Credit Cards

[songsofexperience]

I'll try to make a long story short: Husband and I are not behind on any payments but I have been unemployed for 15 months and receiving benefits for the last 9. He has  a job but is about to be laid off as of June 15th. We're trying to get on a debt management plan to pay off $29K of CC debt over 9 cards.

Money Management International counseling said we won't qualify if we do the paperwork based on both of us receiving unemployment.

I called Chase who were great and offered a 5 year repayment at 6% interest, with significantly reduced monthly payments.

HSBC said they can't help until I'm past due on my 2 cards with them. The guy I spoke to was technically a "collector" with the Customer Assistance Team. They said I could only go on a 3rd party debt management progam but don't care that I've already been to counseling and was told I couldn't qualify. It was unclear to me if I missed a payment what my status would be. He said at that point they could look at options to help me but I don't want the account to be in "collection" as I'd like to try to keep my FICO score pretty good (right now it is about 720). He said to miss my next payment and call back 10 days later and they could help. This is going back to when mortgage companies wouldn't help until you'd missed a payment or two! It's ridiculous that they won't work with people who want to be proactive.

For the record, Citibank also said they couldn't help since I was current and Barclay's Bank wanted me to fax a letter to them requesting help - no human to actually talk to first!

(Sorry, that wasn't so short). So the question is, does anybody know how this would work with HSBC? If I'm 10 days past due and call for help it won't yet have been reported to the credit reporting agencies (since it won't be 30 days) but will they place me on a hardship program or would I be in collections? The guy I spoke with didn't want to give me any info because I'm not yet past due and he didn't want to get into trouble.

P.S. If you need to talk to HSBC about your OWN card here are some numbers:

800-633-9956 will give you the debt management dept. who are located, I believe, in India and ALL they can do is tell you to go to 3rd part credit card counselor to sign up for a program.

Customer Care cannot help you so call the Customer Assistance Team at 877-256-0561 / 800-434-4954. Again though, they can only help if you are already past due.

Chase Proactive Solutions are nice and friendly and respectful! 888-456-0935. They ask for lots of info on your budget for housing etc and other credit cards but they were able to really help me. The account will show Voluntary Closed; Pays as Agreed so no damage to my credit. Yay Chase!

[thomas_ss]

@songexperience - - - HSBC will help you internally if you tell them your other cards are on a hardship program already ( since they don't have resources to actually find that out)  Also what works is calling in saying "I was speaking to someone previously, we're going over a budget sheet and we got disconnected" this works because a budget sheet is required before they can submit a 5yr hardship program. it's an expense to income sheet, and it's only a numbers game. Make sure that with all your bills paid, you can show you have less than $50 leftover each month. Anything more than $50 typically, the bank will say "you don't qualify"  But I  work as a credit card negotiator, and HSBC/GM/union plus/direct merchants....All HSBC and CITI bank creditcards, it is required for you to be at least a week late. The reason why is because, if you're not late....Clearly you're not in financial hardship  If you're able to keep up with the minimum payment....Compared to those who are a week or more late( they'd be first in line over card holders current on the bill)

and second - if the first reason wasn't good enough, there's another element......Even if you weren't past due and the rep at HSBC was 100% on your side and wanted to help you.....Or lets say you had the rep @ hsbc hostage and you made him give you a 5 year hardship program OR ELSE!!!!.......That still wouldn't do you any good because, in order for a rep @ hash to activate this type of program it cannot be greyed out on their computer screen........And......In order for it to not be greyed out.........you MUST be past due at least 7 or more days...

hope this makes sense....for more information on getting into a 5yr program @ hsbc please e-mail me, and I will help you, free advice always helps. And BTW........when a client and myself decide to intentionally go late on HSBC, i'm successful 100% of the time on getting their 5yr deal @ 0% ( fixed)

p.s. - HSBC will NOT report negative to your credit unless you're over 30 days past due....which in this case you only need to be 7 days past due