i haven't made a minimum payment in 8 mo. they are charging it off, but can will they sue me for it? my credit card limit was 1250 and with fees and interest it's up to about 2200. i don't have a job bc i take care of my son. my husband got laid off and we can barely afford to live. i only own a '92 car that's not worth even 800. if i continue to make payments, can they sue me? we can't afford to pay right now and we certainly can't afford garnishments or court costs. what can i do?
2006-06-19 07:25:19 · 10 answers · asked by Tia M 1 in Business & Finance ➔ Credit
Best bet, call the company and try and make an arrangement. What was spent on the card isn't what's killing you, it's the over-the-limit fees, interest fees, and fees for fees. It gets to be a racket sometimes what they charge, believe me, I know. If they won't come to some sort of a payment plan, freezing the account and all thier fees, then you need to call a credit counseling group FAST. Credit consolidation offers them a way to assure getting their money, and you the chance to pay back what is owed without having the final balance hit 10s of thousands of dollars. I can't recommend any particular group, but make sure it's one of the non-profit types, that are subsidized by the government to help people with mounting debts.
As for the actual 'being taken to court'... it won't happen. You are making SOME sort of attempt paying what little you do.. which must be taken into account by the credit card group. Also, for so little $$$, it wouldn't be in their best interest to try and pursue anything. Sure, they'll threaten and huff and puff... but worst case scenario is that they'll write off the amount completely... and put it against your credit rating, where it sits in limbo hurting you for 7 years down the road for getting a good deal on anything credit-based, including some types of work now-a-days. So.... best bet to save your wallets, credit score, and future, try and arrange something with the CC company or through a CC Consolidation firm and get back control of your financial stability.
Hope this helps! :)
2006-06-19 07:37:50 · answer #1 · answered by Jeff K 2 · 1⤊ 1⤋
yes, they can sue if you have not made the minimum payments, especially since it has continued for so long. They might not sue yet, but they most certainly will before the statute of limitations is up.
It's actually pretty easy for credit card companies to sue, even if it's considered an unsecured debt. After they sue, the debt becomes a judgement, and that judgement can be renewed for years and years.
How old is your son? Can't your husband take care of him, since he's laid off, while you get a job? Once he is working again, the two of you could work opposite shifts so that one person is always home with the child.
You other option is bankruptcy, and you might qualify for a chapter 7 if your income is low enough.
2006-06-19 14:30:35 · answer #2 · answered by Mama Pastafarian 7 · 0⤊ 0⤋
Yes, they can sue you. But, if it is a major credit card company, they probably won't sue you. They expect that a certain percentage of people will default under the credit agreement and so they dont sue everyone. $2200 may seem like a lot, but its pennies to them. Besides, they write it off of their books as a business loss. They will damage your credit though. Paying it off, even slowly, will help some, but your credit has already taken the hit.
Legally, they have 4-15 years (depending on the state) to sue you. They may also assign your debt to a collection agency. The collection agency may sue you to collect or work out a payment plan.
2006-06-19 14:35:12 · answer #3 · answered by Darth Plagueis 3 · 0⤊ 0⤋
they cannot sue you for trying to make an effort to pay them. I would talk to the cc company and see what you could work out. Don't close the account but do get them to lower your intrest on the card! you may have to talk to the manager or someone higher in ranks. If the 20 dollar payment is under the limit and they are still accepting that amount than they, I am sure cannot sue you. Why can't you get a job aywhay?
2006-06-19 14:33:09 · answer #4 · answered by lori H 2 · 0⤊ 0⤋
I can only answer from my experience. I did the same thing and they charged my balance off. From there they sold my account to a collection agency who harrassed me for months. Then they sold it to another agency who harrassed me for months. I think I'm on about the 5th agency. One agency called my neighbors and left messages and they sent a "proof of employment" request to my employer (we trashed it). Anyway, the interest and late fees are still accuring so on a $2,000 limit I now owe over $4,000. A few have offered me a settlement and if I ever get one that's fair I'll probably pay it. They have all inferred that they could sue me but it's been almost 4 years and about 5 agencies. Look on the internet for what collectors can and can't do legally - arm yourself with info and you can deal with them better. Anyway, hope this helps!
2006-06-19 14:37:41 · answer #5 · answered by catgirl141 1 · 0⤊ 0⤋
I would call them and tell them that you will continue to make the $20/month payment. Ask them if they have some sort of credit counseling program you can get in that will lower your interest rate, do away with over the limit and late fees.
If they tell you they will not accept the $20/month, tell them that they can consider your bill paid in full, if they won't take your money.
You have to be stern with them, they are going to be very rude to you!!
Also, if they keep calling you, you tell them that they are harassing you, and not to call anymore. They are NOT allowed to harass you!
2006-06-19 14:54:04 · answer #6 · answered by mj216 3 · 0⤊ 0⤋
No they will not sue you but they will bother you and get collection agencies to your house. But I am sure you can tell them you sitiuation and you and the credit card company can work something out. By paying $20 shows that you are trying to pay them off but due to you inconvience you are currently able to pay $20. If worse comes to worse I suggest you to go bankruptcy (but I hope you do not have to go that far)
P.S. Good Luck
2006-06-19 14:34:40 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Most credit card companies have insurance in case you lose ur job or are hospitalized they make the minimum payment. Try to enroll in that program and this should help you til you get back on your feet.
2006-06-19 15:38:48 · answer #8 · answered by touchemupent 1 · 0⤊ 0⤋
no credit cars are insecure loans,, they cannot take your wages.
they can try to sue you but it is very hard..
just try to work it out.
but they cannot take anything from you..
but if is was a secured loan than they can sue you...
so i think you are ok...
just don't let them drive you nuts.
you can also send them a letter to stop calling you.
2006-06-19 14:30:19 · answer #9 · answered by Anonymous · 0⤊ 0⤋
they will probably send it to a collection agency, and you'll have to make arrangements with them.
2006-06-19 14:29:36 · answer #10 · answered by webjnke1 7 · 0⤊ 0⤋