Does anyone else know if you accept a payment plan?

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improvent363
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Does anyone else know if you accept a payment plan?

Postby improvent363 » Thu May 23, 2013 6:25 pm

I have credit card debt that I cannot pay and I received a letter from my credit card company asking that they might agree on a payment plan suitable for me, otherwise they might take legal action against me and get an attorney to obtain a judgement against me.

So, if they accept a monthly payment plan to my liking, and I pay each month, do other credit card companies and collection agencies (because I have few more credit card debt that are handed to the collection agencies) find out about this by checking my credit card profile (if that's possible for them)?


im_mr_awesome
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Postby im_mr_awesome » Thu May 23, 2013 7:10 pm

This depends entirely on *HOW* the credit card company is collecting the debt. If they turn you over to a collection agency, then yes, it will be reported to the credit bureaus and your other credit card companies will find out about it. Some won't take any action, while others will reduce your credit limit as a means of protecting themselves. If the credit card company you have the debt with collects it themselves on a payment plan, you will likely just have an over-limit notice placed on your credit profile, or at the worst, delinquent. If you pay it according to the terms they offer and re-establish a positive relationship with the creditor, you might be able to get them to forgive the negative report.
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improvent363
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Postby improvent363 » Thu May 23, 2013 7:34 pm

im_mr_awesome wrote: If the credit card company you have the debt with collects it themselves on a payment plan, you will likely just have an over-limit notice placed on your credit profile, or at the worst, delinquent. If you pay it according to the terms they offer and re-establish a positive relationship with the creditor, you might be able to get them to forgive the negative report.


how do you know that? from experience?

im_mr_awesome
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Postby im_mr_awesome » Thu May 23, 2013 8:34 pm

Not from direct experience, but my parents had a collection or two over the years. They stopped paying on a Cap1 card for whatever reason and Cap1 arranged a payment plan similar to what you're describing. Nothing negative ever showed up on their credit reports. Unless there was some weird legal voodoo I don't know about.
Scores on the mend...
FICO: 650 (Discover/TU, 6/23/2016)
Cards I Use Citi Double Cash, Chase Amazon, Capital One QuickSilver
Sock Drawer Discover IT, Citi Diamond Preferred, AE Visa, QuickSilver One, Walmart CC, CareCredit, CreditOne (keeping for history for now)
Short Goal Reach 680

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FastSRT8
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Postby FastSRT8 » Thu May 23, 2013 9:08 pm

Thanks Mr awesome for the insightful info.
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