Hi Wendygrace,
I also had a car accident (rear-ended in freeway, hit and run in 2000) and have dealt with a ton of medical expenses, disability/lost income, debt and credit card juggling. Here's my tips after sooo many years of it. I don't think it's possible to beat the cc companies, but there are ways to play the game so that you don't have to pay more than 3 or 4% APR.
- DO take advantage of any 0% offers, but also the low APR offers that are for the life of the balance are better if you will take a while to pay it off. Most 0% offers are for a limited time to draw you in, then they bump up to 25% or higher. Find the lowest fixed APR offer you can find, swap your debt to that card, pay the minimum until all your other debt is paid.
- Set your card up with AUTOPAY to cover your minimum balance due each month. The cc company will bump your APR right up to the max if you are late on any payments, so protect yourself from missing the deadline! It's also a great way to reduce stress, less things to track. (If you have automatic deposit of a paycheck or that sort it can help to set the date so that the $ is taken out of your checking account right after you get a deposit so that you won't run out of money.)
- Here's something that a lot of folks miss... once you have a low APR, NEVER use that card for charges. HERE'S WHY: Only the balance transfer gets the low APR, any charges you make will be at the purchase rate. If you charge even just $50 you will pay interest on that $50 at the purchase rate until the card is zeroed out again, and that will cost you big bucks. Your payments will go toward the low APR and will not touch the high APR purchases until the low APR is totally paid off. Do the balance transfer and then safely store the card or better yet, cut it up! When you have your low APR all paid off you can always request a replacement card.
- If you have or can get several cards, keep a zero balance on one for at least 6 months and they will likely offer you a low APR if you will transfer a balance to them. Over the years, if you have to, you can swap your debt between several cards depending on the best offer. Ideal is to have one card that you use for daily charges and that you pay off each month so that you aren't getting any finance charges, and then the card(s) that you use for long term debt at low APR, and the zero balance card (you need to have or build a history with the company of carrying then paying off in order for them to offer better and better deals).
- Advocate for yourself. Most companies will give you a credit for late charges, etc. at least once, maybe more. Also, any of the mistakes you make (late,overlimit,etc.) may also have added finance charges attached, so be sure to ask if they can credit you back for the interest as well as the fees. Call and ask, it will help your credit which will help you to get better offers.
- Play the companies against each other. Telling them that you have lower offers elsewhere, that you will pay off your debt with them if they can't offer a lower rate, etc. will often get you a better APR.
- Sound confident, even if you fake it. I find that being nice but firm works for me. If what they are offering is not good enough, tell them so.
- If the person you are speaking to does not help you, ask to speak with their supervisor or just hang up and call back. So often I have gotten a person on the line who can't or won't do much to help me, so I hang up and call right back and the next person is likely to have a different view of what they can do. You can do this several times until you find the right person who can make things work for you.
- Get it all in writing and take notes! File all your notes with your cc statements. Include the date, the name and ID# of the person you spoke with, the specifics of what they are offering, when it will go into effect, if they are willing to credit you back for finance charges write down exact amounts. Unfortunately, sometimes reps lie or have wrong information. If you don't have all the info documented you can't call back and try to clear it up.
I have developed some strong credit company preferences over the years of playing this game. I really like MBNA. Very customer service oriented, willing to work with you to keep your business. Highly recommend them. On the other hand, I have had TERRIBLE experiences with Citibank (poor customer service, incorrect credit reporting, notorious for selling customer info to marketing agencies, ie massive junk mail and telemarketing), Capitol One (they lost a payment, charged me up the wazzo, took months to resolve, also notorious for gouging low income and those desperate for credit) and last but not least Chase (balance transfer with low APR promised on phone but once balance transfer went through reality was high APR. Even with detailed notes, rep's name, etc. they still claimed they had never offered low APR.)
I hope that this helps!
