CC companies, collections and judgements

iVillage Member
Registered: 01-02-2008
CC companies, collections and judgements
4
Thu, 02-09-2012 - 10:21am

Do all credit card companies put one in collections or judgements

iVillage Member
Registered: 10-06-2006
Fri, 02-10-2012 - 3:22pm
If they are just small amounts, why not pay what you owe? Or are people who honor their obligations just hopelessly unhip?
iVillage Member
Registered: 03-17-2003
Mon, 02-13-2012 - 2:07pm

Hello freeatlast2008.

I'm not sure there is a rule of thumb in this area.

iVillage Member
Registered: 12-31-2010
Tue, 04-24-2012 - 9:46am
Carolyn -
A charged off debt is not necessarily reported as income the following year, charged off just means they moved it off their active books, they still will probably take it to collections and try to get some of the money there.
No it is not cool to not pay your debts, but if you can't, then you have to cover your four walls first - food, roof over your head, medical needs, transportation to a job.
If you stop paying a credit card they will call at first, send letters, then may charge it off and things get quiet for you. This might be a time to call them to try to settle the account for 30-50% of what you owe. I have seen a lot of folks do well with this tactic, but it does not help their credit score that much.
You will have to then pay taxes on settled amounts over $800.
If you can't pay, these are options that are pretty good.
-Marie
#Marie
iVillage Member
Registered: 01-02-2008
Wed, 04-25-2012 - 11:14am

thank you for the info but I am in dire straits.. right now.

I was in collections for one card and I tried to settle but collections wouldnt take it. I didnt hear anything for a few months and now HSBC sold my account to another collections.. Now it went up and I am freaking out.. I now have to call again and going to try to settle again but I am so nervous they wont do it.. and it will eat up money I live on.. I also had a fraudulent charge and I spoke to HSBC , I wrote letters and I kept at it for months and they stupidly did not take off the charge. They sai dthey would and I have all of the paperwork to back it up and they didnt do it. I am furious with that.

I am kinda homeless right now with no job but always applying and looking.. Not homeless in that I am in the street but living where I will be asked to leave very soon and then have to go back with family which is also a very toxic situation.

Oh; well. I made mistakes and now I suffer.

thank you