If one more person tells me it is possible to work with creditors...

[Pacifist Patriot]

to reduce interest rates or extend terms I am going to fucking scream. Bullshit!

My family, like most families in this economy/global financial crisis, has had a massive hit to our income. We didn't go nuts with the credit cards, buy a McMansion or have to have the latest model car every year. We're just average people, but like most everyone we do have some debt. The loss in income ate up our savings and majorly screwed up our debt/income ratio and now we're living pay check to pay check. Both my husband and I are trying to find part-time jobs to stabilize our family's finances. This is not a sob story, I know we still have a better situation than many others. Things could be far worse and I know that. I am grateful for what I do have.

I have called all of our creditors to explain the situation, tell them we absolutely do not want to default on the debt and would like to work with them to make sure they get repaid and make a fair profit on our loan. Can we renegotiate interest rates or terms?

Nope.

The few times I have been late to pay a bill in my entire adult life it wasn't more than 48 hours late. I have always paid more than the minimum payment. Hell, I round up my phone, electric and gas bills. My credit rating is in the 700s. It's all debt/income ratio at the moment.

The way things stand now, if nothing changes, we will be defaulting on loans by the end of autumn. So instead of getting their money back at less of a profit the creditors will get nothing. Way to go folks, way to go.

[liberal N proud]

1. It's possible

Just not likely to happen

[Pacifist Patriot]

2. Fair point. It's possible for me to walk through walls, but it might take several million years.

of getting bruised and bloody before my quantum particles all cooperate. :)

[Javaman]

31. Well, see, you just have to have more patience!

:rofl:

[Crabby Appleton]

22. It's possible that a winged monkey might fly out of my ass

but not likely.

[TK421]

3. Funny you should post this now....I was on the phone with them this

morning ( I have a Wachovia and HSBC cards ) I was recently laid off, so I tried to get my monthly payments lowered, since I will be taking a nice hit with my weekly unemployment payment. Wachovia basically said no, and one option I had was to...get this, allow my account to go unpaid for a month. That would entitle me to some kind of "hardship payment plan" or however they worded it. I asked " Wouldn't that negatively affect my credit rating AND push me over limit with additional fees"? They replied that it would, but possibly lowering monthly payments through their own collection departments. HSBC recommended that I look into a debt management program. I did one of those, and it saved me quite a bit monthly.

Perhaps you might want to inquire about that....hope it helps

[Pacifist Patriot]

8. How maddening is it that...

we have few options other than to wreck our credit while the institutions gleefully taking our money are sucking at the public teat?

[TK421]

14. Quite frustrating....I would look into a debt management program

if I were you. They work directly with the creditors, lowering your APRs substantially so you can pay them off faster. Deal is, though that you have to close the accounts so they can't be used again.

[Pacifist Patriot]

16. That wouldn't bother me because I already asked the cc company to close/lock the account.

Do you know of any good debt management programs? I see so many ads for such things I have no idea what is legit and what is a scam. I have this sinking feeling that some people/companies will take advantage of the situation.

[TK421]

23. here is the link to the one I dealt with

http://www.debterasers.com/


I'm not sure about any of these places being scam artists, but not this one

[snappyturtle]

28. My daughter did that....be very, very careful. Hers, Fast Debt Solutions,

took a lot of money up front, did not deal with the creditors like they said, gave her no monthly accounting only called her once a month to urge her to start a savings account. She now owes, after two and a half years of paying them to pay her creditors more than what she owed in the first place. Now she has an attorney....so beware!

[canetoad]

10. I'd be wanting them to put that in writing

Just sayin'

[TK421]

18. You are correct...I failed to do that, and I should have

Wachovia seems to have gotten more arrogant lately with how much they are willing to budge. They won't give you wiggle room. They put me at a 29% APR for a late payment, and they told me that in order to lower that APR I have to make six on-time payments ( that would be around $160.00 a month, compared to my normal $80 )

These people suck

[Common Sense Party]

4. Are you getting the supervisor's supervisor on the line?

The first schmoe that answers the phone can't and won't help you. The higher-ups MIGHT.

[Pacifist Patriot]

9. I don't even bother with the person answering the phone.

I assume a CSR has limited authority.

[thereismore]

5. You get in trouble - they jack up the rates. Logical, IF they actually want you to fail,

which I suspect they do. How else would you explain their behavior?

[Pacifist Patriot]

13. You'll love this part of it.

I have one credit card I am seeking to pay off. I asked in January that they lock the account so I cannot use it. I have done nothing but pay towards the account twice a month. In March they raised my rate which of course raised my minimum payment. Hmmmm, I don't suppose actually trying to pay off the card or any recent legislation would have anything to do with that, would it?

