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!
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.