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Tryintolearnfrommistakes

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Huge credit card mistake
In 2007 I got a discover credit card. I was naive and thought the card would deny once I got to the credit limit. I was wrong and went over the limit. Then the major fees began piling up. I tried to make minimum monthly payment but the over the limit amount made minimum payments 500 and I couldn't afford that so I'd make a lesser payment. Then late fees and more interest added to where the amount got ridiculously high. I make 20,000 a yr but owe 8,000 for my bad mistake. I barely get by and can't afford a big monthly repayment plan. Can someone recommend if there's a way to somehow get a financial plan that can help me with a very low monthly payment? Thanks for any info you can share.

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There is hope.

Helpful to 7 out of 8 people

A non-profit credit counseling organization can intervene in your behalf.  

You may be able do the same thing, by calling your credit card company.  Hopefully, you will get a good-hearted representative.  Tell him/her your exact situation, your income, your living expenses (rent, etc), that you can only afford $30 per month and hopefully your income situation will change, and you will pay more.  Of course, you will only being paying on the interest.  They may opt to let you do this with the caveat that they will cancel the arrangement, if you ever fail to meet the agreement.  If they send it to collection, then it gets rough.  Don't let it go to collection, you will be responsible for the whole amount plus court costs.  The court can garnish your bank account.  The monthly "agreement" will buy you time, so it doesn't get sent to collection. 

In the meantime, look for opportunities to get big cash, sell something?  When you have a large sum, call the credit card company and tell them you would like to settle the debt, if they will remove the penalties and accumulated interest. Negotiate.  A settlement like this will definitely  bring down your credit score, it will take much time to get it to rise again, but you won't have the anxiety. Rebuild your credit in a responsible way.  It may take a few years at least. 

Many years ago, I had huge family emergency, that drained me financially. I was in a somewhat similar situation, and had the greatest credit card representative who was so helpful.  He knew I was genuine.  Yes, the interest racked up by the thousands, but I was able to settle a $7,000 debt with $3,000.  And since then, my credit score is built up to 750. 

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I did it!

Helpful to 3 out of 3 people

I wound up in big debt after a divorce.  I owed more than 60k!!   My income was only 28k per year.  I had a little bit of money when our house was sold.  One company settled for a fraction of the amount as a settlement, but be careful the amount that I didn't have to pay back was reported as income and when tax time came around I owed income tax on that amount.   For another debt I called the credit card directly and asked for help.  I told them I knew I owed them money and I wanted to pay them but could not afford the monthly payments they wanted.  They stopped charging me fees and interest immediately.  They took off some of the fees they had already charged me and we agreed to a monthly payment that I could make.  It is taking a long time to pay it off but out of 30k I owed I am finally down to about 9k.  Every year they take off some additional money off the debt as long as I keep making the agreed upon payments.  I try to pay a little more any month I have a few extra dollars.   My credit score is not great but I am almost finally hitting 700.  I am able to get car loans and credit cards.  I have to still be careful not to overextend myself, but I just keep paying more than minimum payments each month.  

Using a credit counselling agency didn't work for me.  They were telling me to turn off the internet when my kids needed it for school and they didn't even attempt to renegotiate any of my debts.  You can do it on your own.  Good luck.  It can be done!

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Helpful to 3 out of 3 people

Have you tried contacting the collector or Discover to see if they're willing to work out something?  Otherwise you may try Googling a NON PROFIT CONSUMER COUNSELING group to see if they can help.  Make sure they are non-profit.

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Helpful to 1 out of 2 people

How long ago was it that this account in question went into collection?

I think this would greatly change the answers/suggestions of people whom may be able to offer you helpful advice. 

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