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unable to payback amex charge card all at once

5 10 July 11, 2012 at 01:29 PM
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Last Edited by xman34331 July 11, 2012 at 03:10 PM
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i have about 10K of charges due to unsold inventory from business I am going to be late in paying amex. This is for amex charge gold card (not credit card).

I'm already two months late. Any idea on how to proceed with this??? already actively looking into additional income streams.

edit..

i ran the numbers again, and i'll have about 5K of charges that i'll need to pay back. Does amex offer a repayment plan?
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Joined May 2011
"1stBuy"
> bubble2 6,886 Posts
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CDI
07-11-2012 at 03:24 PM.
07-11-2012 at 03:24 PM.
Quote from xman34331 :
i have about 10K of charges due to unsold inventory from business I am going to be late in paying amex. This is for amex charge gold card (not credit card).

I'm already two months late. Any idea on how to proceed with this??? already actively looking into additional income streams.

edit..

i ran the numbers again, and i'll have about 5K of charges that i'll need to pay back. Does amex offer a repayment plan?
Ouch. Thats not good. Hope you figure that out soon. I'm guessing your credit score has taken (or is taking) a hit.

Dont know if you can do this with a charge card, but try getting yourself a Chase Slate 15% No APR for 15 months and do a free balance transfer. Maybe buy yourself some time rather than paying it all at once? (Not completely sure if you can, so proceed with caution.) Dontknow
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Joined Jul 2012
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> bubble2 23 Posts
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airsupply
07-11-2012 at 05:14 PM.
07-11-2012 at 05:14 PM.
Quote from xman34331 :
i have about 10K of charges due to unsold inventory from business I am going to be late in paying amex. This is for amex charge gold card (not credit card).

I'm already two months late. Any idea on how to proceed with this??? already actively looking into additional income streams.

edit..

i ran the numbers again, and i'll have about 5K of charges that i'll need to pay back. Does amex offer a repayment plan?
I agree with the other poster. Get the Chase Slate. Here's a link.

https://creditcards.chase.com/cre...slate.aspx
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> bubble2 6,892 Posts
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vaultaddict
07-11-2012 at 08:01 PM.
07-11-2012 at 08:01 PM.
Have you called Amex?
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dzap
07-11-2012 at 08:29 PM.
07-11-2012 at 08:29 PM.
Not good. You should have called Amex if you knew you weren't going to be able to pay. They could have helped you out by putting it in the Pay Over Time program with interest. At least then, you wouldn't have gotten your credit screwed. 2 months late is pretty bad as it is.

You should have at least balance transferred it to a 0% CC or something before your credit took a hit. Good luck doing that now.

Always, always call and tell them. They want you to pay your bills, so they WILL help you out. Do not let it just sit and let your late fees stack up and your credit take a hit.

In the future, use a credit card.

OR at the very least a Plum Card..
http://www262.americanexpress.com...card/29790
..if you needed the higher credit limit for some reason or needed an Amex.
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Joined Jul 2012
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Original Poster
xman34331
07-11-2012 at 08:29 PM.
07-11-2012 at 08:29 PM.
i'm all maxed out on chase cards. already have 3 and my credit limit is full. Frown

haven't called yet. i wanted to make a hefty payment first and then call. anyways i appreciate the suggestions. looking for a 2nd job so i can pay this off faster. btw, i'm actually just one month behind. the cut off date for the 2nd month is August 2 I believe.
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Last edited by xman34331 July 11, 2012 at 09:08 PM.
Joined May 2011
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CDI
07-12-2012 at 12:20 AM.
07-12-2012 at 12:20 AM.
Quote from xman34331 :
i'm all maxed out on chase cards. already have 3 and my credit limit is full. Frown

haven't called yet. i wanted to make a hefty payment first and then call. anyways i appreciate the suggestions. looking for a 2nd job so i can pay this off faster. btw, i'm actually just one month behind. the cut off date for the 2nd month is August 2 I believe.
So you have 3 maxed out cards and one charge card which is heading into 2 months late? Why didnt you just take out a business loan?

At this point all I can offer you is my Pray Really hope you figure this out soon.
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Last edited by CDI July 12, 2012 at 12:22 AM.
Joined Jul 2006
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dzap
07-12-2012 at 01:00 AM.
07-12-2012 at 01:00 AM.
Iagree With 1stbuy. Why didn't you take out a business loan? It wasn't a very smart idea to put that all on a card if you knew that there was even a remote chance that your business plan failed, and wouldn't be able to pay it back all at once (especially a charge card.).

Good luck is all I can say now. It seems you're in a rut.

$5k isn't that bad of a debt, but your credit is now going to tank, and you might get Chase and Amex closing your accounts (and even any other cards), because they will report to the credit bureaus which will inform your other card companies.

God Speed, my friend and good luck. If your credit isn't completely destroyed yet, I suggest getting a loan from some bank and paying the cards off fast, and then work on paying the loan back slowly over time.

