[USER]

How often does this happen? Non of my credit card companies are willing to work with me unless I pay them lump sums which I don’t have. What should I do?

[Sandy]

They have already screwed your credit score, if they are not willing to work with you, just claim bankruptcy and start fresh. Chalk this up to a lesson learned and be very frugal going forward.

[Jo-Christian]

Bankruptcy may be a solution if you’re struggling. Large companies can do it, then individuals shouldn’t feel guilty about it. Protect yourself. Talk to Lawyer. They have different charpters of bankruptcy. You can pay them back just slower.

Good luck.

[Jessica]

Yes they can, not all will. If you get summoned to court don’t ignore it because they will make a default judgment. If you can avoid bankruptcy I would especially if you plan on buying a home someday.

[Kasey]

I filed bankruptcy. Now I do not have any credit cards. That is a promise to myself not get into credit card debt again.

[Charelle]

About 10 or 12 years ago, my Mom was taken to court by a credit card company but she was on SSI Disability so even though the result was in favor of the creditor, they couldn’t garnish her wages. It was a big waste of time.

I don’t know why they went to all of that trouble.

[Patty]

Credit card companies will work with you if you claim a financial hardship. You need to speak to the financial hardship department & advise that you have an increase in expenses and your income has remained the same. Do not tell them it’s groceries or every day expenses, state something like a roof, car repairs, dental work or medical.

Ask them to put you on a payment plan. They will have to work with you.

Have you seen: I had an interesting experience with using a cash advance on one of my credit cards

[Jenn]

Google “debt management plan“. Most States offer this through a nonprofit agency. It’s a way to get on a payment plan that is more affordable and lowered interest rates. The nonprofit will most likely review all your options with you so you can make an informed decision. In MN the nonprofit is LSS.

[Tammy]

Years ago, I went thru that. They will put your balance on no interest, cancel your card and put you on payment plan. It’s a long process and takes work but you do climb out. I do not recommend bankruptsy, work through it if at all possible. Took me about 5 years and I had multiple cards and tens of thousands owed.

Now my credit score back over 800 and plenty of credit offered.

[Tanya]

Contact a place like consumer credit counseling. They will work up a plan for you and contact your creditors. Years ago I did this and it took me five years to pay it all off and two months later I bought my first house with no down-payment and no cosigner.

[Katherine]

Yes, they can, but that is usually a last resort since it takes them time and money to do that. But a person can be taken to court and have a judgement to pay off a credit card.

in the meantime, tell them you don’t have a lump sum but will happily continue making payments. This may not stop them from suing, but if they are getting something it is better than nothing. Call them and offer to talk to a manager and make payments.

Take a peek at: Should I use all my savings to pay off a credit card? Then I would have to rebuild my savings

[Shelly]

Let’s be honest – your credit probably screwed, get yourself a lawyer and file chapter 13 (they will take all the bills subtract the interest. Then all you will have is one payment for 2 to 4 years until it’s paid off) they have to reduce the interest (Georgia).

[Deana]

My daughter defaulted on a credit card from a jewelry store and they put it to collection thru the credit card bank, who then sued her in court. She did not appear so had a judgement against her with a lien. She did not pay and one night a constable showed up with a notice that if she didn’t pay, they would have her arrested.

Fortunately, she was able to work out a payment plan and got it paid off–all for a $1,500 ring she couldn’t sell for $600. Sad “love” story behind all of this, but she learned to have better standards when it comes to some men out there.

[Tammy]

I had one many years ago that was rather large. They sued me in court. My attorney told me not to go to the court date. I was shocked! I knew they would rule against me.

He said yes but then we appeal and then they are required to bring a lawyer, which costs them money so then they are willing to accept a settlement to save them the trouble and extra money.

I remember it was over 10k and he got a settlement for slightly over $1,100.

Don’t miss: Approximately how long does it take your credit score to bounce back after closing credit cards? How do find out?

[Kristin]

They can, it’s very expensive though, it would have to be worth their time.

Sounds like predatory collection tactics. The most likely result is sending you to collections with a charge off, but check with legal aid first.

[Dawn]

I had a messy divorce where my ex-husband emptied the bank accounts and stopped paying on every single bill the day I filed for divorce.

I had to use my limited income to buy food, gas, and pay utilities for about 6 months before I started getting child support. Every single credit card company worked with me except Target.

Back then it was just a straight up Target credit card that I had paid on time for years.

They brought me to court and garnished my wages.

I rarely ever shop at Targets after that experience.

[Janet]

Unpaid, for any reason, credit cards are usually “written off” by the cc company. A third party usually comes in and buys this debt for pennies on the dollar. They will try to recoup the entire amount. Don’t agree to the amount, don’t acknowledge the debt is yours at any time, this resets the debt clock. It’s already on your credit report as “bad debt” and been written off by the cc.

Just do better from this point forward.

[Lee]

I’ve never had CC do more than turn over to collections (either intermal or outside vendor) and the worst that’s ever happened is it reports on my credit score. It is not profitable for them to sue you.

[Carl]

Yes. More likely, they will eventually turn the debt over to a collection agency that will hound you day and night forever. Best you find some way to work with them.

[Jenna]

Yes! They will turn your delinquent accounts over to collections. When collections attempts have failed they will turn it over to a law office that specializes in debt collection. At that point they will sue you for the balance. After so many days of placing a judgement against you they can start the process for wage garnishment…..or worse a bank levy.

With wage garnishment they are limited to 25% of your paycheck however with a bank levy they can wipe out your entire checking account and do it multiple times until they recover the amount you owe.

If you have a joint checking account they can take whatever money is in there regardless if it is yours or your significant others.

Have you seen: Chase credit card not showing up in Copilot?

[Barb]

They can but very unlikely, this is strong arm collection tactics, best to not even engage with them, once you do and they record that you will pay x amount of dollars you are more liable to pay, are you sure you are talking to the actual company the card was issued through and not the collection agency? Most are really welling to work with you can get some money vs. none.

[Angela]

They can and they will come after you in court and once they have a judgement, they will garnish anything they can or seize your bank accounts. It’s better to just make a cash offer to settle before all that happens. Figure what you spent minus interest and fees and offer to pay that.

You spent the money they loaned you and it’s only fair to pay it back. To each her own but I wouldn’t want to go to court or declare bankruptcy if I could work it out in another way,

[Kaylie]

This did happen to me in 2020. I was in an abusive relationship/marriage and was “not allowed” to pay them. He used all my money as soon as the direct deposit hit anyway. He told me that after 7 years they’d stop asking me to pay them, and he wasn’t going to give my money away to a debt that’d “disappear”.

I began with little debt across 3 cards and a 690 credit score in 2012, and it plummeted to the 400s.

It did rise back up to almost 700 and I had credit, was able to get an auto loan with great terms, but my checks still got garnished during the pandemic when I was already on reduced hours due to chronic illness.

100% do not recommend letting it get to the point of garnishment.

I would also not recommend staying in a relationship with anyone who attempts to control you financially or otherwise.

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