I don’t believe that she only used the card once but here is what you need to do.

1) Help your grand mother get her credit report-notice I didn’t say credit score. she can get it online once a year for free at the government supported site: annualcreditreport.com .*Please note it is illegal for you to pull her credit report without her consent – she must be on board for this. The credit report will allow you to see the full picture and determine if she has any other balances out there.

2) Call the credit card company (with grad mother present and have her give them permission to speak with you regarding the account). You want to speak with the collections department since they are the ones that normally handle these types of things. Let them know that you will nolonger support her financially and help her pay her bills (I’m pretty sure she gets some help). Let then know you are interested in closing the account and setting up a fixed five year payment plan using her inc of $ 800 month. At this point they should ask for a break down of her monthly expenses including utilities. After all expenses she must have enough left to pay the new proposed about. If it doesn’t makes sense on paper it won’t happen. If they don’t agree still at this point. Leave the account open. *Please note the last thing you want to do is be rude to this person that you’re speaking with. They can possible help everything add up on paper but only if you’re not a bitch.

3) If step 2 didn’t work. You want to call 1888 203 7840. This is the main number to about 3 different non profit consumer credit counseling agencies. Non profit meaning the fee they charge is minimal – about $ 150 from what I recall. These companies will require all credit cards in your grad mothers name be put on the 60 month program and closed. Then they will contact each credit card company with the new purposed payment for the respective account. IT’S UP TO THE CREDIT CARD COMPANY NOT THE CREDIT COUNSELING AGENCY TO ACCEPT THE PROPOSAL. The credit card companies are more inclined to accept this rather than when you first call because they see this as a serious attempt to resolve the debt since all cards will be closed, it assures them that they haven’t been singled out while the other companies are getting they’re full normal payment and lastly because they know credit counseling is a required step before someone can file bankruptcy.

If all these steps don’t work….she is stuck honestly. I used to work for one of the major major banks setting up these reduced payment plans (called a fixed pay).

Your grandmother should contact a NFCC credit counseling service: http://www.nfcc.org/. These are legit, non-profit companies that offer debt mangement plans for a nominal fee. They will negotiate lower interest and payments so she can pay off the debt.

The alternative would be to just stop paying on the card. It is unlikely that a 72 year old will be buying a house or car or any other new line of credit. Her social security check is exempt from garnishment. So if the credit card company sues and wins a judgment, they still won’t be able to collect — maybe put a lien on her house but won’t be able to force foreclosure.

C’Mon, that’s exactly how credit cards work. You borrow money and when you don’t pay it back, they charge interest. Grandma’s paying the minimum every month turned this into a 30 year payback and the only one to blame is grandma.

Grandma can go talk to a bankruptcy counselor who can tell her if she is eligible to go through bankruptcy. If she has no other assets or income, she probably can get the remaining debt erased *over* the objections of the credit card company.

If she does not go through bankruptcy and they take pity on her and cancel the remaining debt, that will become INCOME to her in the year it is cancelled.

I find it sad that you think the money should have been free to borrow; that $ 20,000 or so of debt was insignificant; and that she’s living paycheck to paycheck when whe ISN’T working. Pay attention, in 50 years, this might be *you.*

GOD BLESS YOUR GRANDMA THEY ARE SO SPECIAL AND PURE.

Or….

She simply stops making payments on the card, ruins her credit rating (she is 72… what does she need credit for anyway?) and nothing is going to happen because her sole income is Social Security and even if the credit card company took her to court and got a judgment in their favor… it can not be used because Social Security Income is exempt and can not be garnished.

Just make sure that she does respond to the summons and actually shows up in court…. the moment she tells the judge that her sole income is social security…. and he won’t even bother issuing the garnishment order.

Her only income being SS, it cannot be seized or garnished. But she has to stay on top of any attempts to seize her account. No action on her part gives permission on their part.

A $ 20,000 CC debt with a 15% interest rate paying $ 300 per month would pay that debt off in 12 years, presuming that she didn’t keep adding to the balance over the years.

She’s 72. She can stop paying this credit card bill.
Creditors cannot take government money – only the government can.
If they sue her they can go after her assets.
Chances are she has none to speak of.

If she wants to pay this bill, there is a non-profit agency out there that might help her at no cost.
NFCC.org National Foundation for Credit Councelling.
She can call the 800 number and they will help her at no cost.
They have a DMP program in which they can contact her creditors and setup payments and try to negotiate. Cost for this is about $ 30 a month.
Reviews call them angels from above.
If bankruptcy is her only option, they will be honest and tell her so….

I think they’re worried about insurrection. With the infrastructure destroyed like that, it will be impossible for them to maintain control of the country if the population decides to rebel.

I think they’re worried about insurrection. With the infrastructure destroyed like that, it will be impossible for them to maintain control of the country if the population decides to rebel.