Big plunge

[Peeps]

Hi Everyone,

I'm really new to this, but I've got a question that I haven't been able to track down in the archives (maybe because it is such a general question)

Basically, I'm about ready to trip and fall on my face with the upcoming month of ccd payments. I've never, never, never missed a payment on anything before. I've got a bunch of cards that are pretty much at the top of their limits and have no idea what to expect when I won't be able to afford any of the payments in November. Does anyone know if they'll just tack on the late fees and bend-over-now fees, and rape fees right on top of everything else, putting the cards over limit? I suppose then I'll see some nice over-limit fees, too? And once they get done feasting on new fees, then what happens? I'll be way over my limits by then. I know it'll blast away at my lovely credit score but I really don't care about that right now. They'll probably raise the interest rates, too, especially on some of those 0% interest transfers that I took a while back. Lovely. I'm kind of freaked out because this is new territory for me. Anyone have experience with this?

I'm still exploring my options for managing my debt, so I don't know if I'll try to negotiate something or what. I mean, we're talking holy-crap-just-got-my-wakeup-call-stupor-phase right now. Given my financial situation, a chapter 7 bankruptcy might be an option. When I realized how much debt I owe vs what I can pay, well I stopped using the cards immediately. But that was only last week, so it's still a pretty fresh thing. Anyway... anyone have any insight around what my credit card companies might have in store for me when I miss November's payments? I'm pretty sure I'll be able to make payments in December, but maybe not the full amounts.

[keepinitreal]

I predict they'll do what you said: raise your interest rate, charge you late fees, charge you over-the-limit fees, start calling you several times a day.

It seems like the perfect time to get a couple of free consultations with bankruptcy lawyers and see where you stand.

[alorth]

I am going through this very thing right now. I have stopped paying on my CCs because I simply don't have the money to do so. Each card started calling after 7 days. Yup....7 DAYS. I was surprised it was such a short period of time. I have 5 late accounts. 2 are now over 60, while the other 3 are over 30 right now. After the calls started, I logged onto each of my CC's websites for my account, and sent them messages ON THEIR SITES that I am now unemployed and can't make payments, and then I requested that they DO NOT CONTACT ME BY PHONE, but by email or regular mail ONLY. I received answers from all of them that they received my message and that I should explore their hardship options, but also that they would stop calling. Lo and behold, all the calls have stopped!.....At least for now. When the debt goes to an actual collection agency at some point, I imagine that the calls will start up again, but I will probably have filed my BK case by then....I hope.

[Goteki45]

Welcome to the club. Getting harassed is annoying and frustrating as hell. Talking to the debt collectors is like trying to pull teeth. They don't understand basic english when they are told by the debtors that they don't have any money to send them. It goes in one ear and out the other. This is why it is said that Bankruptcy gives debtors"peace of mind", because the calls will stop cold once filled. Peace of mind is better then being a nervous wreck every time the phone rings.

[Panacea]

I stopped paying Sept 1st for the cc's, mortgage, and heloc. Cancelled my cell I've had for years end of of Sep, and with the new service, got a new cell number...............No phone calls....haven't heard a peep from anyone, just snail mail. Will be filing the end of the month.

Good luck to you.

[carlsbadmike]

Peeps,
Once you don't pay on time your credit card companies will hit you with late charges. If the late charges put you over your credit limit, they will hit you with over your credit limit fees. Next will be raising your interest rate to 29.99%. Also, collection calls will start coming 7 days after your payment due date on most accounts. I found American Express to be the worst companies when it came to hounding me repeatedly. They were also the only company not willing to lower my interest rate when I was trying to make it before I filed BK. If you think you can possibly get your credit cards paid off--not just paying minimum payments, then you might want to call credit card companies to see about lowering your interest rate, special payment plans, etc...

If you feel like it's all you can do to keep your head above water...You may want to get 2 or 3 free consultations with attorneys that do nothing but bankruptcy cases. That's what I did prior to filing chapter 7 on April 30, 2010. I received my discharge letter 82 days after my 341 meeting(meeting with bankruptcy trustee). This was one of the best decisions that I have made and gave me a fresh start financially.

Good luck on your journey. Keep us posted.

