Deal or no deal? CCC offer

**Bargainmomtoo** · 02-03-2011, 11:39 PM

Our story is like so many others, small business, relied on credit cards, now in trouble with them. About half of my husbands take-home pay (he has a full-time job now) goes to credit cards; I only work part-time.

One of the credit card companies called and offered us 0% interest for 60 months, reducing our monthly payment by about $150 a month. It would close the account and we'd have it paid off. We have another account, very similar, that I may see if they will do the same thing.

Is this a good thing to do? I have a good credit rating presently, so I know it will ruin it for awhile, but hopefully we can rebuild.

Deal or no deal?

Thanks.

**Nishu** · 02-03-2011, 11:53 PM

Are you sure it would hurt your credit?

I'd take it, even if it would.

**Bargainmomtoo** · 02-04-2011, 12:01 AM

Well, the ccc said it would be reported that I closed the account, but we would still have a really high balance on it. It's that debt ratio percentage that is killing us.

Thanks for responding.

**Nishu** · 02-04-2011, 12:14 AM

We've closed a card before that had a balance on it and our credit isn't messed it at all.

Also, if you're worried about your debt to credit ratio, that will get lower as you pay down the bills. In the meantime, your credit score will hurt a little, but you won't want to borrow any more money until you get that paid down anyway so it's not going to matter that much. Other people who check your credit report, like employers, probably won't care that much about your debt to credit ratio.

**Bargainmomtoo** · 02-04-2011, 12:23 AM

Thanks for the reassurance. I've worried about potential employers, etc., since dh is constantly putting out resumes. He's been at his job three years, and is ready for a change.

We had some automatic charges on there, but I think I have those taken care of, so nothing else is being charged on it.

I couldn't make the full payment this last month and that's where the "plea bargain" came into play.

Dh is really wanting us to get out of debt, me, too, since I'm the one who does the money in our house.

**Greebo** · 02-04-2011, 06:31 AM

Potential employers may look at your credit history - less likely to look at your credit *score*.

Credit history checks are commonly done looking for bankruptcies, foreclosures, late payments - other actually BAD things and the like. If they only look at your credit score and raise an issue, ask them to look at the complete history and they'll see that your issues haven't really been issues - having closed accounts with balances owing but no lates (or very few) is only a problem to *creditors* who want to sell you more money at high interest rates.

Remember - the credit score is an "i love debt" score. The Credit history is a record of behavior.

As for the deal? Get it IN WRITING and take it - but NO electronic access to your bank accounts AT ALL for them!

**Darlene** · 02-04-2011, 08:00 AM

I echo the last sentence in Greebo's post.

**TigerGirl1226** · 02-04-2011, 10:56 AM

I'd take that deal!

**Keildra** · 02-04-2011, 10:57 AM

Take the deal but follow the advice of Greebo

**Bargainmomtoo** · 02-04-2011, 02:20 PM

Thanks everyone.

Ok, so get it in writing. I understand about not letting them have access to your bank account, so do I send a check? I usually pay over the phone, do you think that's a good idea?

**Greebo** · 02-04-2011, 02:26 PM

Originally Posted by Bargainmomtoo

Thanks everyone.

Ok, so get it in writing. I understand about not letting them have access to your bank account, so do I send a check? I usually pay over the phone, do you think that's a good idea?

No it isn't - too many instances where they lie, pull more than they agreed, and what not - and you're stuck trying to fight them when they have "verbal authorization to pull payment from your bank account" but no exact recording of how much - just their word vs. yours.

**Bargainmomtoo** · 02-04-2011, 02:29 PM

Interesting. Ok, so a check? I've never had a problem, but... We've had this cc for 20 years and have always paid on time until this month. Right now I can't use it anyway.

So, call them back, tell them I'll take the deal (I have the persons name), and have them send a letter?

**Greebo** · 02-04-2011, 03:25 PM

Originally Posted by Bargainmomtoo

Interesting. Ok, so a check? I've never had a problem, but... We've had this cc for 20 years and have always paid on time until this month. Right now I can't use it anyway.

So, call them back, tell them I'll take the deal (I have the persons name), and have them send a letter?

Yup - just "send me a letter confirming the deal and that there will be no further charges due and I'll overnight a cashiers check or money order to you the next day"