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Old 07-03-2013, 06:28 AM

RE: Credit Card Advice

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Originally Posted by Kayline View Post
Perhaps they would be more willing to work with her if she told them her only other alternative is to file bankruptcy, which would mean they'd get nothing-?
1. IF she chooses to try this, be sure she states this to the credit card company in a calm and measured way. A long time ago, I remember just mentioning it in a firm way to one rep in a phone call, who then turned it into the idea that I was "threatening" them. If she says it, say it "humbly" and politely end the call unless there is some kind of response from the rep that answers back genuinely interested.

Remember these are reps who are just trying to get off the phone when you don't indicate verbally that you are complying with them. Telling them you are thinking about bankruptcy does not phase them. At the time of the phone call, it's all about automation. They are just looking at the account profile on the screen.

I am not even sure they have "comment sections" (my quotes) anymore. They use codes that are assigned to them to inventory what kind of calls the company is taking so that the company can assign the account to a category and reduce call staffing.

It's not about how we think, but how they think and then how they have chosen the automation assignment for the type of call "they" think it is.

2. As far as advice, do you think she is reliable enough to consider that if you get involved financially to help her out, she will respond by paying you back eventually?

Warning: the following info is abhorrent to loyal Dave Ramsey followers. Don't read if you follow his advice.

This is just my opinion but what I see is the credit market opening up again to lend. They are assessing risk again like before and they are back to their predator lending tactics. I am actually using their marketing at 0 percent interest for 12 months to close accounts that are charging me interest. These lenders are hoping to trip me up at the end of the intro rate. It's called "predator lending", in that at the end of the intro period, there is a high interest rate waiting.

Since I am aware of this, I am vigilant to stay on top of it; really that's just the SAME method of paying your bills diligently from month to month anyway. I depend on God to see us through with a continuing good salary for my hard working husband, while I manage $30k plus debt. It's going to be paid off slowly but surely, but I get to choose the honest and diligent manner in which to do it.

Why did I make this post about me for a few minutes? Because I can't give advice if I don't explain why I would give advice in the manner I live it.

Back to the context of my advice here:

IF you have a relationship with your sister where you believe she has learned something from this experience and she is a good worker and has gained maturity, you could apply for one of these 0 percent intro rates to apply to her balances on the debt she now has, before they completely OVERWHELM her. IF this continues, the stress on her life will get much worse and her health could suffer or she could start acting out the stress in her life at work and possibly lose her job. Some creditors/collection types call work numbers or at least will call cell phones at almost anytime, including work times.

Before you make this decision, consult with your husband. He must be on board. You may take a hit on your credit, also, so if you plan to buy a car or house in the next 12 months, don't do it. But, if you have some stability and you have a strong relationship with your sister so that you can trust her, that she will make the minimum payments during the 0 percent interest period, and THEN pay off the balance in 12-15 months, consider helping her. It means you may have to make a minimum payment for her IF she has a genuine temporary setback during the 12 month period.

There is a credit card company that is advertising ALOT on TV, internet, that I know is offering easy credit right now at 0 percent interest intro rates that is easy to apply for (and no annual fee). If anyone watches PBS, you can find two distinct documentaries about credit that will enhance your understanding about how credit card companies work. You can take that knowledge, use it wisely (not their intended way to trip you up) and utilize it to help yourself through work (stable salary) and diligence to keep the accounts under control and paid monthly.

But, IF you perceive she just wants the ouchie to go away, thinking there is an "easy" out somewhere out there, and it's not her fault, etc., then, you'll have to let her flounder. Because short of paying the debt payments in the manner the companies she already owes WANT, paying a bit here or there usually does not phase them. I think this is understood by your quote:

"The issue she has with paying anything is thinking it won't do anything since they will continue to add on fees. She has quite a few so making that many payments every few weeks unfortunately isn't possible."

BTW, I wouldn't close any accounts. That doesn't help address payments. It actually hurts her long-term. And, there is a long term to consider despite how dire it looks right now. To prove that one is sincere about managing the account, don't use it anymore. Closing it does not reduce what is owed and doesn't send any message to them that you are trying to do good. Most likely, the account will be closed/charged off in 6 months. BTW, that's when the REAL collection agencies kick in. And, I do mean "kick"; they treat consumers much worse.

If you do try to help her in the above manner, also make it clear she must put aside a LITTLE money each month as an emergency fund. The way you could do that is open a joint account so you can see she is complying with that provision. This provides a cushion for genuine emergency but if no emergency happens, you have that much set aside at the end of the 12 months to pay off the balance now reduced by only the monthly payments made.

I am giving advice that I am doing. I am not giving advice that I wouldn't do myself. So, I hope you understand my heart and intention here. I've shared very personal info because I've been close to where she is right now.

3. My last opinion: These companies that advertise on radio that they can get you paid off in 3 years cannot be trusted, IMHO. If anybody here reading has actually used a company like this with a positive result, please share! The Consumer Credit Counseling service recommended by Crown Ministries seem more willing than most other CCS to work with clients. I didn't use them but I trust Crown Ministries to make honorable suggestions.

Last edited by Easy2save; 07-03-2013 at 09:45 PM.
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