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Hi everyone! I have been reading a little bit here and read about Total Money Makeover and went out and purchased it (with a GC right away. I am doing my Monthly cash flow plan and Allocated-Spending plan and I have a question with one of our debts, my husband's Credit Line with Citi Financial. He has had it for approx 5 years. added more money to it part way through, which I guess started the time over. Current Balance is $4,230.93. He has paid $219.00 every month, NEVER late in the entire 5 years. It is automatically taken out of his acct. Out of the $219, $117.05 is applied to the balance. So it never shows the actual interest rate on the montly statement but obviously it is outrageous! He tried calling and asking them to lower the interest rate, and they really weren't helpful. Considering he has never been late, is there anything we can do, anyone we can talk to, to try and lower this interest rate? We want to go into CITI and actually talk to someone in person. This bill is just killing us each month, to pay off practically nothing.
If anyone has any experience with this or any suggestions please help =) Thank you!
I am not sure of how specifics work for a line of credit. But sine you are paying a crap load of interest, I would figure out a way to pay it off ASAP-have a garage sale or sell things on Craiglist that are just sitting around collecting dust , pick up a part time job, offer to do tasks for your parents/grandparents for a fee, etc
You could look for another bank with a better interest rate to try to bring the interest rate down if paying it off quick isn't an option. That is weird that they won't tell you what the interest rate is. I thought they had to now days. I would be asking some big questions and either paying it off or moving it. I had to do that with a credit card when they got all crazy with the interest rate. Paying it off wasn't an option but moving it was. Good luck. Let us know how it goes.
I think if we call them they will tell us the interest rate, My DH thought it was in the 30s last time he knew. but I guess it can change. It just wasn't on the statement. I thought it was weird too! It also says "NOT THE PAY OFF AMOUNT, CALL FOR DETAILS" where the balance is. We need to go in and talk to someone this week. Unfortunately, after being laid off last year his credit has gone down the hill so I dont think changing banks is an option. But maybe in a few months if we could raise his credit score. Thanks JessP!
Try a credit union locally. They may be more apt to help you out. In my experience they tend to be more helpful than banks since banks are a for profit institution and credit unions aren't. Good luck and let us know what they say.
I've worked for both banks and credit unions and you are much better off at a credit union Some CU's don't touch high-risk loans (low credit scores) but many of them do--they will have a higher interest rate but are still usually lower than the rate would be at a bank! If his score is low enough that it puts him in the risky category when it comes to loans, offering to move his direct deposit (if he has one) there and set up automatic payments can be a plus in his favor that the loan officer takes into consideration. They also may require that he closes out the Citi line of credit so they can ensure he doesn't run it up again and make it hard to repay the loan he has with them. Even if he can't get a loan right now, it can be a good idea to open an account at your preferred credit union and start building a relationship--a credit union loan officer may be more willing to do future loans for someone with an established relationship with the credit union and has a history of responsible banking with them--you may try again in six months to a year and get a different outcome (I worked in lending at a credit union and sometimes the established relationship with us is what moved the loan officer to approve a loan they would not have with a brand-new member)