I only paid 1/3 of my creditcard debt and became debt free!

Philippines
February 19, 2007 10:06am CST
I was indebted to a creditcard company for 29thousand pesos...they sent me a demand letter to pay within 15 days otheerwise ill be civilly sued for non payment of debt...i had no job then hence i cannot pay it instantly when it becomes due...i was lucky that the creditcard company lawyer(a friend of mine)told me that they have a promo...i was just required to pay only 10thousand instead out my 29thousand debt...wow it was a great offer so i grabbed it...i saved abourt 19thousand!did you have an experiece like this?in my opinion it was a good promo dont you think?
14 people like this
47 responses
@Willowlady (10666)
• United States
19 Feb 07
I believe in paying my bills. That seems to cheat the company that extended you credit. Of course they cheat you daily with all that interest. You entered into the agreement and so should pay it all. Not sure what Promo meant. Also if you couldn't pay since no job, where did you get the 10 thousand? Consolidation is a better option.
2 people like this
• Philippines
19 Feb 07
Sory forgot to specify it...my best friend let me borrow some money 9thousand pesos from him with no interest...and to pay him when i have the means to do so...the rest of the amount i got from my savings which only amounts to 4thousand!was lucky then...let me say doubly lucky to have a kind friend like him,not to mention he was rich as well.by the way its hsbc the company.
2 people like this
@Willowlady (10666)
• United States
19 Feb 07
Tis ok, since I was only curious and you allowed me to express my thoughts. I hope things all work out for you!!
@freak369 (4851)
• United States
20 Feb 07
It wasn't a promo, it was a collection agency. They bought the debt for about 25% of the total amount so if they got more than that from you, which they did, they made money on the deal. The credit card company wrote off the debt and showed it as a loss. Check your credit report, I am sure it is listed there are a non-paid debt until you contact them and have everything resolved. Even then, it will still show that it was written off and could mess with your credit rating.
2 people like this
@callarse1 (4793)
• United States
21 Feb 07
Yes, you are right, but I think he lives in Mexico so are there credit reports in every country? I am not sure about the answer, you know. However you do bring up a good point and I am giving you a plus + for your comments. Pablo
@kgwat70 (13398)
• United States
20 Feb 07
I think that there is a catch to this promo if you ask me but if it helps you in the short term then it is a good thing. I would be careful about all the interest or finance charges that you might get from this promo and make sure you read all the fine print in case they pull a fast one on you. We do not have such a deal here though we can get debt consolidation loans that can save us money by transferring our credit card debts to these loans.
• Philippines
20 Feb 07
the promo they gave was to pay only 1/3 of your debt then they will close your account...thats all,then im debt free...i do think it was a good deal...specially so because during that time i had no work..thanks for your reply dear friend...the company was hsbc by the way.
1 person likes this
@slickcut (8141)
• United States
19 Feb 07
Those credit card companies are good at trying to scare the life out of a person,but really all they can do is report you to the local credit bureau..They will very often send you a letter asking you to settle your debt with a big discount...They still come out ahead because most of what they charge is late fees and interest fees and they can add up really fast...Sometimes people can get themselves in trouble with debt, and really they do not do it on purpose,they can be short on funds or lose their job,many things can happen to you,every day brings on its new worries...I am happy for you that you are able to settle this debt and not have to pay so much money..Yes i do think that it is a very good promo,and I am very happy for you....
2 people like this
@kathy77 (7488)
• Australia
19 Feb 07
Wow what a lot of money you owed at that particuloar time, however you were extremely lucky that they had a prmotion and saved a lot of money I would of taken the option that you did as well, we do have a debt company in Australia where you can apply to stop any interest going on your credit card when you are suffering hard ship and this saves a lot of money they do it all the time.
2 people like this
@yanjiaren (9050)
19 Feb 07
not me personally but my sis owed alot of money and ended up paying off two thirds of her debt..so she saved around one third..which wasn't too bad in my opinion..congratulations lol..
