defaulting on just 3 cc,s

[junker]

just wondering..if you have say 5 cc,s and default on 3 what will the other two do...cancel you..or raise rates to 30%....or lower limit....anyone had this experience...my roommate has such....and wants to keep paying on 1 or 2 one has a pretty high limit right now.....bk would not be a issue....she doesnt plan on filing.... so what would be typical....would the other 2 let her keep them???

[BobMango]

They all have to be listed and will be closed by the credit card company. If your friend wants to keep 1 or 2 there is no legal reason they can't pay them off after. The best approach would be to talk to the card companies that they wants to keep before filing to see what they would do. By law all debts must be listed are discharged in a Chapter 7, with the usual exceptions for fraud, student loans, etc.

[junker]

no...she is NOT going to file bk at this time....she just wants to keep paying on one or two cards..so bk is NOT a issue..

[AngelinaCat]

.....bk would not be a issue....she doesnt plan on filing....

She can keep on paying the two she wants to and ignore the others, if she wants to. But sooner or later the creditors will start calling and then issuing summons for lawsuits. And if one or both of the cards she wants to keep paying are owned by the same company that owns the cards she wants to default against, she is going to have problems.

Your friend needs to quit using the cards altogether; cut them up or put them into a container of water and put the container in the freezer as Clark Howard suggests.

Then she needs to get busy learning to live on a cash basis and pay down those cards. Pay off the lowest amount first, and close that account. Then do the same thing with the next highest amount, and so on.

If she is diligent and willing to discipline herself, she can work and pay herself out of this small debt. In my opinion it would be better if the BK option was reserved for more catastrophic debt such as medical debt.

Please give your friend my best wishes and keep a good measure for yourself.

[junker]

she is also collection proof..she just wants to keep a couple open for car rentals, emergencies.. etc.....she was just wondering if they would go to default interest of 30% or cut limit drastically..or close JUST because she defaulted on the other 3...one she wants to keep is for 5k ...its not affiliated with any other cards....

[frogger]

They are probably going to go to the default rate due to the non payment on the other cards. Check the fine print. It's in the agreement.

[Faust]

I thought Universal Default was no longer practiced?

[DeadManCrawling]

Universal default is alive and well. I was one day late on one card. The next month it went to 30%.

The following month, 7 more went to 30%. On 70k debt, it was quite a jump, and is part of the reason I filed.

[anykey]

If I may comment here. People left and right have limits cut and I mean people with very good credit. I would use up the limit pay maybe 3 payments and then default. The system is finished. 30% interest is the new normal.

[anykey]

Folks- this is so very important.

Do NOT think of ANY credit card limit as an asset. As money you can access for hard times. Every issuer is cutting the limits drastically.

DO NOT RELY ON A LINE OF CREDIT!

Now- you could take a cash advance park that- but not in the planning to commit fraud. So you will have to make some payments.

But PLEASE- do you think of a credit line as an asset!

[dscurlock]

I just had a credit line of $1500 cut down to $500 - even though I was in good standing with FIA card services for the last 2-3 years, they reviewed my credit, and said I was not good enough for them by what they saw on my credit report, yes, they can limit your credit, raise your rates, or even cut you off if they so wish. I am leaving the unsecured cards, and I will cancel what I do not need. I am going secured. If you want to bank on a card, then get a secured credit card...