Paying 10.00 a month on credit cards?

[inpain66]

Someone posted here that they just paid 10.00 a month on their credit cards when they could no longer pay the min payment.


Does this work? Does it keep creditors at bay for a while??

Help!!

[BassBoy]

It could help your situation. In some cases, lenders may accept a minimum payment like this. In my opinion, it's a benefit to the creditor and the debtor to work out an agreement, rather than go through the expense of collections, lawsuits and etc.

Keep in mind that when a debtor is struggling, it's always best to keep in contact with their creditors. As I said, some lenders may agree to workouts. Your CC's may be frozen, but hey, you worked out a way to relieve your debt, which is a huge weight off anyone's shoulders.

[HHM]

Doing so voluntarily without consent of the creditor, i.e. just sending $10 per month and "hoping" they don't do anything is pointless. A default is a default. If you pay less than the required minimum payment, you are in default and the CC can use whatever remedy is available to it.

[magyar123]

Someone posted here that they just paid 10.00 a month on their credit cards when they could no longer pay the min payment.


Does this work? Does it keep creditors at bay for a while

Help!!

That someone was me. Did that in 2004. Had several credit cards near their limits. By February 2004 I could no longer afford the minimum payments. While no one ever called I received letters offering "working something out".
I ignored those - and sent them each only $10. By June their letters became more threatening, and so decided to get with a bankruptcy attorney.
Don't know if this would work now - in 2008.