Hi there,

I received a letter today from "Global Credit and Collection Corp", stating that "I have been placed with them for collection" by my credit card company, for the entire balance of my credit card (just over $7000).

I moved about 5 months ago to the US from Canada. This credit debt is from Canada. I wasn't able to make my minimum payments for the past 5 months, and owed them a balance of $800. I called them once I received a notice, to try and arrange a payment plan with them, offering to pay $200/month (all that I can afford).

I rent, have no car, and no savings. I have other debts that I am also having trouble paying. Because I only recently moved to the US, I am unable to get a loan or another card here to pay off this debt (which seems like a bad idea anyway).

They refused my payment offer, and now I have this letter. I called the Collection Agency (is this a collection agency?), and asked what I can do, as I cannot pay the $7000 all at once. The agent said that if I can't find someone to finance the total amount due, that the credit card company will likely take me to court. I explained that I am 99% sure I can't "find" the money, and that even if they take me to court I can't afford a lawyer and I still wouldn't be able to pay them the money.

I approached my dad about this, but I know he probably can't help. What can I do? What do I do next? The collection agency wants me to call them back tomorrow with an answer - are they just trying to scare me, or am I in serious serious trouble here?

Sorry for the long post!

I greatly appreciate any help.

So they take you to court, they can't get money if you don't have it.

The very very worst they can do is get a judgement and garnish about 25 percent of your wages.

I would contact the orgainal lender one more time and make the offer to pay to them,

Thank-you for the response. I tried calling back the bank and they said that they can't make a payment plan arrangement with me as my account has already gone to the collection agency.

The lady at VISA recommended me getting a Financial Capacity Assessment Form from the collection agency and filling that out, and said to put what I am able to pay per month on that form.

I called the collection agency back and the guy was REALLY frustrated with me and said he "didn't know what the point was in me filling out one of those forms", and that they CAN'T accept a monthly payment - that they require the entire balance. Then he started guilt-tripping me and saying how he can't believe my family won't help me when I may be sued over this...

Is he just trying to manipulate me? What can I do? I don't know what else to do and I'm getting really frantic.

Thanks again,
Melanie