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The recent tales of outrageous credit and debit card fees have left us feeling helpless. While it's often impossible to reason with a nameless, faceless corporation, I know firsthand that if you get the right set of facts to the right person, you'll get what you want.
About four years ago, I was in the midst of a divorce that drained my liquid savings. I had been forced to take a cash advance on a zero percent interest credit card. I had made complex calculations as to how much it would cost me in total and how quickly I could pay it back to avoid being stuck with a high interest rate once that introductory period had ended.
What I hadn't taken into consideration was the fact that credit card companies can -- and do -- change the minimum payment on a whim. I got notice that my minimum could more than double immediately. I would have had pay at least $600 a month. It was completely unmanageable financially, and I was distraught.
The total funds I had amassed in my various retirement accounts would cover the amount owed, but it would leave me nothing in case of an emergency. Additionally, closing the retirement funds would cost me a penalty, as well as future earnings. I had no choice, however. I sat on my bed with all of my financial accounts spread out around me. I got angry, then resolved. I called the credit card company.
The credit card operator listened to my story. I'm a great customer. I've often paid more than the minimum, sometimes double, and I've always paid on time. People had urged me during the divorce to file for bankruptcy to eliminate much of the debt, but I'm incredibly honest. I knew I owed the amount, so I wanted to pay it, and I had been paying it. My reward for behaving properly and not taking an easier way out was to get hit with a threat of doubling my minimum payment, and that wasn't fair.
I told the same story to the next person up the food chain. The conversation took a different turn: helpful. He asked me if I had a way to repay it monthly. I told him he could see by my account that I had been paying over and above what was asked of me. He agreed. He then told me he could help me as I was a hardship case who could repay the debt.
He told me he could close out the account and turn it into a fixed loan at 1.99 percent whereby the total must be paid within five years. It sounded like a good deal, but then I worried it might affect my credit rating. He assured me that my credit was safe, and I can say now that it hasn't taken a hit from the move. The only downside, I was told, was that I wouldn't be able to use the card anymore. I had only used it for that initial cash advance, so it was not a downside for me.
At the end of the phone call, I was set to pay a flat $244 each month for five years. That is less than I had paid monthly before they raised the minimum payment. Now I have a little over two years to pay on the loan. It's also going to save me a lot more money in the long run since I am paying it off within five years. Had I not made the phone call, my retirement fund would be drained, and I'd have little to show for it.
