Help with credit card late payment due?

Question

I have about 4600 on my credit card and due to financial difficulties and a history of late payment they now want the entire balance. I wasn't able to pay them for about five months.I haven't had the guts to call them to see if I can still work out a payment plan. What can I do? Obviously I don't have 4600 to pay them on hand.

Can I get another credit card with another company, pay off the balance and start paying down the debt that way without angry citibank bugging me? I can now afford monthly payments to an extent (nothing outrageous but enough to pay down the debt) but given my history I don't think CitiBank will let me do it now.

I know the payment gap will show on my credit report but will it stop me from getting another card just to appease citibank. I know the interest rate will be ridiculous but the company won't be so anal about really high payments due.

Any suggestions? And no lectures on the evils of credit cards. I've learned my lesson. Still have to pay

Answer 1

You might be able to get another credit card and transfer the balance but if your credit is bad then theres a high probability that you won't be approved for another card until you resolve the issues with this card.
Also your APR on the new card might be outrageously high.

They VERY best thing you can do at this point is to call them and arrange a payment plan. They see this sort of thing all the time. I understand that it's embarrassing, however, you need to make contact with them and see what they have to offer.

They just want their money. They'll be flexible to some degree because if their not, there's a good chance that even if they send you to collections they'll never see their money.

Be nice to them, explain your situation and see what they have to offer.

Do NOT go through a third party to negotiate your payments! Most of those agencies pocket a chunk of your payment. Read the fine print. Nothing in life is free. (I have several friends that have told me that damages your credit report. You might as well file bankruptcy)

Again, your best bet is to resolve it with the creditor yourself. They WILL work with you.

Answer 2

You'll have to get the guts to call them. You won't be the first, believe me.

Bottom line, they want their money, and would rather not make it a "charge off", a bad debt. Talk to them about setting up a payment plan.

Paying off this debt will be better for your credit, even though you'll have the late payment history for a while. A charge off is much worse.

Answer 3

I think getting another cc to pay the existing one is a good idea in your case. The question is if you will be able to get another one. You won't know until you try.

Try going to a Consumer Credit Counseling place like this:
http://www.consumercredit.com/

They can help you out. They will talk to the credit card people for you and work out a payment plan. Whatever you do, don't go to one of those 800-CASH-NOW loansharks that you see on TV.

Answer 4

chances are you wont even be able to get another card because your credit is basically ruin from this experience. Whats the interest rate on this card? 4600 is not that much. You should start selling off some of things you dont need and talk to about paying them back.

Answer 5

Go to a consumer credit counseling service (they're free) - they will negotiate a payment schedule and rate with Citibank as long as you cut up the card (in front of them!!) and any other cards that have gotten you into debt. Good luck!

Answer 6

Call them to figure out a payment plan. They will probably work with you. If they don't, you have made a reasonable effort. In some cases, it may even get them to stop charging interest.

You may want to just start paying them what you can. If they accept any amount of payment, they have set a precedent in your case and you can keep paying them what you can.

Show interest in taking care of the problem. They aren't all evil, although some truly are.

Answer 7

The credit card agreement you signed when you got the card probably did not include a hospitalization clause. Therefore, they are well within their right to raise rates and charge you fees. This is why everyone is encouraged to have a Person designated to look over their estate if they become incapacitated. However, I have heard of credit card companies that do make one time exceptions. You must call them to explain ASAP.

Answer 8

~Let me see if I've got this right. You're in debt and can't get out, so you want to take out a loan to pay the debt off? And you must realize the rate on the new loan will be equal to or higher than on the existing debt? If you really want help, call the lender you have defaulted against and work it out. If you haven't got the guts to try the logical and practical solution, stop whining.

Answer 9

Call them up and tell them what you can afford to pay.......I'm sure they will work out a payment plan that you can handle.
they would rather get small payments and get their money back than write off the whole thing.
Be very cautious about the credit counseling services.... a lot of them are just rip off schemes.

Answer 10

Go ahead and call them. Tell them you will be glad to pay off the balance, but you can't do it all at once. Tell them if they are willing to work with you they will eventually get their money, but if they are going to be nasty about it, they won't get anything.
It can be hard to believe at times, but they would really rather work with you and get their money than have to sell the account at a loss to a collection agency or have you go bankrupt and get nothing at all.
Just take a deep breath, call them and even ask to speak with someone with the authority to work on your account.
Good luck!
-Meg