I can't tell you when I signed up for a BillMeLater account. I know it was long ago, when I was in college, and probably the only reason I signed up for an account was because they were either giving me a discount, or something stupid like a hat (I signed up for a Sears card for a $7 toolbag, and a Home Depot card for a $3 screwdriver set).
I can't even tell you what the hell I've used BillMeLater to buy for over half of my balance. I do know that they did something tricky a while back and made BillMeLater the default payment option on my eBay account. That meant that whenever I thought I was paying with my own money in my Paypal account, they were charging it and making interest on it, since I already had a nice balance. I should have known that if they were going to do something this tricky, they would be horrible to deal with.
The only good thing I can say about BillMeLater is the fact that I don't even think they have my social security number. They have never shown up on any of my credit reports in the past decade.
I called BillMeLater up after I missed a payment. The CSR was a total turd nugget. I explained that I was having some issues, and he replied asking me for a payment. I would explain to him again that I had no money to pay, and he would again reply asking for a payment.
A month later, I logged into the BillMeLater website and they actually gave me a little quiz of questions to why I was late with my payment. When I selected "I can't afford any payment" the quiz told me to call a 1800 number. So I called BillMeLater back, and talked to a somewhat nicer turd nugget CSR. He actually convinced me to make a partial payment, and then explained to me that as long as I made another payment of something like $30 before my next due date, something magical would happen.
By something magical happening, he meant that my account wouldn't be closed, because he told me that after three missed payments, the accounts are automatically closed and sent to collections. So of course, I agreed to make a payment, and had another one set up on that particular date. After this was done, I asked the CSR if there was any way I could get my interest reduced or entire some kind of hardship program, but he said no. He did his job and got me to pay, I screwed myself. If there was any chance of entering a hardship program with BillMeLater, I lost it.
A couple months before BillMeLater changed its name to PaypalCredit or whatever, I logged into my account just to see if it had been "closed and sent to collections". Nothing really changed, except my minimum payment due went from $80 to over $400. When I clicked on make a payment, it brought up a window that told me BillMeLater wanted to help me out, and gave me the generous option of bringing my account back to good standing by making four $235 payments over the next four months.
I actually giggled before I closed the web browser.
I haven't heard anything from PaypalCredit yet, but I'm sure since they are associated with eBay now, things could get relatively ugly pretty quickly.
Tuesday, October 28, 2014
Should You Call Your Creditors When You're Late Or Having Financial Problems?
One of my biggest fears when I found myself in financial trouble was calling the credit card companies up and telling them "Hey, you guys aren't getting paid this month!". I guess I didn't want to hurt my pride, or I didn't want to get yelled at. Whatever the reason was, it took a bit of courage for me to finally pick my phone one day and call some of my credit card companies and tell them I was running into problems.
Before I Missed Any Payments..
So what happend? Did I get yelled at? Scorned? Not really. The first time I called them, all of my accounts were for the most part, current. I asked if I could lower my payments, or interest, or anything, and was shot down by every company. Because I had a good history, in their eyes they figured that eventually I was going to pay because in the past, I never missed payments. I remember I spoke with about ten people from different creditors, and the closest thing I got was one of then (CitiBank) told me that if I couldn't make the whole payment, I should try to at least make some kind of payment.
After The First Missed Payment...
So I figured that after I missed a payment, I could call the credit card companies back again and explain that I was running into financial problems, and for some reason I figured they would want to do something to help me out.
Nope, everyone was still playing hardball. When I asked about hardship programs, I was told they weren't any. When I asked for reduction in my interest / payments, pretty much every creditor told me they didn't exist, when I knew that they did. I know credit card companies have to make money, but I tried to explain to them that there was going to be little chance of me being able to get financially better before things would get worse. Their response? Oh well,
Two Missed Payments...
Things started getting a bit creepy after two missed payments. I started getting letters in the mail.. but these weren't threatening letters. Some of the credit card companies got the message that I wasn't going to pay them, and sent me letters saying they understood people have financial problems and want to help me out.
So I started calling the creditors back, and sure enough after two missed payments, most of the credit card companies started opening up about hardship programs, and interest reduction, They listened to my problems and most actually wanted to help out at that point.
