How to handle creditors

[Meroe]

Many of us have been in situations at some time or another where we fall behind on paying our bills, credit cards etc. Whether we loan money to family members to help them out, unexpected car repairs or simply exceeding our personal budget people tend to get behind on bills. Nothing to be ashamed of. It's simply another aspect of life we deal with. I cant tell you how many times I had to wire money to help my brother while negating my own financial obligations. But the solution is never stop paying creditors and always give them something.

Let's say a creditor is demanding a minimum of $100 dollars per month but you can only afford to send $50 dollars. If you send them a check or certified money order (never send cash and avoid using a credit card for payment if possible) and they cash your $50 dollars then legally you're not obligated to pay them more than $50 dollars per month since they accepted your money. This will be upheld in any civil or small claims court. The creditors may still try to harass you for more money but legally they can do nothing more than badger you with letters and phone calls. And while the creditors are accepting your money this will improve your credit Rating. This is a long kept secret of credit agencies. The key is whatever amount creditors accept that's the amount the consumer is obligated to pay.

Keep your head up,

Meroe

[Sumyr]

Thanks for the info, but my mom taught me this years ago - send them something if it isn't but $5. Just curious, are in the financing business or a credit lendor?

[Samoon]

Better yet? Do not just send, "minimum payment due." For what you did not pay? Will be reflected on the next billing cycle. If they want $150 bucks, double it--then pay off as quickly as possible so that your FICO score will not be affected. Many individuals will pay only the minimum amount due on their monthly statement. You will end up shelling out more money over a longer period of time because of the interest that's tacked on to the balance with each forth-coming month.

[MadameX]

Furthermore, avoid paying your bills over the net since hackers can hack your computer and compromise your private information . Once a hacker tried to set a Ebay/Pay Pal account on my computer and I caught them: I'm in the process of reporting them to them to the authorites and already reported them to my ISP/ net provider. So Check your statements regularly.

[ardamus]

I'm actually in the process of handling my credit right now so this is very useful. Thank you.

[Meroe]

Originally Posted by Sumyr

Just curious, are in the financing business or a credit lendor?

Not exactly. I'm an adjuster for the state. I use to work as an adjuster in the private sector. I was the guy who would come out to your home or business to inspect property damage LOL!

[TRIGUY68X]

Let's look at the first post. But, before that let look at my background. I have been in the credit and collection industry for 11 years. I started as a collections rep. for a credit card company and now manage a couple creditors at a large collection agency. I am in daily contact with collection attorneys and the largest credit card and finance companies.

Making a payment less than the agreed amount subjects you to negative fico scoring, late fees, increased interest, collections and legal issues into wage garnishment. The old urban myth that if you pay some thing and they take it you are safe is not true. It's still a breach of contract. Try sending the landlord 1/2 of the rent. eviction will soon follow. If you need smaller payments communicate with the creditor and they may work with you. The earlier in the default process the better. To clarify the myth about creditors accepting a payment as a satisfactory payment ... If you send a payment and it isn't posted to your account the creditor potentially voids the debt. They will and must post your payment, but it does not constitute an acceptable arrangement.

The credit card companies have all of the rules, laws and contracts in their favor. If you are truely in trouble Consumer Counseling is an option.

I am not here a representatve of the credit card companies. As an insider I am open to answering questions, especially those regarding collection agencies. I am not here to tell you how to beat them, sue them, or get over. I am here to answer questions on how to deal with them, point you to resources, clarify misconceptions and rumors and understand the mine field of consumer credit.

[warrior]

four words..."moved left no address"

[The Dragon]

Another way to handle creditors is to dispute their claims with credit bureaus. Usually works.

[JamieC]

Originally Posted by TRIGUY68X

Let's look at the first post. But, before that let look at my background. I have been in the credit and collection industry for 11 years. I started as a collections rep. for a credit card company and now manage a couple creditors at a large collection agency. I am in daily contact with collection attorneys and the largest credit card and finance companies.

Making a payment less than the agreed amount subjects you to negative fico scoring, late fees, increased interest, collections and legal issues into wage garnishment. The old urban myth that if you pay some thing and they take it you are safe is not true. It's still a breach of contract. Try sending the landlord 1/2 of the rent. eviction will soon follow. If you need smaller payments communicate with the creditor and they may work with you. The earlier in the default process the better. To clarify the myth about creditors accepting a payment as a satisfactory payment ... If you send a payment and it isn't posted to your account the creditor potentially voids the debt. They will and must post your payment, but it does not constitute an acceptable arrangement.

The credit card companies have all of the rules, laws and contracts in their favor. If you are truely in trouble Consumer Counseling is an option.

I am not here a representatve of the credit card companies. As an insider I am open to answering questions, especially those regarding collection agencies. I am not here to tell you how to beat them, sue them, or get over. I am here to answer questions on how to deal with them, point you to resources, clarify misconceptions and rumors and understand the mine field of consumer credit.

This is so true because I used to work for Visa and Mastercard. And by just sending them "something" doesn't cut it. Yes they won't turn away a payment but they have ways of locating you and if you made a payment arrangement with your John Hancock on it that's what you stick to. Just because a person is showing good faith by paying a little something instead of what's owed won't stop them from coming after you. You don't pay any amount you want to just because you feel like it. Can we all say "Accurint or Interactive411?