I have a BOA American Express card that was originally about $500.00 – I’ve paid every month and for the past 4 years made no new purchases. Interest rate is 25.99% and with all the monthly late fees / interest rate my balance is almost $2k. I’m falling further into debt with this one card and it has ruined my chances of getting a home.
Should I quit paying and deal with a collection agency instead? Bank won’t even give me a full accounting of my card unless I pay $5 per page after the first 5 pages. I think it is shameful that I can pay monthly for 4 years and they won’t help me get rid of this card. I offered to pay $600 to clear it – but they just laugh because I’m paying monthly between $35 and $50.
Should I quit paying and deal with a debt collector instead?
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Boy, it sounds like Bank of America really screwed you over on this one. You started with a $500 balance and now you owe over $2,000 even with making monthly payments.
You have several options worth considering.
First, it is valid to let the debt go to an outside debt collection agency. They are often known to be much more willing to deal on charged off or otherwise uncollected debts. However, this approach also increases your chances that you might get sued along the way.
The second and probably more valid approach would be to enter a debt management program. BoA typically will reduce your interest rate to around 7% and freeze fees while paying back through a debt management program. Click here for debt management information.
Let me know which path you purse and if you find success that way. If not, I have more suggestions but let’s consider those first.Should I Quit Paying Bank of America For My American Express? - Becky by Steve Rhode