Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    




pay cards or not.

Reply to topic
Money Talk > Credit & Loans

Author Thread
offTrack
New Member


Cash: $ 1.00

Posts: 3
Joined: 31 Dec 2012

pay cards or not.  Reply with quote  

I have a friend who has been paying on cards for the last 10 to 15 years where it was only 25,000. She pays the minimums but it just keeps growing. Now it is up to $75,000. I feel she has paid them more than enough. I feel now that they are victimizing her. Should she offer to pay them off 20 cent on the dollar and how would she go about this? Does she need to send a letter stating so? What is a good way out of this mess? Thank You.
Post Mon Dec 31, 2012 6:09 am
 View user's profile Send private message
coaster
Senior Advisor


Cash: $ 1626.30

Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
 Reply with quote  

No doubt she has paid the original debt several times over.

But credit card companies do not *victimize* people. They are simply following the laws and regulations that govern their terms for providing revolving credit in exchange for whatever finance charges the law allows them to charge and the card holder agrees to pay. If there is any victimization that has occurred, it is solely self-inflicted.

But, that having been cleared up, the first step should be to seek credit counseling. Look for a non-profit, volunteer organization in your friend's area that provides this service to people in this kind of a fix. Use this organization: http://www.nfcc.org/ as a starting point to find this service. Do *not* go to one of those for-profit credit-counseling services.

My best wishes to your friend.

~Tim~
Post Mon Dec 31, 2012 8:19 am
 View user's profile Send private message
oldguy
Senior Member


Cash: $ 736.65

Posts: 3582
Joined: 21 May 2006
Location: arizona
 Reply with quote  

quote:
for the last 10 to 15 years where it was only 25,000. She pays the minimums but it just keeps growing. Now it is up to $75,000. I feel she has paid them more than enough.


Your friend is not being entirely honest with you - if she had truly paid the minumums the principal would have streadily gone down. She has been borrowing more money from the card company.

Here's a clip from 'credit card computation' -

quote:
they are required to do so in a way that allows consumers to pay a portion of the principal, so they can eventually climb out of debt -- assuming they don't keep putting on new debt on their balance.
Post Mon Dec 31, 2012 2:08 pm
 View user's profile Send private message
coaster
Senior Advisor


Cash: $ 1626.30

Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
 Reply with quote  

Nice point, and one I missed at 2:00 am Embarassed

~Tim~
Post Mon Dec 31, 2012 4:28 pm
 View user's profile Send private message
eastmn
Senior Member


Cash: $ 85.80

Posts: 414
Joined: 04 Apr 2010

 Reply with quote  

Somewhat similar stories, options available:
http://money-talk.org/msg87793.html#87793
http://money-talk.org/msg89255.html#89255
http://money-talk.org/msg78421.html#78421

...
Post Thu Jan 03, 2013 1:09 am
 View user's profile Send private message
coaster
Senior Advisor


Cash: $ 1626.30

Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
 Reply with quote  

I'm gonna hafta think about getting Andrew to hire you as forum researcher!! Very Happy

~Tim~
Post Thu Jan 03, 2013 7:19 am
 View user's profile Send private message

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      





Money Talk © 2003-2016