Chase offered me a payment plan

[NYMatt]

To pay my CC balance down over a 60 month period with a interest rate of 2% . Is this a good offer to accept ? Thanks in advance !

[andbowd]

thats ok. I think. AB85o

[bubbaboo]

They sure have changed their ways. I have three Chase chargeoffs that followed the same pattern. First late payment results in jump to 30% default rate. Phone calls start. Sometimes 15 a day. Even when I talk to them, they may call back in a couple minutes and go through the same crap. Chargeoff after 4-6 months of late payments. No offer to settle, no deals. Goes to a CA.

That is a very good deal as far as settlements go. If you owe the money and can handle it, I would say to go for it, assuming they put it in writing.

I got a slightly better deal from Citi - 0% APR over 60 months.

[bubbaboo]

I forgot one thing. After three on time payments, Citi started reporting that the payments were on time. No more lates reporting. You might want to see if Chase will do that for you. Otherwise, in five years you will have paid off the debt, but your credit reports will show five years of late payments.

[Bambee]

My "Big C" account is 30 days past due and the bank refuses to settle (even though I'm willing to pay 50% in a lump sum today). Instead, the bank also offered 0% APR over 60 months. The balance right now is about $12K. Why would the bank take the "huge" risk of waiting another 5 years for the total amount when they could have 50% right now?

They sure have changed their ways. I have three Chase chargeoffs that followed the same pattern. First late payment results in jump to 30% default rate. Phone calls start. Sometimes 15 a day. Even when I talk to them, they may call back in a couple minutes and go through the same crap. Chargeoff after 4-6 months of late payments. No offer to settle, no deals. Goes to a CA.

That is a very good deal as far as settlements go. If you owe the money and can handle it, I would say to go for it, assuming they put it in writing.

I got a slightly better deal from Citi - 0% APR over 60 months.

[fred333]

that sounds like a great deal. I would go with it and try to pay more off each payment.

[Bambee]

I don't see this as a good deal. I've been reading the threads here about "Big C" bank and it seems like the bank will settle for 40 to 50% just before the account is charged off. In other words, I could potentially pay $5K to $6K in a lump sum on this account if I wait a few more months. With the current offer, I'll pay the full amount ($12K) within the next 5 years!

I'm not worried about this account affecting my credit report since it's has been deleted.

that sounds like a great deal. I would go with it and try to pay more off each payment.

[astiman]

Go with what is best for your financial situation.

Remember, they want to MAXIMIZE what you will pay them....up to you if you want to actually do that.

[jennatoga]

Just curious...how did you get them to give you that offer? I am in with them for about $13K, at 29.9%. I tried to negotiate a lower interest rate and they said no. The best part is that they posted a payment late one time a year ago. (by one day) and that knocked me from 4.9% to 29.9. I was too naive to fight it. I am paying the minimum payment, perhaps that's why they are unwilling to work with me? Should I let this default? I don't want to screw up my credit any more than it is! Any help would be greatly appreciated!!

[axs377]

Just curious...how did you get them to give you that offer? I am in with them for about $13K, at 29.9%. I tried to negotiate a lower interest rate and they said no. The best part is that they posted a payment late one time a year ago. (by one day) and that knocked me from 4.9% to 29.9. I was too naive to fight it. I am paying the minimum payment, perhaps that's why they are unwilling to work with me? Should I let this default? I don't want to screw up my credit any more than it is! Any help would be greatly appreciated!!

They are not going to deal if you are making on time payments. If your credit is not bad I would not suggest defaulting to get a better deal as this will hurt your credit. Instead focus on this card and try to get a few months of decent payments to bring down the balance and then try negotiating a better interest rate.

[NYMatt]

I turned down their plan.I'm not going to pay for 5 years and have nothing to show for it , not even the Chase credit cards , which were closed anyway.

They can now go pound sand.I don't feel bad because they forced me into this , with their 30% default apr and late fees and overlimit fees.

