getting help

[sshatzer22]

i am new to these forums and have been reading alot of the topics here today. i do work in collections for a credit card company...please don't hate me!! it's actually been a very educating experience. i just wanted to post some advice for those who may need it.

first: if you are having any types of problems regarding your payments (out of work, minimums too high, etc..), the first thing you should do is contact your credit card company. most companies have ways of helping you. i know, from experience, it's scary calling your credit card company when you are past due, but sometimes, we have to bite the bullet. you'd be suprised at what they might have available. if you get a nasty collector on the phone, hang up and call back, because not all of them are nasty!!

second: if you do fall behind and cannot make the full payment, atleast try to make your minimums until you can catch up. by doing so, you are stabalizing your account and preventing it from falling further behind.

third: do be wary of debt settlement companies. from my experience, this is what happens: the company tells you they can settle your debt for such and such amount. what they do is set up payment arrangements with you. they then proceed to send your creditor a letter stating they have power of attorney on your account. they also have the mailing address, home and work #'s changed to their # and address. from that point, they do not send your creditor a dime until the account has been charged off by the bank, it reports to your credit bureau also. at which point they settle on your account. this works because we can no longer correspond with the customer at all. you as the consumer have no idea what is going on with your account. they wait for it to charge off because normally, settlement options are more available after charge off. be careful of this though, because it is more damaging to your credit then you may think. one of those "too good to be true" deals. if you want to settle on your debt, first contact your creditor to request a settlement.

just thought i'd throw those out there, if they are at all helpful to anyone!!

[Swede]

Hey there and welcome!!!

We don't hate you at all, in fact, it's good to hear from people on your side of things. We've had a few people hear that worked for collection agencies that were helpful to our members so I'm sure your comments can be very enlightening as well. Although I'm sure the mods will keep an eye on you...

[Gettinout]

sshatzer22,

Welcome to the forum. Your input may very well be helpful to some. Do be prepared to get whacked from time to time. Many here are very sensitive to posts which appear to be from "the dark side".

I could tell by your responses on a few topics you were from a CA or CC.

There is a great difference as to how approachable CCs are. I found some to be helpful and some to literally scoff at me.

Universal Default and jacking of interest rates is responsible for many peoples downward spiral.

How does one work with a CC when they are struggling but managing and then they are hit with 29.9% interest? A 12 month program may not do the trick for those who cannot predict the end of their struggles. By then they may have used all their resources to pay minimums and interest when they may have been able to use those funds to settle, or even eat.

Your input as to how the CCs view this destructive process would be much appreciated.

Gettinout

[sshatzer22]

How does one work with a CC when they are struggling but managing and then they are hit with 29.9% interest? A 12 month program may not do the trick for those who cannot predict the end of their struggles. By then they may have used all their resources to pay minimums and interest when they may have been able to use those funds to settle, or even eat.

honest enough question!! i have worked with people personally on that, and the truth is, no one knows where they will be standing in 12 months. however, many 12 month programs that are offered through cc offer a lowered minimum payment, sometimes hundreds lower, and lowered interest rate(often between 0 and 12%), a stop on all fees, similar to a cccs program, except in house. i've seen this help people from accruing more of a debt during a difficult spell in their lives. and a few, who's situations improve over the 12 months, i tell them to try and pay more then their required minimums, if possible, to take advantage of the program and knock down the balance. what i've noticed that alot of people don't know, is that both their minimums and their finance charges are based around the balance of the account. therefore, make a heafty payment, if possible and you knock off alot of charges in one shot. however, if after the 12 month program is over, and one is still in the same position where they cannot go back to paying the minimums, i usually recommend a few things: refinancing your home is one. you can save alot in interest..but try to make sure your accounts are current before doing so, to gaurantee approval for refinance. another option may be a settlement, but keep in mind the credit reporting. settlements report as an r5, which is similar to a bankruptcy. also, balance transfer to a lower int rate cc. same deal as refinancing. alot of cc offer introductory 0% int and no fees for the first few months on transfers. yet another option, going with a long term, RELIABLE, consumer credit counseling service, but always do your research to make sure they aren't a scam. the last option, if none of the above work, would be bankruptcy. sometimes, you've gotta do what you've gotta do, right? the main thing is that one tries. that's the best u can do basically, before doing anything, one should evaluate their individual situation and do a budget. see what they can afford comfortably. and come to a conclusion from that.

[Gettinout]

I agree that the hardship programs can be very useful for those who see light at the end of the tunnel. They are also much easier on the credit scores.

In my case, cards that were current used the Universal Default clause to impose 29.9% interest. I had only defaulted on one payment by only a day. My credit profile showed me as being nearly maxed out and I was no longer receiving the low interest BT offers.

This took me from a hardship into a situation in which there was no light at the end. Not knowing the end of my difficulties caused me to seek relief outside the realm of hardship programs. For me it made no sense to struggle for a year and have no resolution. Many of the programs I was offered were very weak. Numerous phone calls and explanations only resulted in offers which were pretty much what I was paying before the UD hammer was laid down, and only if I paid much of the past due amounts.

It seems to me they were gambling that since I was such a good risk in the past that I would be likely to participate in the gouging that was going on. I cried uncle and looked into BK and settlement. I also looked into CCCS and was turned down every time due to my lack of sufficient income. In hindsight I'm glad I didn't qualify for the programs since they may not have done me much good.

Can you share some insight as to how a person can negotiate a reasonable hardship program? Lets face it, once a CC has imposed 29.9% interest for 150 days they obviously have room to offer a 0% hardship program.

Negotiating hardship programs isn't mentioned much here. This forum could certainly use some inside info on this subject. It may fill in the blanks for those who do see light at the end of the tunnel.

Gettinout

[sshatzer22]

to be completely honest with you...unfortunately there usually isn't any negotiation for hardships. it's either the account is eligible or it isn't. usually though, the companies have a regulatory "assistance" program. this is the program similar to cccs. most are, like you said, for 12mths. however, alot of the companies are now offering longer term programs, some for 65 months. the programs work like this: the lowest amount you can pay will achieve you the lowest interest rate, all fees halted. the payments are all base around your current payments and balance. now some companies, and i think sears may be one of them, do offer the 0% interest rate, but not every company does. most only go down to 6%. as far as negotiation, like i said, it's a difficult thing to do with a cc. however, i say this hypothetically , most companies will not open an account up for such programs until the accounts are 3 mths, or more, behind. now, if you are not that far behind, and wish to obtain a program, i always recommend to write a letter of correspondence to your cc, explaining your hardship and requesting a program. some will actually honor your request. see the thing is, not every cc runs around the same regulations. they differ from company to company, and each regulate their programs in a different manor.

as for universal debt, yes it sucks. i hate it and think the government needs to step in on this one...and this is coming from a collector!! i think it is very wrong to calculate an individuals seperate accounts based on the status of one. i know many people will fall into a temporary hardship and say "ok in order to keep things in order, i'll have to pay this account, but let this one go til next month." yea it sux. i hope somethings done about it!!

[cavazos007]

sshatzer22 That's some good info. Thanks for sharing. And welcome!