How banks use low rate offers to lock in high rates
by Scott Bilker
Scott,
I have used the lower interest rate checks from my credit card company to
transfer debt. I noticed on my statement that the balances on the original rate
and the new rate are not getting paid down proportionately. Can I get the
company to apply my payment my way? Is the use of these checks a benefit or a
curse?
Just got your books and was inspired to call my major credit card to ask for
a reduction in APR. The current rate is variable 12.74%; with a $10000 balance
that's costing more than $100 per month in interest. They reduced that rate to
9.9% with no discussion. (Not great, but better than it was.) Then I asked about
the 19.74% rate on cash advances. That balance is only about $500, but the rate
seems unnecessarily high. That one they refused to reduce.
But here's where I really benefited from having read your book: In talking
about that rate, the account supervisor told me they will wire cash advances to
my bank account for only 2.99% APR. They will provide as much as $10K per month.
So, I could reduce the 19.74% rate to 2.99% rate by having the money wired to my
bank and then writing a check to pay off the entire balance! (I have enough
credit available on the card.) Amazing--they told me how to save money.
So, I just wanted to say that I feel I've already gotten my $19.95 worth from
your books.
Here's my next step: The card, which dropped its rate for me is a frequent
flyer miles card (that's why I use it). They just charged me the annual $59
"membership" fee. I am going to ask them to refund the fee. I have a
2.99% transfer offer for another card, which I never use (so it has no balance).
I'm going to tell them I will transfer the balance from the "miles"
card to the 2.99% offer-card unless they drop the fee. After they drop the fee,
I might transfer anyway!
The interest rate on my mortgage is 7% APR with monthly payments
of $623.00. The balance today was $59,200.00 prior to the monthly payment being
credited on this day. What will the balance on the mortgage next month immediately
after the monthly payment is applied to the balance?
Each week I receive dozens of emails from people being hounded by debt
collectors. These collectors are horrible! They can harass, threaten, and embarrass
their victims without regard for the law. There have been many articles posted at
DebtSmart by those attacked by these evil hounds.
Yes, that's strong language and I am sure that the "good" debt
collectors (if there is such a thing) are going to send me hate mail in about 10
minutes, but the truth is that the majority of these "folks" don't
care at all about your situation. They're out to suck as much cash from you as
possible.
In the past I've advised people of the techniques needed to deal with debt
collectors however, a comprehensive information package has been created that I
can recommend that will help--for sure!
It's been written by best-selling author, Gerri
Detweiler, attorney John
Ventura, and Mary Reed, personal finance author. Not only is this aimed at Stopping
Debt Collectors Cold but they also include four other great reports: How
to Get Collection Accounts Off Your Credit Report, How to Avoid Losing Your Home
In A Foreclosure, What to Do if You Are Behind on Your Car Payments, and
Confidential Interview With A Former Debt Collector.
I highly recommend that you take a look at this information so you're
prepared to effectively deal with debt collectors!
My husband and I got married quite young, made some unwise financial
decisions and ended up in debt (some credit card, some personal loans) with a
grand total of $24,000. My husband has worked very hard over the years,
sometimes 3 jobs at a time trying to make ends meet. We have gone through credit
counseling, and a consumer proposal. We are the parents of 3 young children and
have had to choose between paying our bills so we wouldn't go bankrupt or buying
groceries. After many years of trying we feel that we have no other choice but
to file for bankruptcy. We honestly would like to do anything else but we feel
that this is our only alternative.
Helping you with your debt is very important to me personally! If you've been
reading my articles, you know that I always encourage self-help as a first step.
However, being buried in debt can be very overwhelming, which is why you may
want to explore other options.
One of those options is professional, ongoing help with credit counselors.
I've started to personally check out certain companies so I can recommend the
ones that are worth considering!
If you would like to speak with a representative from a...
Lemon list helps consumers avoid a sour experience
by Craig Thor Kimmel
With a phone number like 1-800-LEMON-LAW, you could certainly expect that we
receive a number of calls every day from distressed drivers looking for our
help. What you may not know is we also receive a number of calls each month from
prospective car buyers.
"Which cars should I steer clear of?"
"How many complaints do you have regarding the [insert name here]?"
"Is it better buy foreign or American?"
These are driven individuals, out to make sure their car buying experience
does not turn sour. It always bears repeating for everyone else however to ask
and have answered all relevant questions before...
The author(s), Press One Publishing, and DebtSmart.com shall have neither
liability nor responsibility to any person or entity with respect to any loss or
damage caused, or alleged to be caused, directly or indirectly by the
information contained in this email newsletter and/or at the DebtSmart.com web
site. The information, methods and techniques described may not work for you and
no recommendation is made to follow the same course of action. Every effort has
been made to verify the accuracy of all content contained herein. However, there
may be mistakes; typographical, mathematical, or in content. This email
newsletter and the DebtSmart.com web site have been created for your
entertainment only. You must always seek the proper professional advice before
taking any financial or legal action. You have been warned.
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