower it to? They aren't able to lower the balances are they? We don't have any money saved up for debt settlement.
Here is what our cards look like
FIA Card services bal $7064.55, Min payment $150, APR 6.5% fixed (hardship program-acct suspended)
Citibank bal 1521.36, Min payment $87, APR 29.99% (they raised it after being 2 days late! and said they won't lower it)
Citibank bal 6711.23, min payment $150.00, APR 13% fixed (hardship program-acct closed)
Chase bal 13,995, min payment $273, APR prime + ?=7.99 variable (closed-never was late but they changed policies and was going to raise apr to 13.99 variable or put it at 7.99 variable and close the acct....was a fixed apr....felt like they screwed us on this)
Desert Schools CU bal 4776 min payment $63 apr 3.99% fixed (but just paid a $40 late payment)
Kohls bal 310.76, min payment $9.00, APR 22%
Is it worth consolidating or should I just see if citibank will do a hardship program and lower the APR that way? Or do you think through debt counseling/consolidation they would lower the other APR's?
Thanks!
When you do debt consolidation, what typically happens to the APR's and balances? Do they usually lower the APR and if so, is there a general rule to what they % lower it to? They aren't able to lower the balances are they? We don't have any money saved up for debt settlement.
Here is what our cards look like
FIA Card services bal $7064.55, Min payment $150, APR 6.5% fixed (hardship program-acct suspended)
Citibank bal 1521.36, Min payment $87, APR 29.99% (they raised it after being 2 days late! and said they won't lower it)
Citibank bal 6711.23, min payment $150.00, APR 13% fixed (hardship program-acct closed)
Chase bal 13,995, min payment $273, APR prime + ?=7.99 variable (closed-never was late but they changed policies and was going to raise apr to 13.99 variable or put it at 7.99 variable and close the acct....was a fixed apr....felt like they screwed us on this)
Desert Schools CU bal 4776 min payment $63 apr 3.99% fixed (but just paid a $40 late payment)
Kohls bal 310.76, min payment $9.00, APR 22%
Is it worth consolidating or should I just see if citibank will do a hardship program and lower the APR that way? Or do you think through debt counseling/consolidation they would lower the other APR's?
Thanks!
You can check the do it yourself section to learn more about you
You can check the do it yourself section to learn more about your options. Also you may sign up with this site for a free debt counselling. Hope it'd help you analyse your situation better.
I was with TCA until recently. They did a wonderful job of nego
I was with TCA until recently. They did a wonderful job of negotiating lower interest rates with my creditors, and their customer service is outstanding. You make payment directly to them and they send to creditor. You won't ever have a late payment again as long as you send them your payment. Their monthly fee was $42 and well worth it. They worked out a budget with me. They got BofA and Citibank down to 9.99% and also HSBC. Call them and see what they can do for you.
