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.
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.