If you fear that you are falling behind, canceling credit cards before your creditor does sometimes makes sense.
In her book, Bounce Back From Bankruptcy, Paula Langguth Ryan warns of the consequences of letting your credit card company cancel your credit cards before you do. The reason you want to cancel first is simple. It will look better on your credit reports if it shows that your account was canceled by you and not by the creditor.
For this reason, if it looks like you might fall behind on your credit cards or if you are getting in over your head, you should consider canceling your account. Ryan goes on to give a sample letter to send the credit card company. The letter is as follows:
(Date)
[Creditor]
[Address]
[City, State, Zip]
Re: [Your account number]
Dear Sir/Madam:
My financial situation has changed unexpectedly because [I was laid off, lost my job, had a medical crisis, was divorced, etc].
I am writing to request that you close the above-referenced account at my request. I will continue to make payments on the account until it is paid in full.
I look forward to being a customer of yours in the future. For now, however, I must ask you to close this account.
Thank you for your prompt attention to this matter.
Sincerely,
[Your name]
Anyway, if you are getting into financial trouble, you should contact a bankruptcy attorney before doing anything. A good bankruptcy attorney will tell you exactly what move you need to make, and they will always have your best interest at heart. If you have too much debt to handle and fear that you will never be able to pay the account off, you might be a perfect candidate for bankruptcy. If you are considering canceling a credit card due to financial peril, contact a bankruptcy attorney today.
