Help! Can't catch up on credit card and not sure what to do

[Anonymous]

So, I've been playing what seems like money games with my Imagine Credit Card for over a year now.  I somehow got over my limit and started incurring charges (over the limit charge) EVERY MONTH and to catch up to bring my account "current" I would have to pay something like $400--which is not doable right now.  I wrote them an email regarding the fact that I am stuck in a vicious cycle that I can't get out of---each month I get charged that fee and the small payments I can make are not enough to catch me up.

They told me I would have to pay the amount over the limit (as mentioned above) and THEN they would work with me.  I am so frustrated....any thoughts on how to best handle this??

Thanks!

[upinflagstaff]

How much is your over the limit fee each month? Can you ask them to temporarily close the account and treat it like an installment to stop the monthly OTL fees with the option to reopen when you are below the limit again? I'm really surprised they haven't closed the account yet due to you being regularly OTL. When you call them ask to speak to a supervisor or even someone in "loss mitigation" and if that doesn't work I would file a complaint with the BBB in their state.

Worst case you might have to permanently close the account, but if it saves you $40/month it might be the only thing left to do.

[marty56]

From your FICO score point of view, if the company wont work with you your best option is to enter a debt managment program DMP.  If you have enough unsecured debt (> 5k I think) they will close the account and allow you to make affordable payments till the account is PIF.  Also if you could get a loan thru a CU or other souce to do a BT on the account.  Also perhaps you can get a second job or sell something.  The last 2 options are suggested by FCs like Dave Ramsey.

Message Edited by marty56 on 11-24-2008 05:13 PM

[Creditaddict]

Unfortunately you are on the bottom of the barrel with imagine and they are not going to jump to work with you and stop those fees if you don't have a way to bring your account back current. But I think it should be illegal for a company to allow you to pay a minimum that is less then what is needed to bring your account back within it's credit line.

but in the same token, this would be standard for all credit cards, not imagine, you are going to get fees until your within your limit.

could you borrow the money from someone and pay them back payments. 

[Anonymous]

are you currently late? What amount are you paying?

[Anonymous]

Can you cancel your cable, cut back your cell phone plan, stop eating out, skip Starbucks, etc. until you are caught up?  Did you buy anything you can return?  Can you transfer the balance or a portion of it to another card?  Can you pay every two weeks instead of once a month?  For example if you were paying $200/month, pay $100 as soon as you get paid.  This won't make a huge difference but will slightly lower your finance charges.  If it were me I would plan on a frugal holiday with handcrafted gifts   Good luck!

[Anonymous]

rmily is right. My DW and I are only getting each other 1 gift this year. Under $50.00, so we can save more money in case I lose my job. She already lost hers. 

California is suffering from over 8 percent unemployment.

If you value your credit find a way. Even if you have to sell something on ebay.

[laz98]

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@Anonymous wrote:

rmily is right. My DW and I are only getting each other 1 gift this year. Under $50.00, so we can save more money in case I lose my job. She already lost hers. 

California is suffering from over 8 percent unemployment.

If you value your credit find a way. Even if you have to sell something on ebay.

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sorry to hear that pappy.  i hope we don't have that happen to us.

[JayBeast]

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@marty56 wrote:

From your FICO score point of view, if the company wont work with you your best option is to enter a debt managment program DMP.  If you have enough unsecured debt (> 5k I think) they will close the account and allow you to make affordable payments till the account is PIF.  Also if you could get a loan thru a CU or other souce to do a BT on the account.  Also perhaps you can get a second job or sell something.  The last 2 options are suggested by FCs like Dave Ramsey.

Message Edited by marty56 on 11-24-2008 05:13 PM

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I agree with Marty.  A second job is an easy way to catch up on a small debt.  My DMP was the smartest thing I did.  Of course a 2nd job and a DMP will REALLY get you out of debt.  

[fishbjc]

Go through your closets, drawers, jewelry, cd's.  Get on eBay and get some stuff sold.  You've got to get yourself off of this imagine train....it's a train to nowhere fast.  I made quite a nice chunk of change in the past few weeks.

Is there a seasonal job that you could apply for?  If you get hired & work 10 hours per week, you can get that paid to zero in a few weeks.  Is there a local mom who would like to get a few private shopping hours in?  How about baby-sitting? 

Think hard, you should be able to come up with something.  Good Luck!!