rate jacks and CL decreases = getting crushed

[pclancy]

Have a few cards that I took out for my biz with the into 0% rate that have now kicked into high rates and I'm not ready to pay them down yet, just the min.

 

-is there any way to get the interest rates reduced?

(have called the cards numerous times and no luck and think the numerous calls work against me too!)

 

-do a debt consolidation that won't adversely affect me personally? where and how to get this done?

 

And getting killed my the line reductions which is now probably hurting my credit as some of these biz cards now reporting to personal (Cap one).

 

Really sucks. See others getting hurt with the rate jacks and CL reductions even though paying on time and account in good standing.

 

Appreciate any advice.

 

Thanks

[BRBiz]

Have a few cards that I took out for my biz with the into 0% rate that have now kicked into high rates and I'm not ready to pay them down yet, just the min.

 

-is there any way to get the interest rates reduced?

(have called the cards numerous times and no luck and think the numerous calls work against me too!)

 

-do a debt consolidation that won't adversely affect me personally? where and how to get this done?

 

And getting killed my the line reductions which is now probably hurting my credit as some of these biz cards now reporting to personal (Cap one).

 

Really sucks. See others getting hurt with the rate jacks and CL reductions even though paying on time and account in good standing.

 

Appreciate any advice.

 

Thanks

 

Not for nothing but you should have known the rate was going to kick at some point , they dont stay at 0% forever , that is how they get you.

Calling isn't going to do any thing , do you think the banks are going to reduce the profits they are making just because some one calls and wants the rates reduced. That is like your customers calling and saying we have a lot of debt this month and we need you to lower your prices just for us.

 

There is no debt consolidation. for business debt and if there was it would hurt your credit

 

If you run up your cards and just pay min. and dont really use your card as much as they would like you to that is when they reduce your rates and up the rates on you . They reduce your limit and free it up for other people who use there cards alot because that is how they make lots of money is by people using them all the time for small purchaes so they rack up those fees from merchants.

 

And not to mention when you call and ask about a rate reducation of course they will decrease your limit and may close your account because your having problems paying your bills

[pclancy]

Brndnh721 - thanks for pointing out what I already now. If the situation was better from me I'd take care of it. That's why I asked the questions I did.

[breeze]

Have a few cards that I took out for my biz with the into 0% rate that have now kicked into high rates and I'm not ready to pay them down yet, just the min.

 

-is there any way to get the interest rates reduced?

(have called the cards numerous times and no luck and think the numerous calls work against me too!)

 

-do a debt consolidation that won't adversely affect me personally? where and how to get this done?

 

And getting killed my the line reductions which is now probably hurting my credit as some of these biz cards now reporting to personal (Cap one).

 

Really sucks. See others getting hurt with the rate jacks and CL reductions even though paying on time and account in good standing.

 

Appreciate any advice.

 

Thanks

 

Not for nothing but you should have known the rate was going to kick at some point , they dont stay at 0% forever , that is how they get you.

Calling isn't going to do any thing , do you think the banks are going to reduce the profits they are making just because some one calls and wants the rates reduced. That is like your customers calling and saying we have a lot of debt this month and we need you to lower your prices just for us.

 

There is no debt consolidation. for business debt and if there was it would hurt your credit

 

If you run up your cards and just pay min. and dont really use your card as much as they would like you to that is when they reduce your rates and up the rates on you . They reduce your limit and free it up for other people who use there cards alot because that is how they make lots of money is by people using them all the time for small purchaes so they rack up those fees from merchants.

 

And not to mention when you call and ask about a rate reducation of course they will decrease your limit and may close your account because your having problems paying your bills

 

 

Excuse me, but was this supposed to help the OP? May I ask how? If you cannot help, then scroll on by, please. Restating the obvious, with an added condescending tone, is just not the CB way.

[breeze]

OP< do you have any credit unions or smaller regional banks in your area? If your business is making money at all, you might be able to get some help there.

[BRBiz]

Brndnh721 - thanks for pointing out what I already now. If the situation was better from me I'd take care of it. That's why I asked the questions I did.

 

ok then the advice is there is nothing you can do unless you default, that is about the only chance you have with getting the rates reduced and even then that is after about 4 months of not paying your bills at that point your really screwed because of all the fees'

 

I did supply you with info you didn't know: Why they reduced your credit limit, you can't do debt consolidation and your at the banks mercy!

