As of immediately, Chase bank has gone from being one of the best credit cards to have in a debt management program, to no longer being willing to provide interest relief and payment relief to consumers who are struggling.
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. 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.
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.
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 of the new economy, and rest assured it is a new economy, 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.
Just yesterday I wrote about a new bill being introduced into congress that would allow the Federal government to withhold up to 15% of your salary for any student loans you may owe. These changes are coming fast and furiously, so stop sitting back, now is the time to get your financial house in order. If you can no longer pay the minimums on your credit cards, do not waste your time asking the bank to lower your payments. Before you get deeper into debt, consider debt settlement as an option. This industry is back, with the bad actors thrown out by virtue of the new FTC regulations which have been put into effect in 2011.
If you would like to talk about the best debt settlement program anywhere, simply visit American Debt Enders. We are rated #3 nationally and without a single complaint, and driven to help you get out of debt.
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