Help with credit card problems!?

Question

Hello, Does anyone have any advice or the knowing of what a credit card company can and most likely will do to you if you do not make your payments? Is there a way out other than these credit card consolditation companies? I do not have the income or credit or paperwork to provide to them . Im out of work, If there is any step I can take that you know of, It would be greatly appreciated, realizing my credit wil and already is hurt.
Thanks! :)

Answer 1

If you are in real deep, have no income, etc. If also if you owe a lot of money, then you may have to just declare bankruptcy. Just start all over again, and this time do not use credit cards, you won't be able to anyway. You can work yourself back up in so many years, but if you do not have the money, then you just will not be able to buy anything. This way, you will have a head start, wipe the slate clean, and start living more fugal. It sounds like you are in too deep, with no mean to pay back. This will give you the relief you need and can start new without being hounded all the time. I am sorry, but with no job, it is just not going to work any other way. Good luck. If you have to. get two jobs, and start saving money. In about 7 yrs, you will get your credit back, and work on bringing it back up. Also, there is less time I believe with buying a house, maybe 4 yrs., so it is not the end of the world. Check it out first of course. The only problem here, is that these credit card people are going to get you for penalties, interest, and every other expense they can think of. If they will take like a 5 cents on the dollar, but I doubt if they will. If you need like gas company credit cards, then pay that one off if you can, and not include it in the Bankruptcy.

Answer 2

Credit card consoling services are essentially scams, they are owned by the credit card companies and play the good cop to their bad cop collection division, both with the same purpose.

Everything that can be done by them and more can be done by yourself. Let them know you are out of work. If you have a sob story let them know that and cry it out. If you can prove it so much the better, i.e. medical bills, unemployment paperwork etc. Although the companies don't have a heart some of their employees do.

If you don't have even some money to bargain with ask them to freeze your interest at 0% until you get back on your feet and reduce your payments to something you can afford in the meanwhile.

If you do have money negotiate to settle with them for 5 cents on the dollar and work your way up, some will let you slide for 15-50 cents on the dollar. Some will play hard ball but depending on the amount will still settle.

The credit card negotiators take such a large fee that it is almost like paying the cards directly and since you are out work you have the time to deal with them and essentially keep their fee for yourself (no offense intended)

Answer 3

First of all, advise the credit card companies that you are currently unemployed. They will reduce your monthly payments to interest only. You must keep current with the interest payments in order to protect your credit.

If you are unable to make even the interest payments, and you have no prospects for a job, you might have to declare bankruptcy. Nobody is going to lend you money, including a debt consolidation company, if you have no income to repay the loan.

The credit card companies have to protect their interests, so they will institute collection procedures even knowing you are unemployed and unable to pay the interest on your debt.

If you reasonably expect to be working within the next couple months and become able to resume timely payments, stall them - they will agree to most any payment you offer because it means you are affirming the debt and it restarts the statute of limitations for collection (a plus for them). For you, it keeps the account IN HOUSE and OPEN, not closed and farmed out to a collection agency.

Your credit rating will recover quickly once you resume timely payments and you should still have your credit accounts should you need to use them while your credit rating rebuilds.

Answer 4

They will keep on adding interest until they close your account and sell it to a collection agency. They may take you to court if you owe a great deal of money to them. More than likely, you will start getting collection agency calls and letters and you will have bad credit, as a result. You can tell them to stop calling and you can send them a letter asking them to cease and desist all communication with you. They will sell your debt to another company, and so on, and so on. You will have to write to every collection agency with a letter of cease and desist.

Also, there was a comment that they can ruin your credit for 10 years, but they can only ruin it for 7 and it goes from the 1st date of delinquency that made your account go into chargeoff status. So if you stopped paying 2 (July) months ago and they don't report it until 5 (February) months from now, they still have to close it out 7 years from July (they usually take a month off and remove it the month prior (so in June).

Steve D gives good advice, and they are very good at negotiating the interest off of your cards, and when you get a job, they can fit a payment into your budget that will pay off all your debts.

Cutting your cards up does not close the account, you have to do that it writing.

Answer 5

If you signed up for credit card protection call them and tell them you need to use it because you are unemployed. Make sure your request the letter showing you have activate this coverage. This will give you at least one year before they require payments. It will automatically pay your bill for a year. You card will be unusable.

Some cards also have hardship programs that will allow you to delay payments. If they let you use a hardship program make sure you get that in writing.

Answer 6

Tear them in half and throw them away. Pay off the debts as quickly as you can. If you don't have the money to buy something, don't buy it! Except, of course, a house or a car. Save your use of credit for these big things that you REALLY need.
Some banks have a check card, or express card, or something. You can use it for ATM withdrawls and as a "credit card" to buy things, but the charge comes out of the money you have in the bank immediately. So, no money, card no good. It's very handy and helps keep you out of credit debt.

Answer 7

What do you have against credit counseling companies? The good ones are non-profit. They charge you no fees and negotiate with your creditors on your behalf. Even if you think you may not qualify, it doesn't hurt to find out.

My recommendation is Delray Credit Counseling - http://necessaryvirtues.com/go/4016/15

It's free to request information, and there's no obligation. Good luck!

Answer 8

a) They can ruin your credit for 10 years

b) They can hire an outside collection agency who can call you up to 2 times a day 7 days a week, weekends and holidays included, to make your life a living hell until you pay

What they canNOT do:

a) Chop off your arms and legs (unless the guy you got your card from is named Vinny...)

b) Take your car (unless you paid for it with one of the outstanding credit cards)

c) Take your children (even if you want them to!)

Pay the bill off as fast as you can and chop up those cards!
Good luck!

Answer 9

they will hit you with very high interest that you could posibly never pay off unless you cut them up and pay it off as quick as you can... sorry but thats proberbly the only thing that can be said...

Answer 10

There may be something of use here.