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I Can’t Pay GE Money and They Won’t Work With Me. – Bonnie

Written by Steve Rhode

“Dear Steve,

In the last 2 years I underwent divorce and health issues. I am disabled and live on Social Security Disability. I have no other income, nothing of value. I finally was able to get subsidized housing. I took out a “loan” for furniture $1,600. Turned out to be a high interest rate credit card with GE Money.

I was told if I paid it off in 12 months, I would have 0 interest. I had it over half paid for when again, health issues interceded… Now with 34% Interest the balance is almost $2,000. I also took out a $300 credit card from JC Penny which is now also GEjcp… I had to purchase clothing and household items… I had that paid down to half as well… and needless to say… the interest rates in the 34% range, that too, has doubled.

GE refuses to work with me. I have asked if they had a hardship payment plan. They told me they would stop charging me late fee’s of $35.00 per month and credit my accounts for these fee’s yet have not done so.

They have ruined my credit.

I have tried to get a loan from my credit union, area banks, etc so the interest would be lower, there would be no further fee’s, and I would have a lower payment that would be made on time as it would be taken directly from my account each month. No one will issue me a loan because of my credit rating in the 600’s…the late fee’s… the delingquintcy GE has put on my credit report.

I do not know what to do since no one is willing to work with me so I can pay off my debt… and I do want to pay it off… I also want my credit repaired. My income will not be changing, my disabilities will only continue to progress… I need a payment plan that I can financially afford. Your wisdom would be appreciated. Thank You.

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Dear Bonnie,

It seems your life ran into your hard promise to repay. Stuff happens.

I know you expressed a desire to repay but if you anticipate further disability problems you need to start saving all the money you can and stop paying. Otherwise you will put yourself in a worse future financial position.

I really don’t see this as a problem with GE Money. When someone takes out credit they enter into an agreement to make certain minimum payments. That agreement does not make any allowances for unforeseen life events.

GE Money is not required to make any offers besides what is in the agreement. So anything they do offer is a bonus over what you are entitled to.

It seems you have about $2,300 of unsecured debt. Not sure if you might have any more or not. Ideally the best solution is bankruptcy since it would terminate the debt in about 90 days, stop any lawsuits over the debt and stop all future collection attempts. It would give you piece of mind and let you get back to saving as soon as possible.

However, another option would be to do nothing and let the collection calls and efforts continue. Even if the creditor sues you and you have no real assets they will not be able to collect. However, any judgment they receive will sit and earn additional interest and grow.

This approach is a much tougher one mentally. It’s so easy for people to fail prey to the pressure of the collector and make a promise to pay that is just unwise and unaffordable.

At this point we need to focus on the future and not trying to repair the past. You can already see your future is going to be tougher with your advancing disability.

If you come into some money later then you could settle those debts at that time.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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