View Full Version : Who has had success negotiating with cc companies?

06-27-2009, 12:23 AM
I have a friend at work who is considering filing bankruptcy because she is getting divorced and has a lot of credit card debt on a lot of different credit card companies. She was going to call and close all the accounts (which i think is a good idea) but I was wondering if any of you have had any success recently in the current economy with telling the credit card companies you simply can't afford their min pmt/ int rate and if any have worked with you as long as you made the agreed upon payments. I thought I might suggest this to her but with everyone having so many problems with their cards cutting limits and raising rates I had no idea if it was even a possibility anymore. Thanks for your input. popcorn::

06-27-2009, 07:48 AM
Let the divorce happen first. They will divide the debt up and then she can take care of her portion only. Even if she gets some of them to accept a portion and close the account, the court will divide up the rest wiht no care to what happened to the rest.

06-27-2009, 02:15 PM
I haven't had any luck. I had BoA tell me, ohh your credit limit is too high, i'm slashing it down to your balance. And no luck with changing the interest rate. I was soo mad too cause it was for a card that I haven't used in 3 years and I was paying double the min payments.

06-27-2009, 02:22 PM
I would tell your friend to check out the forums at MYFICO.com -there is some great advice there for someone in her situation by people who have been through the same. Best of luck to her!

06-27-2009, 02:23 PM
I haven't had any luck. I had BoA tell me, ohh your credit limit is too high, i'm slashing it down to your balance. And no luck with changing the interest rate. I was soo mad too cause it was for a card that I haven't used in 3 years and I was paying double the min payments.

That happened to me too and from what I've heard, they're doing it to almost everyone, even those of us who pay on time and way more than the minimums. It's frustrating, isn't it?

06-27-2009, 03:17 PM
I have been successful. Now, granted, I was unable to pay minimums and they contacted me. But once I explain I am a single mom whose ex hubby got laid off and am no longer receiving child support on a timely basis, most companies have cut my minimum payments and interest rate. The account is closed, and it DOES affect my credit, but really, my credit is not very good anyway, and at least they are working with me so I don't have to file bankruptcy!

Good luck!:goodvibes

06-27-2009, 04:57 PM
If you close them you will lose your power.

I have always had really good luck getting interest rates and min. payments reduced BUT I don't close the cards.

06-27-2009, 05:03 PM

Non profit place. They have a debt management program as well as classes one can take.

06-29-2009, 07:56 AM
I tried contacting several CC companies to settle and pay off a smaller amount after I got my tax return and they wouldn't do it for me becuase they said you had to be behind on your payments- which I was not. However, 1 card-chase, did offer to lower my rate for a set amount of time-4 or 5 years- in which the card would be completely paid off. But they did close the account as part of the agreement. If she is behind they will be more willing to work with her then if she is current. If she tells them of her plans for bankruptcy they will try to work something out in order to at least get more back then if they went through the courts. And know that they will settle for a lower amount. My hubby worked collections and said there is always a minimum they will accept but of course they always try to get as much as possible first before offering you the lowest they can take. However the minimum is different for every company and there's no way of knowing what it is- at least none that I know of.

06-29-2009, 10:34 AM
Don't close the accounts or it will affect your credit rating. It is best to leave them open because your credit score is based on the open line of credit against the debt. It's a ratio. I also agree - I wouldn't do anything until the divorce is finalized. It doesn't hurt to contact the credit card companies and tell them the situation tho. They will note it on the account.

06-29-2009, 02:39 PM
From my experience with divorce, it does not matter who the courts award the debt to, both parties will continue to be linked to it unless it is refinanced in only one persons name after the divorce is final. Most lenders that I have worked with do not recognize a divorce decree, as you have already made a legal agreement with the lender and they want to get paid. My husband went through this with his ex wife and finally had to file bancrupcy when she decided to abandon the house that was awarded to her in the divorce. He also filed on a bunch of credit cards that were in her name only but since the debt was incurred during their marriage, he was also held responsable. A very hard lesson was learned by him and it will continue to affect our lives for a long time. I would have your friend talk to her lawyer about all of her options before the divorce is final, as she may have to disclose if she is filing bancrupcy to the ex spouse.

06-29-2009, 03:17 PM
Today I called two different cc companies for my son. Home depot gave him the option of paying up to $550.00 in a lump sum and they would match it. You can pay up to that amount and they will match it. Its only a one time deal. Then he has to make monthly payments to get it paid off. They only dropped the interest rate from 29.99 to 24.99 though. The other card put him on the hardship plan and he has to pay $100.00 a month for 60 months to pay it off. They dropped the interest rate from 24.99 to 15.99. I hoped it would be better but after much begging on my part(I told them I was my dil), this was the best I could do. They want to work with you but they don't want to drop the interest rate.