I also offered to provide documentation of our hardship if needed. I explained to the customer service representative that we could no longer sustain payments at the high interest rates.
Nevertheless, when you call your credit card company and ask if you can get a lower rate, the answer is either “No” or “You already have the best available rate.” Sorry, but a 15 percent interest rate certainly doesn’t seem that way.
What’s especially frustrating is that you if you do fall behind, your interest rates can shoot up to 28 percent or more, placing you in an even more precarious position.
Credit score impact: a shocker When our mortgage lender turned down our recent loan modification request, I asked about my credit score, assuming it had been lowered due to the balance liquidation programs we had entered.
Interestingly, it was still in the “excellent” range. For us, a balance liquidation program has been a godsend.
The psychological cost of doing this seemed so high to me that it didn’t seem worth it.
Then again, since we were dealing with the loan modification, I wondered if the credit card companies had some other option that could work for us. Ask for a balance liquidation program Since our highest balances were on our Chase business cards, I began there.
Their loan workout process starts with their service center in India. Although they claim to have multiple programs to help their customers, their only program (at least at the time we applied) was at 1 percent for three months, nine months at 9 percent, then back to your existing rate.
After talking to seven or eight different representatives, each with conflicting information about what their program was and what is required to get into it, I asked for a supervisor who could refer us back to someone in the U. In other words, don’t waste your time trying to negotiate with them.
When I contacted the firm, their attorney explained that there was an upfront fee.