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Author: NoneTheWiser One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308881  
Subject: helping a friend Date: 8/29/2002 9:24 AM
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I have a question for a co-worker. She is over the limit on all of her cards and her FirstUSA account keeps nailing her with overlimit fees and a 23% interest. She can only make about 200 a month and her min payment goes up every month because of the interest rate.

Any suggestions. I do not think she could get another card right now with a lower rate due to her past payment history.

Lisa
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Author: ishtarastarte Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 137912 of 308881
Subject: Re: helping a friend Date: 8/29/2002 9:40 AM
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I have a question for a co-worker. She is over the limit on all of her cards and her FirstUSA account keeps nailing her with overlimit fees and a 23% interest. She can only make about 200 a month and her min payment goes up every month because of the interest rate.

Any suggestions. I do not think she could get another card right now with a lower rate due to her past payment history.


Man, been there, done that. I didn't handle it well. I stopped paying and let it go into collections. Eventually, they stop adding the fees. BUT, then your card is closed and your credit sucks.

How many months behind is she? Has she actually talked to them? She might try talking to them and trying to get some of the fees reversed and see if they have a hardship program (they will probably close her account to new charges if they do this.)

Ishtar


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Author: naygoo Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 137914 of 308881
Subject: Re: helping a friend Date: 8/29/2002 9:41 AM
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My first question is... Has your friend tried calling FirstUSA and explaining her situation? They may be willing to work with her. That is the very first thing I would try in this situation.

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Author: rah1420 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 137915 of 308881
Subject: Re: helping a friend Date: 8/29/2002 9:53 AM
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Tell her to call customer service. NOW. Ask them to waive the overlimit fees. They may say that they'll do it after two or more ontime payments, or some other conditions. Is she getting late fees?

They may cancel the card, or suspend it. But it's WAY better than going into collections, trust me.

Do some sharp looking at the statement. The only way she'll get below is to find out what the 'minimum' pays and make sure it's higher than the finance charges plus the current payment. Sounds dumb, but lots of people don't do this -- and Sears, for one, is a great one for this. They charge me $45 frigging dollars of interest on the card, and the minimum payment is $30. Yeah, right.

The interest may be lowered after about 6 months of ontime payments but she has to get that card below the limit and the only way to do that is to get them to waive the fees -- or have a windfall from somewhere that she can throw at it.

Trust me on this -- I had 5 overlimit cards, and I called and got them all to cut the overlimit/late fees to zero while I got myself together. I only have one overlimit left, and that SOB is going to get nailed on September 3rd.

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Author: ramsfanray Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 137917 of 308881
Subject: Re: helping a friend Date: 8/29/2002 10:06 AM
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A second job with all earnings going to pay off the card. Once she does that - she can use her last paycheck from the second job to buy a pair of sissors and cut up the card. Then she can quit and enjoy the rest of her life debt free.

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Author: Catleen Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 138083 of 308881
Subject: Re: helping a friend Date: 8/31/2002 9:02 AM
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If I were that friend, I would use this as a giant lesson and stop trying to get another card. Perhaps she can look around the house and find something that she bought but doesn't need and is un-used and return it. I would think she needs to be on a cash budget and learn to stop using the cards at all. Maybe she might think about a part time job with that money going to the card expenses.

Just my opinion.

Catleen

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