Credit Tips: Credit Card Debt Repayment Schedule

Written by carnold
Posted On: January 1, 2006

archive
Posted: Thu Sep 23, 2004 10:54 pm
Post subject: Credit Card Debt Repayment Schedule

Flat Broke
Date: 3/7/2001 1:11 am CDT

Help! I was laid off at Christmas and haven’t found work yet. I’m getting unemployment but my CC debt is about $25,000, and the cards are within $2400 of being maxed. Most of that was spent on living expenses and tuition during graduate school. As of today, I’ve burned thru my reserves and can’t make any more payments…I don’t have enough for rent, health care, auto payment. I have perfect credit, and I’d rather not file bankruptcy, but I have practically no assets and a fresh start sounds terrific at this moment. Rather than file bankruptcy, though, what happens if I just quit paying one or more of my credit cards? I know it will wreck my credit but I figure that’s better than bankruptcy. I am wrong? Can the CC companies pursue me in court…how does that work? Would it be better to just say ’screw it’ and file bankruptcy? Advice posted to this board is greatly appreciated.

archive
Posted: Thu Sep 23, 2004 10:54 pm
Post subject: Credit Card Debt Repayment Schedule

credit smart
Date: 3/7/2001 7:21 am CDT

First off you need to contact your creditors right away,and tell them you are having trouble.Many will work with you on a repayment schedule that is more managable for you with them.Some may reduce your interest rates for 6 months,or some may let you pay interest only but this may be good,or no good.It all depends on your interest rates with the cards.If you are having trouble with them changing your term to a more managable amount then you should contact a debt management service,or your local CCCS in your area,and see what they can do for you.Bankruptcy isn’t going to help you out at all.Instead it will ruin you financially.It can affect you on getting a good paying job,and it can make it difficult on renting from landlords that uses credit reports to see if they will rent to you.Also many banks won’t even open up any new checking accounts if they run a credit check,and see a bankruptcy on the report.So this should be your very last resort if everything else fails.Now if you would just quit paying your accounts all they will do eventaully is charge them off,and this starts a whole new round of collection agencies hounding you for the money making your life more miserable then ever before.They will call you day in,and day out ,and they will keep asking when are you going to pay?I have a friend who is very miserable for defaulting their creditor’s for more then $45,000.00,and this person is going trough pure ***** with the collection agencies.The reason why this person went bad with their creditor’s is that this person went blind unable to work,and pay their monthly credit obligations.So you will need to take action fast,or else face going trough ***** with your bill collectors demanding their money.Many may try to get a judgement against you depending of the amount owed before the SOL runs out if you let the accounts charge-off.So my advice is don’t run from your creditors,you are only making it harder to deal with them.Instead just call them up,and tell them that you want to be enrolled in their “hardship” program.Explain the reason why you need it,and they will tell you what they can do for you while dealing with some hardtimes.If you fail with them then go to plan “B” debt management service,or your local CCCS for help.Try at all cost to avoid bankruptcy because it will haunt you making your life very miserable after it happens.

archive
Posted: Thu Sep 23, 2004 10:55 pm
Post subject: Credit Card Debt Repayment Schedule

sue
Date: 3/6/2001 11:39 pm CDT

I had another question about inquiries, but this one is about the website I read earlier on the board for a free credit report. The site is www.worthknowing.com, and says this under their terms-
“All Lenders who provide you with pre-approved offers from WorthKnowing shall be required to post promotional inquiries to your credit report. Promotional inquiries, like consumer inquiries, do not adversely affect a consumer’s credit rating and they are typically posted whenever you receive unsolicited pre-approved credit offers in the mail.”
Are they saying that these pre-approved offers will not affect your credit as far as inquiries?

I’ve also been checking on a site called junum.com, does anyone know if this is a good way to help your credit, has anyone used this before?

Thanks for you help!