This one takes the cake

Yes that sounds totally crazy...I have never heard of such a thing....did you make any notation on your extra payments saying to apply it to the principal amount?

I know it shouldn't matter but it usually does. My husband was sending in extra money to get his escrow account for taxes down to $0.00 and he didn't note on their that was what he was doing and they applied it to his principal.

Yes, ladybug is right, if you don't make a note of it what the extra money is for, they won't consider it a payment. :?

The thing is, I purposely sent each payment seperately in the enevolpes they provided with the payment stubs. So for example, if I sent in two payments in at the same time, they would have received them seperately, with two different checks and with two seperate paystubs.

I don't know go figure. I just guess if the do want to take me to court because I miss a payment, any judge would laugh them out of court when I am paying over $1000/month which is more than twice of what I owe a month.

I know what you mean. Something similar happened to me, and I was livid, but since I didn't specify what the monies were for, they refused to accept it as a payment. Boy was I furious! :x

Well, I am still going to send in as much as I can each month. This way I will get them off my back sooner than later. Only this time, I will know to send in at least one payment a month.

Dang - why have I done this to myself.

SPatterson, have you read your card contract? Anything in there about this???

Well it went into in-house collections and this is a settlement agreement in lieu of going to court. It the court papers say that I will pay the $400 monthly.

Because credit cards are a revolving balance, any payments you make only apply to that statement period; they will never carry forward to future payments.

Suppose I charge $600 on my credit card; they may send me a statement saying the minimum due is $20. If I send in a $500 payment, that doesn't mean I don't have to pay for another 25 months; it just brings down my overall balance, and I would still have to pay something next month.

However, the more you pay now, the less interest they will charge in the long run. So making those extra payments really didn't go for naught.

Oh I didn't catch that it was a legal issue. You filed the settlement agreement with the court? In that case, I couldn't really say that it's a revolving balance anymore.

Having an agreement for a set balance and set monthly payments is more of an installment contract. Usually with installment contracts, extra payments are applied toward future payments; so you could make six payments at once and then not have to pay for six months.

In a case like this, I don't know what category it fits into (quasi-revolving-turned-installment?) I'm not sure whether paying extra is required to bump the due day; it all depends on what laws they have to follow.