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Grimlok- My wife had a credit card before we were married and quickly charged it up to the $750 limit. She didn't take into account the finance charges so of course.. it went over the limit, resulting in an over the limit fee... which raised the APR......
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Well, Grimlok, as you probably know, that is a tough situation. I know what a pain it can be once you have "angered" one of your credit cards.
First off, your wife is correct (I'm sure she'll thank me for this), as long as those payments are made on time it will not report to the Bureau as late.
In regards to being over the limit, paying late is actually the most damaging mark on your Bureau. Granted, it isn't exactly good to be over your limit, but as long as you keep making those payments, your score won't be irreversably damaged.
As far as you collection idea, I would
not recommend that. It is true, collection companies generally are willing to cut a deal with consumers because they buy the debt at a discount, but it generally has to be over 120 days delinquent to go to a collection agency.
I have several suggestions.
1) Maybe you could apply for a different credit card, and transfer the balance over. You will probably have a lower interest rate, you will no longer be over the limit, and you may even qualify for a card that offers 0% on balance transfers.
2) You could try to move that debt onto something else, possibly a signature loan. If you have a vehicle that is free and clear, or possibly even a vehicle with some equity in it, you may be able to secure that loan. By doing that, you will probably get at least a fairly low interest rate and finally be able to close that card out.
3) Another choice may be to contact a debt consolidation center. Generally, credit card companies are a lot more apt to listen to a debt consolidation center than you, the consumer. By having a DCC call, it is basically telling them that they are in serious trouble of possibly having you default on that balance. (Regardless of whether or not you really are.) It wouldn't surprise me at all if they lowered your interest rate and backed off all the over the limit charges...(They're thinking, "Hey, some money is better than none."
4) Finally, if none of the above options are feasible/available to you, I would suggest that you just hammer on that card. Make that your numero uno priority to pay it off. Every dime that you can spare, save it until that bill comes, and send it to those greedy bastards. Hack up that card and send it with one of your payments. That will accomplish both not allowing that card to be used by you or your wife, and will probably give you a little self satisfaction. I know it may seem like a heck of a long tunnel, but I promise there is a light on the other end.
I hope this helped!
Thanks for posting!