chase credit limit decrease

[enharu]

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@s_rob7488 wrote:

It seems as if finding a loan is going to be the best option. It will allow me not to have to juggle payments and even though it'll take a while to pay it back, it seems most reasonable. Feel free to correct me if I am wrong......and this is all under the assumption that I am able to even qualify for one. 

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It's hard to tell you whether that would be your best option because it really depends on the interest rates of the loan itself, and it's effects on your DTI ratio as well.

And of course like you said, you don't know if you can qualify for one. But in general that would be the best because the rates are generally lower than that of a credit card.

Do calculate your DTI ratio when you can and post it here, and hopefully everyone can chime in.

Do you have assets that you can use as collateral for the loan?

[s_rob7488]

How am I able to estimate what my minimum payments are per each CC? Isn't that plus my monthly expenses divided by my monthly gross income? Only thing(s) for assets would be vehicles but I do not own either of them. I have the 401k, not sure if that is an asset (probably not). 

[enharu]

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@s_rob7488 wrote:

How am I able to estimate what my minimum payments are per each CC? Isn't that plus my monthly expenses divided by my monthly gross income? 

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For the payment amount, the easiest way is to look at your CR, get the amount from each account and then add them up. That is what each lender will see as well.

Or you could look at each individual statement and calculate it that way.

For more about DTI calculations: http://en.wikipedia.org/wiki/Debt-to-income_ratio

Calculate your back-end ratio.

[s_rob7488]

Ok, as of 5/25/13 EX CR stated $15,572 total debt and $1078 monthly payments. I calculated this morning that on average this year we're taking home $4193/month. Since the total debt is lower than what I am currently reporting, would it be closer to $1300-$1400 monthly payments? 

[s_rob7488]

Called a few places for personal loans wells fargo 7.67%-16% usaa 15%-17% local credit Union 1 10.49%-12.99% (only up to $10,000) local credit Union 2 (my bank) 18% ( based on my current credit score). I'm not sure if my wife would be willing to cosign a loan with me. She's 100% aware of the situation but she had a 757 credit score when she got a CLI on her chase card last week.

[s_rob7488]

Another thought, she is listedas an authorized user on one or both of my chase cards shouldi take her off?

[silverzgirl]

Having been where you are, OP, I can tell from my experiences that when a big bank balance chases you, they are trying to get rid of you. Happened to me with a few of them. I am no longer a customer.  

I would tread lightly in calling them before you have taken strides to solve. I would also drop to minimum payments with them; they more you pay, the more they will chase leaving you perpetually maxed out.

I would not touch the 401K. You already have a ton to pay off, it won't make much of a dent in overall balance and adds one more loan to pay back. Plus that money is no longer working for you.

[score_building]

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@silverzgirl wrote:

Having been where you are, OP, I can tell from my experiences that when a big bank balance chases you, they are trying to get rid of you. Happened to me with a few of them. I am no longer a customer.  

I would tread lightly in calling them before you have taken strides to solve. I would also drop to minimum payments with them; they more you pay, the more they will chase leaving you perpetually maxed out.

I would not touch the 401K. You already have a ton to pay off, it won't make much of a dent in overall balance and adds one more loan to pay back. Plus that money is no longer working for you.

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Sometimes yes a card holder is chased to closure, this happens with increased odds, when unwilling or unable to change poor credit behaviour in time to salvage the relationship.

Unless OP fully intends no longer wishes to be a customer, then paying as much more than the minimum as possible- but even something small if thats all he can do- will not only reduce the cost of debt- it can count more favorably toward 'repayment score'...and once those duckies are lined back up, he can be in a position to chose whether or not to remain a card holder or not. I too was chased, after the initial shock, didn't flinch (thanks largely to knowledge gained here and having resolved to see it through) used the card for infrequent small purchases, made monthly payments 10-25%+ of outstanding balance and the balance chase from 10K has resulted in c. 10Xs that in CLs across product, including one AU acct. They lifted the AA target, clearly noting the turn around in my approach to repayment.

An issuer mostly wants to see that a card holder knows how to play to win (charge and pay down in a reasonable time frame/responsibly- essentially) and OP does, it will just take some time to regroup...sounds like are already taking important steps toward a successful resolution. You'll be back on top and all the wiser for the lessons learned whatever you decide. Hang in there and GL!

[silverzgirl]

Could be, except I did not have poor credit then. I was not using the cards either; they doubled interest and I opted out. So it was more likely that I would never be a cash cow.

Charging a vacation when already over the ute rate they like could also result in them doing the same. Chase has always been quite risk averse, I have found. More so today. This is why I say tread lightly with them. Others may have different experiences.

I stand by my "do not use the 401K" stance. If you have extra savings you are better off using that.

[s_rob7488]

I would use the savings but like to keep some money to my name if worst case scenario I was to lose my job or something crazy