[sillywalks]

I was like you -- never missed a payment, never late -- this month I paid on some of my cards (the ones with low minimums) and not on 3 others. I started getting calls about 2 days after the first missed payment. Now they call every 4 days or so. I have not decided yet what I'm going to do about them.

That wake up call about how much debt you have, and how much you are spending is pretty bracing, isn't it?! I know I am still somewhat dazed (it's been a month or so for me). I have tightened down my budget, and realized how much I was depending on my credit cards now that I don't have them. Ugh! I actually bounced a check (a first in 20 years!) at the end of last month while I was adjusting. This month is better, mostly because I have cut out any non-essentials (including things I considered essential!). I'm not used to the feeling that I truly cannot afford something (I guess I was used to having the card if I really wanted something). I know things will get better -- hang in there! You are NOT alone!

[oregonpilot]

Hi Peeps, Welcome to the best "peeps" around.
SEE, you already are part of the fam.

I missed my first payment ...EVER IN MY LIFE.....in March. (and i'm almost 60) It was horrible. Others here have talked about missing that first payment. With the finger on the Make Payment and not doing it. CcsJoe is one that i can think of that has some great stories about that.

I also, was expecting fee upon fee upon fee. All i ever got was late payment fees ($39) each month on each of the cards. When those balances went over limit i expected that to be added on in addition to the lates. But they never did.
The interest was the thing that really grew the balances. Had many at 0 to 2.99% They pretty much ALL ended up around 30%

I was in TOTAL "stupification" ---I'm sure that isn't a word though.---- When i added up all my balances.
It is amazing how quickly the balances grow though, for me just fees and interest alone added nearly 7k (grew from 62k to 70k) from march to end of august.
Guess in the end it didn't matter what the balance really was....in my case.

This is an awesome place for moral support and great info. GLAD you found us!!!
ALSO,
Something I did in regards to the phone calls. I was able to go into my online accts and change the phone number to a Google Voice #. Then went into Google voice and directed those phone calls to voice mail (so phone never rang) and just looked once in a while at the GV at the calls.

[platter]

If one looks at the statement at the area that shows how many years it will take to pay it off if you make only the minimum pmt vs three years if you pay a larger amt - that's a good indication right there if you want to pursue paying or pursue BK.

I never thought about contacting them online but really don't want them to see that I even opened up the online acct.
The Google Voice routine would be good. I wish I'd thought of that when I changed my phone number on my online acct to my secondary cell. For some odd reason, my primary is getting a couple of the same numbers coming in and I don't think that I forgot to change one. I think that maybe that particular one, whichever it is, still has my primary on file although I changed the number when I changed my address to a mailing service.

@oregonpilot, you said you missed back in March, how many pmts did you miss thereafter (how many in a row) and what happened after the 90 day + period? What did they send you or collections send you and what did you do?

[pikaroth]

Welcome to the forums! I posted a message a few days back introducing myself that sounds almost *exactly* like yours - never, ever missing a payment or being late, etc. However, the last three months have been awful, and when I had to resort to actually asking my parents for money (I'll be 34 in a few months, and to ask my parents for money, to me, was humiliating). Nevertheless, they gave me the money I needed to continue to make my payments, but I finally had to admit to myself that I could not keep doing this, just not possible. A person above posted about looking at those boxes on your statements about how long it would take to pay off. I'll be in the ground by the time I am paid off, and to be blunt, if my parents were not around I would have had to stop paying on a few of the cards months ago. So last Wednesday I saw an attorney that came highly recommended, they were great, paid them, they gave me a packet to fill out (which I will be done with shortly), and I will be returning it to them this coming week. I was advised by them, and everyone here(!), to stop paying my CCs immediately, and I did so. No calls yet (only missed a payment on one card so far, but next week will be D-Day, or, well, D-Week, I guess). When they call, my attorney told me to give them their name, address, and phone number and to simply not answer any of their questions save for telling them I am filing bankruptcy and to contact my attorney. Nothing more than that.

So that is what I will do. To be blunt, I should have done this at least two years ago, but I held on as long as I could. When I was smacked in the face with reality, it hurt and I felt ashamed. Still do, kind of. It comes and goes. I've been told my case should be exceptionally easy being that I am below the state median income, am a no asset case, and all is credit card debt, nothing else. I hope that's true because I am scared to death that something will go wrong along the way.

