How do I stop my credit card bill from going to collections? I'm a student in need of credit answers!?

Question

I am a student who signed up for one of those credit card offers that you receive in the mail (stupid decision...i know). Anyway, I needed to purchase books and supplies and now my bill has reached astronomical proportions that I simply cannot pay. I started missing payments and now am worried that my credit is destroyed. My question is whether there is a way for me to negotiate with the credit card company to figure out a payment I can actually afford. Also, is my credit now completely ruined? Can it be repaired or am I stuck with horrible credit for 7 years? Finally, I am trying to move in to an apartment or house after the semester ends. Will that be impossible now due to the mistakes I've made with this card? Someone please help because I honestly do not know much about credit. All I know is that I've made a HUGE mistake with this card and I just want to fix it.

Answer 1

The first thing you need to do is cut up your card so you don't use it anymore. If you can, you should also try to make the minimum payment so at least you're not delinquent. You can call your credit card company, and they may be willing to work with you. However, I would also try calling Consumer Credit Counseling Services.

CCCS is a non-profit organization that helps people get out of debt by working directly with lenders to close the account, lower interest rates and put people on a payment plan. There is no cost to you for this service. You might get a better/lower interest rate by using CCCS than trying to do it yourself.

It flags your credit report that you're doing this, but it goes away once it's paid off. That's not a negative thing, it actually shows creditors (like your potential apt. lessor) that you're being smart about getting your credit in line. It's better than showing delinquent payments and other things that can hurt your credit rating.

To find the CCCS nearest you, just do an Internet search for Consumer Credit Counseling Service Inc. + your city. Each one has its own Web site, so you can find one that's in your area this way.

Good luck!

Answer 2

How do you stop it... well you make the payment. If you don't make the payment, the creditor will report the failure to pay to the credit report.

If your last payment is less than 6 months past due, the creditor will not be receptive to negotiating. If it is past 6 months, you may be able to re-instate your credit card privilege after a few on-time payments.

Moving into an apartment or house depends more on your ability to afford the rent. However, if you cannot afford a monthly credit card bill payment, you are not likely to afford your monthly rent. Statistically.

There are no magic tricks. If you have a job, get a second. If you have a second job, well, get a third. It is a hard lesson, but it is one that you will have to learn whether you want to or not.

The longer you let the payment slide, the more interest that will be charged to you. So do not ignore this problem.

Lastly, you may be able to contact the creditor and explain your dire situation and in the end declare yourself as a hardship case. Express in the tone of your voice the stress and difficulty that you are experiencing and request that they allow a moratorium for at least 3 to 6 months.

They may say 'no', but it is worth a shot. If they say 'no', submit your request for this moratorium in writing immediately and follow up again by phone.

Answer 3

Most credit cards are willing to work with you, you won't know until you call them. Explain you situation and ask if they can lower your interest rate. Every time you miss a payment it is reported to the credit bureaus, you need to be very careful about credit card offers...especially as a student. See if you can take out financial aid to help pay for your books and supplies. Or get a better job...and don't get another credit card to pay off the old one.

Answer 4

Do you own your car? Or have equity on it (the car is worth more than what you owe- if you don't know, go to where the carloan is)? You can refinance your car and take on the credit card debt onto your car. Do this at a credit union or bank, they will help you out with this.
If not, then call the credit card companies and tell them what is going on. You may have to do your "financials" where they are going to ask where your money comes from and how much and how much you pay and to who (food, utilities, etc) then they can perhaps work out a payment plan.
But the first step is to call them before they call you.

Answer 5

First step...CUT THE CARD IN HALF and trash it then ring your credit card company and explain all this to them, most financial instutions are reasonable when it comes to matters like this although some can be a bit nasty.
Explain to them how much you can repay per month or how often you want to make your payments and then make sure that you stick to the arrangement.
Ask them about the your credit file or what ever it may be called where you are and Im sure that they will be more than happy to help you in one way or another!

Goodluck!

Answer 6

Daisy!

I am confused. You are going to college, but are allergic to asking a reference librarian in your college library for books on Credit?

Hmmmmmmm.

You are on a college campus and I'm thinking there has to be a computer lab somewhere yet you haven't done a google search for the variety of websites on credit.

And you are about to graduate?

Did this college teach you research skills so you can survive in the real world and be self-reliant?

I will give you some websites, but sister girl, you NEED to learn how to find information that is beyond your current knowledge.

And further, don't be afraid to ask for help at your local Barnes & Nobles or BORDERS store. That's what the staff is THERE for!

Oh and finally, EVERYTHING in LIFE is negotiable. Always and forever.

Just remember though, that you lose your leverage in negotiations when you procrastinate as you have done with this issue. :-).

Answer 7

call the credit card company and explain it to them, sometimes they can be helpful if you will be honest instead of trying to ignore it and not paying it good luck