what options do people have

[gardere_owns_OU]

when they're no longer able to make credit card payments because of job loss for example.

if you call the bank and tell them you can't make payments anymore, what can/will they do? how does it affect your credit rating?

i only ask out of curiosity for these people i've read stories about that were living the high life and due to bad economy can't even get a job at mcdonalds.

 

[AustinTejasFan]

The Link

 

[gardere_owns_OU]

what responsbile options can people do when they can't pay? being stubborn and doing nothing about it is definitely not the right choice.

 

[RockyBalboa]

Honestly, this person should go get a job stocking shelves or work in the toll booths until they can get something in whatever field they're in.

There are plenty of jobs available out there. No need to default on credit cards or stop paying your bills.

 

[pied2]

Up until November, every agent at citi cards had the right to waive your bill by 20%. You would be dinged, but may be ablt to negotiate that as well. Citi cards collects by bill date, meaning if your bill is due 1/23, you're more likely to get more bargaining power before it cycles(30 days on 2/23, 60 on 3/23).

 

[01 grad]

If you aren't past due then you don't have much option. Ceditors will wait to bargain until they feel like you've shown they will not be payed. 60 days minimum until they might negotiate. At that point your credit will be sufficiently ****** that you may be better off unhooking your phone for seven years. After seven years, hook up the phone and settle the debt with whatever collection agency might still be calling, for pennies on dollar.

 

[Dogbert]

Pay whatever you can, even if it is very little.

 

[veggieboy]

If you have a cc through a reputable bank (Wells Fargo, BofA, Citi, etc), and have previously had a good record with them, call them and talk to them.

Tell them what has happened, and they can (and often do) extend things called "Payment Holidays" where your payment can be stalled for a month or two until you find work.

DON'T wait until you are in trouble to call them, and DON'T wait for them to call you. Be proactive. Tell them what's happening (as embarrassing as it may be), and most of the time they will work with you.

You might still have to pay late fees, you might still get "penalty interest", but it's not as bad as defaulting altogether or declaring bankruptcy.

If you have a history of delinquency, though, or if the bank isn't as reputable (secured cards, sub-prime banks, etc), then you are in for some tough times.

 

[Bookman]

Several years ago, when I was looking for a job after graduating from law school, I didn't have the cash to make my minimum payment on my credit card. I called MBNA and they basically told me to **** off.

 

[Bookman]

Oh, and after that they jumped my interest about 2 points per month and it went from 8% to 27%. But I never missed a payment and I was never late.