ANYWAY, as others have said, if you are where you say you're at, talk to an attorney and stop paying the CCs entirely. Every so often I get this really good feeling that enters me for a split second at how great I imagine it will feel when this is all over, and when I get that split second feeling, I imagine how absolutely incredible it will feel when it actually happens.

Ask anything you want here, and I'm sure you will get a ton of answers. Even if you just want to vent, as I have done once or twice in only a few days, this is the place to do so. I cannot recommend this forum enough.

[Resigned2BK]

I actually was planning on doing DIY debt settlement for all our CC debts except one or two token low balance cards. Then hubby didn't get the work load he usually gets when the school year starts and that idea flew out the window.

In my personal experience, yes, you will get all kinds of fees. You'll get statements after a couple months of completely outrageous amounts and the phone will ring a lot between 8am and 9pm every single day. We have a DO NOT DISTURB button on the phone (Chase essentially ignored me when I told them I chose to pay the water bill instead of them, so now I choose to ignore them for awhile). And at this point I can't even pay the normal monthly amount let alone the fees making my 3 months late more like over 4 times normal amount.

[oregonpilot]

@oregonpilot, you said you missed back in March, how many pmts did you miss thereafter (how many in a row) and what happened after the 90 day + period? What did they send you or collections send you and what did you do?[/QUOTE] FROM platter
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I missed march-aug on all but Chase and Carecredit. I actually paid those 2 cuz my Chase was down to 900. (Down from 22k) i had taken that amt amt out about 9 yrs ago and decided come hell or high water i was going to get it paid off. When i met attorney in june he told me to quit paying ALL cc's. Didnt listen to him and kept paying those 2 till i filed. Actually it was just money wasted cuz it didn't make any difference in the end.

I had everything online, so no statements in the mail. I went in (while i still had access) and changed the phone number and took off my checking acct numbers. Figured they probably still would have that info but i did it anyway. Also changed notifications from e-mail to snail mail. Thought that way when i lost online access i would still know what was going on.

The ONLY really horrible phone call was from my x.....citi somehow had his number. That was one person i really didn't want to know what was happening.

It wasn't until the month B4 filing (July) that i started getting collection letters. Had just 3 of those. One came in the day B4 filing so just called the attorneys office and they put the name on the petition. What surprised me was my attorney office put the original amts owed to the original creditor on the petition and put 0. for the collection people. (sounded good to me)

I had 2 creditors offer lowered amts after 3 months. Citi MC and Sears. Citi offered about 5.3k on 19k balance and sears was 3k on 9k. They wanted the whole amt within a month. No way i could do that. (I had already used up my whole savings of 9 yrs to keep up on the payments).

It tells you at the bottom of those offers that the forgiven amt would come to you in a 1099 so you would pay taxes on those forgiven amts.

I also realized how impossible it was going to be when they started putting on the statements how long it would take to pay off with making min payments.

[Peeps]

Thanks to all for the support, ideas, and experience-sharing. I can't believe I'm such a noob that I really don't even know what happens when credit cards go over their limits. And it seems almost surreal that I'm about to find out! Compared to what will probably have to happen in the next upcoming months, I bet this will seem like a silly thing when all is said and done. Thanks again for all the insight. I have a feeling I'm about to learn a whole lotta new stuff and will be sure to share it as I get it.

[oregonpilot]

Peeps,
surreal is probably a good word for it. To me , it was like a really bad dream and i just wanted to wake up.

It does get much better. Trust me!!

[indianamom]

Peeps, if you qualify for Chapter 7 and there is a possibility that you are probably going to go that route, you may try to think about it quick because if you have never been late your FICO scores aren't going to take as much of a hit when the bankruptcy shows up. When you let all of those late payments happen first, your score will be much worse. Don't take too long to make a decision. I felt so much better after filing bankrutcy and I really wish that we would have done it sooner. I kept giving all my unemployment income to pay all of my huge debts, and if I my husband and I would have filed sooner, we would have been saving much faster. We never went late on anything so we never got any phone calls and our scores weren't horribly affected. Good luck to you!