Erase Credit Card Debt

Credit Card Debt Payoff

My husband had a company credit card in his name at his last job. When he left, the company was supposed to do a credit card debt payoff for the card and remove his name from the account. Over a year later, we went to apply for a mortgage and found that not only had the company not done a credit card payoff but they just gave the card to a new employee without removing my husband's name.

His credit report showed an unpaid balance from him and additional amounts that were charged after he had left the company. When he called the company for a credit card debt payoff he told them there were charges that were made months after we moved away and that they were delinquent on his credit report. The book-keeper did manage to get the bill paid but even now 5 years later this is still appearing on his credit report. Every time we apply for a loan he has to type up a letter explaining the situation and what the blemish is on his report.

The point of this story is that credit card debt payoff does not clear up any delinquencies if the bill was unpaid for a period of time. Even after you pay off the balance the fact that the card was in a rears stays on your credit report. You should do the credit card debt payoff to resolve the debt, or if you do not have the money then look to do a debt reduction with the card company. They may be willing to settle for a lesser amount if the card is way overdue.

For my husband, the card was a company card and his name was on it as a user. I am still, to this day, not sure how it all ended up on his credit report. So much time has passed, this should go off his report next year. Getting the credit card debt payoff taken care of was his first priority and he got that done. But because it was a company card, when he called the credit card company, they would not speak to him. It was an impossible situation to get resolved.

Regardless of how behind you are in payments on a credit card debt payoff, do all you can to get the debt reduced or paid in full. After the fact, go back to the credit card company and try to get them to remove any blemishes that they put on your credit report by reporting your being late. When in debt, credit card debt payoff has got to be your number one priority. From there you will need to do everything you can to repair your credit report and get your credit back on track.

Erase Credit Card Debt