topic Advice Needed in General Credit Topics

Advice Needed

Anonymous — Tue, 28 Oct 2008 19:37:29 GMT

I opened a line of credit with Bank of America 2 years ago, 15K at 15.5%. i really didn't fully understand how bad that was at 15.5% and now after 2 years of paying over $300/month the balance has barely moved. My equifax score is 680 and getting higher - everything else, credit cards, etc. have dropped in interest rate - i even got a car at under 7%, but this line of credit won't move. Is there anything i can do?

Thanks,

John

Re: Advice Needed

llecs — Tue, 28 Oct 2008 20:32:34 GMT

Welcome to the forums!

I would negotiate with BofA a lower rate if at all possible. If not, I probably would accelerate payments to pay it off and would look for a new lender elsewhere and at lease transfer most or all of that to avoid the higher rate.

Re: Advice Needed

Anonymous — Tue, 28 Oct 2008 21:20:18 GMT

Thanks! Yeah, i've called them but they're unwilling to drop the rate, even though my credit is much better than it used to be. I pay over the minimum each month but can't double the payments or anything, just ridiculous that i can't get under 10% APR on this. I looked into a transfer but of course now lines of credit are harder to get - even for a straight trade of interest rate.

Re: Advice Needed

Junejer — Tue, 28 Oct 2008 21:30:12 GMT

How much can you pay per month? If you could do $500, for instance, you will be at $0 in about three years.

Re: Advice Needed

Anonymous — Tue, 28 Oct 2008 21:59:42 GMT

Thanks. Yeah, i could do $500 a month, but that hurts a little. I have car, student loans and endless weddings, etc. that usually eat into my savings. but that's a good point, i'd like to get rid of this ASAP. Just wish i could transfer at lower interest and at least feel good about paying over the minimum.

Thanks.

Re: Advice Needed

Junejer — Wed, 29 Oct 2008 05:58:07 GMT

Do the $500 at the 15% and when you can get it refied to a lower rate, even more will go to principal. I would venture to say that right now, it hurts to make that payment every month with nothing happening to principal. Take tax returns and other unexpected income and apply to principal, etc.

GL