Ruthless Credit Card Companies
September 4, 2008 4:02 PM Subscribe
HUGE economic pressures combined with ruthless credit card companies: about to be bankrupt AGAIN what should I DO?
I was barely making it, paying around 500 bucks in credit card minimums, but I have not missed a payment in husband's last two and half years of un/under-employment. I am not late with any payments now but as you will see that is soon to end......
Today a credit card company really screwed me to the wall, raising my interest rate by 10% to 28% and jacking up the minimum payment, and the expected minimum payment was $150 more then I thought it'd be around $370.00. I have never been late or missed a payment but the balance is high. I pay $200.00 minimum on one other credit card and $75 on another. I was already drowning now they have sent a tsunami over me.
It has been a miracle I have kept them paid this long, it has taken selling ebay, and more, but I am dug deep in the hole and see no way out.--- $17,000 in debt and they have just made it worse and now impossible.
The descent into major debt began with, the fact his working class salary did not keep up with prices, him getting laid off of a job-economic--a year of unemployment there, and then us moving here for him to get a job which he lost within 3 months. They told him, he was not a "good fit"- but this could have kept the debt manageable--it was less back then. I am disabled, get a check, and in no shape to work as of now, though I am doing what I can to regain health. Medical expenses are a huge part of the picture as well.
His chances of being able to work a normal job again, [this is long and complex story in itself] are minimal, he has never made great money, and field is falling apart, and he does side work from home such as freelance and transcribing. {BTW Yes, the relationship is under severe stress and the credit cards are all in my name}
Does anyone here have any suggestions? Is this the time you just fold your cards and realize you are bankrupt? Only around $1900 comes into this household a month, {22,000 a year combined} with 715 going for rent, so that should tell you how tight things have been.
I can with clear conscience say I didn't buy anything unnecessary with the cards. They just made it hard, raising interests rates and payments as much as they possibly could. It is like I was punished for making on time timely payments. I will never touch a credit card again, why didn't I learn my lesson the first time? Anyone reading this just don't touch them. I bought nothing but groceries, gas, medicine and car repairs on them. I buy everything used even clothes on ebay, and make cabbage soup. Frugality has its limits.
I'll take any ideas and/or advice. There doesnt seem to be much help out there, and all the credit help agencies want money themselves.
I was barely making it, paying around 500 bucks in credit card minimums, but I have not missed a payment in husband's last two and half years of un/under-employment. I am not late with any payments now but as you will see that is soon to end......
Today a credit card company really screwed me to the wall, raising my interest rate by 10% to 28% and jacking up the minimum payment, and the expected minimum payment was $150 more then I thought it'd be around $370.00. I have never been late or missed a payment but the balance is high. I pay $200.00 minimum on one other credit card and $75 on another. I was already drowning now they have sent a tsunami over me.
It has been a miracle I have kept them paid this long, it has taken selling ebay, and more, but I am dug deep in the hole and see no way out.--- $17,000 in debt and they have just made it worse and now impossible.
The descent into major debt began with, the fact his working class salary did not keep up with prices, him getting laid off of a job-economic--a year of unemployment there, and then us moving here for him to get a job which he lost within 3 months. They told him, he was not a "good fit"- but this could have kept the debt manageable--it was less back then. I am disabled, get a check, and in no shape to work as of now, though I am doing what I can to regain health. Medical expenses are a huge part of the picture as well.
His chances of being able to work a normal job again, [this is long and complex story in itself] are minimal, he has never made great money, and field is falling apart, and he does side work from home such as freelance and transcribing. {BTW Yes, the relationship is under severe stress and the credit cards are all in my name}
Does anyone here have any suggestions? Is this the time you just fold your cards and realize you are bankrupt? Only around $1900 comes into this household a month, {22,000 a year combined} with 715 going for rent, so that should tell you how tight things have been.
I can with clear conscience say I didn't buy anything unnecessary with the cards. They just made it hard, raising interests rates and payments as much as they possibly could. It is like I was punished for making on time timely payments. I will never touch a credit card again, why didn't I learn my lesson the first time? Anyone reading this just don't touch them. I bought nothing but groceries, gas, medicine and car repairs on them. I buy everything used even clothes on ebay, and make cabbage soup. Frugality has its limits.
I'll take any ideas and/or advice. There doesnt seem to be much help out there, and all the credit help agencies want money themselves.
Oh ... check out The National Foundation for Credit Counseling website. They have good info and a list of organizations that might help you.
posted by scblackman at 4:22 PM on September 4, 2008
posted by scblackman at 4:22 PM on September 4, 2008
if they jacked up your rate for no reason, but "just because" (ie chaged the terms and conditions), you should be able to opt out and close the account, the pay back the debt at the old interest rate.
