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A creditor can be a person or financial institution?like a bank or credit card issuer?that offers credit to another party. The party that borrows the credit is called a debtor. Creditors may choose to report a debtor's account activity?like payment history, credit limits and balances?to credit reporting agencies.
Paying a debt collector with a credit card won't make the debt go away. Instead, you will have new debt?and additional finance charges. ?Paying one debt off while racking up new debt is an oxymoron in itself,? warns Howard Dvorkin, founder of Consolidated Credit Counseling Services.
For direct monthly payments, typically no. But you can do a balance transfer in which you move high-interest debt to a new card with a lower APR. Claire Tsosie is an assigning editor for NerdWallet.
Only making your minimum credit card payments and spending more than you earn are two common causes of credit card debt. Credit card holders can be proactive about avoiding debt by setting a budget and tracking their spending.
I would be very grateful if you would consider writing off the outstanding debt owing. I have always taken my financial responsibilities very seriously but unfortunately, my circumstances are so bad that I cannot realistically maintain payments of any kind.