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Chase: Balance Liquidation Plan

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Hi

I have started closing my credit cards and converting the balances into low interest loans over 5 years. Citi, Barclays etc have given me zero to low rates. However, Chase wants 12%. Is this normal for Chase? Or do I negotiate harder? How? :)

Thank you!

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If Chase was only chopping to 12%, then that says you were likely already in a penalty rate or had one of their crappy cards with a 20%+ rate.  They already are making a substantial modification to the contract.  This means the question is just how much damage are you looking to add to the damage already being done? 

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I'll come at this a bit differently from centex, but the gist is the same:

 

"Negotiation" implies the possession of leverage ... or at least a credible bargaining chip.  Threatening to "cut your nose off to spite your face" (as in, force them to obtain a judgement against you) is marginal when it comes to "credible" (or at least it should be).

 

Your best option here is to accept the terms (they're at least palatable), and at such time as you rebuild your credit so that you have lower cost options, refinance/bt at that time.  Kudos on being in the position to catch up on your debt under very favorable terms (on the whole)!

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20 hours ago, theGman said:

Hi

I have started closing my credit cards and converting the balances into low interest loans over 5 years. Citi, Barclays etc have given me zero to low rates. However, Chase wants 12%. Is this normal for Chase? Or do I negotiate harder? How? :)

Thank you!

 

12% is not a terrible rate all things considered and probably a weeeee bit lower than chase's default APR. I'm not sure you're in a good position to negotiate. Frankly if chase is willing to unwind the card debt into a distressed account at 12% and you've decided this type of route is what you are planning with your creditors you might just have to suck it up. Of course your other options involve letting it charge off or filing BK which IIRC from your other posts you are not interested in.

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thank you @centex @hdporter @hegemony.

 

the rate seems a bit hard on the stomach. have you heard if they negotiate down. i got a zero % from a 5% in one instance and just 5% non-negotiable in others. chase had more 'experienced' people 'negotiating' and also not willing to move from 12%.

 

at the end, i have to make all these payments and every bit of reduction in rate translates into a lower monthly payment.

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How late were you on the Chase credit card? I did the BLP in 2009, and they gave me 0%. I was probably at 90 days late when we made that arrangement.

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@jonsonabout 29 days late. i was avoiding a 30 day late on the credit report. i ended up agreeing to the 12. some banks gave me a zero. average is about 5. better than 23. :)

 

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2 hours ago, theGman said:

@jonsonabout 29 days late. i was avoiding a 30 day late on the credit report. i ended up agreeing to the 12. some banks gave me a zero. average is about 5. better than 23. :)

 

Of course, 23 is still better than 27.9 or worse for default rates, but yeah...never revolve a balance on a card that has any sort of APR other than zero.  Nothing good will come from doing so...

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2 hours ago, theGman said:

@jonsonabout 29 days late. i was avoiding a 30 day late on the credit report. i ended up agreeing to the 12. some banks gave me a zero. average is about 5. better than 23. :)

 

@theGman That makes sense. Generally credit card companies aren't going to provide a good rate unless you are delinquent. I'm glad the other banks worked with you. Just try to get the chase card paid off as quickly as possible. Also good to see you were able to avoid the late reporting.

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