u/Economy_Purchase_567

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Hello,

I was terrible with money for a 4ish year period up until late last year, at which point I stopped taking on credit and began paying off my smaller loans to snowball and hopefully pay off everything I owe. My wife and I bought a house a couple of years ago and thankfully were able to do so. After obtaining a home, I still had issues with money and racked up more debt over the next year.

I am on my way to paying everything off now and make about 1500 in payments a month across a couple of personal loans, credit cards, etc. I have around 700 additional of disposable income left after those and essentials, bills, etc. to help snowball my debt.

I received a hardship offer yesterday from chase for my freedom card. I owe around 9500 on the card with a 9400 credit limit. They offered to lower my min payment by about 150 a month and lower APR from 27% to 12% for 12 months but would be unable to use the card (which is fine). Card wouldn't be closed. They do note that my credit limit would be reduced as part of this, and the fine print also notes that my credit limit would be reviewed whether I accept or not.

It sounds great, I suppose, but im worried about the credit limit being lowered and making my utilization much greater than 100% for the card. I am also worried about being balance chased all the way down to zero and then them closing the card. Would this happen regardless considering i have carried a maxed balance for many months? I've never missed a payment for the 10 years ive had the card (my oldest credit line, which is another concern) and have never missed a payment with any creditor.

I dont care about credit availability specifically because I dont want to ever use any ever again. I am worried about this plan wrecking my credit score and appearance worse and not having a credit score or history that would be conducive to getting a new home in the next few years to support my wife and son who will be born next month.

Any advice or thoughts about how this would go if I accept the deal? Is it worth the possible negatives? Am I worrying over something that will happen either way?

Hello,

I was terrible with money for a 4ish year period up until late last year, at which point I stopped taking on credit and began paying off my smaller loans to snowball and hopefully pay off everything I owe. My wife and I bought a house a couple of years ago and thankfully were able to do so. After obtaining a home, I still had issues with money and racked up more debt over the next year.

I am on my way to paying everything off now and make about 1500 in payments a month across a couple of personal loans, credit cards, etc. I have around 700 additional of disposable income left after those and essentials, bills, etc. to help snowball my debt.

I received a hardship offer yesterday from chase for my freedom card. I owe around 9500 on the card with a 9400 credit limit. They offered to lower my min payment by about 150 a month and lower APR from 27% to 12% for 12 months but would be unable to use the card (which is fine). Card wouldn't be closed. They do note that my credit limit would be reduced as part of this, and the fine print also notes that my credit limit would be reviewed whether I accept or not.

It sounds great, I suppose, but im worried about the credit limit being lowered and making my utilization much greater than 100% for the card. I am also worried about being balance chased all the way down to zero and then them closing the card. I've never missed a payment for the 10 years ive had the card (my oldest credit line, which is another concern) and have never missed a payment with any creditor.

I dont care about credit availability specifically because I dont want to ever use any ever again. I am worried about this plan wrecking my credit score and appearance worse and not having a credit score or history that would be conducive to getting a new home in the next few years to support my wife and son who will be born next month.

Any advice or thoughts about how this would go if I accept the deal? Is it worth the possible negatives? Am I worrying over something that will happen either way?