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Ulysses101, Lawyer
Category: Canada Law
Satisfied Customers: 3289
Experience:  11 years experience in Canada family law, plus criminal, civil, and employment
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I have been making payments to Presidents Choice mastercard

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I have been making payments to Presidents Choice mastercard which is reported as a closed account since 2009 and seriously impacted my credit. This was due to a divorce. I am paying interest on interest so the balance never decreases and they won't settle for anything less than .90 on the dollar. Is there any recourse?

Thank you
Hello, thank you for the question.

What is the debt at now?

They offered to reduce it by 10%, what about the interest rate?

Customer: replied 3 years ago.

The balance is at 10K and the interest rate is around 12%. Monthly payments of 250.00 only pay the interest and doesn't reduce the balance owing.

OK, you don't have a lot of options here.

Firstly, $250 per month will pay much more than just the interest, so even at this rate of paying off the principal will decrease pretty quickly.

$10,000 probably isn't worth going bankrupt over. But a trustee in bankruptcy or a debt resolution agency might be able to negotiate something better for you. Find one near you that will give a free consultation.

A loan to pay off this debt is your next best option. If you can make these payments, you can borrow to pay this debt off, and your interest rate should be far below 12% and lower monthly payments too. See a loans officer at your bank or credit union and ask about a consolidation loan. You'l need a list of your assets and proof of income, and likely your most recent income tax return Notice of Assessment.

Does that help? I'm sorry that I can't offer better news. Please don't shoot the messenger.


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