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One debt PAID OFF & CC change of terms

March 6th, 2009 at 06:55 am

I am heading to the credit union right now to pay my loan in full. This payment will now be rolled into my next debt, but I am still not sure which debt it will be.

I am going to request another personal loan at the CU so that I can consolidate 2 CC's - CC#1 is $6800 at 12.99% and CC#2 is $4200 at 9.17%. (We will still have one CC with a largish balance that is a fixed promo rate of between 3-5% which I am just praying will not change.) The CU's best personal loan rate right now is 7% which I should qualify for with my credit score, so that is better than 9% and 13%, but I still wish it were lower. Then again, beggars can't be choosers, eh?

My DH and I both got "change in terms" letters from Capital One yesterday which made us think it would be wise to move most of our CC debt to a fixed loan. It certainly looks like CC companies plan on raising interest rates into the stratosphere over the next few years. I would think that we are both excellent customers in the eyes of the CCs - have kept a large revolving balance over a period of many years and have been paying slightly more than the minimum each month but I guess that's why we received these notices since they think they've got us pretty well stuck...fortunately they are wrong and we are paying off debt rapidly these days and we do have options.

Hubby's notice says that, as of January 2010, his rate will be jumping from 9.17% to prime plus 14.65% (which would be equal to 17.9% right now, so it basically DOUBLES the current interest rate) and my account (which is at a zero balance and I do not use) says it will be changing to the same terms as of April 2010. Given these drastic changes, it certainly looks like the perfect time to be moving these accounts to a fixed rate loan at the CU.

I am just really relieved that we are in a good financial position right now and are on our way to being CC debt-free.

4 Responses to “One debt PAID OFF & CC change of terms”

  1. creditcardfree Says:

    Great news on getting that debt paid off! I wish you luck on the consolidation loan as well. That should work well for you!

  2. momcents Says:


    Good going!

  3. boomeyers Says:

    I received this notice on all of my credit cards. But it does say if you just call them and close your account by a certain date, they will not raise your rate unless you are late in paying. That is what I did and I got to keep my lower interest rates. Your rates are pretty high, so if you can get the lower rate at the credit union, more power to you!!!

  4. Blue Eyes Says:

    Great job!!

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