What should my disabled mom do about her past due credit card debt?

Question

My mom has a past due credit card blance of $3,100 from one credit card. She got it right after my Dad passed away and for the first year she kept up with the payments but after that, the credit card company closed the account because they said her credit rating fell and they could not keep the account acitive. After that, her minium payments went up about $100 dollars per month. Now my mom is on disablility and drawing off my deceaseds father's social security so her total income a month is about $599. She does not have very much money left after paying for utilities, medicines, docotor's visits, food and basic stuff to survive. It has not been turned over to a collections agency yet but I'm sure it will be soon. We have not tried to negotiate with the credit card company because my mom just can't afford to pay what they want a month. Does she need to worry about paying this debt? What about garnished wages? She does not own a home or anything of value. Thank you!

Answer 1

they can not take any of the social security payments. tell them she is now on disability, so stop the interest and we will make a payment of what she can. if they wont do that tell them to **** off.

Answer 2

I would never recommend this but in the most extreme situations.

Stop making payments on the card. Do not send them a penny until you can pay the settlement amount in full! Put away what you can every month into savings. Sell some stuff. Keep selling stuff and putting away a little here n' there as much as you can.

Soon your mom will be contacted by a psycho collections agent who will insult and threaten your mom. She needs to ignore them. They will ask for access to the checking account and will even lie that they've hired an attorney and that it's legal for them to garnish income. They're lying.

Have her ask, in very plain English, "I barely have means to survive... What is the minimum you will take to make this go away?". You can probably get it dropped to around $1600 for a settlement. If they don't say $1600 or something close, hang up (yea, you can do that). Call back at a later date and make a settlement offer of $1600. They may haggle back, or they may settle. Hopefully you've saved up that much by the time this starts hitting her, so you can tell them they'll have the full settlement the day after you receive a letter of intent.

Then, please get them to send something IN WRITING stating that they accept the $1600 settlement and you will be free and clear. Then, you can send a certified check for that amount over-night with signature delivery confirmation. Keep all paperwork.

Do NOT file bankruptcy over three grand worth of debt, even on disability. Totally unnecessary. Jeez.

Answer 3

Always do everything in writing and mail it certified return receipt. Create a papertrail.

Your mom should write a goodwill letter to the credit card company. Fully explain the situation and include that the payments on the account had been properly met and in a timely manner for X number of months.

Request that they drop the payment (and interest if it was raised) back down to the previous amounts.

If they refuse to answer or refuse to work with your mom, have her send complaints to the FTC, BBB and her states Atty. General. (there also is a place that you can complain for abusive practices on the elderly, but the name escapes me right now)

Also, file a complaint with PlanetFeedback. (it's amazing how companies will suddenly work with people after a complaint shows up on that site)

After she files the complaints, and the original creditor hasn't done anything about lowering it, re-write them and ask again.

Check the fine print on the credit card company's policy's. See if what they did is listed. If it isn't, speak to a lawyer.



Also, if it is possible, maybe you can co-sign a loan for her to pay off the credit card company. Another thing that you can do to raise her credit score is to add her as an authorized user to your credit card(s) (as long as your cards have an excellent history and low utilization) She doesn't need to physically have the AU cards, just to have the cards report on her credit reports. Be sure if you do add her, to add her as an AU. That way if anything should happen to you, she will not be held liable like she would be if you added her as joint.

One other thing, since your mom's income is so low, she should go to her local DHS and sign up for aid. She may be able to get food stamps, help with her utilities, help with medical and medications etc. And possibly (?) even get SSI.

Answer 4

Good heavens...She will easily qualify for a Chap7....

You do NOT need a lawyer....Call the Trustee's office in your area, find out the median income for your state.....If your income is below that figure, you can file Chap7....If not, go into a Chap13...

Next, she must complete a financial education class PRIOR to filing any bankruptcy. Get a list of approved classes from the Trustee.....TAKE the class now to get it out of the way - even if you choose not to file after all.

You can file PRO SE - get all the documents from the court or Office Depot - the documents are standard, it's the exemptions that may vary - very easy to research....The documents may be intimidating, but they are very straightforward.....

Get all three of your credit reports and list all your creditors/collection agencies.....match up the collection agency w/ the original creditor. If you have some that are not listed - list them.......

If you borrowed $100 from Aunt Edna and will not pay her back, list her as a creditor....If you don't list it - it won't get discharged....(discharge is good/dismiss is bad).

Go to Office Depot TODAY and get the paperwork - or you can buy them online.....

You'll have to pay for the credit class (not more than $40 & the filing fee of about $160 (depends on your state)...and you can certainly apply to the Court for a waiver of the fee.

There are certain waivers for disabled persons - maybe she won't have to take the class - - either way don't delay. Her financial nightmare can be over in 6 months!!!

Answer 5

She should consider credit counseling. There are reputable companies out there that will help her to negotiate a settlement with the credit card company.
The other option is Bankruptcy. If she has no property to lose and she dosen't plan on buying any in the next few years she can easily have the debt wiped out by filing chapter 7. Consult a lawyer or a consumer advocate for more info.

Answer 6

I would suggest that she negotiate before it goes to collections. The collections agencies can be nasty and will really add a lot of stress to your Mom. It is not worth it. Bare minimum : she should be making any kind of payments she can whenever she can. Her other options are she could go see a credit counselling agency and see what they can do for her. They would be able to provide advice and maybe help negotiate for her.

Answer 7

She should call them and explain the situation. They will be more appreciative and flexible if you are honest and try to do what you can to pay the debt off. Or just as the person above said try the consumer credit agency. Either way do something, pay something....show you are concerned and trying to make headway. They will be more willing to work with you then. Good luck! Hnag in there, it will all work out in the end!

Answer 8

Maybe you could pay it for her. Its only 3, 100. its to small to file bankruptcy. You should help her out or negotiate with the card company. My husband was working for Citibank and that would work with people wo suddenly became disabled, retired......hospitalized and so forth. You should talk to the credit card company and talk to a manager.

Answer 9

I would talk to the Consumer Credit Counseling agency in your area. I went through them and they are fantastic. They can get your payments down, your interest rates slashed and get creditors to stop calling.

Answer 10

i doesn't in any respect propose this yet interior the significant severe circumstances. provide up being worthwhile on the cardboard. do not provide them a penny till you pays the contract quantity in complete! placed away what you may want to each and each month into low value expenditures. promote some stuff. save promotion stuff and putting away a sprint accurate the following n' there as a lot as you may want to. rapidly your mom will be contacted by using utilising a psycho collections agent who will insult and threaten your mom. She desires to ignore about about them. they are going to invite for get accurate of get admission to to to the bank account and would even lie that they have got employed an lawyer and that that is criminal for them to garnish earnings. they're mendacity. Have her ask, in very complication-free English, "I truly have ability to proceed to exist... what's the minimal you'll take to make this bypass away?". you may want to likely get it dropped to round $1600 for a contract. in the adventure that they don't say $1600 or something close, dangle up (yea, you're able to attempt this). call lower back at a later date and make a contract provide of $1600. they might haggle lower back, or they might settle. hopefully you've kept up that lots by using utilising the time this starts off hitting her, so that you may want to tell them they are going to have the achieved contract the day once you get carry of a letter of reason. Then, please get them to provide something IN WRITING affirming that they settle for the $1600 contract and also you'd be free and sparkling. Then, you may want to provide a qualified study for that quantity over-evening with signature shipping confirmation. save all workplace artwork. do not document monetary catastrophe over 3 grand nicely worth of debt, even on incapacity. thoroughly unnecessary. Jeez.