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AMEX Hardship - about to miss payment, what to do?


bkbob63
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Hello all,

I am enrolled in AMEX hardship program for my GOLD and BLUE cards for the past 3 months.

Both have payments due this Tuesday and I cannot make the payments.

I have already decided that I must attempt to settle all of my credit card debt which totals $50k across 7 different cards. Should I be calling AMEX to inform them I cannot make the payments or should I just let it go? I am concerned about AMEX (and Discover) most as I have read they send you to collections right-quick, are most difficult to settle with, especially if this gets sent to Zwicker. The forums prompt response would be greatly appreciated as I need to decide if I am calling them by Tuesday the latest.

I have been reading and reading to try and educate myself for weeks and the forums are a terrific source. I just want to get the ball rolling but not mis-step if I can help it.

Thx

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Over the next 3-6 months I hope a lump sum can be acquired if I get creative and resort to pretty much begging relatives, tax return may help too.

Else, I may have no choice but to file as options are running out..

Can anyone speak to how to go about stopping paying when you can no longer meet all your minimum payments combined (namely with AMEX ASAP)?

Just stop? or call and let them know your hardship and note that you cannot pay?

Thx

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When you say "no choice but to file", do you mean bankruptcy? If so, then I wouldn't even consider settling. You may just be throwing good money after bad. 50k is a lot of money to settle out. And if you are going to go the route of borrowing from friends or family, you're putting yourself in an even worse position. It's just my opinion, but speaking as someone that was in your very same shoes last year (80k in debt, weighing the options of BK versus settling), I would go the BK route. I did it and my life is 100% better because of it. I wouldn't even call the CC companies back. They could care less about your hardships, they just want to know "how much and when" will be your next payment. Stop making payments and put that money towards a good BK lawyer. Most of them have free consultations. Talk to thirty of them if you have to.

Again, just my opinion...

Edited by workingpoor
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I appreciate your response and respect your opinion.

In my case, I'd prefer to attempt to settle as bankruptcy is truly a last resort (and I do not qualify for Chapter 7, I'd need to do a Chapter 13).

Based on my personal situation and what I have read and more importantly in consulting a lawyer and cpa in detail, I was told settlement is my best option. The unknown in regards to attempting to settle are something that I will need to deal with as I go along and I do not take the entire process lightly.

I am trying to properly plan as best as I can.

thank you.

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Hello all,

I am enrolled in AMEX hardship program for my GOLD and BLUE cards for the past 3 months.

Both have payments due this Tuesday and I cannot make the payments.

I have already decided that I must attempt to settle all of my credit card debt which totals $50k across 7 different cards. Should I be calling AMEX to inform them I cannot make the payments or should I just let it go? I am concerned about AMEX (and Discover) most as I have read they send you to collections right-quick, are most difficult to settle with, especially if this gets sent to Zwicker. The forums prompt response would be greatly appreciated as I need to decide if I am calling them by Tuesday the latest.

I have been reading and reading to try and educate myself for weeks and the forums are a terrific source. I just want to get the ball rolling but not mis-step if I can help it.

Thx

I have 2 accounts that I am paying off that are on hardship programs.

(The rest were defaulted on)..

When I run into trouble I call these two.

Depending on who you talk to, they usually will ask when you will be able to

make a payment.

I give them an anticipated date and then if it does not happen

I call agaoin.

So, yes, I would try.

And I would document your call info and also record if

you are a one party state.

Just in case.

If you think you may never be able to pay again

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Thx Donq.

I am not sure I can keep up the 2 hardship program payments for more than another month, tops, it would be a stretch. I am trying to see if anyone has had experience debt settling after entering hardship programs w AMEX.

I may well end up calling them today and telling them I cannot pay but expect them to ask me when I can. Not clear how to answer that and wondering if that should be the extent of communication for a while until I hopefully have the ability to settle. I am truly terrified most of my AMEX bills from what I read, they sound very tough to deal with and send to collections fastest.

Anyone else with some insight as I approach crunch time??

Would be greatly appreciated.

Thx

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Thanks RA. Plan is to keep one card with a relatively low balance and continue making payments and let the rest go. Hopefully I am able to work a settlement with the rest. Idealy I get decent settlement offers in time and if I need to settle at a higher rate with some (ie Discover) it will al work out to something doable. Meantime I'm building up as much cash as I can.

thanls to all for the responses..

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Some advice for if you're able to pull this off:

Get EVERYTHING in writing

Make sure it is clear that the settlement actually settles the account and that they WILL NOT sell, transfer, or in any way attempt to collect the forgiven balance.

Be prepared for a 1099 on the forgiven balance

Make your payments by money order. Do not give them any banking information, no matter what line they give you. "We can only accept payment by direct debit from a checking account"... Bulls**t...

Get EVERYTHING in writing...

Good luck :)

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