What do you have to tell credit card collectors when they call?

Geez, they call now before a bill is one month late. They want to take money out of my account, if not, when I will pay and what is the problem why I haven’t paid? What do I have to tell them?? I just don’t know what to say and I think I may have been saying too much.

I can tell you one thing from my experience. Don’t keep money in a bank that you owe money to. They can just raid your account and take it all from you. It depends on the fine print, and no one ever reads all of that. Then tell the collector you can’t pay and not to bother you any more or you’re going to report them. Also tell them that you’re recording the call, actually DO record the call, and then hope they go over the line with you by threatening. Then you wind up with a good chance of winning a suit against the collector.

Are you talking about the origonal credit card companies? Or are you talking about a collection agency? IF it is a Collection Agency never ever EVER EVER EVER talk to them on the phone. Send a limited C&D letter Certified return receipt. Tell them that you have to have all communication in writing. NEVER discuss anything with them over the phone.

If it is the origonal creditor then you can simply tell them the truth. They will get it when you get it. They can not threaten you legally. Keep all your records and if it is legal in your state record their calls. So if they violate any laws you can then sue them and they will owe you. Also never give them direct access to your banking info! It has been known t happen that they will go in there and just take money out willynilly!!

Don’t let them have access to your bank account! If they will only work with you if you make automated payments, get a pre-paid VISA or MasterCard. Then, just put what they are allowed to have on there and give them that number.

You don’t *have* to tell them anything. They’ll whine and cry and beg and get nasty, but you don’t have to say anything. I agree with the person who said to write them a letter and tell them not to call you anymore. State very clearly that ALL communication must be in writing at a specific address.

GM Card – HSBC

Just wanted to know if anyone else is having problems with HSBC, GM Card in getting them to lower your interest rate and provide a reasonable payment plan. I worked with them to get a hardship term for 6 months where I could pay $500 a month, but they did not lower the interest rate and basically my balance continued to climb. Any tactics that I can use to get them to agree to lower my interest rate at this point?

They have given me a way to pay $3500 for three months in a row to cut my debt in half, basically forgiving them the rest…but if I had that much money to pay them, I would have paid them off by now. They say that since I can’t agree to the $3500, they will be sending my balance to a collection agency. I basically really do want to pay them off, but am about to throw in the towel due to their horrible attitude.

I even told them that Chase gave me 6% interest and $525 a month payments, which I’ve been able to make and have reduced my balance by more than $5000 in the last 18 months. I guess I’m not sure why they won’t work with me. Sorry to ramble. Thanks for listening.

I have heard this about them before. They are horrible to work with. I wish you luck. are you doing this in writing? Or on the phone? I was always told that you need to tell them to stop phone communication and only do paper communication. You can try surfing the balance to another card with a lower limit. And If you ever need money to solve problems with your business or to repair your house you better get $1000-$5000 loan at www.WeGot1000.com online. They seem to be trustworthy and serious company. I have had positive experience with them.

Need help to get out of debt

Hi, I am a new reader to the blog. Am currently working and earning about $300 per month but over the past two years i have accumulated debt amounting to $2000 and this has affected me terribly as almost all the money am earning is now going towards servicing the debt. I need help to get out of this debt and advice on how to avoid debt next time.

How many hours are you working to earn that $300? If its less than 60 hours/week, then get a second job… You need to make more and spend less. Its as simple as that. Get on a written budget to live on that $300 and be firm with it. Then get a second or even third job and bail out of that debt as fast as you can… Save at least 500 dollars aside first and then pay your smallest debt first and work on up the line.

After that, use those extra jobs to pile up an emergency fund of at least three months of your expenses. As those are less than $300 a month it shouldn’t take you long.

Then you can begin to survey your chosen career and see if there is not a better way out of your income crisis.

Books to get from your library:
The Total Money Makeover – Dave Ramsey
48 Days to the Work You Love – Dan Miller

Deep in Debt with Questions – update

It is possible to get out of your “mess”, but it won’t be without some pain. You need a financial shield in place to protect yourself from the impact of creditor lawsuits once you stop paying them. This will put you in control and allow for a negotiated settlement of as little as 10 cents on the dollar. Further you’ll demand no 1099 on any forgiven debt and your account listed as paid in full. Most creditors are willing to accept this in lieu of nothing. Of course your credit will suffer, but it can be repaired and rebuilt.

