AboutGina Boykin Expertise Financial planning, debt management & credit cards, and money-saving tips for adults and teens. Saving vehicles such as CDs, treasuries, bonds, and money-market funds. I provide honest, objective and relevant information to help you made the best decision for your money.
Experience Over 10 years of combined experience in accounting, audit, investing, entrepreneurship, real estate.
I am the CEO of Atlanta Y.E.S., a nonprofit organization dedicated to financial literacy for youth.
Education/Credentials B.S. Accounting, 10 years of experience in accounting, audit, and investing
Question QUESTION: My father-in-law is considering paying off his credit card debt completely. He heard that because he is 100% disabled and has not worked in several years, he is entitled to a reduction in the repayment of his debt. I was hoping you could help me clear this up for him so he can begin this process as soon as possible.
ANSWER: I've never heard about specific repayment programs for the disabled. If he is interested in a payment plan, and is very behind on the payments right now, the best place to try is the National Foundation for Credit Counseling (nfcc.org). This organization has several affiliate companies that work with people and creditors to set up payment arrangements that work for both parties. This may also involve a reduction of the amount owed, especially considering that he is no longer working. This organization is nation-wide, so there should be an affiliate in your area.
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QUESTION: Actually, he is not interested in a payment plan, nor is he behind on his payments. He just wants to make lump sum payments to close his accounts. Any thoughts on where we could get information?
Answer The NFCC may be able to work out a lump sum payment as well. The only other alternative I can think of is to contact the lender directly. Anyone can do this. It just may mean calling several times to get someone to agree to the settlement that you are requesting. If you are able to get the debtor to agree, make sure that you get this agreement IN WRITING before sending any money. Also, do not give anyone access to the bank account - they will wipe it out. The agreement needs to state that the payment you are sending will be for payment in full - otherwise, they can later say that this was a partial payment and come after you for the rest. You also need to have the debtor agree to report that it is payment in full to the credit reporting agency.
