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I have a visa and they cut my credit limit from 2500 to 900 a few months back now the card expries in 4/09 so they said they can't give me a new card. The question is what if I just quit paying it all together? I live in GA and I am on SS, my score has gone down from the 700's to the 600's. I have never been late. I am considering stopping paying all of the unsecured debt. What do you think I should do?
The real key is to spend less then you get.
Let say you get $100/M spend $20 on must have things like food and cloths etc. 20 on foodl $30 paying it off so now don't waste money and pay it off... or file bankrectpy
Excuse me? You used the card correct? You have the goods that you bought with the card correct? So why wouldn't you pay it off? Reducing your credit limit just means you can't use the card anymore, if you are over the limit.
I am not over the limit I have never been late I always pay over the minium. When I signed up for this group I thought they had professionals not a bunch of blah, blah. BalhQuote:
Originally Posted by ScottGem
Thhis is m first and last Q
Many credit card companies lower your limits, and even raise the rates if you credit score goes down. There is nothing wrong with this, in fact it is common
But if you don't pay, they will sue you, and get a judgement and to be obvioiusly, if you think just not paying is a option, they may have made the right choice to lower your limits, since it does prove you can't be trusted.
But what do you expect people to praise you for wanting to be a dead beat and not pay your bills ?
The issue is, they may not be able to garish your SS but you will have to prove that all your money in the bank came from SS when they freeze that account
Due to the current economic situation, many people's limits are being lowered and cards are being canceled by banks. Because of the situation banks have put themselves in, they are trying to guard against losing money due to cardholders' bankruptcy claims.
They have the right to do pretty much anything they want including lowering limits, canceling cards, raising minimum payments and raising interest rates.
If you stop paying, they will take you to court.
The way I see it if you used the card then you have an obligation to pay it back. With that being said, I think most banks are lowering the credit limits on many customers, example
My 81 year old father has no debt and has just one cc in case of an emeregency he may have used one time in the last year and paid it off when the bill came anyway, his cc company sent him a letter LOWERING his limit now here is a man that has no debt home paid etc, that tells me that the banks are doing this to most everyone!
I am going through a situation with credit card debt too. The way it goes if you stop paying is the credit card company will call and call for payment . In the mean time they will raise the interest rate. If that all fails the will sell the account to a collection agency, normally 20 cents on the dollar. The credit card company will then claim it as a lose and the government will pay them 50cents on the dollar for their lose. That is 70 cents on the dollar total between gov and collection agency.Their lose is now 30 cent on the dollar, but the interest rate that they raised while tiring to get the payment from you increased the amount owed. The collection agency will try to get the money and when that fails they will bring a civil suit against you for the money. If it goes against you, that is when the judge can order a lien on your home or wage garnishment ,selling some of your property to pay, etc. I am the process right now. I have debt management negotiators talking with them to come to a settlement.they already cut one from12000 to 4000. Its costly but so is bankruptcy , at least in Pa. You can try talking to the credit card company, but it didn't work for me. Nothing they could do. Hope this helps for you
The issue of not being able to pay your credit card debt because situations have changed in your life put you into a most emotional and financial stressful situation.
We are brought up to pay our debts and be responsible... and we do that. However the entire credit card business and the use of debt in our lives as become a way of life. However credit card companies are a business and they make changes that suit their business.
On the other hand things change in peoples lives and remember it was a two way street... meaning they granted you credit based on your credit history and they realize that things may change for some people making it impossible for them to repay.
It is important to always remember that if faced with a choice of paying your credit cards or running out of many to pay rent or mortgage or food... then please know you have an obligation to yourself and your family.
This is a personal decision...
In closing... The credit card companies will not work with you as long as you are current... they have an entire process of dealing with people who stop paying... So if you need to stop paying, I mean really need to, then Stop Paying... and the calls will start... and the older your delinquency gets there will be a different type of person calling you... If you have some money... and maybe in a position of settling the debt with a lump sum they will work with you... but you must be patient and wait it out...
And to them suing you... yes it is possible but not something to just assume... and if you are truly unable to pay... suing you is their very last option they take.
The overall message is do not get caught up in feeling irresponsible if you are in a situation where you just cannot pay them... You credit rating will be impacted... but it is something you cannot avoid.
Do not spend your last dollars paying them... if truly your current circumstances will not allow it.
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