Does It Help To Call Your Creditors?
In my experience, it really didn't help to call any of them until after they contacted me, or I missed two payments. If you have a nice track record of making payments, they aren't going to help you until they know you are in actual trouble (and that's by getting your credit score screwed with late payments).
If you're still ahead of your bills, but barely holding on, the only thing you'll get out of calling your creditors is a waste of your time.
Why Shouldn't You Call Your Creditors When Having Financial Problems?
One credit card company wasn't willing to help after my first call. But within one week, I received a letter in the mail from them stating that they had reviewed my account and reduced my credit limit to about $10 above my (then) balance.
Although I wanted to take control of my credit situation, I was still planning to use that card to pay my car insurance bill. I'm pretty confident that it was that particular phone call that triggered them to reduce my credit limit, considering I was only using using about 30% of my credit limit, and had not heard from them (besides statements) in over four years.
Before I Missed Any Payments..
So what happend? Did I get yelled at? Scorned? Not really. The first time I called them, all of my accounts were for the most part, current. I asked if I could lower my payments, or interest, or anything, and was shot down by every company. Because I had a good history, in their eyes they figured that eventually I was going to pay because in the past, I never missed payments. I remember I spoke with about ten people from different creditors, and the closest thing I got was one of then (CitiBank) told me that if I couldn't make the whole payment, I should try to at least make some kind of payment.
After The First Missed Payment...
So I figured that after I missed a payment, I could call the credit card companies back again and explain that I was running into financial problems, and for some reason I figured they would want to do something to help me out.
Nope, everyone was still playing hardball. When I asked about hardship programs, I was told they weren't any. When I asked for reduction in my interest / payments, pretty much every creditor told me they didn't exist, when I knew that they did. I know credit card companies have to make money, but I tried to explain to them that there was going to be little chance of me being able to get financially better before things would get worse. Their response? Oh well,
Two Missed Payments...
Things started getting a bit creepy after two missed payments. I started getting letters in the mail.. but these weren't threatening letters. Some of the credit card companies got the message that I wasn't going to pay them, and sent me letters saying they understood people have financial problems and want to help me out.
So I started calling the creditors back, and sure enough after two missed payments, most of the credit card companies started opening up about hardship programs, and interest reduction, They listened to my problems and most actually wanted to help out at that point.
Does It Help To Call Your Creditors?
In my experience, it really didn't help to call any of them until after they contacted me, or I missed two payments. If you have a nice track record of making payments, they aren't going to help you until they know you are in actual trouble (and that's by getting your credit score screwed with late payments).
If you're still ahead of your bills, but barely holding on, the only thing you'll get out of calling your creditors is a waste of your time.
Why Shouldn't You Call Your Creditors When Having Financial Problems?
One credit card company wasn't willing to help after my first call. But within one week, I received a letter in the mail from them stating that they had reviewed my account and reduced my credit limit to about $10 above my (then) balance.
Although I wanted to take control of my credit situation, I was still planning to use that card to pay my car insurance bill. I'm pretty confident that it was that particular phone call that triggered them to reduce my credit limit, considering I was only using using about 30% of my credit limit, and had not heard from them (besides statements) in over four years.
Saturday, October 25, 2014
Why Minimum Payments On Credit Cards Are Evil
Minimum payments on credit cards are an evil thing. If you're actually reading this blog, then chances are you are one of the many people (including myself) who just make the minimum monthly payment. It's amazing, because in reality, unless you have a very low balance card with a low interest rate, you aren't going to pay off your card anytime soon by making the minimum payment.
How Is the Minimum Payment Calculated?
Every credit card company is different, but the majority of them will charge you at least $35. If you have a larger balance, the minimum payment will consist of at least 1% of the balance and the interest, and any fees such as late fee.
Let's See An Example:
You have a First Financial Bank card with a balance of $8,000, and interest rate of 30%. Your monthly minimum payment is $280. Although this looks like a considerable payment, in reality if you continue to only make the minimum payments, and you don't put any additional charges on the card, it's gonna take a long time for the balance to get paid off.
