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I've tried working with a credit card company over late fees/debt. I can of course make some payments, but they're always lower than the overdue fees they continuously charge. In other words I'm paying, but still always guaranteed to be kept falling behind with this regimen, so it seems futile.

What is the best way to handle this? Keep paying and keep falling behind regardless? Ask the company to charge it off and change the terms so that I'm no longer accruing debt even as I pay?

Because if I'm charged more than I can pay, won't this be like grasping on to a slippery rope as you keep on falling and falling down? It seems logical to pay because you owe debt, but you can't ever fix the issue with this approach. Should one keep paying but accruing more of a net loss endlessly?

Even if you worked with a payment plan, those are limited and they go back to full effect on late fees/etc. right after the program ends, which forces you back in to a constant net loss & vicious cycle.

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    What's your net worth (assets minus debts)? – RonJohn Nov 24 '19 at 18:27
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    Can you please edit your question with this information? Are you making new charges on the card? Are you paying the minimum payments? Why are you not paying by the due date? – mkennedy Nov 24 '19 at 18:43
  • Specifying the country you're in will be helpful, as laws vary around the world. – TripeHound Nov 25 '19 at 11:33
  • U.S.A./United States of America – Shelf Dancer Dec 10 '19 at 21:04
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If you literally do not have the money to make then minimum payment, then you should not pay, because it is futile, as you say.

Instead, you should immediately contact the creditor, let them know the situation, and try to work something out with them. If this is a temporary situation (for example, if you’re between jobs), they’ll handle it differently than if you don’t expect to ever be able to pay the debt.

If they aren’t willing to work with you and you don’t have the money, you can declare bankruptcy or simply stop paying. Bankruptcy lets you preserve some assets (including future earnings and assets, assuming you hope to have some). If you don’t have any assets, there’s no need to declare bankruptcy—they can sue you and get a judgement, but there’s nothing for them to collect. That’s why they should be willing to try to work with you.

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    I find this part confusing: "Bankruptcy lets you preserve some assets (including future earnings and assets, assuming you hope to have some). If you don’t have any assets, there’s no need to declare bankruptcy" -- but if one doesn't declare bankruptcy, those future earnings and assets would be vulnerable, right? Is there really "no need to declare bankruptcy" just because one doesn't have any assets now? – nanoman Nov 25 '19 at 5:53

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