Hard times, need some credit card advice..........

Okay guys, I have a problem and need some advice. I have credit cards like most people and these are tough times and I'm not making enough to make payments on these cards. My question is, what happens if I stop making payments on these cards? I've heard it goes to collection, ruins your credit score, and your credit goes down the drain for 7 years, is this all correct or is there something more to it? I mean if this is the case, I can deal with not having credit for 7 years, but is there more to it? Lastly, those companies that say if you're in debt to call them and they will work with your credit card companies to lower your interest and payments, what's the catch to that? I just need some advice because I'm not making enough to pay off my cards and need to know what the best route to take.

Isnt there someone else you can ask for help besides the GS, GF community? Didnt want to sound mean or anythingPvt_r3d

Yeah, I've posted around the net, so I posted here as well.

How old are you?

How much in debt are you?

Destroy your cards is the first step.

easy.follow these step and you're good to go

1. buy a ticket to Africa

2. Find black market

3. Ask an extremist to have your identity changed

4.Pay the extremist

5. Shotgun!

Okay guys, I have a problem and need some advice. I have credit cards like most people and these are tough times and I'm not making enough to make payments on these cards. My question is, what happens if I stop making payments on these cards? I've heard it goes to collection, ruins your credit score, and your credit goes down the drain for 7 years, is this all correct or is there something more to it? I mean if this is the case, I can deal with not having credit for 7 years, but is there more to it? Lastly, those companies that say if you're in debt to call them and they will work with your credit card companies to lower your interest and payments, what's the catch to that? I just need some advice because I'm not making enough to pay off my cards and need to know what the best route to take.

Sephiroth__666

Only if you file for bankruptcy will it totally ruin your credit for 7 years. If you can't afford to pay for your current debt, I advise getting a co-signer on something that costs a great deal, and that will put your credit back in very good standing. On the other hand the hell with it and wait until those debts are legally written-off (likely less than 7 years), but either way, your credit won't be completely shot.

If you actually care about your credit because you feel you have to in order to get ahaed in life, choose a credit consolidator that is not affiliated with a major credit company, as many are. Go with a third-party consolidator.

At the end of the day, the whole concept of credit is a capitalist device to make people other than them seemingly rich(er), and put some fancy automobile or other in your lap that you otherwise couldn't afford in the process, while assuming that you don't understand what price you will ultimately pay in the end- much more than that auto is worth and much more than you as a human being are worth to these blood-sucking fascists.

credit card advise ? .....don't get one.Honenheim

Um...you pretty much need one, so you can establish a credit rating and get loans for things like housing...

credit card advise ? .....don't get one.Honenheim

I know that American Express has accounts where you have to pay off the balance at the end of the month. That would work better for lots of people. Like, you won't be buying a $2000 HDTV if you're broke as hell, because there's no way you're gonna be able to pay that off at the end of the month. But it's cool if you are out of cash and want to go out drinking one night. Or if you don't have much money right now, but you still want to buy Dead Space. Kind of forces you to view your credit in the short term rather than the long term. So you only buy the stuff that you're sure you can pay off in a month's time.

[QUOTE="Honenheim"]credit card advise ? .....don't get one.Cloud_Insurance

Um...you pretty much need one, so you can establish a credit rating and get loans for things like housing...

I've heard of some people getting credit cards and then freezing them in giant blocks of ice and sticking then in the back of the freezer.

You could try that. Granted, you can still use the credit card, but that ought to cut down on impulse buys. In the time it takes you to melt the giant block of ice in order to get your credit card, you have time to think things over and decide that you probably shouldn't be using your credit card right now.

no don't call those debt companies you see on tv. what they do is make you sign a thing where you owe them instead but now they'll have the right to be more aggressive than your credit card company. (like trying to repo your stuff)

Try as hard as you can to pay at least the minimum on your card. don't spend any more. don't waste your money on games if you still can barely afford the minimum.

[QUOTE="Honenheim"]credit card advise ? .....don't get one.MrGeezer

I know that American Express has accounts where you have to pay off the balance at the end of the month. That would work better for lots of people. Like, you won't be buying a $2000 HDTV if you're broke as hell, because there's no way you're gonna be able to pay that off at the end of the month. But it's cool if you are out of cash and want to go out drinking one night. Or if you don't have much money right now, but you still want to buy Dead Space. Kind of forces you to view your credit in the short term rather than the long term. So you only buy the stuff that you're sure you can pay off in a month's time.

Credit card debt should always be seen as short term(1 -2 months max). the rates are insanely high. if you wanted long term you'd borrow from your bank or from your life insurance or something like that which has a much lower interest rate.

