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rate reduction cap? If rates were lowered, (7,8 %)people could stay current. I would think that cc companies would welcome payments on time and hopefully for more than the minimum which surely beats defaults. Everyone wins; consumers lower their debt and cc companies make money.
What's happened to us I don't suppose as unusual and that's we used cc a lot during a time we were trying to help an uninsured brother with cancer treatment costs. In the end, sadly, it was of no avail but we used them. THEN we sold our business up north and moved back to my husband's hometown where he was a very successful home builder for thrity years prior. Of course we needed a place to live and bought a run down three acres with a little old hill country cottage on it. We got a thirty year fixed loan however, because we had taken on more debt the cc companies, BOA and WAMU took the opportunity to raise our cc interest rates to astronomical rates even though we paid on time and over the minimum.
I tried to negotiate a lower interest rate with both companies and to put it mildly, we were re-buffed and made to feel like dead beats. My head was spinning after those calls because it seemed upside down. The bank obviously didn't regard our debt as so over-whelming that they wouldn't loan us money but at the same time the cc companies, holders of unsecured credit, used the loan against us rather than as an indicator that we were credit worthy! Now, we have little extra each month to do with that we would use to boost the economy. Go figure.
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