Charge Off

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Joined: Sun Jun 22, 2014 3:19 pm
Location: Morton Grove Illinois

Charge Off

Postby Hair » Sun Jun 22, 2014 3:26 pm

I opened a small business recently and had to use my credit cards more than I had. While I'm paying the minimum on all of them, one company, Commerce Bank, is demanding I pay approximately $400 a month with 25% interest! I've tried talking to them and explaining that I'm doing my best to pay at least something every month and hope to be able to do more in a few months or so. Until a year ago I had a phenomenal credit rating, so I do have a proven track record. Unfortunately Commerce refuses to work with me to implement a plan I can afford right now.

Any suggestions?


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Postby takeshi » Sun Jun 22, 2014 8:05 pm

Can't really offer suggestions for dealing with Commerce Bank but prolonged high utilization (keep in mind that 30% is the generally recommended max) can lead to adverse action so you'll need to reduce your utilization. If your creditors start closing accounts or balance chasing then you'll end up in a spiral that you will have difficult getting out of.

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Postby randeman » Sun Jun 22, 2014 8:15 pm

As far as the interest is concerned, if that wasn't you're rate before your crisis hit, you should know that most creditors reserve the right to hit you with a higher rate if you're so much as a month late. And that can keep it there. As far as your payment goes, if that wasn't the minimum you would have to pay based on your balance to begin with, that may be something that particular bank requires if you miss some payments. I am pretty sure that would be outlined in your contract with them when you got the card. I'd research to see if they had that requirement since you signed up for the card. If that is the standard minimum payment for your balance, you're kind of stuck.

Either way, once they charge off, it's pretty much all she wrote. Your score will likely take a 40-60 point hit and the charge-off will stay on your report for seven years. My sympathies and good luck.
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Postby rockyrock » Mon Jun 23, 2014 8:38 am

Are you able to do a BT or consolidation loan? You can always go to a credit counseling agency, they may have better luck negotiating with them.

Good luck.
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