15 years ago
SouthCackalacky
Payment plan on credit score but credit limit is over the top?
I have never gone over my credit limit by 'myself'.
I had been paying the minimum balance each month , when one month i became late on the payment .. so there i incurred the late charge fee, miniumum balance fee, and apr fee. Which then put me over the credit limit (I didnt even know that i could go over lol)
Life has been hard so i had to apply monies to accounts which i thought were more important (house/car/electric etc.).
So for three months i have been late making payments and for this reason also, i still have not paid off the balance. i am now in a payment plan. My account today said that my statement balance is $3,322 and my minimum due is $642. My credit limit is originally set at $2900. So my payment plan is taking out $65 a month with no late fee/interest for six months.
Will I still have to pay back the late fees and aprs that i incurred before the payment plan? or does this get erased?! This really doesnt seem like a payment plan because i will forever be stuck in debt then because once my payment period is over i go back to paying off the Old debt ontop of New debt.
Please help clarify, and i have a citi card master card thanks
15 years ago
delmoki
Favorite Answer
You really need to clarify this with Citibank. But it looks to me that they've worked out a payment plan for you that INCLUDES all your previous charges and fees. But in the next six months while you are paying it, you are not accruing more late fees and charges. Looks like they've given you a pretty good deal. After the six months, your balance should be low enough that you are not going to be over your limit any more, so that should not be an issue.
It is possible that, when you worked out a payment plan, Citibank removed some of the previous charges. You would have to clarify this with them. If I were you, I would just call and ask.
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15 years ago
Anonymous
Unfortunately, you are still obliged to pay the late fees unless they have specifically stated otherwise. Also unfortunate is that with $642 MINIMUM payment, and a basically 10 month plan to pay $65 per month, by the time you have paid that off, you will owe a LOT more based on interest charges.
You are, in effect, going in the hole deeper and deeper by making such small payments. Consider a second job and get this card paid off in the next couple of months.
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15 years ago
Anonymous
any time you get a late fee and any kind of charge like that - you have to pay that in addition to the minimum payment or your balance will increase and if you are at your limit, then you will get whacked with an over limit fee also - a $2900 balance with a min pmt of $65 will take you 35 years to pay off you are probably only paying like $7 per month towards the principle - sounds like you have to pay back $642 this month or more overlimit & late charges will be added - and late fees never get erased - they get added onto your balance
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15 years ago
Anonymous
Nope...that's just the downside to credit, the fees and the interest that will never go away until you pay them. Even though you didn't go over limit by charging the card you are still responsible for the fees/interest that are accrued by missing the payments. Just keep on paying as much as you can and you'll eventually get rid of it. The only way to successfully do so is pay more than the minimum payment if you don't the interest will just keep you paying for years to come.
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15 years ago
bdancer222
Yes you will have to pay all those late and overlimit fees your previously incurred.
Who set up this payment plan? The credit card companies? Or is this some third party company? That $65 per month seems awful low.
If this is a debt management plan, make sure the credit counseling company is a legit, non-profit (check here: http://www.nfcc.org/).
If this is some debt settlement company, run! Most will just take your money and trash your credit.
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15 years ago
heybulldog
Yes you will have to pay the fees. That is exactly what happens when you play the credit card game. That is exactly how they were designed to work.
If you play with snakes. You will get bit. You got bit.
Cancel the cards and get on a written budget
Play the credit card game and worshiping the fico only brings debt..
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