Let's break down where your minimum payment goes.
Because of the high interest rate (30%) you are paying $200 towards interest. This leaves $80.00 applied to the balance. If you just make the minimum monthly payments for one year on this card, you will pay the roughly bank $3180. Of this, nearly $2075 of it is interest. That means, for all of your payments, your balance was reduced by a mere $1105.
Can you see why making minimum payments is absolutely horrible? Most people who are having credit issues can't really afford to pay more than the minimum, but at the same time, many people don't realize that even by adding a few dollars to their minimum payment makes a huge difference.
Remember, the credit card companies are already getting their interest on the balance. They want you to make minimum payments so that they can collect the interest from you for years. When you pay more than your minimum payment, it may look great on your credit report, but it looks even better on your balance, because 100% of any amount you pay on a credit card over the minimum payment will go towards the balance on the account.
Don't fall for the minimum payment trick! Even a few extra dollars with your payment will help you out!
How Is the Minimum Payment Calculated?
Every credit card company is different, but the majority of them will charge you at least $35. If you have a larger balance, the minimum payment will consist of at least 1% of the balance and the interest, and any fees such as late fee.
Let's See An Example:
You have a First Financial Bank card with a balance of $8,000, and interest rate of 30%. Your monthly minimum payment is $280. Although this looks like a considerable payment, in reality if you continue to only make the minimum payments, and you don't put any additional charges on the card, it's gonna take a long time for the balance to get paid off.
Let's break down where your minimum payment goes.
Because of the high interest rate (30%) you are paying $200 towards interest. This leaves $80.00 applied to the balance. If you just make the minimum monthly payments for one year on this card, you will pay the roughly bank $3180. Of this, nearly $2075 of it is interest. That means, for all of your payments, your balance was reduced by a mere $1105.
Can you see why making minimum payments is absolutely horrible? Most people who are having credit issues can't really afford to pay more than the minimum, but at the same time, many people don't realize that even by adding a few dollars to their minimum payment makes a huge difference.
Remember, the credit card companies are already getting their interest on the balance. They want you to make minimum payments so that they can collect the interest from you for years. When you pay more than your minimum payment, it may look great on your credit report, but it looks even better on your balance, because 100% of any amount you pay on a credit card over the minimum payment will go towards the balance on the account.
Don't fall for the minimum payment trick! Even a few extra dollars with your payment will help you out!
Friday, October 24, 2014
When Do Missed Payments Go On My Credit Report?
One question I always found myself wondering about is when is a credit card payment is really considered late and will affect my credit score. A lot of people think that if their charge card bill is due on the 28th, and the payment is made on the 30th, then the payment is late, and their credit score is going to be hit.
The payment is two days late. You are going to get nailed with a late fee, but that's about it. It's not going to be reported to the credit agency, and its not going to show up on your credit report to really hurt your credit. The only thing that's going to happen at this point is on your next statement your minimum payment is going to do be a lot more (It will equal two payments, and the late fee).
Because creditors have to wait at least thirty days before they can report late payments, the only way a late payment is going to affect your credit score is if you don't pay your past due balance within 30 days of the day it was due, not the statement date.
For Example;
You have a Capital One credit card with a statement date of December 11th, and a payment of $25.00 due on January 1st. You don't make the payment, and Capital One hits you with a $25.00 late fee. The statement date has nothing to do with anything. The only date you need to be concerned with, is the payment due date of January 1st.
So, you will have until January 31st to pay the bill without it ever showing up as a late payment on your credit report. Your next Capital One credit card statement comes on January 11th, and a payment of $75 is due on January 31st. This payment consists of the missed payment (the past due amount of $25), the late fee ($25), and the current month's payment ($25). Since the new due date is January 31st, as long as you make this months payment of $75 , nothing will show up on your credit report as late.
Okay, so now that we have an understanding of when payments are really late, let's get into it a little bit more. It's one thing if you missed a payment because you were lazy, and just forgot to make the payment. It's a whole other ballpark if you have very little money to make the payment.
I didn't have enough to make last month's payment and this month they want twice as much. If I don't pay the whole payment, am I going to be marked late?
