In Too Much Debt on a Credit Card
State of New York...I have 4 active credit cards, all from separate banks. All are in good standing but one has become unmanageable as far as my ability to pay the minimums (Total debt $15,600...minimum payments $400 mo). The other three combined total min. payments of $120.
My question is this....I can't pay all four so what would generally happen if I defaulted on the larger debt of the one card and continued payments on the remaining three, and how would it effect my standing with the other cards ? First time poster so apologies if this is in the wrong forum. Any feedback or links appreciated.
Re: In Too Much Debt on a Credit Card
The other cards can lower their limits. They can increase your interest rates for future purchases, but not current purchases. They could cancel your cards, but doubt they would. They want to continue to be paid.
Re: In Too Much Debt on a Credit Card
If you default on $15K I would say it's a fair bet to make that they would come after you, as in formal collection proceedings, simply due to the fact that "they want to continue being paid".
You may wanna do something sensible like discontinue using the cards you have and subscribe to a credit counselling service. $15K on one card and whatever balances on three others may be indicative of a bit of overextension, from which you may need some assistance getting out from under.
Re: In Too Much Debt on a Credit Card
Thank you for you replies gentlemen. Pretty much what common sense would dictate I guess.