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My mother was served with a court date for Nov. 20, 2007. She is 78 yrs. old and had a credit card with City Bank. After paying the mimimum of about $200. mo. on her fixed income for a few years and the balance never going down she asked if they would stop the finance charges and fees and let her pay the balance of. They refused so she stop paying. What recourse does she have? She’s worried she will loose her house.

Unfortunately, she has no recourse as far as I know. Contractually she is supposed to pay them the balance plus the fees and interest resulting from the use of the card. It’s unfortunate that they will not help people who want to honestly pay what they owe but can never get past the payments of all the fees (which are the credit card conmpanies profits). This is how they make money and lots of it, from people who only pay the minimum balance and never get ahead of their debt so the problem grows and so do the profits of the credit card company.

You should seek out professional assistance from a lawyer, a debt management company, or a debt settlement company. There are different solutions but it really depends on what she can afford given her fixed income. In the near term, you should seek the advice of a lawyer prior to her court date.

You say she has a house so maybe if there is little or no mortgage on that house she can take money from there to pay off her credit card debt by adding to her mortgage and then using the $200 she was paying her credit card company to pay off her increased monthly mortgage payment. This is the best way to get out of credit card debt but it’s only an option for those with home equity. Thanks.