Monday, July 20, 2009

When Your Hands Are Tied

I consult with individuals who are facing financial difficulties. Many call me with regard to mortgages that are adjusting or credit card companies who are not working with them. It's heartbreaking when I hear one of my clients tried on numerous occasions to work out a payment plan when they had fallen behind due to their hours at work being cut, only to be told that they now don't make enough money to qualify for a hardship repayment plan! Does that make any sense? After three months of no payments, still making the same lower income, the big bank calls her back to offer her a 0% interest plan and offers to match every payment she makes toward helping her pay down her balance! Why wouldn't they help her when she asked for help instead of forcing her hand to fall 90 days past due on the account? She felt like her hands were tied. She couldn't make the payment, they wouldn't work with her and even if she made a lesser payment, her account would still be reported as delinquent, late fees charged, and credit tarnished.

This is my area of expertise so I know what I would do. With the information you have, what would you do if you felt like your hands were tied when trying to get a credit card company to work with you? Share with me what you think they can do to you if you don't pay. I'll be sure to comment and share with you what I know to be true.

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