Wednesday, December 16th, 2009

Credit card debt has turned into a monster sized problem?

credit debt problem
charlie asked:


What ways are there to get credit card debt companies off my back? My situation has changed in such a way that I can no longer keep up with payments and they just keep adding on charges and late fees. I stopped using them months ago and I am drowning in debt. I have learned that credit cards are very bad and I can;t handle them. Are there any reliable institutions out there that can help?
Thank you all!

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7 Responses to “Credit card debt has turned into a monster sized problem?”

Judy Says:
December 17th, 2009 at 10:58 am

Make that minimum payment. At least. A late payment fee can be upwards of $39. Not to mention your apr will go up.

If you default here is what you will face for almost 10 years:
- Paying extra for car insurance – people that have good credit are better drivers.
- Landlords will turn you down – you will have to come up with extra payments – such as 6 months rent in advance.
- Employers may not hire you – stats show good credit people are better workers
- You will not be able to get a loan, not even a cell phone. You will have to pay for your next car in cash.

Please consider doing what you can to pay those off.
50% of people pay their balances in full each month.
That’s the proper way to use credit cards.

wizbangs Says:
December 18th, 2009 at 3:03 am

I’ve never used those outside independent credit saving groups, so I can’t vouch for them.

Here’s what you need to do:

Call the credit card company and ask to speak to a supervisor. Basic customer service people don’t have the authority to do anything but collect your money.

Tell them your circumstances and that you can’t keep up with the payments. If they are not willing to work with you, threaten to default and that you are considering bankruptcy.

If they are serious about collecting the debt, they would be willing to freeze your account. No more finance charges being lumped on and they will shut off your line of credit. Your debt, as it stands, becomes a fixed amount (say $10,000) that is paid back over time on a monthly payment schedule. No more compounding interest or any of that crap.

But, you will need to make sure you make that monthly payment you commit to. Reorganizing this kind of debt is one of the last stops you get before you go to serious collections (and possibly litigation). So, let them know you are serious and that you are willing to work with them and maybe they’ll cooperate.

If not, stop paying them. Let them squirm for a while. A collections agency will get the debt after a period of time and they WILL accept taking a fixed payment plan. The only downside is that your credit has been ruined by then (if it hasn’t been ruined all ready).

Good luck.

Jarrett E Says:
December 19th, 2009 at 12:06 am

Any institution that you use to help will have a negative effect on your credit and most of the time they are scams to get money out of you. The best thing for you to do is to call the companies and work a out a situation that is beneficial to both of you. Tell them your situation and let them know that you want to work this debt out. Own up to it and they may be willing to help you. Do not get mad or blame them for anything, remember it was you that got you into the situation. Some things to ask for would be a lower interest rate, ask them to take off some of the late fees, if you have gone over your limit ask them to take them off, and tell them that you have quit using the card and will not until the debt is under control. See if they will put a hold on the account for a while as you work this out. There is no guarantee that they will do any of what I just said to try. They do want their money so they may see it in their best interest to help you out. Good luck. I hope you have learned a valuable lesson on managing finances.

Always live within your means. Save for a rainy day. Do not make money the center of your life.

bud68 Says:
December 20th, 2009 at 8:44 pm

You get them off your back by paying your debts. There are no “institutions” that will really help you.

Louise Says:
December 21st, 2009 at 2:21 pm

You might consider debt settlement. You can payoff the debts over 36 months while paying less per month and being DONE at the end; paid in full. My sister used a company called Total Debt Solutions –www.totaldebtsolutionsllc.com to get out of debt. If you have more than $10,000 in debt, check them out; you can call and talk to them toll free for nothing. The company they partner with has been in business 10 years, have no BBB complaints, and mandate that you keep your funds in a trust account (this protects you.) Best of luck to you.

Sgt Big Red Says:
December 23rd, 2009 at 1:14 pm

Well all is not doom and gloom as mentioned by others. You only hope right now is to seek a credit counseling service. NOT one of those you see on TV spouting they can cut your debt in half, save you thousands, do not believe them.
If your financial problems stem from too much debt or your inability to repay your debts, a credit counseling agency may recommend that you enroll in a debt management plan (DMP). A DMP alone is not credit counseling, and DMPs are not for everyone. You should sign up for one of these plans only after a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money. Even if a DMP is appropriate for you, a reputable credit counseling organization still can help you create a budget and teach you money management skills.

Here is a link to locate a reputable credit counseling service in your state approved by the FTC. Some may only handle bankruptcy, but still offer regular counseling.

Hope this answer is of help to you
LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice

The Judge Says:
December 25th, 2009 at 2:19 am

Why blame it on credit cards is beyond me.

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