topic Re: Credit Card Hardship Programs? in Rebuilding Your Credit

Credit Card Hardship Programs?

Anonymous — Thu, 14 Dec 2017 23:13:15 GMT

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

Re: Credit Card Hardship Programs?

Anonymous — Thu, 14 Dec 2017 23:23:43 GMT

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.

Re: Credit Card Hardship Programs?

sjt — Mon, 18 Dec 2017 04:08:19 GMT

@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.

Re: Credit Card Hardship Programs?

Anonymous — Mon, 18 Dec 2017 19:49:27 GMT

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.

Re: Credit Card Hardship Programs?

Anonymous — Mon, 18 Dec 2017 22:37:02 GMT

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.

Re: Credit Card Hardship Programs?

Anonymous — Mon, 18 Dec 2017 23:05:03 GMT

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.

Re: Credit Card Hardship Programs?

Anonymous — Mon, 18 Dec 2017 23:27:59 GMT

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?

Re: Credit Card Hardship Programs?

Anonymous — Mon, 18 Dec 2017 23:35:56 GMT

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.

Re: Credit Card Hardship Programs?

Anonymous — Mon, 18 Dec 2017 23:56:53 GMT

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?

Re: Credit Card Hardship Programs?

Anonymous — Tue, 19 Dec 2017 00:13:25 GMT

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.

Re: Credit Card Hardship Programs?

Anonymous — Tue, 19 Dec 2017 00:21:32 GMT

Ok I think that makes me officially one of the myFico.com forum "elite cool kids table" that I've made a contribution to your notes. I'm beaming.

I learned that the hard way, though unfortunately. Doesn't a charge off mean that a private lender can write it off as a loss on their taxes too? I thought that was their main incentive. They aren't certainly do it to collect on it from individuals but good ol' John Q. Public will gladly pick up the tab...

Re: Credit Card Hardship Programs?

Anonymous — Tue, 19 Dec 2017 00:35:55 GMT

Section 166 of the IRS code (I believe, double check me) allows a creditor to take a tax deduction on any debt written-off.

In some rare cases, a creditor can issue you a tax form as income against the chargeoff but this doesn't happen to regularly.

Re: Credit Card Hardship Programs?

Anonymous — Tue, 19 Dec 2017 01:07:03 GMT

Ok, is a write off and a charge off the same thing? I hear people on forums all the time talking about these forms they are getting about their charge offs. Apparently I got one too but I never included it in my income return, the IRS didn't check and it was more than 3 years ago so I got away with it. The lender certainly got someone to pay for it, if not the average US citizen. They wrote it off, took the deduction, I certainly should have paid it had I gotten it. The broken system we live in, right?

Re: Credit Card Hardship Programs?

Anonymous — Tue, 19 Dec 2017 16:48:35 GMT

That is what my girlfriend said, she says I don't want to work 7 days a week for years I will hate myself. I am just trying to see if any creditors will allow small mininum payments of like $25 a month or so for 6-12 months so i can get everything figured out.

How much does Bankruptcy usually cost, and even when i have credit cards that are paid off, due they take those away?

Re: Credit Card Hardship Programs?

Adkins — Tue, 19 Dec 2017 17:48:01 GMT

@Anonymous wrote:
Section 166 of the IRS code (I believe, double check me) allows a creditor to take a tax deduction on any debt written-off.

In some rare cases, a creditor can issue you a tax form as income against the chargeoff but this doesn't happen to regularly.

Yes, a 1099-C form. I've gotten one 6+ years ago, for a very significant amount. The only thing that saved me owing on the amount was simply being very poor at the time.

Re: Credit Card Hardship Programs?

Anonymous — Tue, 19 Dec 2017 20:26:30 GMT

@Anonymous wrote:
Ok I think that makes me officially one of the myFico.com forum "elite cool kids table" that I've made a contribution to your notes. I'm beaming.

I learned that the hard way, though unfortunately. Doesn't a charge off mean that a private lender can write it off as a loss on their taxes too? I thought that was their main incentive. They aren't certainly do it to collect on it from individuals but good ol' John Q. Public will gladly pick up the tab...

The requirement to charge off a deliquent debt is to prevent financial companies from "padding" their net worth with such bad debts

Re: Credit Card Hardship Programs?

Anonymous — Tue, 19 Dec 2017 20:31:59 GMT

@Anonymous wrote:
Ok, is a write off and a charge off the same thing? I hear people on forums all the time talking about these forms they are getting about their charge offs. Apparently I got one too but I never included it in my income return, the IRS didn't check and it was more than 3 years ago so I got away with it. The lender certainly got someone to pay for it, if not the average US citizen. They wrote it off, took the deduction, I certainly should have paid it had I gotten it. The broken system we live in, right?

The idea that taxe writeoffs somehow "pay" for a charge off is a myth. At best its a small consolation in that they simply don't have to pay taxes on the expected profit they would have gotten had it been repaid - they still lost the bulk of the loan. On top of that - if they DO end up getting paid, they have to pay taxes on it in that year they recieved it.

Re: Credit Card Hardship Programs?

Anonymous — Wed, 20 Dec 2017 02:16:25 GMT

Oh I didn't mean to imply that they paid for it in full or anything, but it was in some way an additional consolation to them. Sorry.

Re: Credit Card Hardship Programs?

Anonymous — Thu, 22 Mar 2018 21:43:23 GMT

So I recently became disabled with a spinal cord injury which resulted in Cauda Equina where I am numb from the waist down. My SSDI monthly income is virtually nothing compared to what I used to make and I am strugling to pay my bills. I have 3 cards with Capital One and wanted to consolidate them so I would have one monthly payment. I was not asking for an interest rate reduction or a cut in my monthly payment obligation. I just wanted to pay my debt in one monthly paymeny. And this company treated me like I was garbage. Instead of consolidating the debt, they increased my monthly payments for each card. Now, as I told them, I am collection proof. All my savings/ivestments went to medical bills. I can default and there is nothing they could do. They did not care. Policy was policy. I must have spoken to 15 people. One guy in the hardship departent, who I could not undertand, hung up on me after confirming he was from another country but said company policy restricted him from telling me what country he was from. During my conversations, I started to record my calls, and informed the employees I was doing this as a matter of courtesy. They all said they were not allowed to talk to me because I was recording the calls and hung up on me !!! What??? They are recording the call, why can't I? So I don't know what to do. All the PR releases from Capital One state they work with their Cardmembers. They are liars. They don't. By not abiding by a simple request to consolidate my balances and allow me to make one monthly payment, they are forcing me to choose whether I buy food or pay them, and for a person whose ethics compel them to make good on their debt, they are forcing me to default. And therefore,
taking away my self respect. Shame on this company. Their net earnings were $4 Billion in 2017 and they paid NO, NONE, NADA Federal Income Tax. So I go on. I will use my limited energy and considerable expertise in marketing/social media to make sure they are exposed.

Re: Credit Card Hardship Programs?

Anonymous — Tue, 27 Mar 2018 23:52:55 GMT

Pro tip: if you are in a state that requires only one-party consent you don't have to tell them. If you are in a state that does, you don't have to tell them. The recording at the beginning says "This call may be recorded for quality assurance purposes." It does not say by whom.

I would imagine that the credit card industry is not left completely empty-handed when a creditor defaults. If nothing else, it causes your score to drop and forces you to pay higher interest to borrow money. So it's a vast machine that feeds itself first and foremost and always. Everything else is secondary.