Bank Of America ripoff, killing me on 31.490% annual percentage rate Newark New Jersey

Please, before you consider balance transfer, read very carefully the terms.
If you do an on-line search for "balance transfer credit cards" you can see many offers on-line with the RESTRICTIONS.

For example:

0% Interest for UP to 12 months on all purchases and balance transfers.
The length of your introductory period will be either 12 months for purchases and balance transfers or 3 months for balance transfers, DEPENDING on review of your application and credit history.*
The time period for the introductory APR and the balances to which it will apply WILL BE BASED ON OUR REVIEW of your application and CREDIT HISTORY will be based on our review of your application and credit history*
Requirements: Excellent credit needed

It means that after the review they might offer you 3 months 0% for ONLY the balance transfer, but not the purchases, then after 3 months everything is going up to 35% - "based on review".
OR, if you have lower credit score, they do not offer the introductory 0% at all.

ALL balance transfer offer is similar: full of "up to", "depend", "review"

IF you apply for balance transfer, and you get any card, IMMEDIATELY check the attached terms.
Those terms are usually very different from the initial advertised offer.

If it is unacceptable, cancel the card, the transfer.

(If there is no attached terms, only the card, immediately call the credit card company, and get the details.)

Please be aware, that if you get "pre-approved" offer, it does NOT mean anything. They still review your application, your credit score, and decide based on those about YOUR rate.

Balance transfer could be very good if you have fairly good credit score OR you feel you are able to pay fully the credit card in a couple of months.

I had the same problem w/ BOA, and I was only late once. Luckily, I was able to pay off that ridiculous card quickly.

That rate should be illegal- I dont care what the paperwork says, who signed what, what all parties agreed to, or what they say about risk. That rate was designed for one purpose: to fleece the consumer. Period.

Before paying it off, I considered getting a different (new) credit card with another company and transferring the balance. There are many offers for low introductory interest rates available. Just about anything would be better than 31.490%. If you did this, more of your payment would go toward the principle.

Is my logic correct in this? Can anyone see a flaw in this solution that is escaping me?

Thanks.

1. Don't blame the credit card company, they where there when you needed them.

2. Don't ever get a home equity if you can help it, that would be your only saving grace when you get old, that you own something or you risk even losing your house.

3. Since your payment is $300 a month and you know $250 is interest, then be sure to pay as much as you can toward the principle each month, you must pay more. You should pay $500.00 a month to that credit card or it will be with you for many years to come.

4. $300 a month without interest would still take you 33 months to reach $10,000.
At the rate of $50 towards principle each month your looking at 16 years before you pay it off.

You need to pay as much interest as principle.
Even if they drop your interest rate, you need to pay more money a month towards the principle.

Last suggestion is chapter 11, live without credit for 7 years.

I have this card set up on the Bank of America website to automatically come out of my bank to them so that I'm assured that it's paid properly. Guess what? They still charged me a late charge of 39.00. How is that? It doesn't make sense. Total scam and they know they got you by the balls. Please who ever reads this, do not make the same mistake as I did. They will suck you dry.

When your rate went up, you should have cancelled the card immediately. They would have been required to allow you to continue paying it off at the previous interest rate, whatever it was.

Since you did not do that, try these.

1-Cancel the card.
2-Go to the bank and ask them to make an installment loan to pay off the card. The card is handled by a different department, so the branch will get full cfredit for doing a "new" loan. This loan will also have the benefit of a lower interest rate, and a known payoff date, usually 5-7 years. Making the minimum payments on the CC will drag it out for more than 30 years.

3-If that is not a possibility, and you own your house, ask about an equity line, or straight equity loan. This will have the added benefit(over #2) of tax savings.

4-If none of these are useful to you, try another CC company. See if they will offer you a low rate if they can pay off the BoA CC balance. The low rates usually disappear after 6 months or so, but at least it has some breathing room. The low rate, and making the payments you're making now, will at least bring down the balance due.

5-ALWAYS pay the bill early. I pay almost everything online, and ALWAYS print the confirmation. This gives me proof the bill was paid on time.

Good luck. And thank your husband for being in our Navy "Non sibi sed patria".

Semper Fi