The Discovery Card Plan

Last week I posted about how Discover raised my rates and I didn’t catch it for several months. I went through four scenarios of what I’d thought we could do about getting rid of the debt on that card, and I set up a poll asking for my readers to vote on what I should do.  10 people voted, and nine of those voted to pay $703 immediately and $209 a month for six months.

There were also a lot of good comments, and FinEngr asked where my fifth scenario was – the one to call Discover and ask them to lower my rate. That made sense, so I put in a call to Discover and asked them why my rates were raised. I was told since Discover is now prohibited by law from “rewarding” customers who have high credit scores, or “punishing” customers with low credit scores that they had to adjust rates across all their customers. I asked them when the law went into effect, and she said January.  So I guess the rate going up in December was the January invoice.

I asked about having my rates lowered, and she said she could transfer me to someone I could ask about that. I was transferred to a different person, this time a man. He said he could sure look into that for me, and his best offer was to give me a six month limited offer of 3.9% for purchases.

Well, I won’t be using the card to purchase anything, but I told him to go ahead and give me the rate.

I made a payment of $710, and plan to make my first $209 payment around April 15th, and plan to make a payment of at least $209 for the next six months. I anticipate having this card paid off by the end of September.

Thanks for all my readers who commented and thanks for the great advice: Melissa, Stay at Home Mom CFO, Kathryn, Simple in France, Saving Money Today, Engineer Your Finances, and special thanks for Mrs. Frugal over at Cool to be Frugal for including my original post in the Yakezie Challenge Carnival #5.

UPDATE: If you are interested in how we’ve done so far, click here to read Update on the Discovery Card Debt Reduction Plan posted on May 22nd, 2010.

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