Skipping payment if already at default rate

[tommyd17]

We've had a few rough weeks and it's really looking like we are going to have a hard time paying on some of our credit cards.  I'm trying to figure the best possible outcome for us.

One of our cards we are already at the default rate of 29%.  Our minimum payment on this card is $360.  The due date is Feb. 15.  Now, if I don't pay it, we will have a $25 late fee.  If I wait until the next billing cycle, won't I just have to pay $360 plus the late fee?  In other words, I'll have to pay $385.  I'll be losing $25 in order to keep $360 cash.  I'm going to use that to pay a different credit card that has a low rate.  I want to avoid getting bumped up to default on that.

Also, if I pay the next billing cycle by March 13, won't that also mean that none of this will affect my credit score?

Thanks so much.  

[Pway]

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@tommyd17 wrote:

We've had a few rough weeks and it's really looking like we are going to have a hard time paying on some of our credit cards.  I'm trying to figure the best possible outcome for us.

One of our cards we are already at the default rate of 29%.  Our minimum payment on this card is $360.  The due date is Feb. 15.  Now, if I don't pay it, we will have a $25 late fee.  If I wait until the next billing cycle, won't I just have to pay $360 plus the late fee?  You will have to make a total payment in the amount of $745 plus the calculated interest of your credit card balance.  You missed the payment due on Feb. 15, and when the next statement cuts don't you think they are going to want that other payment as well for the next month.   In other words, I'll have to pay $385.  I'll be losing $25 in order to keep $360 cash.  I would recommend contacting your credit card and tell them about your situation, see what they can do to help you.  I'm going to use that to pay a different credit card that has a low rate.  I want to avoid getting bumped up to default on that. 

Also, if I pay the next billing cycle by March 13, won't that also mean that none of this will affect my credit score?  They could report as 30 days late to the CB. 

Thanks so much.  

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[tommyd17]

Ok, thanks for the reply.  I didn't realize they would roll the previous month's payment into the next's months minimum.  I thought they would just recalculate minimum payment based on balance owed, while interest of course was accruing in the previous month.

There goes that plan!

As long as I paid the $745 by March 13, they couldn't report though, right?  I never would have been 30 days late.

[EW800]

I agree with Pway completely. They are going to want the payment for both months, plus the late fee. My experience is that it is best to call them. That is what I did a few years ago when going through difficult times. For the most part, creditors were pretty understanding as long as you communicate and state your circumstances and intentions.

[TravellingNomad]

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@Pway wrote:

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@tommyd17 wrote:

We've had a few rough weeks and it's really looking like we are going to have a hard time paying on some of our credit cards.  I'm trying to figure the best possible outcome for us.

One of our cards we are already at the default rate of 29%.  Our minimum payment on this card is $360.  The due date is Feb. 15.  Now, if I don't pay it, we will have a $25 late fee.  If I wait until the next billing cycle, won't I just have to pay $360 plus the late fee?  You will have to make a total payment in the amount of $745 plus the calculated interest of your credit card balance.  You missed the payment due on Feb. 15, and when the next statement cuts don't you think they are going to want that other payment as well for the next month.   In other words, I'll have to pay $385.  I'll be losing $25 in order to keep $360 cash.  I would recommend contacting your credit card and tell them about your situation, see what they can do to help you.  I'm going to use that to pay a different credit card that has a low rate.  I want to avoid getting bumped up to default on that. 

Also, if I pay the next billing cycle by March 13, won't that also mean that none of this will affect my credit score?  They could report as 30 days late to the CB. 

Thanks so much.  

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Its not "could", the lender WILL report a 30 days late...because OP will be 30 days late if paying for feb bill in march. And if he only pays the minimum amount in march, come april, he will be 30 days late again...but this time for the march bill. 

OP, like Pway said, before deciding not to pay...call your cc lender and talk to them about the payment situation. You'd be surprised at how helpful most cc companies can be. See if your cc company can work with you. They won't blame you for going through financial difficulties. They would actually want to work with you as long as you let them know of your situation

I am really sorry to hear what you are going through. Just do your best to keep your head above water. Make changes in spending habits if you havent done so. Only spend on the daily necessities for now. You're going to get through this rough patch.

[tommyd17]

Really?  That's actually great to hear.  I feel like everything I read says they usually just say they can't help you.  I've never actually missed a payment.  I have been a day late on just a few occasions in the  past.  So, I'm really striving to keep my on-time payment record part of my score intact.  I just don't see it being possible in the next month or two.  :-(

[Pway]

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@tommyd17 wrote:

Ok, thanks for the reply.  I didn't realize they would roll the previous month's payment into the next's months minimum.  I thought they would just recalculate minimum payment based on balance owed, while interest of course was accruing in the previous month.

There goes that plan!

As long as I paid the $745 by March 13, they couldn't report though, right?  I never would have been 30 days late.  It could be a possibility that they could report you as 30 days late.  They are going to report to the CB when that next statement cuts, and that is when they could report it as 30 days late. I would suggest that you call and contact them.

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[tommyd17]

Let me ask this.  Do you see any advantage/disadvantage as to which credit ard company to call or deal with?  The one I'm already at 29%, or the one I'm at 9%?  I obvsiouly don't want to do anything to get the 9% one raised.

[TravellingNomad]

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@tommyd17 wrote:

Really?  That's actually great to hear.  I feel like everything I read says they usually just say they can't help you.  I've never actually missed a payment.  I have been a day late on just a few occasions in the  past.  So, I'm really striving to keep my on-time payment record part of my score intact.  I just don't see it being possible in the next month or two.  :-(

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The fac that you have perfect payments wins brownie points. Life happens my friend.

When i went through a pretty substantial bump in the road 15 years ago, i did not let my cc company know. All of a sudden i was 30 60 90 days late with payments. When i finally called them, after about 6-7 months, i was told i shouldve let them know what was going on so they could've helped from the get go. They couldnt do anything with the lates, but did work with my in tems of a re-payment plan.

Regardless of what you think they may do, just make sure you call your cc company to talk to them and ask what they can do to help you to not default.

Are you in trouble on defaulting on the 9% card as well? If you are not gonna have a problem with making minimum payments on this, concentrate on resolving your payments with the cc company on the 29% card. If you are having trouble with both cards, i suggest contacting both of them.

[Anonymous]

I would be the one to say pay your cards no matter what , but if it comes down to feeding your family yourself or paying your mortgage , then credit card payments comes secondary ! Those 3 fico numbers going up or down dont affect you're life I mean you won't die if your score takes a non-stop nose dive !  But if your far away from your last penny then yes call the cc company's and make a deal !