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Thread: Credit cards.....what to expect. (Long)

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    Veteran Member dishis's Avatar
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    Default Credit cards.....what to expect. (Long)

    I was downsized several months ago. I am on unemployment and I found a part time job that mainly just gets me out of the house the pay is very low. I have cut back all I can and I still come a couple hundred dollars a month short.

    As a result I am between 30-60 past due on my two credit cards. On both cards I owe about $2000. I called Chase to see if I could get in a hardship payment plan, but I was turned down because I have more expenses than income and I could not promise I could pay any specific on amount by the next payment date.

    My other card lowered my interest rates took off late charges and lowered my minium payment, but I still don't know that I will be able to pay it on time. I have never been late before for any bill and I feel like a real deadbeat.

    So what should I expect next ? Will I get sued ? how long will it take ? I live in a state that does not allow wages to be garnished for cc debt, but work in another state that websites says

    http://www.nclabor.com/wh/fact%20she...rnishments.htm


    Under North Carolina law, an employer may be ordered to withhold wages from an employee and pay them to a creditor for the following types of debts: taxes, student loans, child support, alimony, and payment of ambulance services in certain North Carolina counties. However, the courts of North Carolina are not permitted to order an employer to withhold wages for other types of debts such as car loans, credit card debt, and other personal debt items. While the North Carolina courts are not permitted to garnish wages based on these debts, creditors in other states may be able to get an order of garnishment under their own states’ laws. It is not a violation of the North Carolina Wage and Hour Act for an employer to withhold an employee’s wages if required to do so by law. If a court from another state issues a valid order under that state’s laws requiring an employer to withhold a North Carolina employee’s wages for payment of a debt, the employer does not violate the North Carolina Wage and Hour Act by obeying that order.

    So I assume if I can not work something out and continue to work in NC I will at some point have my wages garnished and I know I can forget about getting any credit for about the next five to seven years
    “If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand”

    Milton Friedman

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    Banned Melonie's Avatar
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    Default Re: Credit cards.....what to expect. (Long)

    Another variable in the equation is the possible existance of any 'assets' you have. Given that Chase is now following a corporate policy of 'throwing sub-prime credit card customers overboard', if you own a car / bank account / investments / home it's very probable that Chase would eventually move to force you into bankruptcy and recover X percent of the money you owe them 'immediately', as opposed to garnishing your wages and collecting 10% of your paycheck 'forever' ( i.e. the 24% penalty interest rate plus late fees would eat up ~$80 a month without every paying down one dollar of the $3000 principal ).

    Also, if you don't declare bankruptcy or enter into a settlement agreement, there is no 'clock' to reinstate your creditworthiness a few years down the road. In other words, if you find yourself in a 'forever' scenario with a wage garnishment by Chase, your credit rating will remain rotten 'forever'.

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