Subject: Credit Card Default
Question: I lost my job due to poor health and have not paid on my credit cards since 9/30/2004 I sent letters asking them to take 25.00 or 50.00 and to waive the penalties and interest, but none contact me. I received all kinds of letters and phone calls. One of the credit card companies is taking me in front of the District Magistrate. I owed 3900.00 and now they want 5500.00. I can not pay. I have no job and the only thing I own is a 2000 Mercury. What do I do?
Answer: Thank you for contacting me about your problem. Apparently the first problem you are asking help with is what to do about all those phone calls. That is easy. All you need to do is go to http://www.creditwrench.com/18questions.html and copy down the list of 18 questions to ask debt collectors every time they call. You should also listen to the audio recordings on that web page so you learn how to handle such calls in a sufficiently aggressive manner as to cause them to spend as much of their time as possible each time they call. The reason for this is that debt collectors work on a commission basis and if they spend too much time on calls that produce no income for the company they get no bonus check and as soon as they realize that they are getting absolutely nowhere bothering you they will move on to other more profitable contacts. This usually takes about 3 or 4 calls before they wake up and quit bothering you. Your second question also tells you what will eventually happen if you don't pay them. So now you are worried about what they might be able to do to you. If you have lost your job due to poor health and have no income that is one thing but if you are also on SSI they cannot garnish your SSI checks or any kind of government pension. The first thing I would recommend that you do is to call up the plaintiff's attorney and explain your situation to them. Maybe they will decide to drop the lawsuit since they can't get any money from you anyway. Tell them exactly what your health problems are so they can get an idea as to whether or not you are likely to recover any time soon and be able to go back to work or whether you are likely to be permanently disabled. They won't go after your Mercury because it isn't worth anything to them and they can't take your only vehicle in most states. Regardless of what they decide to do in regards to the summons you should respond to it. You can do that without a lawyer. If you would like some help with preparing your response you should visit my web site at http://www.creditwrench.com and my message forum at http://consumers.creditwrench.com or you can also call me at 405-616-7901