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If I use a debt reduction company will it affect my apr?

Date: Mon, 11/15/2004 - 17:56
Submitted by on Mon, 11/15/2004 - 17:56
Posts: 202330
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Hi,

I have credit card debt in the amount of $35,000. I pay on time every month and I try to pay more than the minimum payments due. However, one month by mistake, I was 32 days late on one of my cards. They reported me to a credit bureau and this caused my apr on another card to go from 9% to 26.5%. I've called several times and tried to renegotiate the apr back to 9% but they will not budge. I explained that I cannot make payments at 26.5% but they refuse to work with me. If I go to a debt reduction company, won't they just try to renegotiate the debt down for me? If I do it myself, do I need to wait and not make payment for a few months so they'll know I'm serious about not making payments? If I use a debt reduction company will this affect my apr of 4% on my card with $19,000 balance?

I can't get another card with a lower apr because of my high balances on my existing cards. My credit score is low due to the fact that I have high balances and the one late fee. I don't know what to do.

You are welcome to give any suggestions.

Thanks,

Incster


Hi incster,

Welcome to the debt consolidation care forum. Firstly, let me tell, you should have been much more cautious in reading the company policies before applying for a credit card.

These credit card companies often tricks you with interesting offers and people tend to get trapped. You have to keep the negotiation going with these companies and request them to curtail your apr.

Build up their trust on you and enjoy a good rapport. Only then you can be a success. There are no other ways except requesting them. Feel free to take the help of a debt reduction company or a renowned attorney. On your behalf they too can negotiate with the company who has made you a victim. Your card with a 19,000 dollar balance with an apr of 4% will not get affected if you take the help of a debt reduction company.

All the best to you. :D

Regards,
Jason


Submitted by Jason on Mon, 11/15/2004 - 23:57

Jason

( Posts: 2430 | Credits: )


They allow you to skip/postpone credit card payments until the next billing date. This helps me get my finances in order when money is tight. It gives you some breathing room when your spreading your money really thin.


Submitted by on Sun, 01/02/2005 - 11:16

( Posts: 202330 | Credits: )


John, I have replied to your thoughts , please co-operate and we won't entertain any spams.

Thanks
Vikas


Submitted by Vikas on Wed, 01/05/2005 - 10:03

Vikas

( Posts: 2019 | Credits: )


[quote=incster]Hi,

I have credit card debt in the amount of $35,000. I pay on time every month and I try to pay more than the minimum payments due. However, one month by mistake, I was 32 days late on one of my cards. They reported me to a credit bureau and this caused my apr on another card to go from 9% to 26.5%. I've called several times and tried to renegotiate the apr back to 9% but they will not budge. I explained that I cannot make payments at 26.5% but they refuse to work with me. If I go to a debt reduction company, won't they just try to renegotiate the debt down for me? If I do it myself, do I need to wait and not make payment for a few months so they'll know I'm serious about not making payments? If I use a debt reduction company will this affect my apr of 4% on my card with $19,000 balance?

I can't get another card with a lower apr because of my high balances on my existing cards. My credit score is low due to the fact that I have high balances and the one late fee. I don't know what to do.

You are welcome to give any suggestions.

Thanks,

Incster[/quote]

these credit companies train their employees how to turn down requests for negotiation. they try to make you feel bad by saying you signed the agreement so tough luck. But once you get a 3rd party involved, things may go a little better for you. try getting a lawyer to negotiate for you.


Submitted by benjaminz6 on Mon, 04/11/2005 - 00:02

benjaminz6

( Posts: 256 | Credits: )


Hi,

This is a valuable piece of advice from Roxette. I second his suggestion and feel this will work out well.

Well done Roxette. Keep up the good work. :D

Cheers,
Jason


Submitted by Jason on Mon, 04/11/2005 - 21:11

Jason

( Posts: 2430 | Credits: )


Suggest writing a good will letter to the creditor you were late with:
[list=1]

  • Let them know you are sorry for the late listing,
  • Let them know that you have since paid up your account, and won't be late again with this account.
  • Let them know that this is currently hurting another account you have because of interest rate increase.
  • If they would please forgive the late listing and reconsider reporting the late.
  • Might explain reason for the late, and reassure them this one just a one time incident.

    If that don't work, call in customer service and ask for re-aging of the account that is similar to good will letter but some creditors have the policy to allow a one time re-aging, meaning that the account is brought back current and they remove all late listings off of the credit report they can do this one time in like 1-5 years per account.

    Once you have that late removed, then write to the creditor that increased the interest rate and ask them to please reconsider and review your credit report. They may 1. Reduce the interest rate, and 2. Refund you the difference in over charged interest.

    Best of wishes with this matter,


    • Submitted by Pammila on Mon, 04/25/2005 - 11:33

    Pammila

    ( Posts: 112 | Credits: )