sublimehusker wrote:I mean just cutting up the card and telling the credit card company you no longer want the card and want to just pay your bill off on a monthly basis. Are you still obligated to pay an overlimit fee along with the balance and interest?
If you are exceeding your credit limit they won't normally let you close the card. If you are below your credit limit you can close out your account and you will be required to pay the remaining balance on the terms you currently have - the same interest rate and the same monthly payments. The overlimit fees won't apply since you will be below your credit limit.
If you are over your credit limit what seems to happen is the account will be eventually be charged off after a few months to collections which is not good. I think your best options would be to get the balance below the credit limit. It sounds like you already probably have the highest possible interest rate, so I don't see the point in locking that APR in. I would get the balance below the credit limit, cut up the card, and make regular monthly payments for the minimum due. It's not the ideal solution and will take a long time to pay off but that is still better than a chargeoff.
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