This is a horrible situation for you to be in, and a fantastic situation for the credit card company. The truth is, as long as you make the original missed payment (the past due amount), the thirty day countdown starts over for the the new payment.
For Example;
You missed last month's Capital One bill of $25 that was due on January 31st. You received your February statement on February 11th that wants a minimum payment of $75 due on February 28th. This was the past due amount ($25), the late fee for the missed payment ($25), and February's payment ($25). You know there is no way you are going to be able to get the $75 payment, but you want to keep the late payment from your credit report.
So you make a $25 payment. This takes care of the past due amount, for all intensive purposes resets the late day calculator. Now things are going to get interesting.
On March 10th, you get your Capital One statement. It shows that you made a payment of $25, but still charges you a late fee of $25 (you will always get hit with a late fee if you don't make the minimum payment). Now, they want a minimum payment of $100 due on March 30th. This consists of last month's missed payment, last months late fee, this months payment, and this months late fee.
Now you are in some trouble, because your account is $50 past due. This means that you have to make a payment by March 30th of $50 to keep your account 'current' and prevent it from being reported as 30 days late. Hopefully you can get yourself out of this jam and make the full $100 payment.
This is not a good habit to get into. BillMeLater had me doing this for several months, and I learned my lesson real well. Credit card companies love this, because not only are they getting interest from you, they are also getting a late fee. Don't fall into their trap, and get into this cycle, especially considering most minimum payments are a lot higher than $25.
The payment is two days late. You are going to get nailed with a late fee, but that's about it. It's not going to be reported to the credit agency, and its not going to show up on your credit report to really hurt your credit. The only thing that's going to happen at this point is on your next statement your minimum payment is going to do be a lot more (It will equal two payments, and the late fee).
Because creditors have to wait at least thirty days before they can report late payments, the only way a late payment is going to affect your credit score is if you don't pay your past due balance within 30 days of the day it was due, not the statement date.
For Example;
You have a Capital One credit card with a statement date of December 11th, and a payment of $25.00 due on January 1st. You don't make the payment, and Capital One hits you with a $25.00 late fee. The statement date has nothing to do with anything. The only date you need to be concerned with, is the payment due date of January 1st.
So, you will have until January 31st to pay the bill without it ever showing up as a late payment on your credit report. Your next Capital One credit card statement comes on January 11th, and a payment of $75 is due on January 31st. This payment consists of the missed payment (the past due amount of $25), the late fee ($25), and the current month's payment ($25). Since the new due date is January 31st, as long as you make this months payment of $75 , nothing will show up on your credit report as late.
Okay, so now that we have an understanding of when payments are really late, let's get into it a little bit more. It's one thing if you missed a payment because you were lazy, and just forgot to make the payment. It's a whole other ballpark if you have very little money to make the payment.
I didn't have enough to make last month's payment and this month they want twice as much. If I don't pay the whole payment, am I going to be marked late?
This is a horrible situation for you to be in, and a fantastic situation for the credit card company. The truth is, as long as you make the original missed payment (the past due amount), the thirty day countdown starts over for the the new payment.
For Example;
You missed last month's Capital One bill of $25 that was due on January 31st. You received your February statement on February 11th that wants a minimum payment of $75 due on February 28th. This was the past due amount ($25), the late fee for the missed payment ($25), and February's payment ($25). You know there is no way you are going to be able to get the $75 payment, but you want to keep the late payment from your credit report.
So you make a $25 payment. This takes care of the past due amount, for all intensive purposes resets the late day calculator. Now things are going to get interesting.
On March 10th, you get your Capital One statement. It shows that you made a payment of $25, but still charges you a late fee of $25 (you will always get hit with a late fee if you don't make the minimum payment). Now, they want a minimum payment of $100 due on March 30th. This consists of last month's missed payment, last months late fee, this months payment, and this months late fee.
Now you are in some trouble, because your account is $50 past due. This means that you have to make a payment by March 30th of $50 to keep your account 'current' and prevent it from being reported as 30 days late. Hopefully you can get yourself out of this jam and make the full $100 payment.
