Credit Card Chargeoff

Okay I have no idea where to even start looking for information about this, but I will later today.

I got a phone call from my credit card company – it was MBNA, sold to Bank of America (or marged, whatever happened with them). I’ve had the credit card for 8 years now, I used it a lot during college on stupid stuff like cds and movies, but was always able to keep a handle on it. Once out of college I used it still and admit I couldn’t keep that same handle on it and still owe on it now.
I didn’t add this to our running debt because I consider it mine – yes we are married, but that’s just how I personally feel. DH is helpful in paying off my student loan though. I guess I just feel like I should pay off this stupid credit card.

So anyway, I don’t make huge payments on it, just whatever I can every month. I got a phone call asking to pay $5. That made no sense to me so I called back to talk to someone.

Apparently when you make a payment that is less then the minimum due, the payment does not get credited to your account. Rather it sits there, hanging out, waiting until you do make enough to make the minimum due. The account is past due from when we moved last year and I just haven’t made it a priority to catch up. It’s hard to have $300 to pay on it, especially when the other bills seem more important to me.

So, I paid $75. And she said the minimum was $80. I was looking at the screen when she was on the phone and I found the link that took me to the page that said the minimum was $93. I’ve heard all kinds of stories about giving credit cards access to your bank and them wiping you out, so I said I didn’t have $5 (although that is true, our budget is done for now).

Then she said my account was close to being “Charged Off” – for which I needed an explanation. Charged off means it would go on my credit report that the company wrote the debt off – but it would be a negative on my credit report, staying for seven years.

It is rather snobbish (I wrote another word, but I fear what ads might show up!) of me but part of me thinks big deal – I don’t care about my credit report. I don’t plan on getting credit for anything for a VERY long time. And I subscribe to the Dave Ramsey way of thinking in that a credit report shows how in debt you are and once we are out of debt, we will remain out of debt.

And my DH’s credit report is fine. I have a few spotty things on mine from co-signed loans (and other stuff that I can’t think of – it is time to order a new one!) and apparently it wasn’t good enough to be on the mortgage for this house. So the mortgage is only in DH’s name, he is fine with that.

I need to go do some research – but my question is, should I let the account be charged off? I know it will damage my credit.

Considering it is not charged off yet, could I negotiate a settlement with them? Or would that have to wait until it is charged off? The person I talked to said I would be given plenty of notice if something were to change.

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