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I thought of this driving to work today. If I close my Amex account, will my interest still keep collecting? According to Amex, late fees/overlimit fees will continue to accrue (I guess until it goes into collections??). If I close it, may I still make payment? Is it really bad to close an account that is not yet paid?




It is not bad to close the account. Actually, it tells Amex you will no longer abuse the credit they gave you. The account will continue to accrue interest until it is all paid off, even if it goes to a collection agency.

Sub: #1 posted on Fri, 08/01/2008 - 08:15

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so once it hits collections, the balance is frozen, right?

Sub: #2 posted on Fri, 08/01/2008 - 08:18

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not at all, it continues to accrue interest until it is 100% percent paid off, no matter whom you make the final payment to!

Sub: #3 posted on Fri, 08/01/2008 - 08:21

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well, that sucks. okay. guess I've got to figure out what to do. thanks for all this info!

Sub: #4 posted on Fri, 08/01/2008 - 08:31

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no problem, amex will settle with you, you can try settling the account after 90 days delinquency. the best time to settle is right before it is sent to a collection agency, this is called ????charge off????. At this time you are looking at about a 50% savings, of course factor in the interest, late fees, etc.. for the months not p????id. if you join a debt setttlement program this money is on top of their fees. Best bet, settle the account yourself.

Sub: #5 posted on Fri, 08/01/2008 - 08:38

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any idea on if they will take a payment plan for settlement or only the entire settlement paid at one time? there's no way I can have that much cash in 90 days.

Sub: #6 posted on Fri, 08/01/2008 - 16:25

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When your talking about settlement, you are generally referring to a lump sum payment.

Sub: #7 posted on Fri, 08/01/2008 - 16:55

NASCAR_Devil NASCAR_Devil
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(Posts: 4665 | Credits: 308.23)

As Nascar said, usually if a settlement is agreed to, they will expect their money right away. However, I have seen a few posts on this site of creditors who allowed it to be made in payments. It doesn't seem like AmEx was one of them, but you could type their name in the search box at the upper right corner of the screen and read about others' experiences with them.

I know from personal experience that AmEx does offer hardship programs. Have you tried talking to them to see if you qualify?

Sub: #8 posted on Fri, 08/01/2008 - 22:21

alias1958 alias1958

(Posts: 1230 | Credits: 79.88)

kristen,

creditors have a range of anywhere from 2-6 monthly installments on settlements. The more months you are given on any specific settlement the lower the savings percentage. This explains the reason lump sum settlements yield more savings.

Have you looked into debt settlement coaching? Give pemper and gartle a look, excellent company to deal with and light years less expensive than joining a debt settlement program. They canhelp you prepare as to what to expect form Amex and what you should do incertain situations.

Sub: #9 posted on Fri, 08/01/2008 - 22:39

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thanks everyone. I will also do a search on Amex on this site.

alias1958, when I called Amex, they said there was nothing they could do for me and to just keep paying the minimum payments (which I can't do). Which department did you speak with? How far behind were you in payments? What sort of hardship did they offer you? I have a large balance so there's no way I can settle in just a a few months.

Sub: #10 posted on Sat, 08/02/2008 - 02:29

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