Reply #86: from a collector's standpoint

[LittleFoot]

I know I'm new to DU but felt like I really needed to reply to this post. I've worked in collections for over 20 years, so let me tell you what happens. We call, yes, we send dunning letters, yes. We do report you to the credit bureau, yes. Garnish wages, absolutely. You know those advertisements you see on TV talking about your credit score? When we report you to the credit bureau, it lowers your credit score. While that may not seem like a problem right now, think of this. When you go to buy a house, a car, furniture, anything you may need to secure a loan for, when they run a credit check your non-payment of your credit cards will come back to haunt you, because the companies will consider you a high risk. They may deny your loan or give you such a high interest rate you may never be able to pay it off. I've worked in both private sector and government. Currently working for the government and we definitely have a lot more bite when it comes to non payment, such as seizing your bank accounts, property liens. Try purchasing a home with a tax lien on file (which by the way becomes a matter of public record) meaning anyone can find out and in some areas when tax liens are filed they're published in the newspaper, which can cause you embarassment. My recommendation is to contact your credit card companies, most want their money and are willing to work out some sort of payment plan, however one of the conditions to the payment plan is that you cease using your credit card. If you talk to some yahoo that says sorry that can't be done, ask to speak to a supervisor. Believe me when I say I've worked out enough pay arrangements to know that it can be done. Companies don't want to lose money. But bear in mind that when you're taking this time to pay off your debt the interest continues to add up. If you have credit cards with a high interest rate on them, look into a credit card that offers balance transfers from other credit cards for a lower interest rate. Sometimes this will lower your payment enough so you can make it. Credit counseling is also a good idea. You really don't want or need a bad credit tag on your name. And one last thought, when you apply for a job a lot of companies now are pulling credit reports to see how responsible you are. Just food for thought...