Using Credit Cards During a Bank Levy
Using credit cards during a bank levy can be a little financially dangerous, much like not staying on top of repaying grant overpayments, unless you know how to go about finding all the information you can on the these situations. Because this is put on by the credit card companies who may be issued by the banks, sometimes this freeze can extend to the balance that is left as showing available. When this is the case, you may not be able to use those funds even during an emergency. The key to working through this mess is to talk to the companies themselves and make sure you understand what is at stake. If they are willing to agree to a payment plan, and you are willing to meet those payment requirements, then talk about what amounts would be feasible for you to keep up with.
Balances That Go To Court
If the amount that you owe is about to go to court, then you may have to consider different options. Accounts that have gone this far down the road often require a mediator or some other source of help in order to work out a compromise. Make sure if you do use a mediator that you are completely open to their suggestions because they have experience working out deals like this with other consumers. You can depend on their previous customer service skills to help you as well, especially when it comes to commonly asked questions and concerns.
Because they are not obligated to either party, they really look at the matter objectively and choose the type of suggestions that would let both parties reach their goals. Obviously, people run into trouble sometimes when it comes to paying their bills. If the credit card company is willing to recognize this, it can take some of the sting out of the entire procedure. They will see you as someone who is trying to take care of their responsibilities, rather than someone who has been caught trying to duck and dodge a bill they ran up.
Additions of Penalties and Fines
Also, find out if any penalty fees are being added to the amount while you are working out the financial details. If this is happening, then you may be getting in more debt as more time goes by. Not only can this addition make it harder to get out of financial trouble, but it also changes how you need to consider your particular payment options. The new plan needs to take into account that this balance may be increasing as time goes by so you'll have to increase the payments you are willing to make. However, once you start making payments, you may be able to work with the provider and stop these additional fees from piling on. They may recognize this as a way to resolve the matter and make sure they get the funds that are owed to them.
There may be several ways to look at using credit cards during a bank levy but you can personalize this to your situation. It will be up to them to look at what's going on with your accounts and find out how they can work with you. Because you are surely not the only person who has gone through this, they will no doubt have some ready-made suggestions to share with you. When you look through these, again make sure your current set of finances, however small that budget may be, can handle these agreed to payments. Otherwise, they may see this as gross neglect and refuse to make any further agreements with you.
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State Guides to Credit Card Laws
- North Carolina
- West Virginia