I work for a company who collects for store credit cards. Here are some helpful tips.

I am a collector. Yes I know, very hated profession. However I try to be as understanding as possible and to work with people to get out of debt without breaking the bank. I do not set the corporate policies, but I can help people understand them. I am not a bulldog, I do not want you homeless and bankrupt. Here's what fucks people up the most.

1. Generally, do not open a store credit card. For any store. The interest is going to be very high and the cons of the card far outweigh whatever discount they tell you you can get. Unless you are highly financially literate and vigilant about your spending and credit habits stay AWAY from these cards.

2. These cards and companies prey on the fact that you're probably stupid and won't read the terms. The number of times people tell me "the interest is too high" when they are the ones who agreed to these terms is astounding. Before you sign up for any kind of credit card PLEASE read the terms and conditions, go over the payment how/what/where and how much the interest is.

3. Residual interest is going to fuck you over if you are not vigilant about checking your statements PLEASE FOR THE LOVE OF ALL THAT IS HOLY CHECK YOUR MONTHLY STATEMENTS. I get the same shit 30000 times a day. "I paid off my card, why is my balance $500?" You did pay off your card 6 months ago. But you didn't check the next month's statement that had $10 of residual interest that you didn't pay for 6 months. It collected a $30 fee each month, and now your balance is $200.

4. Late fees can be removed under certain circumstances. I have worked for different companies where the policy varies. One company required customers ask for late fees to remove and we could remove 1 late fee per interaction. One company we could remove $x of late fees for every $y dollars paid. Find out what their late fee policy is.

5. Most collectors are not able to speak about whether something will affect your credit to your face, but it is almost certainly affecting your credit. In the places I've worked we can see your FICO score. We aren't allowed to tell you this, but your score will continue to go down the longer you don't pay.

6. Most collections/credit card companies have programs for payment if you cannot pay your monthly minimum. It depends on how old your account is and what the balance is. Ask about programs if you can't pay your minimum.

7. Legally collections companies can call you from like 8am - 9pm. And they will call you every single day. Calls go from software into a queue and generally the c9llector who is calling you is only calling you because their software pulled your number up. They probably don't know who you are and call hundreds of people a day. They are (most likely) not personally out to get you.

I know the most tempting thing to do is to yell at them, cuss them out, ignore them, or block them, but the best thing to do is to have a conversation about them to take control of your finances. The longer you ignore it, the worse it becomes.

8. Credit consolidation companies probably won't do anything for you until your account has charged off. "Charged off" means the company has sold your debt to a third party to come after you. By that time your credit score will be seriously tanked and digging out from there is even harder.

I really wish people all the best when it comes to being in debt. Financial literacy is not something that is taught and many people are suckered into debt because they don't take the time to be careful about what they're signing up for. Ask questions and take the bull by the horns to dig yourself out. I believe in you!

Edit: a few additions

1. If you don't receive your statement in the mail you are still responsible for paying your minimum. You are legally entitled to a statement but because the mail is unpredictable paying by check/relying on paper statements is a bad idea. Fortunately this mostly applies to older people and is less likely to effect the people reading this since you're probably not 80. Use the app/website for your card and rely on e-statements. They are more dependable.

2. I am fallible and don't know everything so please don't take my advice/experiences as law. Do your own research and reading.

For those who don't know what residual interest is

https://bettermoneyhabits.bankofamerica.com/en/credit/what-is-residual-interest