Rat bastards! (Yet another) Bank of America tale

[MorningGlow]

We have a B of A credit card--not that we want it, considering B of A's history. It had been my MBNA MasterCard years ago, then B of A took them over, and by then Mr. MG and I had run up a large balance (unfortunate employment circumstances + unexpected car repairs = $$$), making it difficult to scare up a different credit card with a decent APR.

And of course, over the years, B of A has jerked us around--last year they abruptly switched our fixed APR to variable. Just for shits and grins, you know? :eyes:

Today I got this choice tidbit in the mail: "Revised terms as of June 25, 2011: Penalty APR up to 29.99% based on your creditworthiness. This Annual Percentage Rate (APR) will vary with the market based on the Prime Rate. This APR may be applied to new transactions on your account if you make a late payment. If your APRS are increased for this reason, the Penalty APR will apply indefinitely."

Uh. :wtf: is "creditworthiness" anyway? :banghead:

SIGH. Okay, anybody know where I can get a decent credit card that is willing to take on a balance of $15K?

Yes, I know about credit unions and all that, but the main issue is the $15K balance. Most companies tell you to take a flying leap before taking on that level of debt unless you accept a high, variable APR in the deal. :shrug:

[Turbineguy]

1. The interest alone is $375 per month.

You may not live long enough to pay it off. I would go back to them and try to negotiate some reasonable interest rate and payment schedule that you can live with until it's paid off. Consider what will happen if you tell them to stick it where the sun don't shine. It may not be so bad.

It's a powerful argument if you are willing and able to pay it off with a reasonable rate against just defaulting because of this rate. There's no sense in handing over piles of money until you default if you can't pay it anyway. You can offer to work out a deal or go to somebody who will negotiate it away.

A lot of this garbage is cranked out by computers. If the customer falls for it, it's free money for the bank. Customer service is no longer an issue, because other banks will screw you just the same. And B of A has no reputation left to worry about.

Looking at my cards they vary from 8.4% to 16.15%

[MorningGlow]

5. Oh, believe me, I am well aware of that interest accumulating

:banghead:

Although it's only about $180 a month, because our APR is 10.99% at the moment. Right now I'm just living in fear of forgetting to make a payment (hey, I'm only human--I've done it once or twice before) or having a piece of mail go astray and having the interest rate skyrocket because of an accident.

I've been making $1,000 payments for the past several months, as Mr. MG's freelance work has been paying a bit more than usual; I wonder if that would imply that we're plenty capable of paying it off in full or if they'd accept some negotiated amount.

[Turbineguy]

9. Can you set up an

autopay? That way there's no possibility of error on your part.

I once had an autopay set up for my mortgage (through an investment company). I was on a lengthy trip and my Wife got a call from the mortgage bank. They wanted to know if we were having problems because our mortgage was 3 months behind. For some unknown reason these people started sending the money to another bank where we had no account. In the end we got it all sorted out and the mortgage bank canceled the late fees. That was nice.

[MorningGlow]

10. I could, although I've avoided it in the past

For years, choosing a specific date for an autopayment was a dicey thing to do--I was never sure if we'd actually have the money in the checking account to cover it. Things are a little better in that regard at the moment (there's a bit of a "cushion" in the account), so I might indeed do that. Thanks for the reminder! :hi:

[LiberalEsto]

2. Can you split the balance between 2 cards? nt

[MorningGlow]

6. Not sure

Right now our "good behavior" APR is 10.99%--not sure that we'd be able to find one with a lower rate.

[hfojvt]

3. I would not want to put even $5,000 on a credit card

unless it was a low balance transfer rate.

Without home equity you seem to be kinda screwed unless you can borrow from relatives or something.

But so far they have not done anything. Just keep current on your other bills and pay $10-20 more than the minimum every month and you should be fine. After 18 months of good payment history, call them up and see if you can get a better interest rate. And never use that card for purchases until the balance is paid off. If you need a credit card, then get another one and pay that balance off every month.

Creditworthiness is based on your credit rating, not being late on bill payments, not defaulting, etc.