This is not a good habit to get into. BillMeLater had me doing this for several months, and I learned my lesson real well. Credit card companies love this, because not only are they getting interest from you, they are also getting a late fee. Don't fall into their trap, and get into this cycle, especially considering most minimum payments are a lot higher than $25.
When Do Missed Payments Go On My Credit Report?
One question I always found myself wondering about is when is a credit card payment is really considered late and will affect my credit score. A lot of people think that if their charge card bill is due on the 28th, and the payment is made on the 30th, then the payment is late, and their credit score is going to be hit.
The payment is two days late. You are going to get nailed with a late fee, but that's about it. It's not going to be reported to the credit agency, and its not going to show up on your credit report to really hurt your credit. The only thing that's going to happen at this point is on your next statement your minimum payment is going to do be a lot more (It will equal two payments, and the late fee).
Because creditors have to wait at least thirty days before they can report late payments, the only way a late payment is going to affect your credit score is if you don't pay your past due balance within 30 days of the day it was due, not the statement date.
For Example;
You have a Capital One credit card with a statement date of December 11th, and a payment of $25.00 due on January 1st. You don't make the payment, and Capital One hits you with a $25.00 late fee. The statement date has nothing to do with anything. The only date you need to be concerned with, is the payment due date of January 1st.
So, you will have until January 31st to pay the bill without it ever showing up as a late payment on your credit report. Your next Capital One credit card statement comes on January 11th, and a payment of $75 is due on January 31st. This payment consists of the missed payment (the past due amount of $25), the late fee ($25), and the current month's payment ($25). Since the new due date is January 31st, as long as you make this months payment of $75 , nothing will show up on your credit report as late.
Okay, so now that we have an understanding of when payments are really late, let's get into it a little bit more. It's one thing if you missed a payment because you were lazy, and just forgot to make the payment. It's a whole other ballpark if you have very little money to make the payment.
I didn't have enough to make last month's payment and this month they want twice as much. If I don't pay the whole payment, am I going to be marked late?
This is a horrible situation for you to be in, and a fantastic situation for the credit card company. The truth is, as long as you make the original missed payment (the past due amount), the thirty day countdown starts over for the the new payment.
For Example;
You missed last month's Capital One bill of $25 that was due on January 31st. You received your February statement on February 11th that wants a minimum payment of $75 due on February 28th. This was the past due amount ($25), the late fee for the missed payment ($25), and February's payment ($25). You know there is no way you are going to be able to get the $75 payment, but you want to keep the late payment from your credit report.
So you make a $25 payment. This takes care of the past due amount, for all intensive purposes resets the late day calculator. Now things are going to get interesting.
On March 10th, you get your Capital One statement. It shows that you made a payment of $25, but still charges you a late fee of $25 (you will always get hit with a late fee if you don't make the minimum payment). Now, they want a minimum payment of $100 due on March 30th. This consists of last month's missed payment, last months late fee, this months payment, and this months late fee.
Now you are in some trouble, because your account is $50 past due. This means that you have to make a payment by March 30th of $50 to keep your account 'current' and prevent it from being reported as 30 days late. Hopefully you can get yourself out of this jam and make the full $100 payment.
This is not a good habit to get into. BillMeLater had me doing this for several months, and I learned my lesson real well. Credit card companies love this, because not only are they getting interest from you, they are also getting a late fee. Don't fall into their trap, and get into this cycle, especially considering most minimum payments are a lot higher than $25.
The payment is two days late. You are going to get nailed with a late fee, but that's about it. It's not going to be reported to the credit agency, and its not going to show up on your credit report to really hurt your credit. The only thing that's going to happen at this point is on your next statement your minimum payment is going to do be a lot more (It will equal two payments, and the late fee).
Because creditors have to wait at least thirty days before they can report late payments, the only way a late payment is going to affect your credit score is if you don't pay your past due balance within 30 days of the day it was due, not the statement date.
For Example;
You have a Capital One credit card with a statement date of December 11th, and a payment of $25.00 due on January 1st. You don't make the payment, and Capital One hits you with a $25.00 late fee. The statement date has nothing to do with anything. The only date you need to be concerned with, is the payment due date of January 1st.
