How to pay of credit card debts ?

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K, did you tell your creditors about the other debts you have & how much you make? Or perhaps if you tell them I can make a payment of a certain amount every month for a certain time amount then maybe they will work with you.

Definately apply for a free consultation-it can't hurt & It'll help you see your options.

K, telling your creditors about your other debts, will really not help your situation at all. It may in fact make it worse. Actually they dont care about what you owe others. It is what you owe them that they care about. You dont want to give them the impression that you have over extended yourself financially. Please do follow fins advice, and get your free consultation. It may give you the answers that you need

Second that....if they get the sense you are overextended, they can close the account leaving you to pay the balance in full immed.

Huh?? if they get wind of u being overextended they can close ur acct and ask for balance paid in full immed??? :shock:
I mean couldn't they just pull ur credit report and see how much u have out there?!?!
Things that make u go hummm.....
Ang

Thanks Volley, It is always good to have some one from the banking world back up a post. You sure know your stuff.

Thanks kash..not genius but since I am around it alllll daayyy long, it grows on you!

We use to accelerate mortgages and credit cards in certain cases if someone couldnt pay anymore and we were able to establish that.

Well hell i always thought credit card companies WANT to keep u in debt and owing them loads of money!!! If they find out u can transfer ur balance to another card they will indeed lower ur rates to keep u owing them!
I just don't get how they can close ur acct and ask for balance in full when all they have to do is pull ur credit report to see how much u owe and to who!
Just confused here, plz explain better,
Thanks,
Ang

If they close your account, they can still make $$ and continue to charge interest...so thats not an issue.

The original poster wasnt trying to transfer a balance, just trying to get a lower interest rate.

Pulling credit is a matter of verifying that you are indeed overextended...this is in all (or most) credit card agreement terms and conditions. I dont dispute that this can be done and as a matter of fact, we do it as a matter of practice in addition to taking a customers financial statement.

Does that help?

Quote:

But wouldn't transfering a balance actually be benefical to him? I mean his credit score seems to be average so wouldn't that be an option for him?? Just asking,
Ang

IF anyone wants more info, please PM me, thanks. I have personally done this and I am not going to post my banks t&c's on this site..

Actually they can default rate you but a credit card company cannot demand payment in full as long as you are paying them in accordance with your terms and service agreement. You can even opt out of a rate jack by closing the account with a balance as long as you are paying in agreement with the contract.

Do realize if you voluntary close with a balance your fico will take a hit for this.

So in other words Cajun, u can close out and as long as ur payments are recieved in a timely manner than they can't jack up ur rates right?? Am i understanding this correctly? Hate to sound naive but this is just confusing to me!! I can remember a time that our cards were very well maxed out and we were VERY overextended yet NONE of them closed our accts and we actually DID get our rates reduced after paying on time for years! Just has me very curious! Thanks for any and all help understanding this! It's greatly appreciated!
:D
Ang

So it sounds like this policy is simply with your bank and not standard in the financial system, VBM.

Can I ask what bank you work at? I would like to read the T&C. I am sure they are posted on the website.

Just pm'ed you ang....

When I worked for a bank I was in charge offs- how ironic, anyway, I didn't charge off someone unless they had broken the terms of service or the contract.This was on accounts not cc. I had a attorney tell me that once you are in compliance with the regulations,terms, they can't say you broke the contract and dunn you.

Actually on a couple of creditors it helped me telling them about my other debt. They are the ones that dropped and lowered my interes so I could pay them off sooner.

Some of my creditors have the worst reputation of rate jacking around but if they are paid on time the contract is not broken in my humble opinion. All terms are spelled out in each contract in black & white.

3. Defaults. The Bank may, without prior notice, declare you in default of the Debt if: (a) you fail to meet the conditions, to perform any obligation, or to make any payment under this agreement or any other agreement that you make relating to the Debt; (b) you withdraw or transfer from the Deposit Account any funds pledged under this Agreement; (c) you have given the Bank false or misleading information or misrepresentations; (d) any Cardholder dies; (e) any government authority takes action which the Bank believes adversely affects your financial condition or ability to repay the Debt; (f) any guaranty or other agreement required in connection with the Debt is violated or ineffective; or (g) you file a bankruptcy petition, a bankruptcy petition is filed against you, or you make a general assignment for the benefit of creditors. If you default, the Bank may declare all of the Debt immediately due and payable. Bank may also exercise all the rights of an owner of the Deposit Account.

I just found that in an agreement for a BofA visa card.