[2Design]

25. problem is - if you tell creditors you are in trouble they jack up the rates

I had one that went from 14% to 21%
so I see a lot of people post about talking to debt mgmt etc - but I don't see where any of them actually did that and felt it was good - the ads are propoganda - credit counseling assumes you have been crazy with credit and over spending - it doesn't take into account that you have an income problem -

so you have to spend less - that is a big part of it
find a way to work the system by moving your debt somewhere else cheaper

pay off more than minimum

pay off highest interest rate cc first

find people who have actually done something to get themselves out of this trouble and not those who have just read stories or heard second hand from someone else - until someone walks in your shoes they really don't have a clue and shouldn't even post except to encourage you to hang in there

[izquierdista]

35. You're not much of a bitch, are you?

That's all some, maybe most of them will understand. Real nastiness. Like "I'm going to file Chapter 7, and have this debt discharged" nasty. Don't send them any payments for 3 months and then send them an "offer of settlement" for 20 cents on the dollar. That should shake them up a bit.

Remember, if you owe the bank $10,000 and you can't pay, you're in trouble; if you owe the bank $10 billion and can't pay, the bank is in trouble.

[leftstreet]

6. Bankruptcy laws now favor the creditors

Maybe they figure they'll eventually get something from you, so why negotiate?

:shrug:

[EFerrari]

17. Is it cheaper for them if people default than it is to work with people?

I mean, if they are insured for a portion of the debt, it might be?

[Pacifist Patriot]

21. I am wondering if there is legislation/insurance that means they'll get their money...

even if it isn't from me.

[EFerrari]

26. Or a portion of it -- like, 60%. It might be cheaper to get the discount

than the admin costs of setting you up with a plan?

American consumers are just hosts any more, not people. :grr:

[Joanne98]

7. People who believe that are on drugs. Or else living in another universe.

[stopbush]

11. What really sucks is that once a cc company writes off your debt, it stays as a

key derogatory on your credit report, even if you later pay it off.

I ran into this with a couple of ccs in 2007. I was waiting payment for work I had done and got behind in payments on the ccs. The cc companies wouldn't work with me. Sending less than a minimum payment meant nothing to them, but that's all I could afford until my $ showed up. They wrote off my debt and turned it over to a collection agency. By the time they called a few weeks later, I had been paid for the work I did and paid off the outstanding cc debt in full as a lump sum. But those "write offs" are still on my credit report and effect my credit score. Had the cc companies given me another 3 weeks it would have been handled.

Timing is everything.

[county worker]

12. I think most of us have been where you are going to be.

I had great credit once upon a time. I didn't spend wildly or borrow a lot. Then I lost a job and got one that paid half of what I was making.

The credit rating tanks due to the late payments. I sold things to pay bills. Now I am getting back to where I was. It has taken years. I may lose another job.

That's life.

I don't put much stock in the posts that tell me how good someone's credit rating is. A low credit score doesn't mean anything about your morals or character. Usually it means you are experiencing some good times. Well enjoy them while you can. You too can get laid off.

[JPZenger]

15. Would it help to threaten bankruptcy?

Would it help to get a supervisor on the line and then say, "well I discussed this matter with a bankruptcy attorney yesterday and he said that would be my best option, if I can't get the interest rate lowered."

(I realize that bankruptcy laws were weakened, but they still would rather have regular payments at a reduced interest rate (you would think) then having debt cancelled).

In any large organization, the first person you talk to only has one job - to say no. You need to go higher up to get someone who can make a decision.

[Pacifist Patriot]

20. I would never try to renegotiate terms/rates with the first person on the phone.

I know they have limited to no authority. That's why I was a little surprised at the solid wall I encountered. You would think the higher ups would grasp the difference between a dip in their profits and no repayment at all. They really seemed entirely unconcerned. I don't understand the legislation out of Washington, but could the banks be confident the government will cough up what I can't pay so it makes no difference to them if I go down in flames?

[anigbrowl]

34. You shouldn't be using the phone anyway

Using email or paper mail gives you proof of your efforts to service teh debt if you should end up in default later, unless you keep recordings of your phone conversations which is legal in some states but not in others. The written word is slower, but more effective.

[closeupready]

29. My feeling is that talk of bankruptcy is a nuclear option to be pulled out only when nothing else wo

works. Because once you've stated that, then they can technically accelerate collection options.

