Information ABout Credit Counseling for Just One Bill - The Bills.com Blog

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Information ABout Credit Counseling for Just One Bill

Question: I have a credit card bill that is 81 days past due. My last statement had a high minimum balance of $880 that was due on March 18, 2008. I tried to pay $900 on March 17, 2008 and they told me I was reported to collections. Can they do that? Also, is it possible to recieve credit counseling/refinancing for one bill. Because they reported me to collections,I owe over $6000 with collections fees and such. They want all of it at once and have already threatened garnishment. I can pay all my other bills but not the $6000. All this has happened within the last two days. Any suggestions?

Answer: Creditors can send an account to collection any time after a default occurs on the account. It will be difficult for you to enroll into credit counseling with just one account because i) credit counseling firms usually require that all of your unsecured debt accounts be enrolled into the program, & ii) the account is already in collections status. It is unfortunate that the creditor has sent your account to collections, and it is a common practice for them to ask for all of their money back once an account is in collections.

Do not panic.

Just because they are threatening you with garnishment does not mean that they can automatically get one. It is common for a creditor or collection agency to threaten to attach your wages or property. This cannot be done unless the creditor first brings a lawsuit and wins in court. If you receive any legal papers, contact a lawyer immediately. Even if the creditor wins a lawsuit against you, your wages can’t be attached if you faithfully pay on time the weekly amount ordered by the court or if you have very low wages. If the amount ordered is too high, you can try to have it reduced.

You will have ample opportunity to make payment arrangements before the case even goes to court. Find out who the collection agency is and speak to them directly to work out a payment arrangement with them.

Do not let the creditor pressure you into saying that you will pay more than you can afford. Making a promise that you can’t keep will only lead to more trouble once the creditor discovers that you can’t pay what you have promised. Send only what you can afford each week, even if the creditor says it’s too little. Once more time passes, you may be able to negotiate a lower settlement on the account. Be sure to keep all records of your arrangement. Ask for all agreements to be put on paper and file everything. For more information on debt relief options, please visit our Debt Relief Options page.

I hope the information provided helps you Find. Learn. Save.

Best,
Bill
www.bills.com/blog

Also, make sure to get a free financial health check-up with Bills IQ!

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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!

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