2 people like this
@chargoans (940)
• United States
24 Feb 07
I had four credit cards in 2001, lost my job and was uanble to pay them off, so I shredded them and paid them down below the maximums. After paying them down to below the maximum, it left with me with about $100 dollars of available credit. When My unemployment benefits were depleted I called each company (in 2002) and explained my situation. I still had no work, but was actively seeking a job. I was unable to continue my monthly payments. On two of the cars I had been paying $7.95 a month for insurance that woould help me pay the minimum payment monthly. After mountains of paperwork, I was turned down by the insurance company because a) I had not contacted them during the window that was available to me, and b) because my unemployment compensation had been depleted. I was so frustrated. I was paying for insurance that I was assured would make payments for me when I lost my job. And here I am being refused for something that I had paid for! I didn't see that they had an option to actually pay. The insurance was sold to me under the impression that if I lost my job, this would help pay payments! Anyway, I have since watched my credit accounts be closed, then sold to other collection agencies. I have received the frightful lawyer letter offering me a settlement for up to half off the ever-growing amount. I am sorry but for four cards (3 of which only had $100 credit maximum and one with $500 worth of credit), with my current employment situation, they will just have to do without my paying them off. I now owe over $3000 for $800 worth of credit. Since I informed each company of my situation and asked the accounts to be closed, I feel it is unfair that they continue to add interest and other fees to it. When they make the offer, the collection agency is making a killing because they bought my debt for pennies on the dollar and are trying to make me pay them enough so they can make a profit! The way I see it, unless I get a job making what I was when I could afford the cards, then they are just going to have to continue to accumulate their fees. If they are fortunate, I will get a job soon and begin paying them back.
1 person likes this
• United States
24 Feb 07
Thanks for the helpful advice. I no longer have the insurance because when I was denied I canceled it. I had been paying the $7.95/month for over two years. I tried to deal withthe collectors at first, but then when I had absolutely no money to send them due to being unemployed, they all became vicious. I kept a record of one collector's efforts. I hope they try to do some legal stuff against me because with the record of harassing phone calls and vicious remarks made about me by someone who doesn't know me, I really feel that I have a good case. I have thought about contacting my attorney general to see if there is anything I can do against them (the agencies with the rude collectors!), but I haven't yet. Until I obtain employment, there really is no reason for me to stir things up.
1 person likes this
• Philippines
27 Feb 07
its your call friend...just stay cool!ill pray that youll find a good job...remember they cant force you to pay if you have nothing...if they sue you the more that you wont be able to pay...so they have to wait...you have good evidence to pin them damn collectors...peace!
• Canada
19 Feb 07
A friend of mine was in this situation too. He owed about $32,000. He was offered a deal for repayment, I can't remember what the amount was, but he didn't have the money and nobody he knew could lend it to him. Unfortunately, now, 4 years later, he's still struggling to pay them back - all thanks to his ex wife who totally cleaned him out when she left.
1 person likes this
• Philippines
20 Feb 07
thats big money!he was lucky to have a ex wife like that...my debt that time was 29thousand pesos($640)thanks for sharing dear friend!peace!
• India
20 Feb 07
dude. read..!! he was unlucky to have an ex like dat.
• India
20 Feb 07
I am confused withthis story, do you will to say that you have not to pay that amount in future, I think you have to pay rest amount with intrest in future, please say me. If not it is like gambling
1 person likes this
• Philippines
23 Feb 07
yeah,when i paid 10,000 all the other charges interest and some part of my debts where waived...a clean slate i would say.nothing to pay anymore...peace!
@xita00 (24)
20 Feb 07
That is a story out of this place. We hope and pray that the Shylock credit card companies in the UK will borrow a leaf from your country.It will go a long way to help the 3/4 of adult in this country that are indebted to one credit card company or the other. Happy ending for you mate!, Stay out of debt NOW!
• Philippines
23 Feb 07
your damn right friend...ill realy stay out of debt...specially credit cards...heheheh..the banks name was hsbc.