[2Design]

19. ok - this is the way I eventually got my cards down - not for everyone

1. find 0% cards and apply and transfer
2. Go to Disney site and they have a card where purchases are 0% for six months - use those six months to pay down on other cards and new charges only go on new card - start paying new card down at 4 months so you have it paid off when six months comes

3. Apply for college and get college loans which are less then the credit cards and use the money to pay down loans

yes this is borrowing from peter to pay paul but it allows you to pay your debt and feel good about it without giving the loan sharks exorbitant fees

just an idea

[JPZenger]

24. Yes, apply for teaser rate card before letting any cards go late

That sounds like good advice to get over a hurdle. Find a balance transfer offer with an initial low rate - before any of the your cards go overdue (which otherwise could cause you to be turned down on the new card). It will at least buy you some time. However, be sure to read the fine print on the balance transfer fees.

[2Design]

27. most balance transfer fees are higher now - about 3% which means

if they are offering you 7.9 that it is really 10.9 and they are getting the 3% up front

The only 0% I have found is for purchases
I no longer do balance transfers
Most of my debt has been moved over to college loans and I consolidated at 2.8% and I am paying it down

I try to get cards that give me something back

Another 0% is la quinta hotels card - it is Chase also, like the disney card - the lq card you get points, with the disney card you get $40 credit after first purchase. Finding ones that give you money and are 0% are the ones to try to start with

Also marking your calendar for two months before expiration of the offer is important - so you can apply for another card and stop using the current card - yes it buys you time while you get things under control - and it takes spending less with less income.

[Systematic Chaos]

30. Why I'll never have credit again:

In 2002, I was working here in Vegas at one of the crappier Strip hotels as a dealer, making about $24,000 a year (horrible money for my skill level but I wasn't "pretty" enough to land a $40k +/yr. job). With my wife-to-be bringing in next to minimum wage, we were doing fairly well. I had a car I was paying on, and had even refinanced it through my credit union. I also had a number of low-limit credit lines such as gas cards, a Best Buy card and two other small credit cards ($300 and $1,000 limits). Lastly, we bought ourselves a Select Comfort bed on credit. This gave us a number of small payments to make every month, and it was pretty easy to keep it all coordinated and running smoothly. That is, until one fateful day I went out and walked briskly for a few miles and woke up the next morning unable to walk (plantar fasciitis).

This made my dealing job painful beyond words, and soon I was begging for EOs (early outs) almost every day. Cortisone shots and ice soaks did nothing to help my feet, and where I had been losing weight at about 4 lbs. per week previously I began to gain it all back. It was only a matter of time before payments could no longer be made reliably on the utility bills, let alone all the credit payments, car insurance, etc....

I called Consumer Credit Counseling of America, and they set me up with a great plan. All my creditors were on board except for the car payment, and all I was responsible for was a small payment every month of like $90 plus fees. This sounded great, and it worked for about 4 months. On the 5th month I made my payment on the due date and one of the small creditors got a bug up its ass, trying to tell me that my disbursement from CCCA was one day late. Their monthly share towards a balance of about $300 was $8 per month. So, whereas I had paid them $32 in four months, this "late" payment gave them the idea to hit me with a late fee of like $29 -- which put me over the limit, so of course that subjected me to another $25 over-limit fee. That $54 erased my $40 in payments to them up to that point plus another $14.

I made one call to the credit card company and attempted to reason with them. They wouldn't budge. I responded by ceasing to pay on anything after that. I'm now on disability and my credit rating means fuck-all to me at this point. :shrug:

[AndyA]

32. But...but...but...what about all those snuggly commercials on television...

you know...call your credit card companies...they want to help you. Talk to them.

They have stories about the woman who had to quit her job to move back home to take care of her elderly mom...she got behind in payments because she wasn't working...and she was so relieved to find the person on the other end of the phone understood and wanted to help.

I guess that woman got the ONE PERSON at the ONE CREDIT CARD COMPANY that does want to help. Because the other 99.99% of them couldn't give a flying rats ass about their customers! They're likely just running the ads as a PR stunt to show Congress how much they're helping people.

I call BULLSHIT on it.

[Pacifist Patriot]

33. Bingo!

[damntexdem]

36. It's possible to work with creditors -- if you're credulous ...

And don't care what they do to you.

[AngryAmish]

37. Have you tried calling the creditors and working with them?

It might help.

[Pacifist Patriot]

38. That was pretty much the point of my OP.

I've called (up the chain of command) and written with absolutely no result. I'm not bitching without having tried first.