I recently lost my job and was wondering if that could help me negotiate a settlement with my credit card companies? Any sample letters or advice would be greatly appreciated.
Can you give us some more information? Are you already delinquent? Have you pulled your credit reports to determine where's the best place to start this process? You'll want to first determine if you're dealing with original creditors or collection agencies.
No I am not delinquent. All of my accounts are in good standing but I figured since I am unemployed they would worry that I would become delinquent and offer me a settlement. What effect would doing this have on my other credit cards and my credit score? I have worked hard in getting my credit repaired I am sure I can repair it again but I would prefer to acoid the damage if possible.
I wouldn't be worrying about anything except getting a new job. I would immediately put all my cards in the sock drawer and not use them again for any reason until I was back to work and getting a steady income once again. Above all, don't make the same mistake so many people did during Katrina. They not only used their cards to get them out of harm's way but they also used them to tide them over when they got to their new destination. When they got there they had all kinds of expenses and used their cards to tide them over. The storm put them in a bad shape but they continued to make things worse by charging on their credit cards with no way to repay. Then they ran out of credit and their problems really started hitting them. No jobs and lots of debt. Don't do that above all. As far as educating the credit card companies about your current plight goes, I say never educate the other fellow. Just get a job and go on because any adverse information you provide will only be used against you and your best interests. If you default then don't use your loss of work as your excuse. In fact, in that kind of situation I wouldn't provide any excuses at all. Just say you don't have the funds right now and let it go at that. Making excuses helps nobody since all they want to know is when they are going to get their next payment. I think the most important things are (1.) Get a new job as soon as possible and (2.) Don't dig your hole any deeper.
Bill, Thanks for your advice but I guessI worded my question incorrectly. Reworded Question: I want to get a settlement from my credit card company and I wanted to know if not having a job would give me more bargaining power. If this is not the case then can I please get some tips on what actions (other than delinquency) would give me more bargaining power? Thank you
I have a sneaky suspicion that you have about as much bargaining power as a lamb would have arguing with two wolves about what they will have for supper. (LOL). The only bargaining power you have is that which they are willing to give you. Any thought to the contrary is simply unrealistic. If you have the cash you might get them to settle for a little less but without the greenbacks you can't expect much. If they agree to accept less it is usually on the basis that you pay them full cash immediately. Of course, if you have the cash and can pay the lessened amount then they will reward you with a nice hit on your credit reports which says, settled for less and how good do you think that is going to look on your credit reports? In your present situation now is not the time to be worried about your credit reports. Now is the time to worry about how you are going to keep current. There are several ways to do that. (1.)Go find a job (2.)Borrow the money and dig your hole a bunch deeper. (3.) Rob a bank. (4.)Rob some convenience stores. (5.)Become a purse snatcher (6.)Dig a deep hole, crawl into it and pull it in after you(7.)Get a job. (8.)Get two jobs (9.)Get a big piece of cardboard and a black marker pen and make a sign which says Broke and Homeless. Please help. God Bless Then grow a long beard and don't cut your hair for a long, long time. Get a wheel chair and go sit on some busy street corner all day holding the sign for all the passersby to see. None of the above? Oh well, you asked for some suggestions. (LOL).
I agree - losing your job doesn't give you any more bargaining power. You need to dedicate all your time and energy to keeping current and finding a new job.
Thanks guys I'm not sure what gave you the impression that I was worried about finding another job that is the least of my worries. I just wanted to see if was in my best interest to negotiate the terms with my creditors before accepting a new offer. But thanks for your input!
What is in your best interests is to pay whatever you owe in the shortest possible time but as a bare minimum keep your payments current. It is not in your best interests to ask them for anything including their money. In reality, the only reason to use someone elses money is if it is going to profit you somehow. Convenience may be useful but if it isn't also good business then I say just use your own money, not the other fellow's plastic.