EDIT: I suggest you try signing up for Pay Over Time now. JUST in case you need it. (I have it on my Amex Charge in case I ever need to use it, god forbid).
https://www.americanexpress.com/u...e/loc.html
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Last edited by dzap July 12, 2012 at 01:04 AM.

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Joined Jul 2012
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Original Poster
xman34331
07-12-2012 at 08:12 AM.
07-12-2012 at 08:12 AM.
Quote from dzap :
Iagree With 1stbuy. Why didn't you take out a business loan? It wasn't a very smart idea to put that all on a card if you knew that there was even a remote chance that your business plan failed, and wouldn't be able to pay it back all at once (especially a charge card.).

Good luck is all I can say now. It seems you're in a rut.

$5k isn't that bad of a debt, but your credit is now going to tank, and you might get Chase and Amex closing your accounts (and even any other cards), because they will report to the credit bureaus which will inform your other card companies.

God Speed, my friend and good luck. If your credit isn't completely destroyed yet, I suggest getting a loan from some bank and paying the cards off fast, and then work on paying the loan back slowly over time.

EDIT: I suggest you try signing up for Pay Over Time now. JUST in case you need it. (I have it on my Amex Charge in case I ever need to use it, god forbid).
https://www.americanexpress.com/u...e/loc.html
thanks. i'll do what i can.

i don't mind my credit tanking. already own the house and have insurance paid up to 6 months. i'll do what i can to get out of this mess.
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Joined Dec 2008
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PiratePenguin
07-12-2012 at 09:00 AM.
07-12-2012 at 09:00 AM.
Quote from xman34331 :
thanks. i'll do what i can.

i don't mind my credit tanking. already own the house and have insurance paid up to 6 months. i'll do what i can to get out of this mess.
What inventory do you need sold? Perhaps a fire sale to slick deals?Wink
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Joined May 2011
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CDI
07-12-2012 at 09:04 AM.
07-12-2012 at 09:04 AM.
Quote from xman34331 :
thanks. i'll do what i can.

i don't mind my credit tanking. already own the house and have insurance paid up to 6 months. i'll do what i can to get out of this mess.
Glad to hear your home is paid off, thats certainly a positive!

Whatever you end up doing, do NOT take out a home equity loan to pay the cards down. (Not sure if the bank will even allow you to, but just in case.)

I know that may sound like obvious advice, but so is taking out a business loan prior to maxing out 3-4 cards, without having a legitimate payment plan in place.

Anyways, good luck! I'm sure you'll find a way to turn things around for the better.

Quote from dzap :
$5k isn't that bad of a debt
I think its more than $5k in debt, that's only the AMEX charge card. The others are maxed out, meaning OP must be paying the minimum each month on those.
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Last edited by CDI July 12, 2012 at 09:06 AM.
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financechick
07-12-2012 at 09:39 AM.
07-12-2012 at 09:39 AM.
Quote from xman34331 :
i have about 10K of charges due to unsold inventory from business I am going to be late in paying amex. This is for amex charge gold card (not credit card).

I'm already two months late. Any idea on how to proceed with this??? already actively looking into additional income streams.

edit..

i ran the numbers again, and i'll have about 5K of charges that i'll need to pay back. Does amex offer a repayment plan?

go to www.prosper.com & apply for a loan

pay off amex/chase/etc.

wait a few months.

then file bankruptcy.

this way, amex/chase/etc. will give you credit in the future (since you're not screwing them over).
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Last edited by financechick July 12, 2012 at 09:42 AM.
Joined May 2011
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CDI
07-12-2012 at 12:12 PM.
07-12-2012 at 12:12 PM.
Quote from financechick :
go to www.prosper.com & apply for a loan

pay off amex/chase/etc.

wait a few months.

then file bankruptcy.

this way, amex/chase/etc. will give you credit in the future (since you're not screwing them over).
Bankruptcy will crush their credit even worse than the delayed credit card payments.

Maybe after 10 years when the bankruptcy claim falls off the credit score Amex and Chase will look his way again...but bankruptcy claim doesnt seem like the right decision here, unless all other options are exhausted.

Assuming OP does have a credit score of at least 640 to get even get a Prosper loan, you are suggesting for OP to screw over individual lenders by taking money with no intention of paying them back.

AMEX & Chase are highly profitable companies who can take the occasional hit.
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Joined Jul 2012
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Original Poster
xman34331
07-12-2012 at 12:42 PM.
07-12-2012 at 12:42 PM.
bankruptcy is not an option. i will work 20 hours days rather than declare bankruptcy. am going to call amex and see if they can put me on a repayment plan over 6 months.
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Joined May 2011
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CDI
07-12-2012 at 01:48 PM.
07-12-2012 at 01:48 PM.
Quote from xman34331 :
bankruptcy is not an option. i will work 20 hours days rather than declare bankruptcy. am going to call amex and see if they can put me on a repayment plan over 6 months.
Do you have a steady income to cover yourself otherwise?

You stated you don't care about your credit score tanking. And you've maxed out other cards. So, whats the urgency in paying AMEX back? Just worried about burning the bridge with AMEX?
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