Nov 04
I have 2 cards with bank of america, the total amount is U$13,000.00.
The APR is 34% on both, I cannot afford to even make the minimum payments on this accounts anymore. I been late more than one time with these accounts… So I am sure they will not lower my APR.
What are my options?
It is a good idea to send them a settlement letter with this conditions: pay U$100.00 every month with no interest for the full amount??
What they will put on my credit report if I agree to pay the full amount with my conditions??
I don’t want to ***** up more my credit because I am only 23 years old
u dont negotiate with credit cards
Since that would take 130 months, and they’d be out the interest, there is no likelihood they would agree. You’re not even making the federally mandated minimum payment, plus you’re not paying the interest. Not going to happen. Call them and work out a reasonable agreement. The problem is that you need to reduce your spending dramatically. Somehow you’ve spent $13,000 you don’t have–in we don’t know how long. Paying that off and not continuing to spend at this rate will be very tough.
Call them up. Expalin the situation. Believe it or not, they’re MORE likely to cut the interest/minimum payments if you are late. 34% is probably the DEFAULT rate, and the regular rate is probably much better.
I called discover, a few years ago, when i was behind. I was overlimit too, so every month I was getting nearly $70 worth of fees (overlimit + late pays since I couldn’t pay the inflated payments), and had the default rate. I agreed to monthly payments of $100, and they in turn cut my rate, and with each payment that went thru, they credited me BACK $70 worth of fees, and suspended any future fees while I was paying them, even though I was still overlimit. My payments were essentially working double for me.
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$13,000 is a pretty hefty balance for wanting only a $100 payment. . . Figure out what your absolute bottom line is, and then call and talk about sending them set amounts each month, and see what they can credit you or do for you.
You already messed up your credit, but it’s not hopeless.
So you start from here. Most Credit Card companies will settle for 50% of balance with a one time payment usually within 2-3 weeks of your offer.
SIF affects your credit different than pif. But since you are running late it won’t hurt too much. Everytime they report your late payment it dings your credit for 60-90 days.
With an SIF it will ding your credit once then roll off at the end of the specified time period.
I strongly advise you not to ask for a settlement unless you can pay it right now.
You do not want to use Consumer Counseling. Although they can get the payment lowered, it usually reports on credit as a late payment every single month throughout the time that you pay on it. It rather defeats its purpose.
Forget the $100 a month. They will never go for it.
Good Luck
call them and tell them what’s going on. they will try and work a payment plan with you but probably for a bit more than $100 a month with the size of the balance you have with them. you’ll probably be looking closer to $200 a month but they will also reduce the interest for you.
someone mentioned trying to settle in one of these answers. since you are so young try to work the payment plan first. it is much better for you credit and they have programs available that are much better for your credit. if you settle and someone goes to pull your bureau in a few months for something it will show that you did not pay the balance in full. it’ll hurt you more and you’re too young to hurt your credit any further.
Small steps like paying your bills on time and using only part of the credit available to you. Also use your credit cards for making small payments regularly, so that it is reflected in your credit record. More tips available at