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tommy N · Posted: Thu May 01, 2008 10:46 am

Hello everyone,

I am looking for some advice here. I have a $9,700 balance due on my AMEX green card. I have only had the card for 3 months or so. Right now it is current, the balance is due on May 21. I cannot pay this, or even come close to paying the balance in full.

I do make decent good money, and could probably have this paid off in about 6-8 months. What should I do when AMEX starts calling me because it's past due? Should I try and work out a payment plan with them immediately, or just put them off? I am assuming this debt will go to a collection agency eventually...

Advice?

Thank you

Posted: Thu May 01, 2008 11:17 am

I would call them and explain the situation, I am sure that they are getting these types of calls. See if they can put a hold on the interest or cancel the card completely and work on a payment arrangement/plan with them.

Posted: Thu May 01, 2008 11:19 am

They may let you put into sign and travel where you can pay it off! Question, how could you run up almost 10k in 30 days if you knew you could not pay it?

tommy N · Posted: Thu May 01, 2008 11:35 am

authorized user did most of the damage, someone who had been loyal to paying me back whenever he said he would.

amex allows you to charge again after you set up a payment (not after it clears), so it was easy to charge 5k, make a payment (that bounced), and charge another 5k.

my credit isn't bad but no bank is going to give me 10k unsecured cash...

tommy N · Posted: Thu May 01, 2008 11:41 am

i'm just not sure what to expect...i hear AMEX is really tough and send to collections immediately. at this point i already realize that my credit is going to be destroyed, but i guess i am trying to avoid legal trouble (getting sued)...like i said, i can pay it back within 6-8 months

Posted: Thu May 01, 2008 11:45 am

well, first of all, allowing a $5k check to bounce was not very smart and in some states I think that would even be considered a felony. I would call them and talk to them, if you don't at least call them and let this go into collections, yes, they will probably sue to get their money. I would also talk to the person allowed to use the card and have them pay up.

Posted: Thu May 01, 2008 11:49 am

just been thinking some more on this, you state that you have an amex with a credit balance of $10K, I don't have credit cards, but I do know that amex is not an easy card to get, especially with a limit of $10K. You must have some kind of assets available in order to get this card, or are you saying that your limit was $5K, you made a payment of $5K, allowed it to bounce and in the meantime ran up another $5K. So in fact you are $5K in arrears. Let me know if I am wrong, I am trying to wrap my brain around this one.

Posted: Thu May 01, 2008 11:58 am

Deeann, amex cards usually have no pre set limits. the balance is expexted to be paid off monthly.

tommy N · Posted: Thu May 01, 2008 1:01 pm

yes, kashzan is correct...it's a charge card, balance is expected to be paid in full monthly. the payment of 5k that bounced was just to satisfy amex in order for them to allow for more charging.

at this point going after the person who made the charges is nearly useless because they were an authorized user and there is nothing i can do about that...

i want to set up a payment plan but if i call them now i highly doubt they will work with me considering the account is still current.

Posted: Thu May 01, 2008 3:47 pm

My suggestion would be for you to take as many items back as you can. Sell the rest.

Guest · Posted: Thu May 01, 2008 5:09 pm

"My suggestion would be for you to take as many items back as you can. Sell the rest."

am in that much trouble? won't it take a while for this to actually get to a collection agency and for them to do something? i can pay it off in about 6-8 months from today, and my balance is still current...

Posted: Thu May 01, 2008 8:17 pm

I've never dealt with AMEX accounts. You may still be able to work with them. But wouldn't it be that much easier on yourself by returning items you really couldn't afford at the time?

From my experience in what credit card collections when your balance is called due you have a short amount time to make good on it before it goes to collections and even then you have maybe 2-3 months before it charges off. I can't imagine them letting you go for too long with that large of a balance without them taking legal action.

tommy N · Posted: Fri May 02, 2008 7:07 am

i see your point...but considering the balance won't start to be past due until late may, i was thinking it would be at least a few months before it went to a collection agency, then at least a few more months before they took legal action. if i had paid it from 10k down to 4 or 5k in that amount of time i have a hard time believing they would try to sue me...they just want their money and if i was making large payments on a regular basis...why would they take the time and effort to try and sue? i don't know, maybe i'm wrong here...

SHERIFF FRED BLACK · Posted: Fri May 02, 2008 7:13 am

You need to listen to what the collectors are telling when it come to taking a loan you do not intend to repay. If there is sufficient reason to believe you did not intend to repay ANY portion of a loan, I have no choice but to arrest you for fraud and out you in my jail. Please don't make me do that. It's not a pleasant place, and at any given time, it is full of mean and perverted individuals just waiting for someone like you to be thrown in with them.

Pay what you owe today.

Posted: Fri May 02, 2008 7:41 am

Sheriff Fred Black!

Once again, you obviously didn't completely read and/or comprehend all of the posts in this particular thread.

So, pardner, for repeated and willful demonstration of what and ignorant lout you are, I'm sentencing you to a "short drop with a quick stop!"

Get a rope!

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