won't be able to make minimum payments on ccs

[solidusEE]

I just recently lost my job last week. to make a story short, I was a contractual employee and there was a reduction in workforce.

I am not here to attempt to try to have people feel bad for me or anything like that.

I am currently looking for another job, and hope to get back on my feet soon enough.

Unfortunately I have some debt with credit cards that I will not be able to make the minimum payment on, unless I sell my car (which won't sell for much) or do something totally drastic of that nature, I won't be able to make the payments.

So my question is to you gurus out there, will credit card companies help me out here? I have never missed a payment, and unfortunately I was using a good portion of my monthly income to pay down old credit card debt.

I've seen payment protection, but from what I can gather, it will only go into effect if you end up unemployed WHILE you were already under the plan. And sometimes, even then companies won't apply the benefits.

Bottom line, is there a way to postpone or freeze payments on my credit cards until I can get a job?

[visorboy1974]

Best way to go about it is to call and ask.  They're not going to be able to consider anything if you just let the payment date go by without doing anything. 

[smc733]

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@visorboy1974 wrote:

Best way to go about it is to call and ask.  They're not going to be able to consider anything if you just let the payment date go by without doing anything. 

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I second this approach.  If you call them and explain how you're willing to work with them, and really explain your situation, they may offer your some terms, such as deferment, keep in mind these terms may result in the account closing after being paid/being closed to new charges immediately.

[Creditaddict]

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@smc733 wrote:

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@visorboy1974 wrote:

Best way to go about it is to call and ask.  They're not going to be able to consider anything if you just let the payment date go by without doing anything. 

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I second this approach.  If you call them and explain how you're willing to work with them, and really explain your situation, they may offer your some terms, such as deferment, keep in mind these terms may result in the account closing after being paid/being closed to new charges immediately.

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In my experience they will not help you until you miss a payment.... and by miss a payment I mean by like 5 days... call in and ask for "financial hardship program" Just about every credit card company now has this in place but they won't offer it until your late...

Keep in mind with the new credit act, they can't jack your rate for missing 1 payment, only after 2.

Many of the banks also credited me back the late fee upon getting on a program.

[bostonte]

You should prepare a budget before you call. List your expenses in order of priority, any income you'll be getting, assets/savings, etc.

You need to have a very good grasp of the situation before you talk to the credit card company so you don't agree to something that is unmanageable. Lots of times when people get on the phone after a little back and forth the CSR has them agreeing to something they otherwise wouldn't. In my experience the credit card companies are far less willing to help again if you default on a hardship or payment agreement -- best to not set something up if you can't do it.

They often also want some of these details to run through their internal computer models in order to "qualify" you for a hardship plan (i.e. rent/mortgage payment, etc.)

You also might be in a situation where it seems like you could afford something, but by writing things down and projecting out a few months you may realize you would be better off to save that money for a more important future expense (i.e. food/rent/heat in 3 months).

Not that defaulting on credit cards is good -- but remember you need to take care of yourself, not them. If you lost your job and don't have the money to pay those bills after covering your basic necessities -- it is what it is.

Good luck, hopefully they will have something that works for you.

[Anonymous]

If your car is important for you and you need it and it won't sell for much, selling it won't help much.

If, however, you'll have a good job soon, and plan to, say, buy a house, then it might be worth selling it to satisfy your CC companies and to avoid lates on your reports. It seems though that this doesn't apply to you.

A question, what are your current minimum payments per month (altogether)? Are we talking $40 or $400?