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I’m Currently in Balance Liquidation Program With Chase and Take Charge America Plan. – Justin

“Dear Steve,

Currently enrolled in two debt program. Take charge America plan: I pay 292 a month and have done so for about 15 months. This programs pays down a cap1; discover; home-depot cards. I now owe a total of $3423 and that should be done in about 11 months.

I am also in the “Balance Liquidation program” from Chase. I pay $377 monthly at a rate of 12% APR and for a 60 month term and i am 17 months into the program. this is working of the original balance of (roughly) $17, 500, and 3 to 4 thousand of that were fees ( late,over-limit etc). i just feel like they are raking me over the coals, and not using any lube if you catch my drift.

I believe i am doing the right things here, but i feel like chase is fleecing me. Anything I can do about it? What more can I do? Will the new laws in 2010 be able to help me?

I’m trying my hardest to pay back all the money I owe and be a productive member of society. Any tips?

Thanks for all you do!

Justin”

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The Answer

 

Dear Justin,

LOL, I got your drift.

My first thought would be for you to talk to the folks at Take Charge America and see if the interest rate would be lower if it was included with your debt management plan.

Outside of bankruptcy, any creditor can charge whatever they want in a self-administered program or through credit counseling. The only limit will be the maximum amount allowed under law. So if a creditor, like Chase, wants to make a concession and reduce your rate to 12%, the only reason they do that is because their mathematical models say that’s the sweet spot for limiting losses and maximizing profit. While 12% feels high at least it’s not 29.99% like some people are charged.

The 2010 laws will not reduce anybody’s interest rate. It will only limit any increase in interest rates for a current balance. So I guess the good news is that you would be protected from an increase but it does not give you a reduction.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

Im Currently in Balance Liquidation Program With Chase and Take Charge America Plan.   Justin
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I'm Currently in Balance Liquidation Program With Chase and Take Charge America Plan. - Justin by

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Sue

    Chase offers the BLP as low at 0% interest with no late or overlimit fees. You can miss up to 5 payments over the program term, but you never want to miss two payments in a row. There is nothing in fine print…it is all black and white. If you have multiple creditors and want something like the BLP, call a nonprofit CCA. They can help negotiate with all your creditors and if you qualify set up on program like the BLP. Don’t use debt settlement companies, as they will milk you dry and destroy your credit, a lot of banks will not work with them. Honestly, why would you pay a debt settlement company to settle your debts when you can do it for free?

    • Amy

      What is a nonprofit CCA?

      • http://GetOutOfDebt.org Steve Rhode

        Nonprofit Credit Counseling Agency.

  • DMP Employee

    Once you have an “internal plan” directly with a creditor, you will most likely not be able to get better rates through a DMP – most creditors have policies in place that state internal plans, especially BLPs mirror a DMP and they will not offer anything better. What is shocking about your BLP with Chase is the high APR – most of Chase’s BLPs are 0% – 3%. Maybe you should contact them and get a lower APR on your BLP. Another thing to be aware of for any creditor’s internal plans are the Creditor’s policies – make sure you ask LOTS of questions before you start an internal plan, and before you start a plan, make sure you CAN afford it…CitiBank for example has a strict policy – if you start ANY sort of payment plan (internal hardship, BLP, DMP) and you miss a payment, the creditor will drop you from the plan, and will NEVER offer another for the life of your card.

    • http://GetOutOfDebt.org Steve Rhode

      Good advice. Thanks.

  • Lisa G

    Hello Justin,

    You can call Chase and have your account “moved” to a lower BLP plan. You won’t be able to restart the 60 months but you will be able to basically pick up where you left off for the remainder of the agreement.

    BLP has been an available program for many years at Chase is not new at all its just that more people actually need the help now.

    I hope that helped.

  • C.H.

    Will Chase sue us?

    We are drowning in debt. We are currently $11,000 behind on our mortgage, and are now in a modification program. Our home is curently worth $325,000 but we owe over $500,000. We own a second property that we were renting out and we are in the short sale process on that property. Our credit card debt totals $100,000.

    We have two small children and I am stay at home mom with no good options for child care. My husband works full time and has a retirement account. I am now withdrawing the funds from my retirement accounts and we’ll net approximately $60,000. The money will be applied toward debt. Chase has been difficult to work with in regards to lowering payments. We have now missed our repayment plan payments for two months, although we’ve been in contact with Chase. We have promised to pay what we can, but last month we struggled to keep the lights on. When the $60,000 arrives and we have paid several things off we’ll have some breathing room, and we can send Chase some money on each of the three cards, but it still won’t be the payments they want. Will Chase sue us?

    Bankruptcy is not a possibility because my husband is a manager for a large bank and that bank is the creditor for the other cards we are paying off. This would affect his job and the bank he works for has been easy to deal within regards to making easier payment arrangements. Bankruptcies are also noted on the baknkrupt customer’s account(s). Again, this would affect his job.

    Will Chase sue us?

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