Question:
Dear Steve,
I owe a lot of cc debt but have never missed or been late. I’m probably their most profitable client!
I’ve asked for reduced rates, but been declined, leaving me few alternatives. Why would an issuer rather force me into bankruptcy rather than offering this relief?
Karen
Answer:
Dear Karen,
Yes.
Logic and creditors don’t always go together. Processes, policies, and creditors do.
The people you are talking to while you are current on your accounts do not have the policies or programs available to them as if you provide you were struggling to pay your bills.
If you can afford to make the regular payment and just want reduced interest rates then contacting a non-profit credit counseling agency would be the ticket. They can enroll you and get your rates reduced. Your cards will be closed.
But I’m curious if there is something going on that is causing to carry a balance. There feels like there is more to this story.
There are a couple of things to remember about the person you are talking to at the credit card company.
1. It’s not their money. They are being paid to show up at work, roll out the policies they’ve been given, and go home.
2. I once had a national collection manager at a credit card company tell me she liked it when people filed bankruptcy because it didn’t count towards her collection statistics. While I sat in her office she must have told four people on the phone to file bankruptcy.
And here is something you will never hear from a creditor, repaying your debt might be the worst financial move you can make. If your creditor took you up on your offer and that caused you to lost a million dollars you would have had at retirement, would you do that?
So who is really looking out for your best interests to make sure you are making a smart move in dealing with your debt?
Before you leap to do any particular thing to resolve your debt you first have to deal with the underlying issue that got you here in the first place. You also need to talk to someone who can evaluate your situation and give you a customized plan to get you where you are trying to go.
The two best debt coaches I know are friends of mine. I don’t think there is anyone better as a debt coach than Damon Day and Michael Bovee.
Get a plan first from a knowledgeable professional and don’t just wander around with assumptions.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Do you have a question you'd like to ask me for free? Go ahead and click here.
- Litigation Practice Group Lawsuit by Business Partner All Service Financial – We Want Our Money - January 24, 2023
- HomeAdvisor and Angi to Pay Up To $7.2 Million and Stop Deceptively Marketing its Leads for Home Improvement Projects - January 23, 2023
- FTC Order Requires LasikPlus to Pay for its Bait-and-Switch Eye Surgery Ads - January 20, 2023
Question asked.
I answered your question.