 

You see alot of people on here with problems paying there bills and yet they are so concerned with saving there business credit and thats it , the last thing you need to worry about is your credit rating you need to save your business first so you have money to pay your own bills .

If any one is that deep in the whole and banks dont want to work with you then close up shop and start over but if you PG'd everything then your really screwed. That is why you shouldn't PG anything unless it is really really nec. but also that is why banks are requiring PG's all over the place these days. The banks are run by a bunch of scum bags and think to your self do you need 8 business cards? Really?

 

That wasn't geared toward you Pclancy! Just a rant in general

[BRBiz]

Have a few cards that I took out for my biz with the into 0% rate that have now kicked into high rates and I'm not ready to pay them down yet, just the min.

 

-is there any way to get the interest rates reduced?

(have called the cards numerous times and no luck and think the numerous calls work against me too!)

 

-do a debt consolidation that won't adversely affect me personally? where and how to get this done?

 

And getting killed my the line reductions which is now probably hurting my credit as some of these biz cards now reporting to personal (Cap one).

 

Really sucks. See others getting hurt with the rate jacks and CL reductions even though paying on time and account in good standing.

 

Appreciate any advice.

 

Thanks

 

Not for nothing but you should have known the rate was going to kick at some point , they dont stay at 0% forever , that is how they get you.

Calling isn't going to do any thing , do you think the banks are going to reduce the profits they are making just because some one calls and wants the rates reduced. That is like your customers calling and saying we have a lot of debt this month and we need you to lower your prices just for us.

 

There is no debt consolidation. for business debt and if there was it would hurt your credit

 

If you run up your cards and just pay min. and dont really use your card as much as they would like you to that is when they reduce your rates and up the rates on you . They reduce your limit and free it up for other people who use there cards alot because that is how they make lots of money is by people using them all the time for small purchaes so they rack up those fees from merchants.

 

And not to mention when you call and ask about a rate reducation of course they will decrease your limit and may close your account because your having problems paying your bills

 

 

Excuse me, but was this supposed to help the OP? May I ask how? If you cannot help, then scroll on by, please. Restating the obvious, with an added condescending tone, is just not the CB way.

 

Actally I did answer questions he was asking if you read his answer and my response's.

[pclancy]

Thanks Breeze. For the other poster, like you said, take your attitude elsewhere.

[Tommy The Cat]

Actally I did answer questions he was asking if you read his answer and my response's.

I thought you did to but, hey, that's one of the severe limitations of non-verbal forums.

 

Bottom line, highly leveraged businesses are in trouble today.

[BRBiz]

Actally I did answer questions he was asking if you read his answer and my response's.

I thought you did to but, hey, that's one of the severe limitations of non-verbal forums.

 

Bottom line, highly leveraged businesses are in trouble today.

 

Thanks Cat

 

The point I was making is you cant max out your cards and then when the rates kick in ask for a rate reducation. Every one needs to be prepared for jumps in rates , half flowers banks do it all the time nothing you can do but close your account and move on .

[Tommy The Cat]

Actally I did answer questions he was asking if you read his answer and my response's.

I thought you did to but, hey, that's one of the severe limitations of non-verbal forums.

 

Bottom line, highly leveraged businesses are in trouble today.

 

Thanks Cat

 

The point I was making is you cant max out your cards and then when the rates kick in ask for a rate reducation. Every one needs to be prepared for jumps in rates , half flowers banks do it all the time nothing you can do but close your account and move on .

Funny about that, even the best of the biggest don't seem to prepare for the worst when they highly leverage their business. SW FL largest and many consider to be the finest luxury residential developer, Bonita Bay Group, privately held by the GNC Nutrition family, is fighting for its life to keep out of bankruptcy. They owe Key Bank $100M+ yet they admit to making $500M over the last ten years or so.

 

They also claim to have poured all that back in, plus have paid in $255M in golfer's membership deposits.

 

Instead of sharply curtailing their business when the handwriting regarding RE was clearly on the wall, they leveraged to the max. These are smart folks, no dummies, but they thought the joy would never end. Totally deluded...and totally over-leveraged.

 

If you are going to take the leverage risk, and many have and have succeeded, plan for the worst (rate jacks and balance calls) and expect it.

