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I Carry Very High Balances On My Credit Cards. – Joyce

Joyce

“Dear Steve,

I CARRY VERY HIGH BALANCES ON MY CREDIT CARDS,AND ALWAYS MAINTAIN TO PAY MORE THAN THE MINIMUM (NO LATE PAY EITHER).

WITH A FEW BANK MERGERS, I’M RECEIVING A CHANGE OF RATE FROM FIXED TO VARIABLE APR..AND IF I DON’T AGREE CLOSE THE CARDS,WHICH IN TURN LOWERS MY CREDIT SCORE.I DON’T KNOW WHETHER TO AGREE OR JUST THROW IN THE TOWEL AND FILE BANKRUPTCY.

THERE IS ALWAYS HOOPLA ABOUT CALLING YOUR CREDITORS FOR ASSISTANCE, BUT THEY NEVER SEEM TO WORK WITH YOU WHEN CHANGING THE TERMS. NOT ONLY DO THEY CHANGE THE TERMS, BUT STRIP YOU OF ANY BONUS POINTS YOU MIGHT ACCRUED UP TO THAT TIME IF YOU DON’T AGREE. IS THAT LEGAL?

Joyce”

Dear Joyce,

Nearly everything in the relationship between you and your bank is determined by the cardholder agreement that you signed or was unilaterally modified by the bank.

I have seen clauses in those agreements about losing your bonus points if you are late, delinquent or if you close your account by not agreeing to the new terms.

I don’t think the issue here is the change in interest rates, it’s the large balances you are carrying that is of most concern.

If those balances have built over time and you are unable to pay them down, then you are already headed on a one way trip towards bankruptcy. If you can afford the monthly minimum payments but want to get your interest rates reduced than consider clicking this link for a debt management program. The debt management program may be able to get your interest rates reduced during your period of repayment but it will hurt your credit as well.

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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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