I received a credit card with a limit of $300.00. I lost my job and made a few payment of $25.00 each month for about 3 months. I have not been able to catch up and every month they add $38.00 for late fee and $38.00 for over limit fee. How can I ever get caught up? The balance is now over $1000.00 on a $ 300.00 credit limit.

What can be done? Is this legal? I am in Georgia. HELP!!

Of course it is legal. When you don't pay your bill or don't pay on time they add a late charge.

What I would do (you should have done this as soon as you lost your job) is call them. You will be surprised how helpful they can be. They might be able to eliminate some of those late charges. But if you are not proactive it will not get any better and they will ship you to a collection agency. Never avoid a debt. Please give them a call today and tell them what's going.

I don't know if another credit card company will give you a card, but apply for a card over 1000.00 and tranfer it to that card. At least you won't get hit for over limit fee. But I think you are screwed. That my opinion.

Quote:

---

Originally Posted by SAB123

I don't no if another credit card company will give you a card, but apply for a card over 1000.00 and tranfer it to that card. At least you wont get hit for over limit fee. But I think you are screwed. That my opinion.

---

I disagree. I think your best bet is to start with a phone call to your credit card company. That way you won't end up in debt to another card on a $1,000 balance. Call them explain your situation. They might even lower your interest rate and work with you to lower your payments.

Quote:

---

Originally Posted by SAB123

I don't no if another credit card company will give you a card, but apply for a card over 1000.00 and tranfer it to that card. At least you wont get hit for over limit fee. But I think you are screwed. That my opinion.

---

Bad, bad, bad idea. If you are in a hole the smart thing to do is stop digging. Call the credit card agency and work with their collections department. If they are less than helpful, then find a credit counseling agency that will intervene for you.

Obviously $25 was not the minimum payment due. By not paying the minimum you incurred late fees. The interest was also greater than the payment so the balance went up instead of down. Now you went over the limit incurring another fee.

Yes this is all legal since it was in the fine print of the contract (application) you signed.

As Glinda said your BIG mistake was not calling the credit card company as SOON as you lost your job and explain what happened. Now you have to hope they will negotiate with you.