[MorningGlow]

7. Right

We owed a lot more and moved a chunk of it into a home equity loan, which has been saving our bacon big time. And so far, with the balance on our credit card, we have a reasonable APR, not the "penalty" rate of 29.99%. This cute piece of mail has suddenly made me scared of slipping up, and I DON'T like feeling indebted to (and afraid of) a credit card company. x( Bastids.

[Rage for Order]

4. If you're not worried about your credit score, stop paying them

Seriously. Ignore the phone calls and letters, and don't send them another penny. Instead, take the $350/month you would have sent to them and save it. Wait a couple of years. Then, when they've lost all hope of getting their money back, call them up and offer to settle the entire debt for whatever amount you managed to save up, probably about $8,000 ($350 x 24 months = $8,400). If they agree, make them send you a letter stating that they are accepting 'x' dollars as payment in full for your account, and no other amount will ever be owed on this debt. Send them a bank check for the amount via FedEx or certified mail and keep copies of all aspects of the transaction forever.

They got tens of billions in bailout funds. Let them use some of them to bail you out.

[MorningGlow]

8. Ah, but I do want to keep our credit score good

But what a wonderful dream, of just walking away...sigh...

[CoffeeCat]

11. Morning Glow...I feel for you...

...and I understand. I am in hell due to my student loans. I am paying the bastards more than $1,200 per month, just
to get the chains off of me.

I don't know your situation--but if this were me--I would get a second job, or even a third job and pay down this debt
until it was ZERO. Focus like a laser beam on this debt and knock it the hell out and say good bye to these loan sharks
forever.

It's the only way to free yourself. I have friends doing the same thing. They owed 60k in credit card debt. They're
now down to 10k, and they've done it in only 18 months--by revamping their budget, cutting out all essentials and making
it their first priority to be done with these criminals.

And these banksters are criminals! They will screw you over one way or another.

We are working hard and giving up so much--in the short run--to have our loan debt gone--so we can be happy in the
long run.

I hope you can do this. I know it is hard. I have worked jobs that I consider beneath me. I have a college degree,
but you do what you have to do--to remove the shackles that these companies put around you. And the banks are getting
worse and squeezing more money and fees out of everyone.

Pay them off as soon as possible. Do not mess around with these assholes. If you don't pay, they can garnish your wages
or take you to court. Do not ignore the debt. Agressively pay it down and be done. Even if it takes you a year or two--you
will be free.

[MorningGlow]

12. Aw, thanks, CC

:hug:

I am working freelance and putting my money toward the debt, just as Mr. MG's freelance pay is going toward it as well. A second job is tricky, because of MG Jr.--after-school daycare would eradicate any pay I got. I have thought about getting a job during the hours he's in school, but he tends to get sick a lot (he's 7 and catches EVERYthing); although being a SAHM has made me quite stir-crazy, I'm very grateful that I've been able to be home for him. If I had a job the past few years, I would have been fired for having to stay home to take care of him as much as I have!

Anyway, as I posted upthread, I'm forking over triple the payment each month in order to pay down this bad boy, and I'll continue to do so for as long as it takes. I hate, hate, HATE credit-card companies, and yes, they are only getting worse. I look forward to the time we'll be free of this one.

[unblock]

13. well, here's the problem: pretty much ALL of them will jack up your rates if you don't pay on time.

in practice, usually they'll allow one late payment per 12 months. they want the fees, but not the extra risk, so if you can show it's a rare slip-up by paying the fee and on time after that, they probably won't jack up your rates until you slip up a second time within 12 months.

that said, i'm not the one making the decisions so i wouldn't test this out if you at all have a choice in the matter.


but the probably, as i said, is that no bank (nor credit union) is happy with the risk profile of someone who makes more than one late payment within a 12 month period, and they'll charge a very high rate on anyone who falls into that category.


best solution is to CALL THEM ahead of time, whenever you foresee, or as soon as you notice, any problem involving a late payment and explain the situation. even bofa will usually (not always) be accommodating if you give them a heads-up.

[Cleita]

14. It used to be called usury and was illegal at one time.

Write your Congress Reps and Senators and see if we can get them to pay attention and start passing some laws to protect CC users.

[tammywammy]

15. Contact a credit union or small local bank and see if you qualify for a debt consolidation loan

I know a coworker was offered one at the credit union at 7% interest.