making less-than-mininum-payments?

[hnhlvr]

My husband and I quite a bit and he has defaulted (one month behind on two out of four loans), but I have not, but eventually will. My question is would it make any difference if him and I were to begin making less-than-minimum payments? Say we send $15 per month on a $200 a month payment on ALL of the credit cards we owe on. Will there be any advantage to us? Will we have any consumer rights protected as a result of doing that (as in avoiding collections or as much harrasment or threats)?

[Flamingo]

If you make less than the minimum payment stated on your monthly bill you are in breach of contract. Pull out the information (brochures, fine print, etc.) when you took on the credit card or loan and it will give you all the information you wanted to know and more about what they will do with that payment and your account.

[justplaintired]

I am no expert here but there is no sense in making any payment if your not going to make a full payment. It won't save you. If you can not make those min payments then you are in trouble. We couldn't anymore so here we are.

Your interest rates will grow because those small payments will not stop you from being considered late which is exactly what they want so they can stick you with some huge interest rate.

[hnhlvr]

A friend suggested that paying at least $15-20 a month per card would keep the banks from sueing me (as paying a bit would prove I was making "an attempt" to pay off my loan v. not paying at all). So I guess there is no point then if I'd be breaching the contract?

Okay, thanks for your input.

[lrprn]

A friend suggested that paying at least $15-20 a month per card would keep the banks from sueing me (as paying a bit would prove I was making "an attempt" to pay off my loan v. not paying at all).

Your friend is not well informed on how creditors treat partial payments. It's a full payment or no payment. Partial payments will not prevent you from being sued.

So I guess there is no point then if I'd be breaching the contract?

That's right. Save your hard-earned cash and instead purchase clothes, more food, or save it to pay a lawyer to file.

[Flamingo]

A friend suggested that paying at least $15-20 a month per card would keep the banks from sueing me (as paying a bit would prove I was making "an attempt" to pay off my loan v. not paying at all). So I guess there is no point then if I'd be breaching the contract?

Okay, thanks for your input.

The only way something like that would work is if you had an agreement with your creditor to pay lower payments. By you voluntarily doing so, you have breached the contract you signed with the creditor by not making the required monthly minimum payment in full. Therefore, they can take action against you. Hopefully you kept the information provided to you when you signed your cards/loans. Everything is listed in that information but, unfortunately, most people never read it or toss it out.

[Lajazz947]

Absolutely right on all counts.

I was making some small payments show good faith and they were money down the drain.

Just keep your money for other items.