• Philippines
20 Feb 07
Yeah lots of credit cards companies do that. They slash off like half or a third of it because these are just penalties, late charges and finance charges. What they let you pay is only the actual debt you owed the establishments. I owed Citibank like 14k pesos (with the penalties, interests and late charges of course) I can not pay it coz I didn't have job that time,just like you. And then I read their letter again stating about compromises and to call thier number. I called them and they offered me like half price slash off. No choice but to pay it from my savings. It was only last year that decided to get another card, because i am employed again. Yaaaahoo!!!
1 person likes this
• Philippines
20 Feb 07
Yahoooo! to us...well after that incident i realy never wanted to get any creditcard again...but my company gave me one so its still a Yahoooo feeling for me,though now im much carefull in using it...i use it only in emergency situations/or when i have to buy something of necessity and i dont have cash.
@cutepenguin (6457)
• Canada
19 Feb 07
Do you have to pay taxes ont he amount that they wrote off? Because I know here, if you only pay a portion of your debt to settle your account, the company reports it as lost income and the government looks at it as money you received as a gift, so they tax you on it. Otherwise, if you don't have a job, it's great that the company settled with you. I have quite a bit of debt as well, but I don't think the company would settle with me. Also I don't want it to go on my credit report.
1 person likes this
• Philippines
20 Feb 07
All i did was to pay them 10,000,even if my debt was 29,000.i think all they made me pay was the principal amount of my debt and they waived the interests...all i did was to call my lawyer friend then working in that creditcard company bout my problem...and indeed he was a lot of help...thanks for the reply friend!peace!
• India
19 Feb 07
ok thats good i think u shuld go with some more credit card and do the same over thereeeeeeeeeeeee lolololo
1 person likes this
• Philippines
20 Feb 07
I had my problems with credit cards before id rather save my money in the bank than get another creditcard...credit card for me is a no no nowadays.
@mywords18 (647)
• United States
19 Feb 07
hey where are u frm?? how come u got this chnace?? did u declared urself bankcrupt????i must say one thing about ur lawyer frnd " a friend in need is a frnmd in deed".
1 person likes this
• Philippines
20 Feb 07
they had a promo that time...i was just lucky to have availed of it on time...and had a friend inside...well i just told my friend then that i had no work to pay my debt...he gave me some suggestions he inquired at this company then presto! a promo to close ones account is ongoing...but even if there was no promo my friend also suggested to apply for condonation of debt,or suspension of payment or ask for a settlement with the promise to pay on a specific date.i was just lucky they had a promo back then.By the way i didnt declared my self bancrupt or insolvent.peace dear friend nad more blessings!
• United States
19 Feb 07
I have had a couple of debts from when I got divorced and they offered me a similar deal of paying a certain amount that is considerably less than the original amount. However, I didn't have the money to do that. My credit sucked so I couldn't get a loan to do it and I sure didn't have the money lying around. If I had $5,000.00, I would be making my payments. :)
1 person likes this
• Philippines
23 Feb 07
im sad for you friend...i hope and pray that you could recover soon...God bless you and may he hear your prayers...peace!thanks for sharing your experince.
• Portugal
26 Feb 07
Nice deal I must say! We have to take advance of this types of promotions! Never happen to me thou.
1 person likes this
• United States
25 Feb 07
I have to much on credit cards too but not that much. So what kind of prom was that to get out of that much debt. That would be great to do.
1 person likes this
@ygkchaitu (388)
• India
24 Feb 07
You are a lucky chap.. to get away with the debts so easily but it rarely could happen unless the company was n loss and had taken enough precautions while issuing the cards. Anyway lucky people will get luck in any form and from anywhere.
• Philippines
20 Feb 07
You really are truly LUCKY,imagine you have all the luck in the world you could find. You have cleaned up your debts,and what could be your best luck is your friend. You seldom found someone like that nowadays. Is it okay if you can introduce me to him,i had exactly the same problem like you do,maybe i can ask for an advised im an hsbc card holder too. By the way can i add you as a friend???
1 person likes this
• Pakistan
20 Feb 07
Well all I can say is that you were extremely lucky and that some really good luck was with you that you managed to avail the promotion and became debt free. I haven't been in debt till now, so I really have no experience of promotions or anything.
1 person likes this