Legal Question in Credit and Debt Law in Massachusetts
stop interest and late fees
If I cancel my credit card account's will this stop the interest and late fee's. I intend to pay all that is due but got behind and can't catch up because of the late fee's and overlimit and interest is killing me. I owe less than $3000.00 on 5 card's and intend to pay them all off by April.
1 Answer from Attorneys
Re: stop interest and late fees
No. The interest and late fees are due to what you owe by contract, not for the use of the cards.
The only certain way to stop interest is to file for bankruptcy protection, either chapter 13 or 7.
Given the low balance, you may want to consult a debt consolidation agency - make sure it is non-profit and approved by the US Bankruptcy Trustee's office, or at least a reputable one (check the MA Attorney General's office or the area Better Business Bureau, online). The debt consolidators are creatures of the credit card industry, but each card issuer has different policies, some will reduce the balance due and the interest rate charged, some will not reduce them by much. They will charge a monthly fee out of the amount you pay monthly, and they will charge you a fee for the initial consultation (should not exceed $50).
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