[BRBiz]

Actally I did answer questions he was asking if you read his answer and my response's.

I thought you did to but, hey, that's one of the severe limitations of non-verbal forums.

 

Bottom line, highly leveraged businesses are in trouble today.

 

Thanks Cat

 

The point I was making is you cant max out your cards and then when the rates kick in ask for a rate reducation. Every one needs to be prepared for jumps in rates , half flowers banks do it all the time nothing you can do but close your account and move on .

Funny about that, even the best of the biggest don't seem to prepare for the worst when they highly leverage their business. SW FL largest and many consider to be the finest luxury residential developer, Bonita Bay Group, privately held by the GNC Nutrition family, is fighting for its life to keep out of bankruptcy. They owe Key Bank $100M+ yet they admit to making $500M over the last ten years or so.

 

They also claim to have poured all that back in, plus have paid in $255M in golfer's membership deposits.

 

Instead of sharply curtailing their business when the handwriting regarding RE was clearly on the wall, they leveraged to the max. These are smart folks, no dummies, but they thought the joy would never end. Totally deluded...and totally over-leveraged.

 

If you are going to take the leverage risk, and many have and have succeeded, plan for the worst (rate jacks and balance calls) and expect it.

 

Yup exactly my point, you took the risk and now it time to pay up. I have terms I dont like to but I just dont use the account any more and pay it down till its payed off. There is usally a reason for banks to do this to there customers and it may not be clear why but there always is. They dont do this to customers who are making them money

[teamgreen]

Interesting subject but we shouldnt beat up people bc they take on leverage. The policies of the federal reserve, where they devalue the dollar, thus making EVERYTHING more expensive than it should be entices people to take crazy risk because that is the only way of achieving the american dream of owning a home, car, etc.

 

If it was a personal problem, it wouldnt be so widespread and affecting top 15-20% earners too. Most people have alot of debt. Is that bc everyone wastes money like crazy? Look at how much we are taxed. People by me pay 1k/ month in real estate taxes, in condominiums. Going to the grocery store for 2...you can easily drop $125/week. Jobs are going overseas due to NWO agenda and openly allowing illegals in to drive down wages. People are getting squeezed now like never before. My advice would be this....

 

Dont beat yourself up too much if you cant pay your credit bills..There is a reason banks wont lend now. They planned it. They all got squared up by the fed/govt, all on YOUR MONEY, the same guy they wont lend to...

 

Its really sad, but now, prolly more than 75% of the population struggles to pay their bills. You have to do what you can to survive.

[Tommy The Cat]

Interesting subject but we shouldnt beat up people bc they take on leverage. The policies of the federal reserve, where they devalue the dollar, thus making EVERYTHING more expensive than it should be entices people to take crazy risk because that is the only way of achieving the american dream of owning a home, car, etc.

 

If you leverage your business, then you have three outcomes.

 

1) You keep enough cash in reserve to cover leveraging when the balances are pulled and/or the rate is jacked.

2) You don't do 1) and you get smushed.

 

If you counted on refinancing (somehow), see 1) or 2).

 

Now, if you were not astute enough to figure out 1) and 2), then you made a bad move getting into business in the first place. Luck will only work so much majick.

 

If it was a personal problem, it wouldnt be so widespread and affecting top 15-20% earners too. Most people have alot of debt. Is that bc everyone wastes money like crazy? Look at how much we are taxed. People by me pay 1k/ month in real estate taxes, in condominiums. Going to the grocery store for 2...you can easily drop $125/week. Jobs are going overseas due to NWO agenda and openly allowing illegals in to drive down wages. People are getting squeezed now like never before.

 

All of the above are created problems or known problems not unanticipated ones.

 

My advice would be this....

 

Dont beat yourself up too much if you cant pay your credit bills..There is a reason banks wont lend now. They planned it. They all got squared up by the fed/govt, all on YOUR MONEY, the same guy they wont lend to...Its really sad, but now, prolly more than 75% of the population struggles to pay their bills. You have to do what you can to survive.

Well, you moved the discussion to personal debt rather than business, which is fine. Truth tho the same principles apply.

 

If you leverage heavily, be ready for the downsides. If you don't.

 

Smush

 

 

Leveraging, business and people who leverage, not beating up on them. Just pointing out the obvious.

