I have a credit card which is maxed out. Should I cancel it?

Question

I have a monthly payment of 120.00. If I called to cancel my account, would they settle for a lesser monthly amout? And upon cancelling does the intrest stop accruing?

Answer 1

no you have to pay off the debt  they wont stop  the intrest and      pay the 120.00 on time or they will also add late fees for 39.00 and over limit fees  when they add finance charges   if you dont pay at all   orr cant pay call and ask if they will lower the monthly payments    but not much changes when you close it   margare d

Answer 2

It wont' stop the interest, but last week I called because I had missed 3 payments on a maxed out 30% interest card, and told them I wanted to get on a repayment plan, and that I could pay $300/month

They sent me a letter turning down my repayment offer.

I called them, and told them I wanted to talk to someone about a repayment plan, and why was the first offer cancelled?

When i told them to cancel the card, they cut my rate from 30% to 17%, and my payments would be $216/month.

I guess they figured that if I canceled the card, they better do something or they wouldn't see a dime for the next 4 years.

Answer 3

Cancelling will do you no good.

It would still accrue interest.

The credit card company is under no obligation to settle for a lower amount.

Answer 4

your monthly payment is very likely the minimum payment requested, and will do very little to help you as the interest you are charged on the balance is probably more than this, so your debt keeps growing.  Make your repayments up higher, as high as you can.  The more you pay off, the less owing, equalling lower interest charged.  Work really hard (look on it as a challenge) to get the card paid off.  You could cut up the card to stop you using it, making the situation worse.

I don't know if it is possible to cancel the account.  You CAN  stop using the card.  Your choice.

Because you owe them money, that will still be the case, and the interest will keep digging the hole deeper.  There will be interest accruing for as long as the debt is there.  

They might agree to a lesser monthly repayment, but that is not in your favour, as the added interest will make the debt ever bigger because you are paying back less.

Answer 5

Closing the account in no way stops the interest from accruing nor does it reduce the amount owed.