default on one Cap1 CC but keep the other Cap1 open?

[CGK5764]

I have 2 Cap1 credit cards. One has a balance of $8,700. I will soon have to default on that card. The other is a Cap1 Walmart card. Its balance is $125. After I default on the larger balance, will they go ahead and cancel my Walmart card also?

[FinStar]

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@CGK5764 wrote:

I have 2 Cap1 credit cards. One has a balance of $8,700. I will soon have to default on that card. The other is a Cap1 Walmart card. Its balance is $125. After I default on the larger balance, will they go ahead and cancel my Walmart card also?

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Yes, but it depends on how far you default. It's likely the account may get a CLD first or be closed altogether depending on the severity of default.

[SouthJamaica]

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@CGK5764 wrote:

I have 2 Cap1 credit cards. One has a balance of $8,700. I will soon have to default on that card. The other is a Cap1 Walmart card. Its balance is $125. After I default on the larger balance, will they go ahead and cancel my Walmart card also?

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Yes they will.

[CGK5764]

Thanks all for the helpful replies.  Here is a related one.  I have two StateFarm credit cards (USBank manages them now, this changed occured to all about a year ago).

I have StateFarm car insurance.   If I default on my two State Farm credit cards - how likely is the insurance company to cancel and/or charge me more to have them for my car insurance?

Thanks.

[FinStar]

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@CGK5764 wrote:

Thanks all for the helpful replies.  Here is a related one.  I have two StateFarm credit cards (USBank manages them now, this changed occured to all about a year ago).

I have StateFarm car insurance.   If I default on my two State Farm credit cards - how likely is the insurance company to cancel and/or charge me more to have them for my car insurance?

Thanks.

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You'll have to switch to a different payment method for your premiums. It's doubtful your policies will be canceled solely due to the default nature of the USB/SF Alliance CCs. Though, if you remain with State Farm and you're up for any policy renewal, they'll have access to your reports (depending on which state you live). If they see defaults on your CRs chances are your premiums will go up.

[CGK5764]

Excellent idea on switching my payment method for my preiumns (sp).   I am judgement proof.  I have a horrible year.  I am switching to cash only.  I have one card with a zero balance.  I have four cards around $4k each.  Then one around $2K.  Two around $1K.   1 at 400 bucks.  One at 125 bucks.

I figure I might as well default on all of them at once cause after the BIG FOUR go (formated above) then to try to pay the smaller ones is futile.  My credit will be ruined after the big FOUR default.  So, trying to keep the others afloat is not worth it.   My credit will already be trashed.  So, instead of paying the lower four accounts -- use that money to help build up my cash reserves.  Does that logically make sense?  A bit more about me:

I live on $1,944 per month which comes from SSDI (Social Security Disability Insurance) and a small public employee pension (KPERS). My fixed, poverty-level income is exempt from collection and creditors. Additionally, I have no assets. My most valuable asset is a 2007 Ford that has 166K miles on it. Finally, my disability is permanent. I was awarded this benefit back in 2015 and have not had a job since. Therefore, my income will most likely never change. The above factors mean that I am judgement proof.

Thank you very much for your time and attention.

[FinStar]

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@CGK5764 wrote:

Excellent idea on switching my payment method for my preiumns (sp).   I am judgement proof.  I have a horrible year.  I am switching to cash only.  I have one card with a zero balance.  I have four cards around $4k each.  Then one around $2K.  Two around $1K.   1 at 400 bucks.  One at 125 bucks.

I figure I might as well default on all of them at once cause after the BIG FOUR go (formated above) then to try to pay the smaller ones is futile.  My credit will be ruined after the big FOUR default.  So, trying to keep the others afloat is not worth it.   My credit will already be trashed.  So, instead of paying the lower four accounts -- use that money to help build up my cash reserves.  Does that logically make sense?  A bit more about me:

I live on $1,944 per month which comes from SSDI (Social Security Disability Insurance) and a small public employee pension (KPERS). My fixed, poverty-level income is exempt from collection and creditors. Additionally, I have no assets. My most valuable asset is a 2007 Ford that has 166K miles on it. Finally, my disability is permanent. I was awarded this benefit back in 2015 and have not had a job since. Therefore, my income will most likely never change. The above factors mean that I am judgement proof.

Thank you very much for your time and attention.

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Thanks for sharing some additional background and welcome to the forums @CGK5764.

We have a great community here and perhaps, if you don't mind, if you could share some additional information on all of your accounts, loans, the balances, the limits, the APRs, etc. This way, our community can provide some sound advice on perhaps minimizing some of the damage and be able to give some perspective on next steps. I'm sorry you're going through a rough period.  Let our community see if they can help.

Depending on the responses, the topic might be moved to a different section of the forums, but rest assured that our members will continue to be engaged.

[CGK5764]

Thank you for your kind and thoughtful reply.  I'll get the info on the board sometime tomorrow.  I fatigue rather easily and I think I am about done for today.  I am working with a group called HOPES.  Great fixed rates.   Attorneys operating as a non-profit 501C.  I could tell you more about them but I do not want to violate Forum rules.