[greywolf]

OP, there isn't much you can do at this point. Who are your creditors (if you don't mind me asking)? Some banks are more flexible with repayment options than others. If you cannot make the current payments, you could become late 30-60 days and call them back. At that point, almost any bank is more willing to negotiate rates. Keep in mind, if you fall behind, the business creditors that are not currently reporting on your personal credit reports, will if you have provided a personal guarantee.

 

I don't know what your current rates are, or balances, but some people have had success.

---

Off topic:

Come on people, Credit Boards is about helping people, not reminding them about what they have done wrong. pclany has made the first step in correcting his mistake, and hopefully he can overcome his current situation without having to turn his personal credit into the plague.

[teamgreen]

Interesting subject but we shouldnt beat up people bc they take on leverage. The policies of the federal reserve, where they devalue the dollar, thus making EVERYTHING more expensive than it should be entices people to take crazy risk because that is the only way of achieving the american dream of owning a home, car, etc.

 

If you leverage your business, then you have three outcomes.

 

1) You keep enough cash in reserve to cover leveraging when the balances are pulled and/or the rate is jacked.

2) You don't do 1) and you get smushed.

 

If you counted on refinancing (somehow), see 1) or 2).

 

Now, if you were not astute enough to figure out 1) and 2), then you made a bad move getting into business in the first place. Luck will only work so much majick.

 

If it was a personal problem, it wouldnt be so widespread and affecting top 15-20% earners too. Most people have alot of debt. Is that bc everyone wastes money like crazy? Look at how much we are taxed. People by me pay 1k/ month in real estate taxes, in condominiums. Going to the grocery store for 2...you can easily drop $125/week. Jobs are going overseas due to NWO agenda and openly allowing illegals in to drive down wages. People are getting squeezed now like never before.

 

All of the above are created problems or known problems not unanticipated ones.

 

My advice would be this....

 

Dont beat yourself up too much if you cant pay your credit bills..There is a reason banks wont lend now. They planned it. They all got squared up by the fed/govt, all on YOUR MONEY, the same guy they wont lend to...Its really sad, but now, prolly more than 75% of the population struggles to pay their bills. You have to do what you can to survive.

Well, you moved the discussion to personal debt rather than business, which is fine. Truth tho the same principles apply.

 

If you leverage heavily, be ready for the downsides. If you don't.

 

Smush

 

 

Leveraging, business and people who leverage, not beating up on them. Just pointing out the obvious.

 

 

Not that simple.... I bought in 2000 and sold in 2006. I saw the real estate thing coming. I was panicking to get out. You may have bought at 200k when the economy could support this, but due to outside influences (government, banks, etc) you can get caught in the black hole many are in one way or the other. Government also keeps printing $$$ and giving them to banks, thus putting the inflation on everyones backs, thus making it that much harder to maintain the same lifestyle. 25 years ago, you could buy a gorgeous home for 100k in new jersey. Now, you better have 500k to live in middle class suburb. The average workers salary is actually down due to nwo illegal alien and nwo sending every job to 3rd world country scam. You need to leverage up to fight against the system . If you think otherwise, I encourage you to take off the blinders. The nwo moves and we react. The system is broke. Govment Sacs can make bets, lose and get recouped. Me, average joe, makes the same bets and pays for a lifetime.

[teamgreen]

Tommycatt, what you are saying is obvious. Im not being technical. Im being real. Assume you start with $0, neither negative or positive. The cost of living is a continual expense...You cant just discount this and blame it on 2+2=4 stuff. If I choose to live in the cheapest apartment, it still costs 800/month here. Ok? Add up the expenses of "just getting by humanely" and you will see why people are leveraged up. FOR MANY, IT ISNT A CHOICE!

 

Try and live without credit. Its the system and the main problem with the people is tolerating it.

[BRBiz]

I'm not trying to slam any one but if you run up your bills on credit accounts you need to do the best you can to pay them off and not to expect the banks to lower your rates for you because again there is some reason they rate jacked you, if you go and max out your cards and dont use them for months of course they going to increase your rates because they not getting any merchant fees from you using the card. And they gave you 0% for how many months.Do you want your customers to ask for better prices on your products just because they cant afford them this month after they haven't paid you in three months?

