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I have a card from US Bank with $ 4500 that I owe. I had transferred a balance to this card when I first got it since it had a 0% apr for 1 year. A few months ago they lowered my credit limit within $ 50 of my balance. I went over my credit limit since I did not know they had lowered it. I was charged a $ 39 fee and my interest rate jumped to 28.9%

I called and they refuse to lower my rate to a reasonable APR. I am tempted to stop paying on the card and negotiate the debt but I am worried of how bad that will look on my credit. US Bank recently closed the account so now I owe all this money on a closed account.
My credit score has really taken a toll in the past year. I have a high debt to income ratio and one really small collection ($ 79)from two years ago that I paid off.

What are my choices? Please do not offer me debt management companies! I will not use them.

4 Thoughts on How should I handle my credit card debt?
  1. Reply
    July 23, 2011 at 8:31 am

    As for US Bank you have no choice but to pay at least the minimum amount every month. Otherwise you will have late payments show up on your credit report and you will have a harder time getting credit.

    In the mean time try to get another credit card or line of credit with a lower interest rate. Many times banks will send you offers in the mail. If you have any other credit cards now with a lower rate maybe you could transfer the US Bank loan to those credit cards.

  2. Reply
    July 23, 2011 at 8:53 am

    if you cannot afford to pay , then dont.
    do not engage in financial marathon
    Prioritize your needs and your family’s needs
    Do not let the credit card problem control your life, it is your life anyway.

  3. Reply
    July 23, 2011 at 9:22 am

    Your only option is to pay them off. Most credit card companies were just looking for a reason to raise the rates on a 0 interest account.

    You can try to find another credit card and do a balance transfer, but offers for new cards with low interest rates are few and far between now.

  4. Reply
    Debt Guru
    July 23, 2011 at 10:11 am

    You will need to pay it back as per schedule. Credit card companies are know to reduce credit limits without any notice so this does not surprise me. If you stop paying, your credit will take a hit and other credit cards that you owe might change the interest rates on your accounts because of this default.

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