Debt Settlement plan with questions
Date: Mon, 10/19/2009 - 10:13
Before I begin, I just want to say thank you to this web site and all the members, posters, and especially the people that respond to peoples posts. I no longer feel like I'm in this alone, and have been empowered by all the stories and advice that I have read so far. Ok, here goes:
I have had multiple credit cards with balances for many years now. Up till about 6 years ago, everything was fine, always made my payment on time, and enjoyed great rates. Work slowed down, and I began to struggle, but still made all payments. Out of the blue, I received a letter from Chase bank ( about 5 years ago) that they were raising the rates on my 2 cards from 5.9 % to 29.99% - The explanation for this was because I had other cc's with balances. I called immediatly to inquire, and was told that the letter was correct. It wasn't because I was late, and missed any payments, it was solely based on the fact that I had other cc's with balances. I explained that I always had balances, but they were always paid down, with no late payments but they didn't care and basically said if I didn't want to pay the new high interest, then pay off the cards in full ( about 7,000.00 on 1, 8,500.00 on the other at the time) Since that time, all my other cards followed suit and raised rates, and since then have stuggled to make payments on time.
I have always made payments on all loans, sometimes late but always paid. I have felt for a while now that I am nothing but a big sucker for the CC companies, and I've had enough. Work has again slowed down, and am struggling with earning enough to pay the mortgage, and after visiting this web site for about a month now, I have gained the confidence to take matters into my own hands. First, here is the list of my debts:
American Express: - 4,100.00
AT&T Universal ( CITI): - 5,300.00
Capital One: - 4,300.00
Chase: - 5,200.00
Chase ( Bank One): - 3,800.00
Citi: - 8,900.00
Discover: - 10,900.00
HSBC ( GM card ): - 14,000.00
All payments are current except for Chase, AT&T (CITI) and HSBC, which are about 14 and 45 days past due ( 14 for chase and AT&T, 45 for HSBC)
My plan is to stop paying on all cards immediatly with the exception of American express and Capital One. I use AmerX for my business, and Capitol One for personnel purchases ( when needed - I all but stopped using CC's about a year ago and use my debit card as much as possible, even for business purchases) My reason for continuing paying those two are: Out of all the cards, those two are the only ones that I felt treated me fairly - never called once when payment was late, only raised my rates to 19% - all others 29-31 %, and I feel I will need to have al least two accounts in good standing when all this is settled.
My questions are as follows:
- The HSBC card has both my wife and I as card holders - she is main name on account ( all others in my name only) Should I continue paying this card to keep her out of it? If no, how much of a hit on her credit rating? (she has excellent rating)
- Should I include Capital One and AmerX in my non payment stategy, or go with my plan (continue paying and keep them in good standing)
- I have called all CC companies multiple times over the years to try and get rates lowered, but none ever have. As they start to call for no payments, should I take the calls each time and explain my situation, or should I ignore the calls for a certain time ( 30 - 60 days?) then take their calls to see if they are willing to settle?
- I will have about $ 15,000.00 in about 6 weeks set aside to make settlement payments, and my wife has agreed to loan me the rest as needed ( up to about 20,000). Is there anything else I should consider?
I have always prided myself on my ability to pay off the people I owe, but times have changed, and I need to solve this once and for all. I definately do not want to declare bankruptcy, but have come to understand that I may not have a choice once I start this. Any and all suggestions are welcome, and thank you in advance.
Kyle
I have had multiple credit cards with balances for many years now. Up till about 6 years ago, everything was fine, always made my payment on time, and enjoyed great rates. Work slowed down, and I began to struggle, but still made all payments. Out of the blue, I received a letter from Chase bank ( about 5 years ago) that they were raising the rates on my 2 cards from 5.9 % to 29.99% - The explanation for this was because I had other cc's with balances. I called immediatly to inquire, and was told that the letter was correct. It wasn't because I was late, and missed any payments, it was solely based on the fact that I had other cc's with balances. I explained that I always had balances, but they were always paid down, with no late payments but they didn't care and basically said if I didn't want to pay the new high interest, then pay off the cards in full ( about 7,000.00 on 1, 8,500.00 on the other at the time) Since that time, all my other cards followed suit and raised rates, and since then have stuggled to make payments on time.
I have always made payments on all loans, sometimes late but always paid. I have felt for a while now that I am nothing but a big sucker for the CC companies, and I've had enough. Work has again slowed down, and am struggling with earning enough to pay the mortgage, and after visiting this web site for about a month now, I have gained the confidence to take matters into my own hands. First, here is the list of my debts:
American Express: - 4,100.00
AT&T Universal ( CITI): - 5,300.00
Capital One: - 4,300.00
Chase: - 5,200.00
Chase ( Bank One): - 3,800.00
Citi: - 8,900.00
Discover: - 10,900.00
HSBC ( GM card ): - 14,000.00
All payments are current except for Chase, AT&T (CITI) and HSBC, which are about 14 and 45 days past due ( 14 for chase and AT&T, 45 for HSBC)
My plan is to stop paying on all cards immediatly with the exception of American express and Capital One. I use AmerX for my business, and Capitol One for personnel purchases ( when needed - I all but stopped using CC's about a year ago and use my debit card as much as possible, even for business purchases) My reason for continuing paying those two are: Out of all the cards, those two are the only ones that I felt treated me fairly - never called once when payment was late, only raised my rates to 19% - all others 29-31 %, and I feel I will need to have al least two accounts in good standing when all this is settled.
My questions are as follows:
- The HSBC card has both my wife and I as card holders - she is main name on account ( all others in my name only) Should I continue paying this card to keep her out of it? If no, how much of a hit on her credit rating? (she has excellent rating)
- Should I include Capital One and AmerX in my non payment stategy, or go with my plan (continue paying and keep them in good standing)
- I have called all CC companies multiple times over the years to try and get rates lowered, but none ever have. As they start to call for no payments, should I take the calls each time and explain my situation, or should I ignore the calls for a certain time ( 30 - 60 days?) then take their calls to see if they are willing to settle?
- I will have about $ 15,000.00 in about 6 weeks set aside to make settlement payments, and my wife has agreed to loan me the rest as needed ( up to about 20,000). Is there anything else I should consider?
I have always prided myself on my ability to pay off the people I owe, but times have changed, and I need to solve this once and for all. I definately do not want to declare bankruptcy, but have come to understand that I may not have a choice once I start this. Any and all suggestions are welcome, and thank you in advance.
Kyle
When American Express and Capital One sees you are delinquent wi
When American Express and Capital One sees you are delinquent with your other creditors they will likely close your account with them or lower your credit limit to what ever your balance is so you might as well include them in your settlement plans.
