how can you repay store credit cards?

Problem

I am going through store credit card debt problems. I have not been able to pay the bills for some months. So far, I have not received any calls regarding the payment of bills. But, I fear that it will happen soon. One thing I want to know is that, can the store assign the account to a collection agency? If yes, then can I be sued by the debt collectors? I work as a teacher and have a moderate income. If the account is not sold off to a collection agency, then will the original creditor file a lawsuit against me? What should be the best possible course of action in this kind of a situation?

Solution

Usually, the original creditors can file lawsuits against consumers for non-repayment of bills. If the accounts have been sold or assigned to a particular collection agency, then the collectors have the right to collect the money. They can even sue the consumers if it is required. However, having said so, your case is little different as you owe money to a merchant.

Unlike banks, the retailers/merchants want to keep their customers. They are merchants at the end of the day. They want people to visit their stores and purchase the items. They work hard to increase the number of their customers. Usually, they either assign the accounts of the delinquent customers to their internal collections department or to a third party collection agency. If your debt is new, then your account might not have been sold to an outside collection agency. In such a circumstance, you can work with the retailer directly.

Go through your monthly income and expenses. Try to determine the amount you can afford to pay to the retailer per month. Contact the manager of the accounts or collection department of the store. Explain politely that you have been a regular customer of the store and have always made the payments on time. However, you’re going through a financial crisis now. As such, it is not possible for you to repay the entire store card debt. Mention the amount you can comfortably pay every month. If the manager accepts, then sign a written agreement with him.

If the manager doesn’t accept the payment plan and instructs you to repay the total amount, then don’t agree to it if you can’t afford it. You can offer a temporary repayment plan at the rate you can possibly pay. Otherwise, you can enroll in a debt management program to repay the outstanding bill. This program will help you lower the interest rates on the outstanding balance. This in turn will enable you repay the bill comfortably. You can browse through websites to get a list of reliable and good debt management companies. If you have any query regarding debt management, then feel free to post your question in the debt management forums. The experts and the members participating in the debt management forum will resolve your queries.

Finally, you told that you’re working as a teacher. So, I assume that you won’t have shortage of students needing private tuitions. Start giving private tuitions in the evenings. You can also become online teacher. This will help you fetch a lot of money. Use that money to make extra payments on the debt and become debt-free sooner.