USAA CC - PFD or take the hit?

[kaybean22]

One of the biggest problems I have now is too much unsecured debt. 

1. NFCU CC - Closed - 27k

2. USAA cc - Closed - 11k

3. Cosigned personal loan - 40k

4. Several other cards with no balance, including another bank card with 10k available (emergency card)

Right now that USAA cc is a PAIN. With the "agreement" i made when I closed the card 2 months ago I agreed to lower payments -- but they didn't tell me they'd report the card as late to the CRAs until the "program" was over. The low payment is nice for our budget, but is a huge hit to my credit on top of the existing high debt.

7 years ago, I let a Chase CC just CO and the beast never woke -- its falling off the CRAs as we speak. This is a MUCH higher balance, but I sort of don't see the point in paying it if they're going to report it anyway.

We also don't have much of a way to pull together even 50% to offer to PFD if they'd entertain the idea. I don't want to use our "emergency card" since that's actually helping our utilization right now.

What do I do? Options seem to be:

A. Keep paying the payment plan even though it'll still report as late and ding my credit harder

B. Don't pay, don't do anything, let the credit get hit and save $200/month until it gets CO and then offer to settle for much less (and when we have the money)

C. Offer to PFD now (only about 60 days late, just made first payment in program today)

D. Call the Member Whatever Department and beg them to reopen the card (do they ever do that?) and make payments we really can't afford, saving/improving my credit but killing our budget

Help!

[Anonymous]

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@kaybean22 wrote:

One of the biggest problems I have now is too much unsecured debt. 

1. NFCU CC - Closed - 27k

2. USAA cc - Closed - 11k

3. Cosigned personal loan - 40k

4. Several other cards with no balance, including another bank card with 10k available (emergency card)

Right now that USAA cc is a PAIN. With the "agreement" i made when I closed the card 2 months ago I agreed to lower payments -- but they didn't tell me they'd report the card as late to the CRAs until the "program" was over. The low payment is nice for our budget, but is a huge hit to my credit on top of the existing high debt.

7 years ago, I let a Chase CC just CO and the beast never woke -- its falling off the CRAs as we speak. This is a MUCH higher balance, but I sort of don't see the point in paying it if they're going to report it anyway.

We also don't have much of a way to pull together even 50% to offer to PFD if they'd entertain the idea. I don't want to use our "emergency card" since that's actually helping our utilization right now.

What do I do? Options seem to be:

A. Keep paying the payment plan even though it'll still report as late and ding my credit harder

B. Don't pay, don't do anything, let the credit get hit and save $200/month until it gets CO and then offer to settle for much less (and when we have the money)

C. Offer to PFD now (only about 60 days late, just made first payment in program today)

D. Call the Member Whatever Department and beg them to reopen the card (do they ever do that?) and make payments we really can't afford, saving/improving my credit but killing our budget

Help!

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What about Option E - a part-time weekend job to make an extra 50 bucks a week to put against the USAA card until the balance comes down some. That would halt the lates and at least keep your scores respectable.

With that much debt, you might even consider BK. Sounds like you are slowly drowning.

[RobertEG]

They have a few options of their own aside from continued credit reporting of the current delinquencies.

They can charge-off the debt, and report an addtional charge-off.

They can bring civil action for default on your current payment agreement, which appears to have its own SOL.

They can refer to a debt collector, adding a collection.

They can sell the delinquent debt, which could also lead to reporting of a collection.

It would appear that the reporting of monthly delinquencies may be the least of possible addtional negative credit reporting.

I would recommend options A or C.