I'm not sure what to do in your situation. But if you own a home, one way to dig out is to take out a Home equity loan and pay off your credit card. The things that will do for you. 1. the interest rate is the same as your mortgage (good if its a low fixed). 2. No more finance charges. 3. you can skip payments on the balance and just make interest payment (if you are hurting for cash one month, but not wise to do it all the time). 4. Any interest you pay towards paying off the HE loan is tax deductable. Now there are risks and you have to make sure you can still pay off the loan (bank can seize assests in the home if you dont), but it will be a lot easier than dealing with credit card rates and finance charges.Darthmatt

that would be good advice but the home equity market is not good right now. banks aren't going to give you a loan on equity if indeed there's any left since home prices and sales are down.

[QUOTE="Darthmatt"]I'm not sure what to do in your situation. But if you own a home, one way to dig out is to take out a Home equity loan and pay off your credit card. The things that will do for you. 1. the interest rate is the same as your mortgage (good if its a low fixed). 2. No more finance charges. 3. you can skip payments on the balance and just make interest payment (if you are hurting for cash one month, but not wise to do it all the time). 4. Any interest you pay towards paying off the HE loan is tax deductable. Now there are risks and you have to make sure you can still pay off the loan (bank can seize assests in the home if you dont), but it will be a lot easier than dealing with credit card rates and finance charges.Ontain

that would be good advice but the home equity market is not good right now. banks aren't going to give you a loan on equity if indeed there's any left since home prices and sales are down.

Okie doke.

Credit card companies will not make an attempt to collect until the payment is 30 days past due. If you pay it before this time it will not negatively affect your credit. However, after you have missed a payment for 30 days (or one full billing cycle) the credit card company can, and most likely will, report you as 'slow pay' to the credit reporting agencies. This will show up on your credit report along with the month and year for the most recent slow pay. Slow pay does affect your credit report negatively but not by that much. Information on your credit report will stay for seven years before it falls off.

If you continue to not pay the credit card company will move your account into collections at some point (there is no set time, it varies between companies but I would guess 90 days or so). The move to collections will also negatively affect your credit as it reports under its own category. Most lenders will not lend anymore if they see that an account is in collections. So despite the fact that it lowers your score the main problem is that you will be cut off no matter how high your score still is.

Eventually, after a logner period of time without paying, the credit card company will either charge your account off (you don't have to pay but your credit takes a severe hit), seek a judgement (unlikely as it is unsecured but depends on the balance), or sell your account to a collection company. Either way your credit has taken a beating by this time due to the time it has spent in collections.

The thing to remember with credit is that it is similar to a GPA in the fact that it is easy to bring down but hard to get back up. You will lose any bargaining power when it comes to lenders and will have to settle for the default maximum rate (recently raised from 21%) when borrowing. That is, if anybody will approve you.

How long do you expect the problem to last?? If yo uare responsible and diligent you can float your balance to other cards but that is becoming harder. Not to mention it only buys you time. In the end you still have to pay it.

EDIT: As for credit counseling: be very, very wary of these places. Many will 'negotiate' in that they call the credit card company fro you, tell them you are going to be slow pay, and 'give' the credit card companies your credit score to ruin in exchange for them not bugging you as much. It is a fallacy, for the most part, that they will negotiate lower rates. By using the card you agreed to the credit card company's terms, why should they lower the rate (a measurement of risk vs. returm) for a customer who just asked becaue they were having trouble paying?? Just make sure you know how the credit counselor helps you and what approach they take.

Get a debit card instead and start spending money you actually have. >_>SolidSnake35

Get a debit card instead and start spending money you actually have. >_>SolidSnake35

Every body should have a single credit card.. To work on your credit score, just be responsibile in spending it.. Even then you have to supply alot of debt, like $8k + on a credit card to start hurting you severely in interest..

Get a debit card instead and start spending money you actually have. >_>SolidSnake35

quite alot of places don't acept debit though and if you're really short oon money you might need a credit card so that the payments fit in with your pay check

[QUOTE="SolidSnake35"]Get a debit card instead and start spending money you actually have. >_>markop2003

quite alot of places don't acept debit though and if you're really short oon money you might need a credit card so that the payments fit in with your pay check

Never found a place that didn't accept it.

[QUOTE="SolidSnake35"]Get a debit card instead and start spending money you actually have. >_>markop2003

quite alot of places don't acept debit though and if you're really short oon money you might need a credit card so that the payments fit in with your pay check

I don't own credit cards and never will. But I always get a good laugh at people who do.. and run around using them when they don't have the money to pay them back, and surprisingly a lot of people do this for some reason. I wonder why were in a recession right now.. oh yeah, stuff like this.EMOEVOLUTION