Should I pay my credit card or allow it to go to collections and pay less?

Should I pay my credit card or allow it to go to collections and pay less?

I have 2 credit cards with this company. the 1st had a 33 interest rate and was closed by the company just recently. I was never late or went over the limit. Why was it increased? I dont know. 2nd card has a 26 interest rate and same as the 1st never late or over the limit. I am upset that they wont lower my interest rate have made some unkind business practices and closed my account for which I just recently made a 900 payment on the 3000 I owe. On the 2nd I owe 7500 after making a 500 payment to the 8000. Was wondering if I should continue trying to pay them off not pay and pay the collection agency for a fraction of the price or simply sue the company for the way they have done business with me for both cards? At the moment I have a car paid off working on modifying my home loan and have 3 other credit cards that I am paying off as well but have a lower interest rate of less than 10 and have been pretty nice to me. I intend to pay the other 3 cards off without going to collections or being late on any. Please help with any advice. Sometimes I wonder if I need a good credit score if I have everything I need and pursuing a good credit score seems like a lost cause. I am 6 months behind in my mortgage but in the middle of negotiating my terms with the company under a lawyer that I hired. That is why they closed my account. Thank You Greatly

Asked by Sacred Hands about Credit

Once your credit score is ruined by the charge offs and/or late payments its going to take forever to get it back AND any future credit cards/loans etc will be affected because they will charge you a much higher interest rate. Talk to these people NOW and set up a payment plan that you can stick with. Dont cut off your nose to spite your face

Answered by Micki

Wait you are current on your credit cards but behind on your mortgage? How much to bring your mortgage current? Sell the car if it is worth anything sell anything in your home that isnt nailed down stop paying your ccs and stash enough cash to get current on your house. Get a second job and maybe a third to help gather cash. Kind of silly to be homeless but current on your credit cards. At this point being 6 months behind on mortgage your FICO is probably about as low as it can go. Not paying the ccs will not make that much of a difference.

Answered by Maggie G