Seething Mad

[Preston]

I just have to get this out as I am REALLY pissed about this.

I have two credit cards that I still have open that do not carry balances -- one with 53 bank and one with Citibank.

We have a timeshare which is currently at 10% interest (tax deductible).

the balance on the timeshare is ~13k. It is the last debt of the debt snowball and I have it lined up for annihilation started beginning of next year.

But I got an idea -- I found out from the timeshare company I can pay it all off on a credit card and it would be a purchase and there would be no fee.

So I decided that maybe I could get a promotional APR on ONE of these two accounts for purchases... saving myself interest and being able to knock the debt out faster.

So I call Citibank -- they tell me tough luck.

So I call Fifth Third -- they tell me tough luck.

I took this personally.

So, although I can't close these accounts just yet I am now setting it up so I don't need to deal with them anymore.

The Citibank card was my everyday card that I would charge to and pay in full every month.

I decided to just set it up so the only CC I have is the one with my bank... which I pay in full every paycheck... I call it my 'delayed debit card.' I'm still testing the system before I officially make the jump.

But it pisses me off that two banks who I have been a customer for for 10 years wouldn't even budge. time to write some nasty emails.

[Jamauk]

We had that same issue a while back when we needed to make a big purchase. We wanted to put it on a cc that my DH has had since he's been 18 years old. There has never been a late payment, ever. He has excellent credit and when we called we were told the same thing (this was through Bank of America). We hung up and called back and got a great deal. It all depends on who answers the call and what kind of mood they are in.

[frugalfranny]

I would also check with some other cards. You might get an even better rate with opening an acct. with them.

The cards are doing some nasty and weird things right now. Some of the terms I have heard tossed around are....."chasing the balance"....if you haven't used their card they drop the $ amt. to almost zip......and "use it or lose it".....if you haven't used their card they close your acct.

I got caught with both......paypal dropped my $ down to zip (I use my discover when I buy on ebay...guess they were pissed about that!).....and B of A took it upon themselves to close my acct. and send me an American Express......I don't think so!! Hate AE....but hate BofA too.

Good luck......keep us posted how things go......

[Palooka]

But it pisses me off that two banks who I have been a customer for for 10 years wouldn't even budge. time to write some nasty emails.

I always enjoy reading those nasty letters you write. You are very good at it.

I can't stand citibank and have heard not so good things about them.

[Sassyclass]

Well good luck and like Palooka, I can't wait to read your letter to them.

Cat

[Greebo]

There may be a valid reason for them to refuse, Preston.

See, your timeshare debt is a secured debt. Secured debt has something behind it - if you don't pay the debt, they get the timeshare.

If you pay off your timeshare with a credit card, the debt becomes unsecured. If you then fail to pay the credit card, you walk away with a paid for timeshare and a ding on your credit record. And calls from collectors, of course - but they walk away with a big loss.

Now - THAT SAID? BAD BAD BAD IDEA anyway! Ask me why!

I'm glad you asked - here's why!

Those CC companies have NO boundaries. What will you do if you pay off timeshare debt with a lower rate CC, and the CC turns around and says we're raising your rate "due to reported questionable debt restructuring". IE: You moved secure debt to unsecure debt. So they get nervous and jack you up to 30%.

It's not as if they can't - they can, and they will, especially if you've got a BIG ole balance on there for them to charge you more for.

Best option, just pay off the timeshare as fast as you can. Unless you're looking at massive differences in interest rate, it won't make much difference anyway.

[Nishu]

Those CC companies have NO boundaries. What will you do if you pay off timeshare debt with a lower rate CC, and the CC turns around and says we're raising your rate "due to reported questionable debt restructuring". IE: You moved secure debt to unsecure debt. So they get nervous and jack you up to 30%.

It's not as if they can't - they can, and they will, especially if you've got a BIG ole balance on there for them to charge you more for.

Yes sir, it is as if they can't, because they can't. (Ok, at least they can't as of feb of next year.)

https://www.usaa.com/inet/ent_blogs/...the_new_credit

Link goes to USAA, 7 ways the new credit card law affects you.

In the future: Card issuers generally won't be allowed to increase rates on existing balances but will be allowed to increase rates for future purchases after the first year. A penalty rate can't go into effect unless you don't make a required payment within 60 days of its due date. In that case, you'll need to be given a 45-day notice that tells you why your rate was increased. The penalty rate must be decreased to the original rate after six months in a row of timely payments.

[Greebo]

Yes sir, it is as if they can't, because they can't. (Ok, at least they can't as of feb of next year.)

But that has absolutely no impact on whether it would be a bad idea for him to do NOW, while he's thinking about it.

After Feb, I MIGHT change my mind...

[ladytoysdream]

We have not had a regular credit card in about 16 yrs now. We closed them all off. Thank goodness.

If we need a loan, we go to the bank. Only borrowing is for a vehicle or currently a loan against the house for the home improvements we have done.

We do have a plastic debit/credit card on our checking account. But that is OUR money we are using. It's faster and easier than using a check.
Like yesterday we stopped to get gas, and used the card. I like it better in some ways because the less cash we have on us, the less temptation to spend.

Anytime any of those credit card promotions come in the mail, I just slice and dice them asap. No sense in tempting the hubby to send one off.

[Nishu]

But that has absolutely no impact on whether it would be a bad idea for him to do NOW, while he's thinking about it.

After Feb, I MIGHT change my mind...

Citicard at least has changed their tos to reflect the new laws already.

[Greebo]

Yeah, I've done work for Citi - lets just say I'll believe they're sticking fully to the new laws completely when I see it.

[Preston]

Whenever a new CC offer shows up in the mail I take the pre-paid envelope and put it aside. I then take the contents of the offer, shred them, and then stuff the envelope and then mail it.

Maybe it'll get the point across when they have to absorb the extra costs by offering me this crap. If I want something, I will ask for it.

[Preston]

There may be a valid reason for them to refuse, Preston.


Now - THAT SAID? BAD BAD BAD IDEA anyway! Ask me why!

I'm glad you asked - here's why!

Those CC companies have NO boundaries. What will you do if you pay off timeshare debt with a lower rate CC, and the CC turns around and says we're raising your rate "due to reported questionable debt restructuring". IE: You moved secure debt to unsecure debt. So they get nervous and jack you up to 30%.

Best option, just pay off the timeshare as fast as you can. Unless you're looking at massive differences in interest rate, it won't make much difference anyway.

I would put this at the promo rate that, unless I mess up somewhere wouldn't be changed. I was actually looking to get a 0% teaser rate or possibly 1.99%.

It's already in the budget to pay it off so it doesn't matter who I am making the payments to they will be made. The the lowest point in this journey I was unemployed (owed $12k in back pay from the employer I just left), 14 credit accounts, timeshare, rent in two places (relocating), and student loans. We still got by.

The freedom of being out of debt is the fact that I can voluntarily not deal with these cretins anymore.

[Greebo]

Whenever a new CC offer shows up in the mail I take the pre-paid envelope and put it aside. I then take the contents of the offer, shred them, and then stuff the envelope and then mail it.

Maybe it'll get the point across when they have to absorb the extra costs by offering me this crap. If I want something, I will ask for it.

How will they know you sent it?

[Preston]

How will they know you sent it?

They won't. But if we get enough people to start doing this when the offers show up will cost them twice as much... we can bury them in their own feces.