I earn 85K clear of tax per year, I have a total of 95K in unsecured credit card debt, I am single and cover the expenses of my mother with a disabilty and she lives with me.
My mother had an American Express charge card for 32 years, she made a few late payments recently so Amex cancelled her membership, a month later they cancelled my membership and when I asked why they said its because someone at your address had their membership cancelled so all members of the same address have been cancelled even though our accounts are seperate and not a sub account.
I owe Amex 16K credit card, 3k line of credit and 11K charge card balance, total 30K. My salary is not fixed, I am a travel agent and earn commisions only, travel sales are well down and my salary has fallen 30%. I went to see a financial counsellor who requested to Amex if I can pay them $600 per month until my salary goes back up and they said no, I then asked if I could pay 5K on the charge card as full and final payment and again no.
My normal minimum monthly payment on the credit card was $350 and the line of credit $65, now that these accounts are closed they want $900 on the credit card per month and $130 on the line of credit. They made a payment plan on the charge card of $4000 end of July, $3500 end of August and $3500 end of September and this is non negotiable, I told them I am currently bringing in $5k per month, my monthly expenses are, rent 2K, credit cards (not including Amex) 2K, food/electricty/telephone and transport $600. Amex has said its not their problem and if I do not come up with the money then I am going to be sued.
At this stage if my salary does not go down any further I can make all the monthly payments and in the next few months when sales get better I will be able to pay Amex more money quicker. To date I paid them $1600 in July and intend to pay $1200 in August and so on but they are still not satisfied and I am hounded with their letters, phone calls and demands to get money from friends/family, borrow or any other means.
I have zero assets and I have supplied Amex with a statement of position but nothing helps.
I am so worried that they will take me to court, increase my current amount owed with solicitor fees and possibly garnish my wages.
Do you have any advice on what I can do, if Amex gives me the time I can pay out the charge card in 8months and the credit card in 24months. I must stress that Amex refuses anything less then the payment plan they have made for me which for the Credit Card and Line of Credit is 300% more then the minimum I paid before the accounts closed.
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The AnswerAmerican Express Cancelled My Card With Them Because My Mom Defaulted on Hers After 32 Years. - Carl by Steve Rhode