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I'm in a bind...

LilMirth
Moderator Emerita

Re: I'm in a bind...

See if you can get the terms in writing, just to be certain that what the CSR is saying actually reflects the reality of what they're offering. I'm not concerned about whether or not you can open another Chase account down the line. I'd be concerned about the interest rate (and whether or not it can/will change), the monthly payment (and whether or not it can/will change), the length of the plan, whether or not it'll be reported as a charge-off (I know that he "said" it wouldn't, and I believe that it wouldn't, but read the fine print). You need to know what will happen if you can't make a payment while on the plan-- what are the consequences?


@kc12286 wrote:
I already asked if it would be mentioned in the report and they said no. That it would only say I had closed my account (as opposed to having them close it due to past due balance and failure to pay) and that once I paid it off it would reflect that. I also asked if I might have any problems opening an account with them in the future and the guy I spoke said no, once I've paid this down (and it really is high, it's been hurting my score for a while now) that I shouldn't have any problems opening another Chase card. While this is nice to hear, I can't see opening another card with them, I do have the Amazon card I much prefer my TD Bank card to all of them, with that one I get 3 points for every dollar I spend, no restrictions. I've already lost all my Chase Freedom points, so there' s  no point in keeping the card. 

 

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Message 11 of 21
kc12286
Frequent Contributor

Re: I'm in a bind...


@LilMirth wrote:

Ouch. You are in a tough spot, but I think that SCF is right-- review (thoroughly) the offer and terms from Chase to get the debt paid. If their plan is affordable, and you have no other way to get it paid, without making your overall financial situation worse, then take it.

 

I also wanted to toss out some other ideas that you've probably already considered (forgive me if you have, please), but just in case...

  1. Take a loan from your 401k (and pay yourself back) - Normally, I wouldn't suggest this, but if it's an option, it may help to get you righted so you can get out of the current negative cycle.
  2. Borrow money from family or friends (and pay them back!) - Normally, I wouldn't suggest this either, but if you can get a low or no interest loan form someone that you trust, and someone that trusts you, it may be more economical, and preferable to whatever terms Chase may be offering.
  3. Cut expenses (I'd always recomend this!) - If there are any extras that you can cut (cable, gym memberships, lawn/snow service, coffee/cigarettes/alcohol/dining out, etc...) that are not contracted (whereas the default would hit your credit report and cause Chase to immediately close or RJ you, etc...), then cut it.
  4. Offer to do some type of work/service for family/friends for a fee - Babysitting (hey, the New Year is coming up) could bring in some serious cash quickly to make the minimum payment or more. I'm specifically mentioning babysitting, because a lot of people will be heading out for a night of fun in just a couple of days... You may be able to make a sizable dent in the balance, and have a fun and safe New Year, with some kiddies.
  5. Sell something(s) 

Of course, none of these things are permanent fixes (unless they let you pay the balance in full, or down enough to afford much more than the minimum payment), but they may give you some breathing room.

 

Good luck! I hope that you're sailing in calmer financial seas soon!

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Thanks for the suggestions but none of those will work. I just got insurance with my current job and they don't offer a 401k, they're offering something similar but not the same thing. Can't really borrow money as my friends all are in debt themselves, being that we just graduated college and the economy clearly sucks. My current job is only paying minimum wage, so that gives you an idea of what I'm up against. I'll make less than 12,000 for the year. Trust me, I'm looking for a second job but that's not bring many results. 


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Message 12 of 21
kc12286
Frequent Contributor

Re: I'm in a bind...

They'd close the account because my other one is over the limit? Wow, maybe I should close that one two and just keep the Capital One and TD Bank cards. 

In the Garden Club since: 07/05/2017


6/9/2008-TransUnion-703
6/9/2008-Equifax-712
6/9/2008 Experian-635

2/16/2011 Transunion - 675
3/11/2011 Equifax - 688
5/13/2011 Equifax - 704
5/28/2011 Equifax - 704
5/28/2011 Transunion - 724
Message 13 of 21
FaircreditguyFL
Established Contributor

Re: I'm in a bind...


