Credit Card Hardship Programs?

[Anonymous]

I had lost my job recently and I am trying to find a second job to make up for lost income at my new job. I am trying to see what I need to say or how I should go about it, I basically need 6-12 months to catch up on bills and can't afford my credit card payments at the money, i do want to make it right and pay the full balance with them. Is any one know what kind of programs are available? I have recently called Capital One and told them I can afford $25 a month for 6-12 months, but the most they could offer me is three months of not charging late fees and payments, however, if i dont make my full $90 payment they report to the bureu. Does anyone have any idea for the accounts listed below?

American Express

$7900 Balance Owed - $147 Min. payment

$8500 - Balance (AMEX OPEN) - $250 Payment

Walmart (Synchrony)

$6600 Balance Owed - $218 payment

Paypal Credit

$5500 Balance - $175 payment

Capital One (Offered me 3 months to not be charged late fees, but i need to make full payment or have it reported.)

$2900 - $90 Payment

[Anonymous]

Careful with hardship programs which may waive fees but still report you as late.

I’d suggest driving for Uber and Lyft and shopping for Instacart if your area supports it. Even at $10/hour you can make your minimums with a week of work.

Might want to sell assets online at craigslist or eBay if you recently bought anything. Or look to see if you’re within the return period.

[sjt]

---

@Anonymous wrote:

I had lost my job recently and I am trying to find a second job to make up for lost income at my new job. I am trying to see what I need to say or how I should go about it, I basically need 6-12 months to catch up on bills and can't afford my credit card payments at the money, i do want to make it right and pay the full balance with them. Is any one know what kind of programs are available? I have recently called Capital One and told them I can afford $25 a month for 6-12 months, but the most they could offer me is three months of not charging late fees and payments, however, if i dont make my full $90 payment they report to the bureu. Does anyone have any idea for the accounts listed below?

American Express

$7900 Balance Owed - $147 Min. payment

$8500 - Balance (AMEX OPEN) - $250 Payment

Walmart (Synchrony)

$6600 Balance Owed - $218 payment

Paypal Credit

$5500 Balance - $175 payment

Capital One (Offered me 3 months to not be charged late fees, but i need to make full payment or have it reported.)

$2900 - $90 Payment

---

Look into Debt Management Plan (DMP) with non profit credit counseling services. DMP is not to be confused with debt "relief" scams.

[Anonymous]

Let the paypal credit account go to charge-off. They do not report accounts negative or positive to credit reports and do not sue either. I should know, i let my paypal credit and a billmelater account that was owned by them go for $11000 and $7500 over 2 years ago. Never heard a peep.

[Anonymous]

Plan on never having a Paypal account ever again, buyer or seller.  They may not take you to court but they hold a grudge that rivals American Express.  Uber or Lyft are good suggestions but keep in mind that it might take you a while to get through the approval process which isn't going to help you short term.  

I would get everything in writing - don't trust what a rep tells you on the phone.   I know it seems insurmountable to make the minimum payments, but do you qualify for unemployment in your state?  Have anything you could sell (I realize this is a horrible option, though).. tax returns coming up you could file on Jan 1?

For others reading this, this is why the sites recommend you have an emergency savings account that will fund all your minimum payments for at least a few months.  Hardship programs may be great, but only for the credit card companies.  They will report you as late, reserve the right to charge off or close your account or sue you.  Instead of putting down money for secured cards or paying down debt, make sure you have this reserve handy.

[Anonymous]

I currently found a job and have been working here for 4 months. It pays about $36,000 a year (before tax). I am trying to find a job during nights from like 7-12am, and work a full 8 hour shift on saturdays at a 2nd job. But I am having a hard time finding such a job. I am wanting to pay all my cards back, but maybe there is something I can try to work out with them to put my payments on hold for 12 months to get my self together and have a good chunk of money by then to start paying some stuff.

[Anonymous]

Ah, well you are at the point I referred to earlier.  You may not have realized it yet or accepted it, but BK may be your best option if you are spending 24/7 working for a full year to pay back cc debt.  That's just not worth it - you'd be killing yourself to pay back debt that they might end up charging off anyway.  

If you get a hardship program like the one you ask for from American Express, you would be the first person in history.  AmEx does not mess around -- nor does CapOne, but at least they will issue you another card sometime this century.  

Are any of your cards secured by chance?

[Anonymous]

Unfortunately, if I remember correctly, lenders are required by law to charge-off an account after it's gone a certain number of days without payment. So no chance anyone can give you 12 months.

I'd suggest Uber or Instacart ASAP since you can work those jobs for 1-2 hours here or 1-2 hours there.

[Anonymous]

I thought that only applied to FDIC banks and (fortunately for me, haha) federal student loans.  If I want to have a contract with someone privately, the federal government can't step in and tell me I have to report a charge-off, right?  How do payday loan companies haunt people for the full seven years?

[Anonymous]

Ah, you're correct!  Federally regulated banks are required to chargeoff installment loans after 120 days deliquency and credit cards at 180 days past due (after seven zero billings).  Interesting.  Adding it to my notes.

Charge-off doesn't mean the debt must be reassigned, sold or transferred.  A lender may "transfer" it internally to a collections department and may attempt to collect for 7 years.  Delinquent payday loans are very tough to sell because it's almost impossible to collect from folks who are at the payday loan part of financial hell, worse for those who CO'd a paydal loan.  So most of those companies collect internally, or at last attempt to.