Welcome to General Chat - GAW Community Area
This General Chat area started off as a place for people to talk about things that are off topic, however it has quickly evolved into a community and has become an integral part of the GAW experience for many of us.
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Rules for General Chat
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What usually happens when you stop paying a credit card due to lack of funds?
I've heard that American Express can be very aggressive, but I don't know in what way.
I've never had to skip out on a payment before.
I wouldn’t knowingly destroy my credit by just not paying. Trim what you can, see if any accounts can work on lowering a payment or interest, etc. If you’ll be seeking bankruptcy you should get that ball rolling so you can start gathering all the paperwork needed.
First month, late payment notice by email and likely no phone calls or stamped mail Second month, automated friendly phone calls every two weeks or so Three months, online statements suspended, forced switch to mail statements Four months, this is where they possibly charge off, fifth month is for sure
Now once it is charged off it kind of floats around for about a month or two
Then a collector buys the account pennies on the dollar.
They are the one who actually are aggressive. Multiple phone calls, constant mail, calling other numbers looking for you because that is how they make money. It is pure profit minus labor and mail costs
At this point, make them dance around, and if you actually care about credit, settle the balance for less than what you "owed" and make "pay to delete" part of the deal or you won't pay them
remember, all our current finance system is fake. when amex charges off, insurance takes care of most of the debt, when you pay a collector none of it goes to original lender. It was all unsecured debt, but of course banks have no liability thanks to our lovely government
The reason people with "good credit" get so many deals, rewards, etc is because they want to keep those people enslaved, they want to be the processor for all their payments, they want to mine their spending habits and personal data, and they ultimately want to be able to advertise a product that creates a very distinct class division that functions as a way of manipulating consumer perceptions as well as aspirations
God I am ready for Q to get it done.
They will threaten a lot of things, but ultimately the biggest threat (and the only real action) is "Charge Off"
When they declare Charge Off, they are putting an entry in your credit file that the debt is unlikely to be ever collected.
At this point, your credit history is pretty much ruined and you will have a very hard time getting another credit card, or, depending on the amount and previous history, even be able to rent or open a bank account.
OTOH, if you claim bankruptcy, you can easily get a credit card very soon after that.
Thank you for chiming in bubble_bursts. I am finding out that I should've filed for chapter 7 bankruptcy a long time ago. Do think if I start the bankruptcy proceedings after being in a "Charge Off" status that it will still help me clear up my credit rating eventually?
But remember that if you leave your credit rating alone - as in no inquries nothing for a few years, it will get reset automatically. Some one else mentioned 4-7 years which sounds right
They can probably fight you in the bankruptcy court. But really sure if it's worth their effort or if something like that would be their standard procedure.
Honestly, you gotta consult a good lawyer before taking that step.
Most states have 4 to 7 year statute of limitation where they roll off your credit report leaving you with new credit
I would love a world where everyone stopped paying, the banks would be crushed over night
I have several cards I stopped paying on during Covid. After Covid, they wanted to reinstate the payments, at that time we had the summer of love and Bank Of America and others donated billions to BLM. When I got the phone call, I asked them if I am being recorded, because they always do… And I said well listen up. If you want my payments for my credit card, you can contact BLM! Because your financial institutions donated billions of dollars. You will never see one dime from me ever again.
Since I’m on Social Security, they cannot attach my wages, also I still get text messages and letters in the mail, but they’re already from collection agencies. One has already charged off last year. I think there’s two more. I’m holding out. 🤷♀️
That being said… Credit is only worth what you need it for. My car is paid for, and our family home is in a trust. I pay cash for anything that I need.
When they had that breach of personal data recently, my mom looked my name up, and I was one of the people who was preached. We laughed out loud… I think my credit rating is 500. So if they try to apply for a credit card in my name, the answer would be. NO - request rejected.! 😂😂😂
Well played, Ma’am, well played 👏👏