I got a call this morning from Chase regarding my missed payment for my credit card. This is a similar story that I posted about my Advanta credit card.
He urged that I pay the minimum and they will waive the late fee (how nice, sometimes you can’t even get them to do that even if you asked).
I told the guy that I honestly don’t have the money to pay (some $500 minimum payment on a $28,000 balance).
He asked how much I can pay and I told him $100 (at that time I don’t know what my balance was because I have multiple Chase cards) and he said that will take me 20 years to pay off and it’s simply not possible… I laughed in embarrassment.
I told him that I don’t have a problem paying what I owe to Chase – it’s just that business has been slow and times are taught for me and my wife right now. He was a nice guy and told me that there is a hardship program that they can put me on that is basically a 5- year payoff program (aka Balance Liquidation Program).
He then took my finances over the phone, and asked me again how much I can pay each month – since he opened that option for me, I basically told him to take my outstanding balance and divide by 60 months (5-years).
He was able to approve me over the phone right away for that payoff arrangement – essentially a 0% APR for 5-years.
The other plus that comes out of this program is that my credit will not be affected by this, and gives me the flexibility to miss a payment as long as I can call 1-day ahead to ask them to push out the due date.
Moral of the story: Again, face your debt. If you can’t pay, then don’t try to finance existing debt with another debt – this is the stupidest thing to do.