 

We are here to help each other get credit they need and they should be responsible with it because when they aren't it effects all of us and then you have the guys here who just start companies to get credit and not pay like the people with three or four companies. Not many reasons why small businesses need to have 3 or 4 companies

Edited January 29, 2010 by Brndnh721

[teamgreen]

I would try and pay, but, at the same time, is it fair to jack the guy to 29.99% after the 0% and after trillions in bailout money received? And again, you try and attack me. Ive never bk'd in personal or biz and I go into something expecting to payback. And comparing banks to a normal business is insane. These businesses have no competition bc of the bailouts and bc they are handed other competing large companies like bear stearns, lehman, washington mutual, countrywide, fleet bank, summit bank, etc.. All those companies are now JP Morgan and Bank of America, two of the biggest culprits on screwing people over. Is it my policy to tell someone they will owe me twice what they owed me if they are late one day? No, but thats standard at those two companies..And if you have a problem with it, you'll get the finger from them. Stop riding the guy and now trying to insinuate things about me. Your out of line.

[BRBiz]

I would try and pay, but, at the same time, is it fair to jack the guy to 29.99% after the 0% and after trillions in bailout money received? And again, you try and attack me. Ive never bk'd in personal or biz and I go into something expecting to payback. And comparing banks to a normal business is insane. These businesses have no competition bc of the bailouts and bc they are handed other competing large companies like bear stearns, lehman, washington mutual, countrywide, fleet bank, summit bank, etc.. All those companies are now JP Morgan and Bank of America, two of the biggest culprits on screwing people over. Is it my policy to tell someone they will owe me twice what they owed me if they are late one day? No, but thats standard at those two companies..And if you have a problem with it, you'll get the finger from them. Stop riding the guy and now trying to insinuate things about me. Your out of line.

 

Whose insulting you? Me?

 

No one can blame the banks. Ya they are scum bags but we signed and accepted these lines of credit and ya they made it easy to get but we took and ran out and bought everything off the store shelves. No one forced you take the credit. If you cant pay for it in cash then you cant afford it besides cars and homes and then even at that you dont run out and buy a $60,000 BMW and a $600,000 house.

You have all these salamanders out ther saying oh the bank approved me for a $500,000 loan that I cant afford its there fault , and you couldn't figure out on your own that you cant't pay that every month come on. But those days are gone and hopefully they stay gone.

Keep in mind there wasn't credit cards 50 years ago and they were just fine

 

Even small business loans should be hard to get , if they were easy to get every one would start a business and not every one can start a business or should have a business. Look at all the contractors out there that think they can go start a company and makes alot of money and they go under in 2 months because they have no clue how to run a business. Atleast in Mass to be a master plumber or electrician you need to take a business course that is a great idea that should be required for all business owners, that alone would weed out half the salamanders out there

[teamgreen]

"No one can blame the banks"

 

I almost fell off my chair. And yes, you tried to give me a backdoor putdown because in my sig, there are 2 llcs listed. I

 

Yes, there are certain people who dont think the business thru, definitely. But you keep acting as if we live in a wonderland, and if we do what you say, everything will be ok. There are unexpected things that happen that can cause credit problems like the economy turning to crap and people slow paying or not being able to pay you. Are you saying everyone should realize that the economy will turn to total crud? Economists and stock market gurus are wrong all the time and that is there job.

 

You can blame the banks when you pay on time, are never late, and get rate-jacked and have your line slashed to the amount you reduce in principal by. Yes, that is relying on credit but you live once. And would you do that to a customer paying on time in your business? You wont be around long trying those tactics in a real market economy which everyone but banks exist in. Some people need to borrow to start a business. Most arent born with the silver spoon inserted. You are acting as if its a simple as can be , alice in wonderland world. People need to work and jobs are leaving in droves. Its not a choice and some start businesses bc there is little hope of attaining a decent life otherwise.

[BRBiz]

"No one can blame the banks"

 

I almost fell off my chair. And yes, you tried to give me a backdoor putdown because in my sig, there are 2 llcs listed. I

 

Yes, there are certain people who dont think the business thru, definitely. But you keep acting as if we live in a wonderland, and if we do what you say, everything will be ok. There are unexpected things that happen that can cause credit problems like the economy turning to crap and people slow paying or not being able to pay you. Are you saying everyone should realize that the economy will turn to total crud? Economists and stock market gurus are wrong all the time and that is there job.