So, you will have until January 31st to pay the bill without it ever showing up as a late payment on your credit report. Your next Capital One credit card statement comes on January 11th, and a payment of $75 is due on January 31st. This payment consists of the missed payment (the past due amount of $25), the late fee ($25), and the current month's payment ($25). Since the new due date is January 31st, as long as you make this months payment of $75 , nothing will show up on your credit report as late.
Okay, so now that we have an understanding of when payments are really late, let's get into it a little bit more. It's one thing if you missed a payment because you were lazy, and just forgot to make the payment. It's a whole other ballpark if you have very little money to make the payment.
I didn't have enough to make last month's payment and this month they want twice as much. If I don't pay the whole payment, am I going to be marked late?
This is a horrible situation for you to be in, and a fantastic situation for the credit card company. The truth is, as long as you make the original missed payment (the past due amount), the thirty day countdown starts over for the the new payment.
For Example;
You missed last month's Capital One bill of $25 that was due on January 31st. You received your February statement on February 11th that wants a minimum payment of $75 due on February 28th. This was the past due amount ($25), the late fee for the missed payment ($25), and February's payment ($25). You know there is no way you are going to be able to get the $75 payment, but you want to keep the late payment from your credit report.
So you make a $25 payment. This takes care of the past due amount, for all intensive purposes resets the late day calculator. Now things are going to get interesting.
On March 10th, you get your Capital One statement. It shows that you made a payment of $25, but still charges you a late fee of $25 (you will always get hit with a late fee if you don't make the minimum payment). Now, they want a minimum payment of $100 due on March 30th. This consists of last month's missed payment, last months late fee, this months payment, and this months late fee.
Now you are in some trouble, because your account is $50 past due. This means that you have to make a payment by March 30th of $50 to keep your account 'current' and prevent it from being reported as 30 days late. Hopefully you can get yourself out of this jam and make the full $100 payment.
This is not a good habit to get into. BillMeLater had me doing this for several months, and I learned my lesson real well. Credit card companies love this, because not only are they getting interest from you, they are also getting a late fee. Don't fall into their trap, and get into this cycle, especially considering most minimum payments are a lot higher than $25.
My Experience With Hardship Program For Sears Citi Card
I had a Sears Citi Card for almost ten years. I always had a love / hate relationship with Citi, because I would pay off the card, and then they would send me a new one right before Christmas, and boom I would be right back where I started.
When my health insurance premiums went up, I knew things were going to get bad. When the transmission of my truck went, I knew things were going to get really bad. On my due date, I called Citi and explained to them I would be unable to make a payment.
They didn't care.
The next month, I called back on my due date. I think the minimum payment was something like $235. I told them there was no way I would be able to afford this, and after a bit of conversing I ended up paying them what I could afford $100.
They didn't seem to be understanding that I was having financial hardship, and if I couldn't pay my monthly minimum of $80, there was no way in hell I would be able to make a $235 payment.
The next month, I had no money at all for them. They still wanted something like $300. The due date passed, and I started getting a couple letters in the mail from Citi Bank. They didn't want me to lose my charging privileges (which was useless, since the late payment fees and interest took me above my credit limit) and they wanted to help me. They gave me a special 1800 number to call.
I wasn't expecting much, honestly.
Everyone I spoke to was extremely friendly. They saw that I had been a customer for ten years, and up until the last four months I had zero late payments. I explained all of my problems, and told them there was no way I could make such a large payment. They asked about my future, and I was honest with them, and told them I had to support a family of four and my hours at work were being reduced.
It took about an hour on the phone, but Citibank did something amazing for me. They gave me 0% interest, and $50 a month payments for five years. I was previously paying $80+ a month with 24% interest. The only stipulation was that they had to close the account. I was fine with that. That would prevent me from getting back in trouble.
I felt like I had finally won a victory and was going to make a big change in my credit scenario. Then I realized that the four months of late fees and the four months of interest I was paying was going to take nearly six months to pay off and start seeing progress.
When my health insurance premiums went up, I knew things were going to get bad. When the transmission of my truck went, I knew things were going to get really bad. On my due date, I called Citi and explained to them I would be unable to make a payment.
They didn't care.