Also, credit counseling is a good idea.
posted by drjimmy11 at 4:28 PM on September 4, 2008
Also, credit counseling is a good idea.
posted by drjimmy11 at 4:28 PM on September 4, 2008
Consumer Credit Counseling Service. They were a huge help to me twenty years ago when I was in a similar situation. Yes, you will be broke for a few years while you draw down your debt, but you won't have creditors hassling you, and you will make progress on the debt rather than paying minimums and treading water.
posted by netbros at 4:46 PM on September 4, 2008 [1 favorite]
posted by netbros at 4:46 PM on September 4, 2008 [1 favorite]
Yes, this is what Consumer Credit Counseling Service was invented for.
posted by Cool Papa Bell at 5:18 PM on September 4, 2008
posted by Cool Papa Bell at 5:18 PM on September 4, 2008
I was actually turned down by Consumer Credit Counseling Service because I didn't earn enough to qualify for their help and didn't own a house. I hope your experience is better than mine.
posted by Space Kitty at 5:39 PM on September 4, 2008
posted by Space Kitty at 5:39 PM on September 4, 2008
Yes, drjimmy11 solution sounds pretty legally solid, maybe even if they had reasons, they signed the contract too after all, but that lower rate might not apply to any more you put on the card now. If the credit concealing service doesn't suggest opting out, then ask them if it's possible or advisable.
posted by jeffburdges at 5:42 PM on September 4, 2008
posted by jeffburdges at 5:42 PM on September 4, 2008
If it is at all possible, the first thing you should really consider doing is finding cheaper accommodation. Can you move in with parents? Friends? And I mean no offence with this one, but have you considered a trailer? All of these options should be cheaper than the rent you're paying now, and the extra cash will help with the repayments.
I also see you have at least two sources of debt. Have you considered a debt consolidation loan? They are relatively easy to get and instead of paying two or more debts off at the same time with two or more lots of interest, you'll have a relatively easy payment plan with only one source of interest.
Failing all of this, it has been my experience that despite what you read, banks and credit card companies want to get their money back from you, not force you into bankruptcy where they get no money from you at all. Ring them, or better yet, set up a meeting with your bank manager or credit card company manager. Unless they are completely disreputable, you should be able to work out a deal that sees you still being able to make regular repayments.
Good luck!
posted by Effigy2000 at 7:23 PM on September 4, 2008
I also see you have at least two sources of debt. Have you considered a debt consolidation loan? They are relatively easy to get and instead of paying two or more debts off at the same time with two or more lots of interest, you'll have a relatively easy payment plan with only one source of interest.
Failing all of this, it has been my experience that despite what you read, banks and credit card companies want to get their money back from you, not force you into bankruptcy where they get no money from you at all. Ring them, or better yet, set up a meeting with your bank manager or credit card company manager. Unless they are completely disreputable, you should be able to work out a deal that sees you still being able to make regular repayments.
Good luck!
posted by Effigy2000 at 7:23 PM on September 4, 2008
I don't think owning a house has anything to do with whether Consumer Credit Counseling Service will help you. I didn't own when they (thankfully) helped me a few years back and both friends who recommended them didn't own either. They are reputable, low-cost and work to get the late payments/interest hikes to stop. It's at least worth a phone call before looking at bankrputcy.
posted by notjustfoxybrown at 9:19 PM on September 4, 2008
posted by notjustfoxybrown at 9:19 PM on September 4, 2008
drjimmy is right...depending on if you just got the notification today or if the actual increase was today. They're required to notify you and give you the opportunity to opt out of the new terms but I think you generally only have about 30 days from notification.
Of course the credit counseling is a good idea as well. Couldn't hurt to call the credit card companies yourself and see if they'll settle with you.
posted by kattyann at 9:49 PM on September 4, 2008
Of course the credit counseling is a good idea as well. Couldn't hurt to call the credit card companies yourself and see if they'll settle with you.
posted by kattyann at 9:49 PM on September 4, 2008
Why haven't you looked into credit counseling sooner? I used Money Management International based on mefi recs. I was very happy.
posted by k8t at 10:08 PM on September 4, 2008
posted by k8t at 10:08 PM on September 4, 2008
It doesn't sound like credit cards are at the root of your difficulties. Your real problem is inadequate income. $22,000 for two people isn't even minimum wage. If you don't fix your income problem, bankruptcy will only be a temporary solution. Your husband needs to get a job -- any job -- and two jobs if necessary. Even with your disability it would help if you could do some part time work at home.
posted by JackFlash at 10:40 PM on September 4, 2008
posted by JackFlash at 10:40 PM on September 4, 2008
I've also heard about Credit Guard of America. No personal experience, but anecdotally they are meant to be good. They're a reputable non-profit.
posted by different at 12:26 PM on September 5, 2008
posted by different at 12:26 PM on September 5, 2008
« Older I'd like to do some damage control on a pretty... | My house and my Wifi hate each other. Newer »
This thread is closed to new comments.
Consumer credit services can help you make arrangements with your creditors that might keep you out of court.
Best of luck.
posted by scblackman at 4:20 PM on September 4, 2008