Credit Card Minimum Payments
Author: Guest
Posted: Wed Mar 24, 2004 7:31 pm
Post subject: Minimun Credit Card Payments
I lost my job. Now I can't make minimum monthly payments on my 3 credit card accounts. What will happen to my credit if I make deals with the Banks to pay small fixed monthly payments.
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Author: NightStar
Posted: Thu Mar 25, 2004 9:45 am
Post subject: Can't Make Minimun Credit Card Payments
If you negotiate with the creditors - ask for them to give hardship, to freeze the interest say for 6 months and still try to pay what you can.
Problem here is that they don't have to work with you on this if they don't want to, and all the while you are out of work and unable to pay, this can really snowball on the damage being done. Like late fees, over the limit fees, defaulted interest rate being added. If you go 6 months without making payments on the account it will charge off, but if you pay prior to that and can't bring the account current again, you will only hurt yourself worse by extending the charge off period to greater then 6 months.
Keep up your communications with the creditors by all means, let them know where you are what you are able to pay, and try your best, it may make all the difference how they respond to you.
But if you know this is not possible, it might be best to leave off and let it charge off then come back and settle for the best possible reporting (like say they close the account and remove from the credit report, or they least show paid in full even if you settle for less).
It is going to be hard to say for any one persons situation to know what is the right move here, just be as informed as you can on what charges and consequences are taking place as you go.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Wed Mar 24, 2004 7:31 pm
Post subject: Minimun Credit Card Payments
I lost my job. Now I can't make minimum monthly payments on my 3 credit card accounts. What will happen to my credit if I make deals with the Banks to pay small fixed monthly payments.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: NightStar
Posted: Thu Mar 25, 2004 9:45 am
Post subject: Can't Make Minimun Credit Card Payments
If you negotiate with the creditors - ask for them to give hardship, to freeze the interest say for 6 months and still try to pay what you can.
Problem here is that they don't have to work with you on this if they don't want to, and all the while you are out of work and unable to pay, this can really snowball on the damage being done. Like late fees, over the limit fees, defaulted interest rate being added. If you go 6 months without making payments on the account it will charge off, but if you pay prior to that and can't bring the account current again, you will only hurt yourself worse by extending the charge off period to greater then 6 months.
Keep up your communications with the creditors by all means, let them know where you are what you are able to pay, and try your best, it may make all the difference how they respond to you.
But if you know this is not possible, it might be best to leave off and let it charge off then come back and settle for the best possible reporting (like say they close the account and remove from the credit report, or they least show paid in full even if you settle for less).
It is going to be hard to say for any one persons situation to know what is the right move here, just be as informed as you can on what charges and consequences are taking place as you go.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 9:56 PM
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