What if I can’t PIF on new AmEx chargeoff?

Anonymous · ‎01-08-2020

Hi, new here and feel a bit up shyte creek.
I’ve been paying all my mom’s bills as well as my own since she got sick. Can’t sell her place for at least a year since it is a condo and there’s work being done on her building, it won’t pass inspection until work is finished. (Downstairs neighbor just tried twice). She needed thousands of dollars in med equipment, rehab, hospital etc copays — I think I made a mistake maybe?? I paid all that immediately but it drained all my savings and caused me to rack up substantial CC debt. Now I’m having trouble paying both sets of bills plus the debt. I’ve been living 20-28 days behind on my CC payments as well as mortgages. Not enough to get 30-day-lates, but enough to drive me nuts with creditors calling all the time.

This past paycheck I had to do a $1k car repair and I went past 30-days-late with AmEx. I planned to pay them out of the paycheck coming Friday.

When I logged in today to make the payment, it said my card (which I’ve had in good standing for 10+ years) is canceled and it won’t even let me pay online.
The good news: I will get a big tax return in March and this should be a lucrative year for me... I stand to make an extra $500-1k per month most months. So I’m about to be able to catch up on all my past-dues and sock some money away in savings, plus monthlies will be easier to pay.

Bad news: I owe AmEx $15k and I will only probably have about $5k left over from tax return/annual bonus, once I’ve paid everyone else. Also that would leave me no savings.

With a 6-year SOL in my state, what are my best options? No way I can get $15k and it will probably be end of Feb or early March before I get my tax return and/or bonus. And I can’t even plead “medical debt” easily, since I paid that with cash from savings and used my CC like an idiot to rack up charges on food, utils etc.

Thanks everybody!

sccredit · ‎01-08-2020

AMEX has a hardship program. Call them up - they will set up a payment plan.

Anonymous · ‎01-08-2020

Well we already talked about it before the charge-off but it sounds like a rotten deal... I pay them $$$$ every month, they shut off all access to my account, and I get 30- 60- 90- 120-days lates on my credit report for the duration of the deal.
Not to be a choosy beggar, it’s just that I figured I would rather get 1 30-day late and then get back on track with this paycheck, maybe get one more 30-day in Feb and then pay myself current. I did NOT expect a charge-off in day 36. And then pay it down while still having the open line available for emergencies.
If there’s a different hardship deal let me know, but having talked with their agent and researched online that’s what they seemed to offer me. And now I’m not sure they even have that on the table.

Red1Blue · ‎01-09-2020

@Anonymous wrote:
Well we already talked about it before the charge-off but it sounds like a rotten deal... I pay them $$$$ every month, they shut off all access to my account, and I get 30- 60- 90- 120-days lates on my credit report for the duration of the deal.
Not to be a choosy beggar, it’s just that I figured I would rather get 1 30-day late and then get back on track with this paycheck, maybe get one more 30-day in Feb and then pay myself current. I did NOT expect a charge-off in day 36. And then pay it down while still having the open line available for emergencies.
If there’s a different hardship deal let me know, but having talked with their agent and researched online that’s what they seemed to offer me. And now I’m not sure they even have that on the table.

To be honest, Amex is very good to members. Once you pay off the debt in full they will let you back in. They will give you an Optima Oasis card and if you maintain it well you'll be eligible for their other cards. I have seen instances where they will remove the complete negative information. About 15 years when I had tough times, I paid the Amex back in full and they removed all negative entires from my report. Not sure if things have changed but Amex is very good in taking care of their members.