cancel
Showing results for 
Search instead for 
Did you mean: 

Can not make minimum card payments

tag
DonFico
Member

Can not make minimum card payments

I was out of work for 3 months do to an accident. Before that happened, I had a 760 credit score with only a chapter 7 bankruptcy on it that drops off next month.

 

Now I am falling behind and already accumulated three 30 day latest on my credit cards which I maxed out. With the high interest, I am having problems making the payments every month. I am not makingenough to be able to pay he minimum payments, and most of what I am paying is going to interest. 

 

I worked hard over the past 10 years on my credit up, always kept my utilization low, and cleared all of the judgements off of my credit via letters and payoffs just to be headed back were I was when I filed bankruptcy 10 years ago.

 

What advice can anyone give me? I am falling further and further behind because of late fees and interest rates. Because of respect 30 day latest and high utilization, my score dropped from 740-760 to the mid 500s.

Message 1 of 8
7 REPLIES 7
OmarGB9
Community Leader
Super Contributor

Re: Can not make minimum card payments

Definitely contact your creditors and work with them. They might be willing to put you in a reduced/0% interest rate temporarily to help, but this wouldn't last forever. Also, they may close your account in exchange for the relief.

 

Do you expect your income to go up anytime soon? Perhaps getting a second job temporarily, cutting costs wherever possible, etc.?


Last App: 1/10/2023
Penfed Gold Visa Card

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 2 of 8
Remedios
Credit Mentor

Re: Can not make minimum card payments

Well, you have to make at least minimum payment. You already know what happens if you don't. 

Typically you cannot negotiate payment plans on open cards (though, there are a few exceptions where card is restricted until payoff). Closing an account to preserve terms won't help you much if you cannot make required payments.

 

Hopefully someone else will have an idea for you, I don't because you have very recent lateswirhhugh utilization. I really don't think you'll have any luck with getting additional credit extended to (such as PL or cards with 0% intro where you could do a BT). 

 

Right now, your best option is probably MF cliche "Rice, beans, Uber, make extra money, throw everything at the debt" 

 

If you allow a single account to become charged off, you're looking at additional 7 years in credit purgatory. 

Message 3 of 8
FireMedic1
Community Leader
Mega Contributor

Re: Can not make minimum card payments

Theres no quick fix except income. For 45 mins x2 a week. Most plasma donation centers pay up to $1000 as a new donor. Some more. Ride sharing. Lots of PT jobs paying $15 and up. More income is all you can do really. Once caught up and back under control. You have to pay yourself 10% of your pay day in savings. Get it up to 6 months of survival in case of a life event and your bills would be paid and cards would stay cleared. Good Luck!


Message 4 of 8
SUPERSQUID
Valued Contributor

Re: Can not make minimum card payments


@DonFico wrote:

I was out of work for 3 months do to an accident. Before that happened, I had a 760 credit score with only a chapter 7 bankruptcy on it that drops off next month.

 

Now I am falling behind and already accumulated three 30 day latest on my credit cards which I maxed out. With the high interest, I am having problems making the payments every month. I am not makingenough to be able to pay he minimum payments, and most of what I am paying is going to interest. 

 

I worked hard over the past 10 years on my credit up, always kept my utilization low, and cleared all of the judgements off of my credit via letters and payoffs just to be headed back were I was when I filed bankruptcy 10 years ago.

 

What advice can anyone give me? I am falling further and further behind because of late fees and interest rates. Because of respect 30 day latest and high utilization, my score dropped from 740-760 to the mid 500s.


I had sort of the same thing happen to me about 20 years ago when i was out of work 13 months , although i didnt miss a payment. I had 2 citi cards, i took a cash advance on each, shortly after citi balance chased me and jacked my interest thru the roof.

I had a number of other cards and now citi made it impossible for me to meet my obligations.

I called citi and explained now that they jacked my interest i was in danger of default. they worked with me by converting the 2 cards into 5 year low interest loans

{ BK7 DC 12/2019 } target 1600/ kohls Visa 7000/ discover IT cb 6500 / 2nd discover IT cb 6000/mercury 4100 / firestone 2800 /legacy 3000 /first savings bank cc 3000/ cap1 QS 5000/ cap 1 savor one 3100 /Bread rewards Amex 4k, Penfed PCR signature visa 10k/ penfed gold 7.5k NFCU >signature visa cash rewards 21700/bread cashback amex 8000

>/ nfcu platinum 15k, BABY NEEDS NEW SHOES !!!!!
closed-- reflex, applied bank, first digital, mission lane, ikea, fingerhut, big lots, valero gasoline, ollo, more to come
Rebuilding since September 2020
who i burned - chase, cap 1, TD bank, Sync, were the biggies
Income 40k
Total utilization around 20 pct depending on my current usage/needs
Ficos in the 680 - 690 range, the 9's slightly higher than the 8's
My vantage scores 708 - 711
TCL - about 110k
Retired since 2017
Message 5 of 8
GMCTexas
New Contributor

Re: Can not make minimum card payments

Not sure if you are back to work or not, but first step is obviously a call to the creditors. If you are not back to work you may, unfortunately, be force to let it slide to 60 or 90 days late before they will work with you. 

 

Sell everything that isn't nailed down. You have got to come up with extra cash asap. I know thats easy for me to say but that really the only option. Uber, Lyft, hell some fast food places are now paying daily. The plasma donation is a great idea for quick cash and they tend to give a healthy bonus for new donors. 

 

The unfortunate part of all this is you went through a BK  but didn't learn anything it doesn't appear. Cards maxed out, little to no savings presumably. Yes, I know you were out of work so the cards may have been used during this time but I'm guessing those cards were carrying healthy balances prior to that.

 

 

Message 6 of 8
Gollum
Established Contributor

Re: Can not make minimum card payments


@DonFico wrote:

I was out of work for 3 months do to an accident. Before that happened, I had a 760 credit score with only a chapter 7 bankruptcy on it that drops off next month.

 

Now I am falling behind and already accumulated three 30 day latest on my credit cards which I maxed out. With the high interest, I am having problems making the payments every month. I am not makingenough to be able to pay he minimum payments, and most of what I am paying is going to interest. 

 

I worked hard over the past 10 years on my credit up, always kept my utilization low, and cleared all of the judgements off of my credit via letters and payoffs just to be headed back were I was when I filed bankruptcy 10 years ago.

 

What advice can anyone give me? I am falling further and further behind because of late fees and interest rates. Because of respect 30 day latest and high utilization, my score dropped from 740-760 to the mid 500s.


Declare bankruptcy again, I guess.

Credit Scores: (FICO 8) 846 Experian March 2024, 844 TransUnion March 2024 | (FICO 9) 850 Equifax March 2024
Credit Cards (newest to oldest): NFCU VISA Platinum $25,000 | BECU Cash Back VISA $10,000 | American Express BCE $9000 | Simmons Bank VISA $7500 | Capital One Quicksilver VISA Platinum (PC/upgrade from No Hassle Miles Rewards VISA Platinum) $500
Message 7 of 8
W261w261
Frequent Contributor

Re: Can not make minimum card payments

OP, what's your total minimum payments this month, including arrears? What is the total going forward (assume no arrears). Unless you're going BK again, do NOT let an account slide into Charge-off Land. The lates, while injurious for 2+ years, will steadily become less bad. The CO is like the mark of Cain, almost as bad as a BK.

 

So with more specifics, maybe we can suggest a plan. 

Message 8 of 8
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.