I have $25,000 in Credit card debt and $2,000 in unsecured loans. If I pay something and not the minimum amount will they not sue me. My credit card payments are $700 a month and loans are $320 a month. Im over my head and want to pay these accounts but due to divorce I cant pay the required amount. These cards and loans are in my name only so Im stuck with the bill. Anyone paid atleast something and not been sured?? Thanks
2007-01-22 14:34:07 · 7 answers · asked by lovelife 1 in Business & Finance ➔ Credit
Yes, but they still can sue you. However try this:
1. Call each credit card company and ask, no plead with them to help you.
2. Tell each you want to pay your debt completely.
3. Ask for the lowest interest rate.
4. Ask them to help schedule payments to make them reasonable for you.
5. Ask them to help with the unsecured loan debta.
6. Divorce - if it's not final, and they were partially for your spouse or your children, then you can negotiate that some belong to the ex.
7. Keep asking for help to each and every creditor.
They will help you.
8. Tell them that you want to stay out of bankruptcy, and you want to pay this off, but you have these difficultities.
9. Be as honest as possible. - and try speaking with Supervisors and Bank Managers only.
10. I do know that this works! I have advised numerous people to do this and they lowered monthly payments to a reasonable level, and they made the companies happy because they paid their bill completely. It just takes time and effort.
GOD bless us always.
CPA-retired
MBA-Boston Univ.
2007-01-22 14:51:00 · answer #1 · answered by May I help You? 6 · 1⤊ 0⤋
Understand that credit cards are legally considered unsecured debt. You do, however, have a legal obligation to pay. Recent changes in the Federal Bankruptcy laws have made it much more difficult to use bankruptcy to escape this type of debt. Your best course of action is to work out a arrangement with all your unsecured credit card companies. Call them up and explain to them your situation and they will most likely negotiate with you, after all some money is better than none. But before making this call you better have a detail understanding a written plan as to what you can afford to pay each of these credit cards and for how long. In some cases they will freeze the interest charges etc. If they allow you to enter into an arrangement you better stick with it. If you default all bets are off. You may also want to consider the assistance of credit consulting service. In the mean time cut the credit cards in half and do not use them again. They are bad! Good luck.
2007-01-22 22:59:50 · answer #2 · answered by wph00 4 · 0⤊ 1⤋
How much can you pay? If you are in default of your contract they can ask you to pay the balance and sue you no matter what you are paying if it isn't the balance. The question for them is will they get more money by suing you or by letting you pay. If you are offering a small amount monthly, you are at risk. Contact the credit card company, explain the situation, see if they will suspend late fees and interest. Set up a payment arrangement for what you can pay and then stick to it and you can avoid the nastiness.
2007-01-22 22:42:39 · answer #3 · answered by Scott C 2 · 1⤊ 1⤋
Is the 25K one card, or multiple cards? If it is several smaller cards, chances are they won't sue you. Because it cost money to go to court, most of the time they won't sue on smaller balances because it isn't cost effective.
HOWEVER, this is not a guarantee, because every situation is different. I would call them and tell them you are in over your head and see if they will work with you on lowering the payments, or some other work around. This is better than ignoring it, cause it will eventually go to collection and just get more fees added on. MOST of the time, they would rather get something than nothing.
Anyway, try and work something out first. That's the best course in my opinion.
2007-01-22 23:01:06 · answer #4 · answered by broncoguy75048 2 · 0⤊ 1⤋
You should call the credit card company and the loan place and tell them your situation so they can probably work out a payment plan that can help you.
2007-01-22 22:44:01 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Contact Consumer Credit Counseling (Catholic Charities...you do NOT have to be Catholic, and this service is totally FREE). They will contact your creditors and arrange to have your interest rates dropped and any late amounts forgiven. Then they will look at your financial situation...and set up a budget. You will pay a certain amount monthly to the agency and THEY will distribute the money among your creditors...you cannot be sued or receive phone calls when going this route...plus it restores your credit.
2007-01-22 22:50:33 · answer #6 · answered by Anonymous · 1⤊ 1⤋
Go bankrupt like your were on Wheel of Fortune.
2007-01-22 22:46:09 · answer #7 · answered by Anonymous · 0⤊ 3⤋