@kc12286 wrote:
They'd close the account because my other one is over the limit? Wow, maybe I should close that one two and just keep the Capital One and TD Bank cards. 

  I would shred the card and let them close the account.  I would not suggest YOU close the account.  What are the credit limits/balance and APR on each card? 

Message Edited by FaircreditguyFL on 12-29-2008 07:32 PM
Message 14 of 21
kc12286
Frequent Contributor

Re: I'm in a bind...


@FaircreditguyFL wrote:

@kc12286 wrote:
They'd close the account because my other one is over the limit? Wow, maybe I should close that one two and just keep the Capital One and TD Bank cards. 

  I would shred the card and let them close the account.  I would not suggest YOU close the account.  What are the credit limits/balance and APR on each card? 

My credit limit for the chase freedom card is 5000, and it's over the limit, so that's the one I want to close, because there's just no way I can pay it down. They keep assesing fees, because it's over the limit and the fees that were there when I screwed up the online payment. They now want more than 1000 as a minimum payment, I don't make that in a month, it's just not possible for me to pay that. The last time I spoke with them, they said I'd have to pay 600 in order to get it below the limit, I don't have that either. I don't want it to reach 60 days past due because then they automatically close the account and it's reported to FICO, at least if I close I have some control over it. 

As for the Chase Amazon card, my limit is 2000 and I'm under that, that one I've been making the minimum payments on and not really using, so I'm not too worried about that one. 

Message Edited by FaircreditguyFL on 12-29-2008 07:32 PM

 


In the Garden Club since: 07/05/2017


6/9/2008-TransUnion-703
6/9/2008-Equifax-712
6/9/2008 Experian-635

2/16/2011 Transunion - 675
3/11/2011 Equifax - 688
5/13/2011 Equifax - 704
5/28/2011 Equifax - 704
5/28/2011 Transunion - 724
Message 15 of 21
FaircreditguyFL
Established Contributor

Re: I'm in a bind...

Don't close the Amazon card......  I would accept Chase's payment plan and close the Freedom.  If Chase wishes to close the Amazon card, so be it.
Message 16 of 21
kc12286
Frequent Contributor

Re: I'm in a bind...

Ok, I'll leave the Amazon card alone. Thanks for you help. This has been stressing me out for so long. I spent 4 years in school (which is part of the reason I'm in this debt) and I ended up with a job that looks good on paper but pays horribly. I'm more than willing to accept Chase's payment plan because I just want to get it paid off, I'm tired of it hanging over my head like this. The payment plan was doable and affordable.

In the Garden Club since: 07/05/2017


6/9/2008-TransUnion-703
6/9/2008-Equifax-712
6/9/2008 Experian-635

2/16/2011 Transunion - 675
3/11/2011 Equifax - 688
5/13/2011 Equifax - 704
5/28/2011 Equifax - 704
5/28/2011 Transunion - 724
Message 17 of 21
FaircreditguyFL
Established Contributor

Re: I'm in a bind...

Sometimes you gotta do what a gotta do.  Too bad there isn't another way out.  Your FICO will take a hit.
Message 18 of 21
haulingthescoreup
Moderator Emerita

Re: I'm in a bind...


FaircreditguyFL wrote:
Sometimes you gotta do what a gotta do.  Too bad there isn't another way out.  Your FICO will take a hit.

IMO, financial sense beats FICO sense any time!
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 19 of 21
kc12286
Frequent Contributor

Re: I'm in a bind...

I'm sure my score has already suffered. I'd much rather take a hit now, voluntiarily, than if they closed it due to failure to pay or something like that. At least this way I have some control over it. 

In the Garden Club since: 07/05/2017


6/9/2008-TransUnion-703
6/9/2008-Equifax-712
6/9/2008 Experian-635

2/16/2011 Transunion - 675
3/11/2011 Equifax - 688
5/13/2011 Equifax - 704
5/28/2011 Equifax - 704
5/28/2011 Transunion - 724
Message 20 of 21
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