Internet's first get-out-of-debt community - 116,000 members

kimberlysnewell. · Posted: Thu Jan 10, 2008 7:42 pm

I am currently 2.5 months behind on my credit card payments. Of course, the phone has been ringing off the hook! I have been letting the answering machine screen the calls & so far only 1 person from the cc co. has left a message. I am waiting until April or May to hopefully be able to settle these. Should I be answering the phone & talking to them? From my understanding, they are just going to harrass me & use their scare tactics. Someone else said to do all communication via letters. What is the most effective way to deal with them? None have gone to collection agencies yet..all are with the original companies.

Thanks,
Kim

Posted: Thu Jan 10, 2008 8:29 pm

I think you should try and work something out with your creditor before they are sent to outside agencies because that is a different ball game that you definitly want to avoid if you can.

Also a creditor doesn't need to use scare tactics. Generally what they say comes to pass. They are either going to sue you or send it to an outside collection agency and not necessarily in that order if your balances are worth the effort of sueing you.

By the time your credit cards go to an outside agency the balance is due per the contract you signed with them when you took posession of the card and swiped it that first time.

Posted: Thu Jan 10, 2008 8:42 pm

Please take FYI's advice as she has knowledge on this subject. It won't do any good to just ignore them because they won't go away and it might make everything worse for you in the end.

ladybug

Posted: Fri Jan 11, 2008 8:56 am

I'm with FYI you need to speak with them before a CA gets them. Since you are behind now, they may even let you get on their hardship programs and drop or lower the interes if you agree to pay them monthly.

A couple of cards had done that for me in the past when I told them I wanted to pay them off, but couldn't because the balance kept getting higher because of the interest. This helped me to pay off our credit cards.

The don't go away, and CA aren't as nice sometimes as the OC. I have found that if you truly seem to want to pay your bill, but can't, alot of them will work with you..Good Luck..Karen Very Happy

Posted: Fri Jan 11, 2008 1:44 pm

You might be surprised what you can work out with the original creditor. Generally when you show a willingness to pay and explain what might be hampering your ability to pay, they may be able to work with you. If they know you want to pay it off but you just have certain limitations they will generally try to work with you to get some kind of payment plan worked out (within reason of course)

Posted: Sat Jan 12, 2008 10:53 am

Here's the bottom line: Things are already strained between you and the OC. If you talk to them, what's the worst that they can do?

On the other hand... If you don't talk to them, you know things are gonna get worse.

Posted: Sat Jan 12, 2008 10:59 am

Keep these out of collections. That is a mess you want to avoid.

Tell them your situation and see if they'll set up a repayment plan that you can afford. A lot of times they'll waive overlimit fees, and late fees. Sometimes even freezing the account so it doesn't accumulate more interest so that you can get it paid.

Collections will kill your credit, and if you think your phone rings off the hook now, just wait.

Posted: Sun Jan 13, 2008 3:52 am

okay wulf and jcemt talked about talking to them and working it out..

I agree in most cases...

it is in your best interest to TRY and talk.... but the amount they say you owe...no WAY don't pay!!! deduct the interest rates ... and then agree to pay it...and get proof you paid it..don't ignore phone calls..they will hound you for the rest of your life and your grandchildren to follow! if you are a very strong person you can ignore this after the c/c collection limit...most people will choose to pay and get them out of your life for good!

Posted: Sun Jan 13, 2008 5:35 am

Err. Socks, the poster's still dealing with the original creditor. Best not to ignore it.

Posted: Sun Jan 13, 2008 12:01 pm

Posted: Sun Jan 13, 2008 12:17 pm

I didn't make myself very clear I guess ..
I was trying to say pay but try to talk down what they are saying you owe

Posted: Sun Jan 13, 2008 4:34 pm

I've decided to send them a letter at 30 days, 60 days and then I will talk to them before I'm 90 days. Sometimes Chase has been known to send you to collections by 90 days.

Posted: Sun Jan 13, 2008 6:22 pm

I work with credit cards after they are 90 days due. By the time you card is almost 90 days due you will have to pay the total due to keep it out of 3rd party collections.

I very recently spoke with a woman who sent in 75 dollars to pay down on her card because she thought that would keep it from progressing to a 3rd party agency. It didn't because she was still about 200 dollars shy of her paying the total past due balance. She was extremely upset and I can't say I blame her. She didn't know the in's and out's.

If you can work out something sooner you need to do it.

Another thing, it's not only when you are 90 days late they send it to collections it's when you have had a past due balance for more than 90 days. So if you are blindly mailing in payments but not covering the past due then it will still go on to 3rd party collections.

Sometimes you will be able to enter an agreement with the creditor and set up payments by post dated checks through their system that could stop late fee's and potentially lower the interest.

Posted: Sun Jan 13, 2008 8:14 pm

I wouldn't proceed by letter at this point. I'd pick up the phone and call them. [I'd still record the call, but I'd call them.] Lotsa times, I get a more favorable reaction on the phone or in person, than via letter or email. Once I had something nailed down, I'd confirm the details in writing.

Posted: Sun Jan 13, 2008 8:15 pm

Just curious, but why would you record a call with your creditor?

*Name:
*Email:
*Phone:
*Zip:
Debt

	* denotes required field

Internet's first get-out-of-debt community - 116,000 members

Do I talk to the debt collectors?

Members Area

Free Debt Counseling

Ask the community

Question of the week

Useful Links

Highlighted Topics

Recent Blog Post