Need Credit Card Advice for Senior Citizen

[playahaitian]

Need Credit Card Advice for Senior Citizen

I volunteer a lot and need some Credit Card advice for a 76 year old senior citizen. He’s a retired cop and lives on a fixed income (pension and social security). He got caught up and a little confused and starting using a Capital One credit card to pay for his medication but went over the limit and now owes something like $3,250. I called them on his behalf and was able to convince them to not charge any overage fees or interest on the account if he agrees to pay $100 a month. Problem is the 100 is starting to hurt his finances.

What should I tell him?

What would happen if he just stops paying them?

Thanks for the help.

 

[stickmanX]

that dude is damn near 80 if that was me i wouldnt give two fucks what a credit card company said as a matter of face id get more credit cards and max them shits out to fuck it go out with a bang

 

[draysmith]

Depending on his assets, (namely a real estate), the credit card company's primary resolution would be to post derogatory info on his credit, and/or make a host of threats to sue, and nag him with collostion calls. Genarally speaking, it takes about 6 months from the first missed payment to get to the lawsuit phase. But, with such a small amount, (under $5,000) it's likely that the credit card company will just sell the debt from one collection company to another, until the end of time!

In the case of effecting his credit, your friend should be reminded that often times a missed payment on one credit card can cause a "universal default" of his other credit cards, (meaning the interest rates of the other cards can be raised, and the credit limits can be lowered). It's bogus, but they will pull it!

A Possible Solution.

Explain to the credit card that you are unable to pay the balance and negotiate a lowered balance to pay off the card, entirely. Expalin that if you can't get the balance lowered you might have to consider filing bankruptcy to eliminate the debt. Most often, a credit card company will lower the debt dramatically, rather than risk the possibility of losing the entire balance to bankruptcy.

Once you get the lowered balance, he could apply for a new card, (one with 0% balance transfers), and pay of the entire balance by transfering the debt from one credit card to the other. Because their would be 0% interest on the tranfer, he would have a lower monthly payment due - far lower than what he's required to pay now, and likely have more credit available to continue to make other purchases, as needed.

Ofcourse, this scenario depends on your friends present credit situation.

 

[Disanddat]

that dude is damn near 80 if that was me i wouldnt give two fucks what a credit card company said as a matter of face id get more credit cards and max them shits out to fuck it go out with a bang