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Coping in Tough Times: Credit Card Companies Are Tough On Customers


Every day this week, the Sun Sentinel will answer your questions. After that, we will publish tips every Wednesday in Your Money. To ask a question, fill in the box on the right or call 954-356-4628.


I lost my job and can't pay my credit card bill. What are the chances my credit card company will give me a break?

There's a risk in asking for one. In normal times, the best thing to do would be to call and ask for the "remediation department" to try to work out a plan. But these aren't normal times. Emily Peters of Credit.com says she's hearing that strategy is backfiring.

Companies are reducing customers' credit limits or even closing accounts because of a call from the customer about trouble.

Companies aren't lenient and, in many cases, due to the credit crisis, "They are much less capable of working with you," she said.

You can't keep your situation secret forever, but you might delay any negative consequences by staying mum.

To avoid trouble, try your best to at least make the minimum payment — or as much of it as you can.

— Harriet Johnson Brackey


Categories: Coping in Tough Times (21)
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Comments

What kind of "advice" is that? Obviously, the debtor can't afford even minimum payments. If you know you can't pay it, mayne you can negotiate the rate or payment down. I've heard the exact opposite from the answer given. That you can aggressively negotiate with the credit card issuer that the choice is either no payment because you are filing bankruptcy or a reduced payment so at least they will get something. Isn't that what all the credit debt counseling firms do anyway?


fu


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About the author
You've got the job of managing your money. No one in school taught you how. But you and I, we can teach each other, how to handle it, how to save for retirement, how to make money last, how to educate the kids, how to make a budget work. The conversations I have with my readers are fun. Money's important, but discussing it does not have to be boring.

Harriet Johnson Brackey Harriet Johnson Brackey, the personal finance columnist for the Sun Sentinel, is an award-winning business reporter. Her columns for 2008 were named "The Best in the Business," a national award chosen by her colleagues at the Society of American Business Editors and Writers.

Brackey has worked at Business Week magazine and at USA TODAY, where she was a founder and part of the original staff of the Money section at the country's first national newspaper. After nearly 11 years there - spent covering the 1980s bull market, the insider trading scandals, the 1987 crash - Brackey left Washington, D.C., and came to The Miami Herald. She spent the next decade writing a column about personal finance that chronicled the stock market's Internet boom and bust, as well as the popular Money Makeover features.

Brackey also has done commentaries for Marketplace Money, which airs on National Public Radio and The Nightly Business Report which is broadcast on more than 250 PBS television stations nationwide. She also has been a radio guest on WLRN’s Miami Herald News.
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