hi,
i asking this for a friend who is in trouble..
i pay mine cc card debt online using ach transfer from mine other bank but i don't realise there is no sufficient fund there. but i withdraw some cash 2000 the next day.now the ach transfer has been bounced and mine cc company closed mine acccount . because i have many late payment history...
mine cc bank asked me pay in full but i only able to paid a small portion, will i go to jail for this? is this consider a "bad check"?
thanks
2007-02-12 17:33:05 · 3 answers · asked by nechong 1 in Business & Finance ➔ Credit
Fortunately for you, there is no debtor's jail.
so to answer your question, NO they wont come to get you.
They will demand their money (as you already know)
and will do all things to see that they get it.
In the mean time, they are slapping interest charges all over your account in addition to the late fees and bad transfer fee (or whatever they call it)
Not sure what you owe but lets say you owe 3k.
If you have a bad history of payment, chances are that you now have a 22% or higher interest charge assessed to your account each month.
so your 3k goes up to 3210 (your interest charges + late (and other fees)
so you dont pay next month either so now
the break down is this
3210 + more interest and more late fees
and now you owe 3330
and so forth.
Month 4 or so, your entire file will go to collections.
More fees (maybe attorney's fees at this point too)
so now you owe $3590 (give or take)
By the end of the year it is not unrealistic for you to owe 5k on this original 3k balance
please pay as much and as often as you can!
you will easily owe
2007-02-12 18:09:19 · answer #1 · answered by lisa s 6 · 0⤊ 0⤋
call the bank and ask for a payment plan. They know that it is unrealistic to expect to pay the entire amount over one month. The quicker you act the better, and you should be able to work out a solution that works. you will most definitely not go to jail.
2007-02-13 02:40:20 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes, its considered a bad check. You authorized a payment from your checking account to pay for your credit card bill.
Not paying your credit card bill on time will mess up your credit and your ability to open another check account or other credit cards later.
2007-02-17 00:46:59 · answer #3 · answered by annazzz1966 6 · 0⤊ 0⤋