Credit Card Debt Payment Plan

I made a mistake, and trying to get out off it. I have a good APR on my AMEX (7%), but my other 2 is killing me 23% and 29% pretty high balances too. am paying almost $1,000 every month on the 3 cards alone, I can barely save. PLS ADVICE

Ok, a few questions for you...
Are you delinquent on any of the accounts?
If yes, why? Job loss, income reduction, divorce, medical...?
Are you paying just the minimums on the accounts or are you paying extra?
Have you called to find out if the companies have any kind of hardship plan, etc.?
Have you made any payments late or gone over your limit? Those fees can really add up and cost you lots of money!

Here is how I would go about making a dent in these cards...if you are paying more than the minimums on each..
I would cut back to minimums on the 7% and 23%. Whatever extra you were paying to those, add it to the payment on the 29%. Make as large of a payment as you can to get that paid off quickly. Once that one is paid off, take everything that was going to that and add it to the payment on your 23%...then follow with the 7%.
It doesn't hurt to call the companies and ask if they can lower the interest rate or help out with one of the fees (if you've received any). You can always ask to be transferred to retention. Remember if you close one of your cards and have a balance on it, you still need to make at least your monthly minimum payment or you can be subject to late and/or overlimit fees.

Sounds like you need to evaluate what you are purchasing...if you are living above your means, you may need to back off of your purchases until you are in a better position to take care of the cards.

...I can think of a lot better things to do with $1,000 every month.

If you have questions, feel free to ask!

2009-06-27 20:55:19 by AAA

There are a couple of ways to pay off credit card debt, including getting a consolidation loan, making more than the minimum payment and starting ...

I have been getting 30 and 60 lates on my report and I can't seem to pull out of this cycle of lates now that my rates are so high. My score is in the toilet. Will it be even worse when my report shows that I am on a payment plan, or can this be the first step into repairing my credit?

A payment plan is an excellent idea and will definitely help your credit. As long as you pay on time, your creditors will report to the credit bureau that you are in "good standing". It's in your favor to establish a payment plan, and if you're going to be late with a payment, call the company and ask for an extension.

2007-03-18 14:08:28 by JET

I've been unemployed for a couple months, and the credit card payments are starting to hurt.

If I negotiate with the credit card company to reduced my debt or monthly payment, will this somehow hurt my credit score.

I plan on refinancing my mortgage when I get another job, and I don't want my score to be hurt.

The credit card company may POSSIBLY be persuaded into reducing the interest rate which, in turn, will reduce the monthly payment, but they arent going to reduce the amount that you truly owe. If you bought a $600 stereo, there is no reason why you should be allowed to negotiate less than that. If you defaulted on your credit card payments and the debts were sold to a collection agency, you can negotiate with THEM for a smaller amount, but the late payments, the referral to a collection agency, and the payment of less than what's owed will ALL hurt your credit significantly. About all you can do without damaging your credit would be to plead with the credit card companies to lower your interest rates. I kind of doubt they will though since they only care about their own financial well-being. If, by some miracle, they DO decide to reduce your interest rates, they may also require you to surrender the credit card. The account, naturally, stays opened until it is paid-off, but you wont be able to further charge anything onto it. If they're going to agree to take less money, they may require a good faith gesture on your part that you wont take advantage of it and charge new things on your lower interest rate card. Thus, they may cancel your charge abilities.

2009-05-13 23:42:43 by Cutman

i didnt pay a credit card and they summons me, i have 30 days to respond to the court or if i dont show up they will win and be able to take anything or ect. it says its to late to call them ,my ? is if i send a payment will this stop it or can i still call to set up a plan thanks so much

The credit card company won't accept the payment as it has went to court,they can call the baillifts in so be carefull they are a@~holes.

2008-04-27 12:22:11 by saved b

What do I need to say in my letter to respond to the summons? And can I deliver this to the court in person or does it have to be mailed?

One poster made the comment that answering the summons would be redundant - that is incorrect.
Whether you came to an agreement with the collector or not, you need to answer the summons.
If you fail to answer the summons then the collector may, and probably will, continue with the case and get a default judgment against you, even if you have a prior agreement with them.

People who make agreements to pay and then fail to answer the summons or fail to show up for the court date because they feel things are taken care of are often surprised to learn that the collector went ahead and got a default judgment against them.
It happens quite often so don't let it happen to you.

If you fail to file an answer and they go ahead and get a default against you, and you had made an agreement to pay less as payment in full, you would not only be required to pay the full amount but have to pay court costs as well. Then, if you failed to file an answer you would be stuck with a default judgment against you.

You are not "required" to have a legal or paralegal firm write up the answer for you, you can do it yourself by using your states Rules of Civil Procedure (RCP) as a guide. If you have problems with writing up your answer and you cannot afford a lawyer, you can speak with Legal Aid and have them help you write up your answer.

Your answer should include the fact that the you have made a payment agreement with the collector. It should also contain a copy of your written agreement with the collector as your proof of the agreement.

Google your states RCP and read it over. Use it to help write up your answer. The RCP will also tell you how your answer should be submitted to both the court and the collector, i.e. mail or in person.

2008-06-08 10:09:51 by JUSTASKING