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Re: Sending a Credit Card To Collections?


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Posted by BeenThereStillDoingThat (24.187.170.238) on July 15, 2004 at 08:40:38:

In Reply to: Sending a Credit Card To Collections? posted by Andrea on July 15, 2004 at 03:54:40:

Do you mean paying the original collector?. If so then YES, you are not making monthly minimum payments. Internal collections begin almost immediatly after the first 30 or 60 days and the phone calls will come almost daily. If you don't think you can ever catch up it would be better to default on the CC and let it go to where the OC writes it off and the debt gets sold to a third party collector.

This way you have more protections than you would with the original collector. Remember this is only if you see yourself NOT being able to get back into normal payments and catching up. Most CC companies will require your FULL MONTHLY MINIMUM each month to be added to the new monthly minimum PLUS past due fees plus increased interest. If you go over your limit for the card then they add overlimit fees. Very quickly a $100 a month minimum can be $200, $300 or more if you start doing the "$25 a month" idea.

I'm not a lawyer nor providing legal service, but the above is what happened to me. My $150 a month CC bills became $500 to $850 minimum a month EACH. At some point I threw my hands in the air and said "F-ck this!" and stopped paying.

Its been hell ever since but there was no way for me to get back into a normal payment cycle because they dont ever back off on the fees, interest and so on. My cards have each passed three or four times from collector to collector, but at least I now spend my money where it can do me some good. Trying to pay off the CC's once it all went to hell made it impossible to pay rent, electricity and put food on the table.





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