Not Making Credit Card Payments
Posted on October 27, 2009 at 3:58 am
What would your advice be to somebody who is not making his/her credit card payments?
What is the worst thing that could happen to that somebody?
Posted on October 27, 2009 at 4:01 am
What would your advice be to somebody who is not making his/her credit card payments?
What is the worst thing that could happen to that somebody?Well, how much is it that you owe in total? Have you calculated them yet? Plus the interest rates? Is your goal to just manage your payments or eliminate the debt altogether?
Posted on October 27, 2009 at 4:06 am
What would your advice be to somebody who is not making his/her credit card payments?
Okay if your debt amount is below $10,000 with high interest rates, you might want to try credit counseling (Debt Management Plan). Do you have a steady source of income? That's important as the program lasts for 3-5 years. Good news is, depending on the creditors, your interest rates maybe reduced via negotiation.
What is the worst thing that could happen to that somebody?
..for being unable to pay? Get handed down a judgment.
Posted on October 27, 2009 at 4:07 am
Mhm..how much would this DMP cost? And what if ..3 years is a long time, what if I lose my job and can't pay anymore, what then? What's a judgment?
Posted on October 27, 2009 at 4:15 am
Mhm..how much would this DMP cost? And what if ..3 years is a long time, what if I lose my job and can't pay anymore, what then? Credit counseling is non-profit but their Debt Management Plan would cost around $25/mo. after the one time set up fee.
Unfortunately, the drop out rate for DMP is high and many creditors don't like to work with credit counseling agencies. If you miss a payment, you might get kicked out of the program.
Posted on October 27, 2009 at 4:19 am
Not making credit card payments -What's a judgment?
A judgment is any of the following:
-wage garnishment
-bank levy
-property lien
You really don't have to worry about it suddenly being handed down to you. It goes through a process. You would be notified that a legal action such as that would be taken against you for not being able to respond to the creditor/collection agency's demands.
Posted on October 27, 2009 at 4:21 am
Not making credit card payments - debt amount totals to over $10,000, what then?
Posted on October 27, 2009 at 4:44 am
Not making credit card payments - debt amount totals to over $10,000, what then?Debt settlement. The program lasts for 12-36 months. It's goal is to negotiate the consumer's balance to more or less half of its original amount.
Posted on October 27, 2009 at 4:48 am
If you are not making your credit card payments you may also try to negotiate your rates with the creditors yourself. Some creditors don't work with credit counseling agencies so you may have a better chance at it, just show proof that you are experiencing hardship -- ask for their hardship program.
Posted on October 27, 2009 at 4:53 am
If you are not making your credit card payments ---
Don't even think about filing bankruptcy. Bankruptcy should always be your last resort. Also, try to avoid getting debt consolidation loans especially if your credit is bad, as it may ask for a property of yours as collateral, and if you miss repayment - you might lose that property.
For unsecured debts first try either credit counseling or debt settlement, and if you have any more questions about the right settlement company for you , feel free to fill out a form here and get matched up to it.
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