Delinquent
Delinquent Credit Card Accounts
There are several options available for people who are having difficulty staying current on their credit card payments. The worst of these options is to bury your head in the sand and expect the delinquencies to correct themselves. As you fall further behind on your accounts the interest rates, over the limit charges, and late fees will only add on. Considering the fact that the credit card companies will also be reporting the debt as past due to the credit bureaus, taking action is ultimately the most important step.
This being the case, one of the first steps should be contacting your creditors to explain your situation. During this conversation, try to negotiate a lower payment, an extension on the due date, or how fast they report the debt as delinquent to the credit agencies . Depending on the credit card company and the agent you deal with, it may be possible to gain concessions on all these grounds. If you encounter hostility, consider one of the following credit card debt help options:
Debt Settlement
Credit & debt settlement is also referred to as debt negotiation or debt reduction. It is a form of debt consolidation where a consumer is able to settle or negotiate down their principal balance by as much 40 to 60 percent. When successful, debts are settled one by one with a lump sum payment made by the consumer. As with other debt solutions, there are various disadvantages of debt settlement (most of which emanate from the fact that you must be delinquent on your payments for settlements to be reached), but it is widely considered the fastest and least expensive way to get out of debt without bankruptcy.
Credit Counseling
This is the traditional form of debt management where a consumer makes one payment to a non-profit agency, who in turn distributes that payment to each of the client's creditors. By enrolling in a consumer credit counseling program, it is possible to bring delinquent accounts current and lower your interest rate, as well as late fees. On the other hand, like debt settlement, enrollment in a credit counseling program may have a negative effect on your credit since it is reported to the credit reporting agencies that you are enrolled in a debt management plan (DMP).
Delinquent Loan & Bills Question & Answer
I am worried because I just recently took out an unsecured personal loan from Citifinancial and I have already become past due on it. Should I be worried?
Yes. Falling behind on your payments after just recently taking out the loan can be interpreted as a sign that you never had any intention of paying the debt back to begin with. If a bank or lender feels that you were fraudulent in your dealing with them, they are less likely to show mercy or patience in collection of the outstanding balance. That means you could end up receiving a summons to court sooner rather than later. Citifinancial and other unsecured personal loan / finance companies like Beneficial and Household tend to be very aggressive in pursuing matters like this legally.
What do you suggest I do? I honestly do not have the money to pay it back according to their terms. I became unemployed about two weeks after taking out the loan.
Bring this matter to their attention and see if you can resolve the matter. Some banks will appreciate your forthrightness and offer interest rate and payment concessions while you get your feet on the ground. If this fails and they refuse to give ground, try out a Consumer Credit Counselor. Perhaps they will work with a third-party better. That being said, consumer finance companies will generally not even offer concessions on recent personal loans to credit counselors, but it is still worth a shot.
I have a bad debt and the debt collection agency is offering to settle it for 70 percent of the balance. I have offered to pay it back for 60 percent, but they are refusing to accept it and I am getting nervous. What do you suggest I do?
You sound like a perfect candidate for a debt settlement program. For one, old debts should rarely be settled for such a high percentage, and it sounds like the collectors may sense you are desperate to stop worrying about it if they refuse lower the amount. By using a debt negotiation company it is possible you can save more than this. Of course results do and will vary depending on your set of circumstances.
How can I learn more about my debt consolidation options?
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