Thanks for the responses. We contacted Chase with a 50% offer, but they said they wanted 85%. I believe we will counter with 65% and hope they take it. Although the original debt was with Chase 4 years ago, when the int rate went up I switched it to Advanta; and when that one went up I switched back to Chase (last May). So, they said they want more of the principle paid. We can’t sell the business until this is cleared, so we may lose the buyers. I really don’t want to file bankruptcy for this business.

Right now, I called a few of our other cc cos and lowered the int rate, albeit only 2%, but they said I can call back in a couple of months to see if they will lower it again. I’m going to contact a few more and see what they say.

I really don’t want to not pay my cc bills and have them calling me, so I will have to work to pay them back as best I can. However, we may have to go to a credit counselor and have them deal with lowering the rates even more. We were unable to achieve a settlement with Chase as we had hoped. I haven’t paid last month’s statement, and, of course, the rate went up and now the payments are even higher. They called a couple of weeks ago, and I said I would see what we had in the bank. Business is terrible, and now my husband is having health issues. If they had accepted our offer, he probably wouldn’t be having these problems.

Can someone please explain what is involved in this? …”You need a financial shield in place to protect yourself from the impact of creditor lawsuits once you stop paying them”. Will they actually sue us? Or, offer a settlement? They are now calling multiple times a day, however, I’m not taking the calls. They actually called 5 times on July 4th!!!

Call the executive offices of chase at 1800chase99 and see what they will do for you or file a complaint with the better business bureau.

URGENT!! Deep in Debt with Questions

Sorry, this is long….My husband has an LLC that we can no longer continue running. It never made any money because, unfortunately, we financed it four years ago with a credit card. We are in the process of selling it, but will never make back what we owe which is about $18,000 to Chase. The offer for the business is $8,000 and we may be able to sell the vehicle separately for $2,000…maybe less. We are current on the Chase payments, but only have $1,000 in the bank – that’s maybe two or three more months of payments. Do you think Chase will settle for $8,000??? The card is in the business name and has my husband’s name on the account.

How would you go about it, since we are not delinquent…yet. We would prefer not to stop paying them, but just end it as quickly as possible. We need to make a decision on the sale by tomorrow. I don’t think we will get much more if we don’t accept this offer, it’s a rental business and the inventory is four years old and depreciates quickly.

Our only other option is bankruptcy for the company. Since the new owners would be keeping the same business name, we would prefer not to have to file bankruptcy.

In addition, we owe over $40K on several other credit cards. I work part-time for a paycheck (and the health insurance) during the school year only, and part-time without pay in my husband’s other business (dba). That business would do much better if we weren’t paying on all these credit cards. I’m trying to obtain other part time work as well, but no luck yet. I’ve been looking for quite a while.

I got a notice that Chase is raising the interest rate on several of our cards. Citibank already lowered our limit since we don’t use it. We only use 2 or 3 cards for business purposes only, so I expect the other cards will all be doing the same since we are just trying to pay them off and don’t use them anymore. Yes we did a lot of transferring balances, very poorly managed though.

I know it looks like we should file bankuptcy, but I’d really rather settle most of these cards than go through that. We are current on all the accounts, although we’ve paid several late fees this last year. There’s just too many cards to keep track of. I received $20K from my father’s estate recently, and we’ve just been hanging onto it in case we fall behind on the mortgage, as his other business may very well slow down due to the economy. With the increased interest rates, things are beginning to spiral out of control even more. Any chance I could settle the $40K for $10K so we would at least have a cushion and not fall into the credit card trap again?

I tried setting up a plan on my own to pay things down, but with our erratic income that may be difficult to do. And, now with the raised interest rates, it could be impossible. I never know how much I will have by the end of the month.

I’d appreciate any advice, especially regarding debt settlement. I’m very leery of going through a company to do this and would love to hear from people that have done this on their own. I am desperate to get out of this mess!

