Missed credit card payments for 3 months now what???

[Williamrig]

Indiana My wife has 5 credit cards with varying maxed balances from 500.00 to $2000.00. She was unable to pay them for about 3 or 4 months. All her other bills were pd on time or a little late, even her mortgage. She is now able to start paying the credit cards but cannot pay the minimun required payments. She can pay about 25 to $60.00 per month on each one based on the balance. The cards are, Merrick bank $1800, Washington Mutual $2100, Juniper Bank $560, Capital One $540, and Household Bank $600. The problem is all of the balances are over the limit and each month an over limit charge and late payment charge is being assessed. So even if she pays something on the cards the balance still goes up each month because of the overlimit charges, late charges, and high interest rates. (averaging about 30% each) about How can she stop the late fees and overlimit fees while she trys to start paying the credit card companies???? How can she deal with the credit card companies??? Our finances are seperate so I am not involved. Any ideas how she should deal with this? Thanks for any ghelp you can be.
BillWhat is the name of your state (only U.S. law)?

[debtcollector`]

Originally Posted by Williamrig

How can she stop the late fees and overlimit fees while she trys to start paying the credit card companies???? How can she deal with the credit card companies??? Our finances are seperate so I am not involved. Any ideas how she should deal with this? Thanks for any ghelp you can be.
BillWhat is the name of your state (only U.S. law)?

Start by you getting involved.

DC

[Ozark_Sophist]

Your wife needs to make an appointment with a Consumer Credit Counseling service in your area. A payment plan can be structured with a reduction in interest and other fees.

[j991]

I think that Ozark is on the right path, but I suggest using credit consumer agencies as a last resort. More often than not you can negotiate the same deals as they, and without their added fees.

First you need to call all of the outstanding cards and cancel them immediately. This will stop the over-credit fees from accumulating. Next you need to speak with a supervisor, not the run of the mill call taker. Explain your situation and be forceful with them. Tell them that you cannot pay than X amount of dollars per month and want to structure a plan with them. If you work with them, they will work with you because they want their money. Always negotiate what the terms they give you because you hold the cards, you have the money they want.

One thing you need to be careful about though. The company will most likely want to set up a direct withdraw type system where they take X amount on a certain day from your checking account. DO NOT GIVE YOUR CHECKING ACCOUNT INFO!! Try to convince them to accept a money order to mailed out on a certain date. If they insist on a direct withdrawl transaction then you need to set-up a seperate account fom all others where you deposit only the money you want them to have. Otherwise, the company will take more than the agreed upon amount and just say "oops, typo, but we'll credit it to your account" This will create more hardship for you.

If you cannot get through to the creditors, or they seem unreasonable then go to the credit consumer agencies for help. The plus is that they have more pull than you, but they are going to charge you a fee for their service. I suggest giving it a try yourself first and save what money you can. Good luck

[ignitespeed]

Originally Posted by debtcollector`

Start by you getting involved.

DC

Exactly.

Also, you said she is paying the mortgage ? Your married but live in different places ? Or married and she is ( I hope I don't interpret this right) paying the mortgage solely on a house you share....

[Williamrig]

Our finances are seperate. I have a house in the country, a line of credit, checking & savings accounts, and credit cards, and a new truck. Everything I own is more than half paid for. I have very little debt other than a truck payment and a mortgage. Her name is not on anything I own or owe.

She has a condo in town, a car payment, and about 6 credit cards and eveything is maxed and mortgaged to the hilt. My name is not on anthing she owns or owes. 4 months ago she could not make her credit card payments however this past week I worked out a payment plan with all but one by closing some accts and making reduced payments. There were 2 or 3 that kept the acct open as I figured she would eventually have to rebuild her credit. One of the cards I could not deal with (Capitalone) so she caught it up with a bonus that came at the right time.

The only thing we have joint is a checking acct that I do not use. She uses it as her acct. There was a time when she could not get a checking acct.

I started seperating our finances about 10 years ago for a couple reasons. One I never thought we would still be together this long (its still uncertian) and two she cannot hold on to a nickel. She makes more money than I do but spends it like water, mostly on a drug abusing Son. A good woman in a few ways but she will follow that drug abusing son to the end of the earth and back. She gives him money and lies about it and even stole money from a small business I had and gave to him. she is codependent on him. I have been leaving for 10 years now. Hell, I never realized its been that long.

Well that's information overload I know but it gives you an idea why the situation is here now. Bill

[debtcollector`]

Originally Posted by Williamrig

I started seperating our finances about 10 years ago for a couple reasons. One I never thought we would still be together this long (its still uncertian) and two she cannot hold on to a nickel. She makes more money than I do but spends it like water, mostly on a drug abusing Son. A good woman in a few ways but she will follow that drug abusing son to the end of the earth and back. She gives him money and lies about it and even stole money from a small business I had and gave to him. she is codependent on him. I have been leaving for 10 years now. Hell, I never realized its been that long.

Love is a tough thing. But, that paragraph marks you as one of the wiser people that come to this forum.

Feel free to PM me with any specific question you don't feel comfortable putting on the public forum. Now, do you have any other questions?

DC

[The Driver]

Maybe once you get your credit problems straightened out you could look into seeing a marriage counselor.