As the title suggests, I have a $7500 balance on my American Airlines Citi credit card. I’m soon going to be heading to jail for a year, and I’m looking for the best options available to me, other than paying it off completely. I do have enough money to settle the balance, but doing so would leave me with very little. Any advice would be greatly appreciated. Thank you!
Have you considered calling American Airlines Citi’s customer service to discuss your situation? They may be willing to work with you and offer a temporary payment plan.
You mentioned settling the balance; it might be worth negotiating with the credit card company for a lower payoff amount. They may accept a lump sum for less than the full amount.
Look for a credit card that offers a 0% APR for at least 12 months on balance transfers. You’ll need to pay a 5% fee on the $7,500 upfront, but you can set up automatic minimum payments throughout the 0% interest period.
Some credit card companies have hardship programs that may offer reduced payments or temporary relief. It could be beneficial to ask if you qualify for any such program.
You could explore working with a nonprofit credit counseling agency that can help negotiate with your creditor and set up a manageable repayment plan.
If you have any assets that you could liquidate without jeopardizing your financial stability, it might be worth considering using those funds to settle the debt.
Think about your other financial priorities first. If settling the debt will stretch your finances too much, it might be better to focus on having some savings for emergencies.