It is always great to be able to help consumers find solutions to their debt problems, and it is especially gratifying helping out our military members deployed overseas and their families. This week, my StopDebtCollectorsCold.com colleague Gerri Detweiler helped a reader with a debt problem. If you know someone serving in active duty military, you'll want to make sure they read this as well:
Sarah's Question: My husband fell behind on payments on his Chase credit card due to career changes. He just started his job and we were going to start paying it down and quickly off. We actually just got theZilchworks Debt Reduction to get our credit cards paid down and get our credit in control again. Anyways...He's on military orders at the moment and so Chase has been calling me and asking me to make payment arangments. Is this the best choice? I wanted to started just sending in payments and get them to stop calling and work with the Zilchworks program. What do you think is the best approach? I also read in the ABC's of Getting Out of Debt, not to give out your bank info. So I was curious what to do before I answer them. Thanks!
Gerri's Answer: I assume you have created your Zilchworks Debt Reduction program and learned that you can pay off your debts in less than three -- four years on what you earn now. If that's not the case, then you may want to still consider a solution like credit counseling.
But if that is the case, then I would request payment plans with your card issuers and stick with it. Be very firm about what you can afford, and follow up everything in writing with a certified letter. If your proposal is reasonable, you should be able to get it approved. Keep written notes of all conversations with them. I would not authorize any creditor or collection agency to withdraw money from your bank account. Simply agree to send payments and stick to the payment arrangement.
However, you did mention your husband is on military orders right now. In that case, your account may be eligible for interest rate relief under the Servicemembers Civil Relief Act. Here is an excellent website that outlines the protections it offers. I hope this helps, and please do keep me posted.
Sarah's reply: Thanks Gerri!
This website awas a HUGE help! We are in the process of writing a letter to request the interest rate cap, which will automatically bring down his interest to 6%. I would suggest ALL military families should be aware of this Civil Act. It's a huge help when your spouse or family memeber is overseas or out on military duties to know you have rights while they are gone. Thanks again!