Ok so i'm slow but plz explain what this means: (e) any government authority takes action which the Bank believes adversely affects your financial condition or ability to repay the Debt;
Any govt authority takes action?? Plz explain... sorry for not understanding.
SIGHS,
Ang

I'm not sure what that means exactly, maybe someone else does.

My guess - seizure of assets for criminal reasons. That's the first thing that comes to mind.

And yeah - I think a bank may declare it due immediately, but those same banks realize if you haven't made your monthly, getting the umpteen thousands in one shot won't happen. However, ignore their requests for a payment plan and you run the risk of a day in court where they could put a lien on your house.

An IRS levy? OR a government student loan judgement? Those could adversely affect your ability to pay for sure :(

A Credit Reporting Agency is not a government agency.However a bankruptcy court and the IRS are two examples of government agencies/authorities.

any government authority takes action which the Bank believes adversely affects your financial condition or ability to repay the Debt; (f) any guaranty or other agreement required in connection with the Debt is violated or ineffective; or (g) you file a bankruptcy petition, a bankruptcy petition is filed against you, or you make a general assignment for the benefit of creditors. If you default, the Bank may declare all of the Debt immediately due and payable. Bank may also exercise all the rights of an owner of the Deposit Account.

But everything i am reading here is "IF" u default.... we weren't talking about defaulting at all!! I see where that makes a difference but this guy said he has NOT been late on any payments, they are all current! So if his cards are all current how can they come in and say hey ur overextended now pay us the full amt owed?!??!
That's where "MY" confusion came in to play here!
thanks for all the help in understanding this but i still dont' see where if ur current they can indeed do this?!?!
I'm really slow today i guess!
:(
Ang

It's saying the bank can declare you in default if one of the following:

a) you fail to meet the conditions, to perform any obligation, or to make any payment under this agreement or any other agreement that you make relating to the Debt; (b) you withdraw or transfer from the Deposit Account any funds pledged under this Agreement; (c) you have given the Bank false or misleading information or misrepresentations; (d) any Cardholder dies; (e) any government authority takes action which the Bank believes adversely affects your financial condition or ability to repay the Debt; (f) any guaranty or other agreement required in connection with the Debt is violated or ineffective; or (g) you file a bankruptcy petition, a bankruptcy petition is filed against you, or you make a general assignment for the benefit of creditors.

It's not saying you have to be in default first.

Whewwww... ok got it now goudah! LOL But i wonder how often this actually happens if ever as long as ur paying them?? I personally think as long as ur making ur min payments they won't do this! hell they WANT to make money off of u! (but that's just my personal opinion of cc, they love keepign u indebted to them)
thanks again,
Ang

I agree that it probably rarely happens. I think Volley was just making the point that they could if they felt they had reason to.

The way I understand it is, they won't call for the balance in full, if you don't do any of the above, and adhere to their contract and terms..but not a lawyer..karen :lol:

Now that this can of worms is open,let's play devil's advocate. I manage a bank where a person is paying me $2000 month and is late one time. What do I do? He owes me $10000 if I demand balance in full,but what does he really have that I can take for payment and how difficult will this process be!! Continue my train of thought for some interesting theories.

Well Cajun, i just dont' see this happening!!! I mean it would cost the bank loads more money to go forward with this and they may end up with NOTHING in the end... how in the world would that be beneficial to them at all???? I just don't see it!
And also i now understand much better but i think this probably NEVER happens (or hardly ever) which should have been stated instead of matter of factly like it happens all the time! That scared the beejeebus outta me so i'm sure it did the new member also! :shock:
Agian thanks,
Ang

Lawsuits are risk/rewards based and a decision must be made on every one.

So i see what ur saying here now... would a cc company take the "risk" of a law suit taht they could possibly lose when a customer is already paying?? Good point if that is indeed ur point! :lol:
Ang

I try to look at it from a business prospective.Their contract gives both me and them a ton of options.Now of those options what is most profitable and which one at the same time will keep the customer where you want him.A bank likes easy money and lawsuits are not easy money especially if the poor consumer is broke to begin with as his payment plan will probably be lower than what he is paying the bank now.

Anyone that is in the legal field and works for original creditors would understand my theory. I once held a lawyer from out of state off for three years by telling him in black and white how much a lawsuit in La. would cost him and how little he would see of it due to me being very broke.

That was my point Cajun in a few of my post but just not put as eloquent as u have put it!
Guess i'm not very good with words!
:D
Ang

Quote:

:lol: :lol: He would have to use numbers,but no I don't have any cc cards with 18% interest. Bank savings are worthless though!

For a good saving rate (not to get totally off subject in this thread), open an online acct at ingdirect.com. You link a bank account and transfer money back and forth. Current savings interest rate is 4.2%.

I agree with ang!!!!!