The next month, I called back on my due date. I think the minimum payment was something like $235. I told them there was no way I would be able to afford this, and after a bit of conversing I ended up paying them what I could afford $100.
They didn't seem to be understanding that I was having financial hardship, and if I couldn't pay my monthly minimum of $80, there was no way in hell I would be able to make a $235 payment.
The next month, I had no money at all for them. They still wanted something like $300. The due date passed, and I started getting a couple letters in the mail from Citi Bank. They didn't want me to lose my charging privileges (which was useless, since the late payment fees and interest took me above my credit limit) and they wanted to help me. They gave me a special 1800 number to call.
I wasn't expecting much, honestly.
Everyone I spoke to was extremely friendly. They saw that I had been a customer for ten years, and up until the last four months I had zero late payments. I explained all of my problems, and told them there was no way I could make such a large payment. They asked about my future, and I was honest with them, and told them I had to support a family of four and my hours at work were being reduced.
It took about an hour on the phone, but Citibank did something amazing for me. They gave me 0% interest, and $50 a month payments for five years. I was previously paying $80+ a month with 24% interest. The only stipulation was that they had to close the account. I was fine with that. That would prevent me from getting back in trouble.
I felt like I had finally won a victory and was going to make a big change in my credit scenario. Then I realized that the four months of late fees and the four months of interest I was paying was going to take nearly six months to pay off and start seeing progress.
What Happens When You Call Consolidated Credit (A Review, I Guess)
Ah yes, Consolidated Credit, the non-profit group that was going to help me through my financial problems, and everything would be rocking sunshine. I have a special place in my heart for Consolidated Credit, the place where all my hatred is hidden because these buttholes made me lose a great job opportunity.
Basically, they are a non-profit debt management company that promises to take all your debts and combine them into one big happy payment. I was introduced to them when I called Chase and asked them about hardship programs. Apparently, you have to go through this hell to get any kind of help from Chase.
I spoke with an enthusiastic guy named John, who originally told me is he was calling me from Chicago, and an hour into the conversation started talking about how the weather was in Arizona. He had a bit of charm in his voice, and if I hadn't been screwed over so many times, I would have been taken in by his fake charm.
We started the conversation by having me explain what brought me into my current financial state. It was pretty clear with John's replies that he was attempting to somehow bond with me. In reality, you knew he was probably just checking Facebook while listening to me tell him a few of my problems.
Then we went over my credit card accounts. He asked for the totals, the interest rate, and the minimum payments. I figured they would have all this information from a credit report provided from Chase or something, but I was wrong.
After we went through all of this, John started prying into my personal life. I had to tell him how much money I made, how much I spent on utilities, how much I spent on food, how much I spent on personal items, fast food, etc. It was really exciting to tell him that I had a budget of around $6.00 a month on food.
Then came the exciting part. John knew my situation was bad. He even said "If I was in your shoes I would look into bankruptcy...but since we're here.." John told me what he could cut the interest rates to for all my cards, if I was accepted into the program. The interest rates he gave me were pretty much 50% of the rates I was currently paying. He crunched some numbers, and gave me some figures. I could have all of my credit card debt paid off through Consolidated Credit in five years, and all it would take would for me to spend 60% of my monthly income. Add in the 25% for my mortgage, and I was left with 15% of my monthly income to provide for a family of four. Just for the record, my income is $2040 a month after taxes.
I started asking questions about the program. For participating in the program, I was paying this non-profit company $50. I couldn't understand how I didn't qualify for the free program, considering I was providing for a family of four. The best part was when he told me that some of the creditors might now agree to the the program's terms so my payment could actually be higher.
I told John no thank you. For the next couple of months, John would call me asking if I was still interested in the program. Most of the time, I would let it go straight to voice mail. Eventually, I figured John would get the idea and quit calling me.
So you are probably wondering, how do Consolidated Credit cause me to lose a job? I finally caught a break and got an interview for a perfect job. It was more money, better benefits, etc. Everything was looking great. The job was in my specialty, and with my five years of experience, I was literally the ideal candidate for the position.
