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  1. #1
    Join Date
    Oct 2012
    Posts
    1

    Lightbulb How Can I Avoid Paying Credit Card Balance if Don't Have Big Bank Balance

    My question involves collection proceedings in the State of: California

    Hello
    I am out of job for last 9 months & not sure when I will get one. My bank balance is 12K but I have a credit card balance of 5K. One card is from same bank but other from a different one. Every month I am paying only the minimum due balance on credit cards and also interest (since I am not paying in full)

    a. Can this situation qualify for debt settlement of 5K ?. If yes what should I do ?
    b. Is there any way I can avoid paying interest charges or ask credit company to reduce my balance if I am ready to pay it in full (usually I don't think they do)
    c. If I stop paying even the minimum amount due, will it go to Collections ?.
    d. What is out of scope for Collection agencies ?. I think they can look into or get the money from my bank account but what if I transfer my balance to my spouse's account. Only her name is there on the other account, though it was opened based on my credit score, as my spouse also doesn't work. She is disable & her disability only is supporting expenses of both. Can collection agencies also poke into her account and try to ask or get money from that one
    e. Making the situation worse, my wife is considering to get divorce from me. Can the above scenario be still valid ?
    ....Lots of thanks

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: How Can I Avoid Paying Credit Card Balance if Don't Have Big Bank Balance

    a. Can this situation qualify for debt settlement of 5K ?. If yes what should I do ?
    you can ask them. They aren't obligated to agree to anything other than what your contract requires.


    b. Is there any way I can avoid paying interest charges or ask credit company to reduce my balance if I am ready to pay it in full (usually I don't think they do)
    a phone usually works if you want to ask them. If you don't have one, try a letter or email.


    c. If I stop paying even the minimum amount due, will it go to Collections ?.
    it is up to the creditor.

    d. What is out of scope for Collection agencies ?. I think they can look into or get the money from my bank account but what if I transfer my balance to my spouse's account. Only her name is there on the other account, though it was opened based on my credit score, as my spouse also doesn't work. She is disable & her disability only is supporting expenses of both. Can collection agencies also poke into her account and try to ask or get money from that one
    they would first have to sue you and obtain a judgment. Then, since you are in California, you will be thrilled to hear that due to California being a community property state, what is yours is also your spouses, including debt.

    e. Making the situation worse, my wife is considering to get divorce from me. Can the above scenario be still valid ?
    I guess that means you won't have to worry about them being able to attach her account then.

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