[Spiritled]

NYMatt:

How did you get them to offer you that deal? Were you not making your payments for a while? I would like to get an offer, but I am current on my payments...

[NYMatt]

NYMatt:

How did you get them to offer you that deal? Were you not making your payments for a while? I would like to get an offer, but I am current on my payments...

Honestly , why do you think would they offer me a plan like this ?

[Bambee]

They are not going to deal if you are making on time payments. If your credit is not bad I would not suggest defaulting to get a better deal as this will hurt your credit. Instead focus on this card and try to get a few months of decent payments to bring down the balance and then try negotiating a better interest rate.

Or. . . .If by chance you do default and this shows up on your CR, you can also try to dispute it with the CRAs and see if it gets deleted. It's just a try - no guarantees that the account will get deleted.

[IanC1211]

Like many of you, I am now in a predicament with Chase. I have a balance of just over $14k. My current interest rate is 24%. I was at first denied for their hardship program 6 weeks ago. The terms would have been 12% for 60 months. I could not get an answer as to why I was denied. At that time I was current and had always paid more (slightly) than the minimum. I don't use the card, and I am contemplating my options as now I'm in even more of a hardship and struggle. After searching on the internet, I've found that these hardship payment plans have been offered at single digit interest rates and even 0% in some cases.

Do I keep fighting for a hardship payment plan, or do I make a settlement offer? I would gladly accept 6% for the next 60 months. On the other hand, if they would accept a 40% settlement, I'd consider that too. I don't have the money for the settlement, but I would get a loan. The loan would not be that great. It'd be 11-15% and probably for 3 years. I think I have a better chance of getting the hardship payment plan at 6% for 5 years than I do a settlement agreement for less than 50%.

In the mean time since correspondence with them takes a lot of time, do I even send them a dollar? Last month I paid them the $318 payment that would have been the payment had they granted me the 5 year @ 12% plan. Of course, they quickly proceeded to call me 5 times a day every day (until this week) to tell me that I could pay the $108 I was short by phone at no extra charge. :rollseyes: I haven't gotten anywhere with these people.

Thanks for your advice, and I plan on contacting them on Friday.

Edited October 1, 2009 by IanC1211

[Denita]

You need to work with their hardship dept - the collections dept and the normal customer service reps can't put you on a hardship program.

If you are making the payments in full and on time, they will not work with you. Call their hardship dept and work it out over the phone (since you are working with the OC)

They want you to close the account and do an automatic draft for the payment. Make sure the automatic draft does not come out of your regular account. Have it come from an account you set up just for this purpose (or have it come from a prepaid card).

[IanC1211]

I have been working with the hardship department. They also call themselves "proactive solutions."

You're saying that I should create a new bank account for the sole purpose of making the payments? Why should I not use my one and only checking account?

[Denita]

I have been working with the hardship department. They also call themselves "proactive solutions."

You're saying that I should create a new bank account for the sole purpose of making the payments? Why should I not use my one and only checking account?

Because you do not want to give your account info to the collector - even if its an OC. It is best for YOU to keep all of your funds entirely separate and let the OC have access only to a limited account, just in case they 'forget' and take out two payments instead of one or any number of possiblities. A JDB or CA is more likely to not honor the agreement, but always, always protect yourself and your money. If you don't, who will? It is better to set up the system so you are protected right from the begining - if you never have an issue, then nothing is lost. If you have an issue, then you have protected your account and your savings.

I looked up Chase Pro Active Solutions (because I had not heard of that dept before) and it turns out it is a new dept to handle the big hit from when Chase increased the min payment to 5% of the balance on their fixed rate cards. See this link: http://www.visioncredit.org/chase-proactive-solutions/

and try this one too for ideas: http://downwithtyranny.blogspot.com/2009/07/if-your-bankster-is-putting-screws-to.html

Just google proactive solutions + chase and you will come up with a bunch of people that have tried it and their experiences in getting a better rate/payment. Good Luck!