Credit Card Minimum payment question

momofthree · #1 (**permalink**) 05-17-2005, 04:56 PM

We are having a hard time making our minimum payments (we could qualify for bankruptcy but trying not to go that way). So, we had heard that you could talk with the credit cards and see if they would give you a flat amount that you would pay every month that would be less than your current monthly minimum. My question is - has anyone done this and if so has it effected your credit rating?? Thanks

Jenlee · #2 (**permalink**) 05-17-2005, 07:16 PM

A few years ago, we were streamlining our budget and cutting back wherever we could. We called the national bank who our Visa was held by and asked for any help they could/would give us. THEY offered to put us on a one-year program where they would make our minimum payment 1% of our total instead of the previous 3%. That made a HUGE difference in our monthly budget and in retrospect we could have easily given another % in payment to reduce the debt. They also reduced our rate to 5.9% for that year.

I do not believe that it affected our credit as we were making a payment each month, albeit it a smaller one. The important thing is that it was agreed upon by the bank who issued the Visa. OH, we COULD NOT use the Visa during that year - I don't want to forget that. However, we quit using credit cards before that, so it was no inconvenience to us at all.

singinjeannie · #3 (**permalink**) 05-25-2005, 04:41 AM

I wouldn't worry so much about your credit rating. Are you planning on running out and getting more debt anytime soon? Probably not if you're teetering on Bankrupcy.

Matter of fact, have you considered vowing to get no more debt, ever? Its a great way to go and the only way to true financial peace. Read Dave Ramsey's Total Money Makeover book and get going in the right direction forever. (You can usually find it at the library.)

Having said that: Call the CC companies and make the deals. They are usually willing to cut a deal if you're willing to pay the agreed upon amount. They'd rather you be up-front with them than file bankrupcy.

Best of luck to you!
-Jean

jmjj215 · #4 (**permalink**) 05-25-2005, 03:16 PM

I totally agree with Jean here. Dave has a great strategy.

jhd815 · #5 (**permalink**) 06-05-2005, 08:38 AM

Please let us know how it goes with the CC companies. One of the great things about this forum is that we get to learn from each other.

Good Luck!

JBinKC · #6 (**permalink**) 06-18-2005, 02:24 PM

My suggestion is if you are unable to make minimum payments on your credit card now is the time to declare bankrupcy before the new laws take effect. The new law will definitely make you pay it ALL back.

Since I am unaware of all of the circumstances involved I cannot pass judgment but if you are trying to preserve a credit rating for a potential home purchase do you think it is wise to do so near a top of a real estate bubble.

dealsaver · #7 (**permalink**) 10-13-2005, 02:15 PM

I've read that minimum payments are changing for credit cards. Watch for any new Terms and Conditions that you may get in the mail for changes.

CRFSaver · #8 (**permalink**) 10-14-2005, 06:38 AM

The Fed and OCC are forcing credit card companies to increase their minimum payments. The CC companies would be more then happy to keep you paying minimal balances over the next 40 years.

As for Bankruptcy, do it before October 17th before the new law goes into affect. You would be required to go into reorg for 5 years before you can charge off your balances.