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I Have a Lot of Loans and Credit Cards That Are Raising My Interest Rates. It’s Not Fair. – Kelly

“Dear Steve,

I have a lot of loans and credit cards. I pay my bills on time, I just have a lot of them. They are raising the intrest on my credit card and I don’t know what to do, can’t get another loan to pay it off. It’s so unfair!!

I have $27,000 on a credit card that they are going to raise the intrest to 30% what do i do? Can’t get another loan to pay it off.

Kelly”

Dear Kelly,

I can see from your email address you are probably a college student. If so, you’ll have to add this to the bucket of stuff you learned while in college.

Credit Truths You Need to Know

  • Under current laws creditors can do just about any damn thing they want to do.
  • As long as you carry a balance on your credit cards you can’t afford to pay off that month, you will be subject to the term changes on the card.
  • It’s not your credit card. It belongs to the creditor issuing it. If they want to take it away from you, they can.
  • Everything about your credit card is dictated by the terms and conditions that come with the card. When you apply for a credit card or loan, get it and use it you are bound by those terms and conditions.
  • Terms and conditions favor the creditor, not you.
  • Credit products are not designed to be fair. They are designed to be profitable for the bank.

At this point you might want to look at LendingClub.com and see if you can get a lower interest rate debt consolidation loan to pay off your debt.

Your other option is to inquire with your creditors if they have an opt-out policy for these new term changes. If they do you will not have your interest rate raised but your card will be closed and you will not be able to use it. It will also not help your credit score as much once it is closed.

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.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.




About the author

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.

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