Question on selling home to flipper type buyer

I have learned alot from this blog and hope someone here can help me with this. My husband’s dept is being disorganized and a few people will be offered new jobs in TX, we’re in GA. We have no idea if we’ll go to TX or not. Info is being slow to come from higher up. He’s a federal employee. We know we need to get rid of our home no matter what. We owe $113,000 on the mortgage. The house is in need of repairs, foundation, plumbing, and a few other things. The homes in our neighborhood when selling, are going for $160,000 to $200,00. We have too much debt to put any money in making repairs. So are wondering about contacting some of those ads that”buy ugly houses”. Has anyone ever had dealings with that type of transaction? What should we know going into something like this? What should we be wary of? I just want to get out from this house. All we care about is getting enough to pay the loan off. I appreciate any insights you have to offer.

Before I did that, and I don’t trust those companies anyway, I would list the house and price it about $10K below what the others are selling for. Make a list of the issues that are huge, like the foundation, and disclose those. Let the buyers negotiate from there. They may want you to knock of $20K, but you would still get it sold. We are selling our house. Last Summer, we put $25K into shoring up our foundation and the garage floor is sinking and the driveway would cost $10K to redo. We are lsting our house at normal price, maybe a little below, and let the buyers negotiate. We may lose a little money on top of the $25K we can’t recoup, but we will get out of it. Also, disclose eberything and see if you can get them to sign off on it “as is”. That way, they can’t really come back to you and say we want money becaue of this, that and the other.

My opinion is that you should put the home for sale, rent in the new state to which you move and wait for the house to sell. if you haven’t made improvements or maintenance to it, it will be tough to sell it unless it is in a prime location where you live. so it will take a long time to sell it. flipper style buyer, in my opinion, would be a person who makes a living buying homes in bad conditions in good neighborhoods, improving them and then selling them.

you would have to investigate who these people may be, but it may not be easy because they could be a real estate person, a person with an architecture background or a contractor. you may have to ask by word of mouth who makes his or her living that way in your town. some of these people are willing to live in these homes while they are improving them, then sell them and move to their next project. you could otherwise try selling to a new home buyer that has the energy and time to repair it. sometimes flipper type buyers buy on speculation new homes being built by developers, with the hope of selling them when the homes are completed.

I have friends who have lost a lot of their savings because they were enticed to plans like those, just before the housing market turned sour last year. but that is not your situation. you should at least spend time and energy in making the house as presentable as possible, doing things you can manage, like painting, maintaining the yard, removing clutter. one guy i knew who would live in houses he was repairing until he sold them was a good gardener, so he used to make the garden very attractive while reparing and painting the house.

Documentary on the Student Loan Industry in final stretch of funding competition

Hi All,

I’m helping on a documentary exposing the shady practices of private student loan lending and we’re going for funding. Yes, it sucks that you have to register to vote, but it just takes a minute to vote yes on this important issue! Like Maxed Out on the issue of credit card debt and I.O.U.S.A. on the issue of the staggering national debt, we need this documentary to get the issue on the agenda and mass media radar so laws can be put in place for a fair student loan lending industry.

  • Two weeks ago our film won the Weekly Sprint and became one the Finalists for this month. And now, if we can have a minute or two of your time–we need you to vote again so the film will win the funding we need. Thanks in advance for your support of this film! :)
  • We have until July 31st PST that’s this Friday to get as many votes as they can to win the final round. PLEASE vote! :)
  • To read up on student loan facts please scroll down.
  • To visit the film’s website: http://www.defaultmovie.com/

According to the Project on Student Debt, almost 70% of borrowers feel they were very poorly informed about their loans.

Private student loans carry variable rates of up to 25%, with no caps on fees and interests.

Economists generally estimate that a “manageable” debt burden means payments that are 8 percent or less of monthly income – 39% of student borrowers now graduate with unmanageable debt by this measure. That includes 55% African-American grads and 58% of Hispanics – Anya Kamenetz, Generation Debt.

As The National Consumer Law Center concluded in their March 2008 report titled “Paying The Price: The High Cost of Private Student Loans and the Dangers for Student Borrowers”, there are ominous signs that “the student loan market is headed for the same fate as the subprime mortgage industry .”