We have recently gotten our tax return and would like to pay down a $9000 credit card with an interest rate of 10.9%. We have been contacted by Cardmember Servcies and they seem a little sketchy, we've received a letter from Discover saying that they can help consolidate your credit card bills with a 7.99% interest rate and no processing fee. I did speak with our current credit card comanpy (Chase) and they said our terms will not be up for review until July. We just want to try to make sure we choose the right option to best pay down our credit card.
Country relating to Question: United States
State (if USA): Georgia
Spoke with our current CC company which stated our terms will not be up for review until July.
Thank you for your question.If a credit card service appears a "little sketchy", consider trusting your intuition. Some credit cards charge you both a transfer fee for the consolidation, and then only charge you an introductory low APR which the moment you have ANY balance remaining on your card, even with a proper minimum payment, they increase on you. As a consequence be most careful and read the conditions. A consolidation is not a bad option but remember that consolidate you generally have to pay 3%, and there may be strict rules as to how large of a payment you have to make a month. Review the agreement, and if it passes your check and does not appear unreasonable, consider switching since you do not owe chase any loyalty by staying with them over this issue. Speaking as someone who used to represent their interests in plaintiff collections, they tend to be one of the most aggressive companies out there in terms of suits if a creditor falls behind, so if you want some leeway should you fall behind consider a different company.Good luck.Dimitry Esquire41032.6116251968
Are you familiar with Cardmember services? They say that they are a go between for you and the Credit card company and they will make a call to your credit card company, with you on the line and negotiate a better interest rate. If they save you at least $2500 you will pay them a a fee of $1200.
Thank you for your follow-up.I am familiar, and they tend to be "uneven" with their assistance. They generally tell you to stop paying your cards and that all debts go through them. That's a mistake. Second, you yourself can call the creditors and consolidate. As a consequence dealing with this on your own is cheaper and less likely to blow up since if you stop paying your credit rating takes a hit almost immediately. These types of services tend to not be useful but instead cost people money without real benefits, or marginal savings.Good luck.Dimitry Esquire41032.6176372685
JA Mentor, Licensed in PA & NJ, specialize in business/contract disputes, estate creation & admin
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).