I had taken my phone into the building, because if I was to call them when I arrived. Because I share my phone number with very few people, and because I work midnight shift, I NEVER get calls during daylight hours. I had not thought of powering my phone down.
The interview went fantastic. We were talking about a potential start date, and who I would be working with. I was the happiest I had been in months, possibly years. The panel of interviewers were answering some questions I had, when suddenly I felt my phone start to vibrate.
"ASSHOLE CALLING... YOU HAVE AN ASSHOLE CALLING"
For whatever reason, I set up a special ringtone for John from Consolidated Credit. Upon hearing the ringtone, the room fell silent. Everyone that was smiling now had one of those "Well you just screwed yourself out of a job!".
Two weeks later, I called to ask about the job. I was told I was not chosen basically, because of what had happened with my phone. I know its my fault for having the ringer on, but still.. I will always have a hatred towards this debt management program.
The best part is, that was the very last time John tried to call me.
Basically, they are a non-profit debt management company that promises to take all your debts and combine them into one big happy payment. I was introduced to them when I called Chase and asked them about hardship programs. Apparently, you have to go through this hell to get any kind of help from Chase.
I spoke with an enthusiastic guy named John, who originally told me is he was calling me from Chicago, and an hour into the conversation started talking about how the weather was in Arizona. He had a bit of charm in his voice, and if I hadn't been screwed over so many times, I would have been taken in by his fake charm.
We started the conversation by having me explain what brought me into my current financial state. It was pretty clear with John's replies that he was attempting to somehow bond with me. In reality, you knew he was probably just checking Facebook while listening to me tell him a few of my problems.
Then we went over my credit card accounts. He asked for the totals, the interest rate, and the minimum payments. I figured they would have all this information from a credit report provided from Chase or something, but I was wrong.
After we went through all of this, John started prying into my personal life. I had to tell him how much money I made, how much I spent on utilities, how much I spent on food, how much I spent on personal items, fast food, etc. It was really exciting to tell him that I had a budget of around $6.00 a month on food.
Then came the exciting part. John knew my situation was bad. He even said "If I was in your shoes I would look into bankruptcy...but since we're here.." John told me what he could cut the interest rates to for all my cards, if I was accepted into the program. The interest rates he gave me were pretty much 50% of the rates I was currently paying. He crunched some numbers, and gave me some figures. I could have all of my credit card debt paid off through Consolidated Credit in five years, and all it would take would for me to spend 60% of my monthly income. Add in the 25% for my mortgage, and I was left with 15% of my monthly income to provide for a family of four. Just for the record, my income is $2040 a month after taxes.
I started asking questions about the program. For participating in the program, I was paying this non-profit company $50. I couldn't understand how I didn't qualify for the free program, considering I was providing for a family of four. The best part was when he told me that some of the creditors might now agree to the the program's terms so my payment could actually be higher.
I told John no thank you. For the next couple of months, John would call me asking if I was still interested in the program. Most of the time, I would let it go straight to voice mail. Eventually, I figured John would get the idea and quit calling me.
So you are probably wondering, how do Consolidated Credit cause me to lose a job? I finally caught a break and got an interview for a perfect job. It was more money, better benefits, etc. Everything was looking great. The job was in my specialty, and with my five years of experience, I was literally the ideal candidate for the position.
I had taken my phone into the building, because if I was to call them when I arrived. Because I share my phone number with very few people, and because I work midnight shift, I NEVER get calls during daylight hours. I had not thought of powering my phone down.
The interview went fantastic. We were talking about a potential start date, and who I would be working with. I was the happiest I had been in months, possibly years. The panel of interviewers were answering some questions I had, when suddenly I felt my phone start to vibrate.
"ASSHOLE CALLING... YOU HAVE AN ASSHOLE CALLING"
For whatever reason, I set up a special ringtone for John from Consolidated Credit. Upon hearing the ringtone, the room fell silent. Everyone that was smiling now had one of those "Well you just screwed yourself out of a job!".
Two weeks later, I called to ask about the job. I was told I was not chosen basically, because of what had happened with my phone. I know its my fault for having the ringer on, but still.. I will always have a hatred towards this debt management program.
The best part is, that was the very last time John tried to call me.
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