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I have three credit card companys that i have had credit cards with for a few years. Recently I got into a situation where I was late on my payments, about 45 days. All three creditors jumped from about 10-12% to nearly 30% + fees, this increase made my minimum payments signifigantly higher, by about 60%. I have tried to work with the creditors, but they are unwilling to lower my rates fo atleast 6 months before they even consider it. This is causing my substancial cash flow problems. I am barely able to pay house, utilities, exc. I am concerned. The credit card companies tell me they will take legal acion if I am unable to pay these debts. What can they do, sue me? can they have a judgement placed against me and garnish my wages? do I have to declair chapter 7 or 13 is i can't pay this debt? what can i do?
yes do what mr. yet says. if they dont work dude then you just have to get a couple more jobs untill you pay off that debt and be carefull about how and what you spend.
Hi,
Many, many people are in the same "boat" with credit cards. Here is a suggestion, just to think about.
Get a new credit card, with a different company. You can "shop around" on the web or even ask friends what cards they have.
Then, find a new company who will let you "consolidate" all your debts with the other credit card companies. In other words, your new credit card company will pay off all your other debt, put it on your new credit card, and in most cases, will not charge you any interest for at least 6 mo. This is being offered by many companies now, to get you as a customer. You can ask the new company, calling by phone with a Customer Service Representative, if they will offer that to you.
You will still owe the money, but at least, the three credit cards will be paid off, getting their "collectors" off your back, and give you 6 mo. or so, to do some thinking about how to pay off the one credit card. The ones you have now will probably NOT want to talk about "giving you a break" cause they do want their money.
I do wish you the best.
Also with the changes in bankruptcy laws getting out of credit card debt is not as easy as it used to be. The rules of allowed debts has changed alot over the last few months in favor of lenders.
Normally they will send the debt to a collection agency first ( which is often not a bad thing since your credit at this point is most likely trashed anyway by all the late payemnts)
But many of the credit counseling places will help alot, but you have to make those payments on time or it will only get worst too.
I got into a mess with my credit cards too not to long ago. What I did really changed my money problems. I called the company and explained to them that I had recently went through a divorce and that I was short on money to pay all my bills. The first person I talked to was a real jerk and told me there was nothing they could do for me because my balance was too high. I then told him I wanted to close my card. He connected me with the closing department. I spoke with a really nice woman and she suggested instead of closing my account that I get on their hardship program. My payments went from $200 a month with an interest rate of 26% on one of my cards to $140 a month with a rate of 13%. They set me up on the plan for the next year and the amount is automatically debited from my checking account so I am never late. It is worth looking into. Good luck
Jackierf. if you do go to court, don't bow down and just let them win. That is what they want to do. Fight them. There are different groups and services out there can can support you and help you do this. Some recommend attorneys. I however see them as part of the problem, just wanting their lions share of the money. I'm not saying it's easy, but it's a real civics lesson and trust me, you will find out ho many rights you really have and how to use them. The truth is you have no more rights than you are educated on....
Forgot to add. They can only garnish your wages with a judgment and within in a state that lets them do such. not all states allow these jerks to garnish you.
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