 

You can blame the banks when you pay on time, are never late, and get rate-jacked and have your line slashed to the amount you reduce in principal by. Yes, that is relying on credit but you live once. And would you do that to a customer paying on time in your business? You wont be around long trying those tactics in a real market economy which everyone but banks exist in. Some people need to borrow to start a business. Most arent born with the silver spoon inserted. You are acting as if its a simple as can be , alice in wonderland world. People need to work and jobs are leaving in droves. Its not a choice and some start businesses bc there is little hope of attaining a decent life otherwise.

 

Like I said there was no such things as credit cards back in the day and people started businesses just fine, how did they do this ? they worked and saved money and they didn't have to pay banks 30% interest on credit cards and then boom all of sudden banks are handing out money and people are opening up businesses with no clue how to run a business that is the problem and then chocolate hits the fan people are losing money and aren't spending money at Joes custom auto shop and places are going out of business.

How many stores do we need on a street , how many painters do we need in the world.

 

I see people all the time thinking they can open a moving business or painting business because any one can do that and they dont have a clue how a business operates.

 

I saved up money and then started my business and didn't take out any loans. the companies out ther right now making a ton of money are investment groups that buy up struggling business with cash fix them up and sell them for a profit. Then look at a company like Uno's who is going bankrupt and why are they going bankrupt because they barrowed a chocolate load of money and can't pay for it now

 

I wasn't taking a direct shot at you about the multi businesses but do you have a purpose for all them? You in real estate? or do you just wnat to have three of each account?

Edited January 30, 2010 by Brndnh721

[Tommy The Cat]

Smush

 

 

Leveraging, business and people who leverage, not beating up on them. Just pointing out the obvious.

[/size]

Not that simple.... I bought in 2000 and sold in 2006. I saw the real estate thing coming. I was panicking to get out. You may have bought at 200k when the economy could support this, but due to outside influences (<snipped irrelevancies> Me, average joe, makes the same bets and pays for a lifetime.

No it is exactly that simple, you leverage and if can't afford the downside (balance calls and rate jacks among others things), you get smushed.

 

I snipped the part of your post where you ranted about how badly you are being treated by banks, the New World Order, gov't, the weird lady on the street corner ...all true or not, all irrelevant to the very simple fact that your expenses exceed your income.

 

Your answer to that is to leverage (borrow your way out), OK fine now you have expenses and the expense of debt and the continuing shortfall of expenses exceeding income...the hole gets larger. When the balances get called, the hole collapses.

 

If you figured you could take on debt to pay for your shortfall, that you would raise income enough to pay off the increased debt and expenses, or win the lottery or make a success of a small business, then you have taken a complex risk and you either win it or lose it. If you win, it will be an expensive win, if you lose, you get smushed exponentially harder.

 

This is not a judgment, simple math and plain economic fact...that has nothing to do with the NWO even if they conspire agin' ya'.

[Tommy The Cat]

Are you saying everyone should realize that the economy will turn to total crud?

Yes, exactly. Every business should have an exit plan, Plan X, fold 'em and hold 'em even if that plan can only be Ch7.

 

One of the fundamental aspects at looking at any business is "how do I go from ramp up to ramp down to out the ramp"? If the answer is you have to lay everyone off, sell your business assets and go sleep in a cave, then at least you have defined Plan X. maybe your business hols no long term obligations, you can push your cart off the street and go home. Excellent, Plan X.

 

How many do this? So few, so few.

[greywolf]

Are you saying everyone should realize that the economy will turn to total crud?

Yes, exactly. Every business should have an exit plan, Plan X, fold 'em and hold 'em even if that plan can only be Ch7.

 

One of the fundamental aspects at looking at any business is "how do I go from ramp up to ramp down to out the ramp"? If the answer is you have to lay everyone off, sell your business assets and go sleep in a cave, then at least you have defined Plan X. maybe your business hols no long term obligations, you can push your cart off the street and go home. Excellent, Plan X.

 

How many do this? So few, so few.

The difference between retail value, book value and fire sale value would astonish most people. $100k worth of inventory gets sold for $5k. $100k front loader might get $10k. $100k worth of IT equipment might get $10k. Pennies on the dollar.