How significant is this. Well, you tell me. Chase was allowing consumers to pay back their credit card balances at a new interest rate of 6% in the program. Of course the credit card had to be closed. But still, 6% when many consumers were struggling with 29.9% was quite a dramatic change in the interest. Chase even had a hardship program in which they gave consumers a new rate of 2%, and a new monthly payment of 1.8% of the current balance. I cannot at this moment tell you exactly why Chase has decided to make the move, but in this new economy they have decided it was a step they needed to take for profitability or is it some compliance issue related to some debt managemen programs. Even though I have often written that the banks are not your friend, they are in business to make money.
So
what else is new in these debt relief programs.
Sun
Trust Bank also has a new policy, and it is that
Any
account that is past due CANNOT be enrolled into the Debt Management Program
until 3 consecutive minimum payments are made to bring account up to date. Only
then will they be eligible to be enrolled into the program.
How
about the new Fingerhut Credit Card Help Policy:
If a client has ever been dropped from a program the client
will
never be eligible to be set up on any Debt Management Program again. Somewhat
harsh don’t you think?
If your credit card is on a promotional interest rate it will not be eligible to be enrolled in a credit card debt relief program until the promotional interest rate expires. So, be very careful about transferring balances. Something I have never been a fan of because it really just prolongs the debt cycle.
So, in this ever changing world it is becoming increasingly clear that banks are adjusting to the new regulations and adjusting at the expense of the consumer to regain profitability.
Here is the bottom line. If you are carrying significant debt, now is not a time to sit back and just accept it. You must be proactive to dump your debt. Because who knows how much longer these programs will remain viable.
If
you would like to talk about options, simply visit
American
Debt Enders. We are rated #3 nationally and without a single complaint, and
driven to help you get out of debt.
You can subscribe to this FREE newsletter, by visiting Free Credit Counseling.
Yours Truly
Steven Ciantro
Consumer Advocate
American Debt Enders
Certified Credit Counselor
TalkShoe Radio Host
Member National Association of Certified Credit Counselors
Debt Expert for Gail Kasper's Top 1% Club
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