I Need To Eliminate $11,000 In Credit Card Debt. What Should I Do?
November 27th, 2008 | 
Author: AMEX decreased my credit limit, increased my interest rate than charged an over limit fee when the new finance charge took me over the new credit limit after I paid $2000 the previous month. They did all this without contacting me until I received the bill. Is this legal? What recourse is available?
You may wish to call them and give them one chance to be reasonable. If you are a good credit risk and can routinely send higher than minimum payments, then they should accommodate your needs. Otherwise, it sounds like they may be reacting to one of your other accounts listed on your credit report, or they simply are uncomfortable with how close you are to the credit limit.
Sometimes creditors will do this if you are making only the minimum payment each month. MBNA used to do this, calling it a slow pay account, whenever only the minimum payment was sent in for 6 consecutive months. This can be one of the factors mentioned within the universal default clause on your agreement with AMEX.
Posted in eliminate credit debt
U should take out one large loan and trade all the interest rates you have for a ONE lower one–if you can not get approved @ the bank try prosper it is peer 2 peer lending system–what do i mean just read the link:) good luck
References :
http://www.prosper.com/public/groups/group_home.aspx?group_short_name=unpaiddebt
Try reading the small print.
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You could try calling them and complaining but legally in the contract for you obtaining the card they can adjust credit limits and interest at their own discression. Try refinancing this credit at a lower interest rate and paying off as much as possible.
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go to http://www.tradelinesrus.com check it out and call, i had 7,000 they helped me.
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You may wish to call them and give them one chance to be reasonable. If you are a good credit risk and can routinely send higher than minimum payments, then they should accommodate your needs. Otherwise, it sounds like they may be reacting to one of your other accounts listed on your credit report, or they simply are uncomfortable with how close you are to the credit limit.
Sometimes creditors will do this if you are making only the minimum payment each month. MBNA used to do this, calling it a slow pay account, whenever only the minimum payment was sent in for 6 consecutive months. This can be one of the factors mentioned within the universal default clause on your agreement with AMEX.
References :
http://www.pfni.net/articles/what_is_a_universal_default_clau.htm
As long as you haven't made a purchase since they raised your finance charge you can usually dispute it and you will continue at your same interest rate until it is paid off. You cannot made any new purchases with the card or it will automatically go back up. Try contacting them and see if you can do this they may need it in writing. I did this a few years ago. But be careful they may increase your credit limit to tempt you.
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