Can I be forced to use a credit card to make a lease payment?

by tom
(north carolina)

In my small business I have an equipment lease that I am 2 months behind on. The lease company ran my credit report and saw that I have a credit card with enough credit available to make a payment to them. It took me a long time to bring that card back from maxed-out, and I did it by paying what little I could (just over the minimum) and not making any more purchases with it. Can the lease company force me to go deeper into debt on the credit card in order to give them a payment? The lease payment is approx $1600 and I had been paying 100-150 into the cc account about 2-3 times each month. At 24.9% on the cc, you can guess how long it took me to get the balance down. I still owe 4800 on it. Working another 1600 off the balance again will take forever.

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Mar 01, 2011
Can I be forced to use credit card to make lease payment?

No, the lease holder cannot force you to use your credit card to pay the past due portion of your lease. However, it may decide to take back the equipment you are leasing. If the equipment is essential to your business, I suggest you try to work out a plan with the leasing company to get caught up on what you owe, assuming you can afford to. But before you do, be sure to read your lease agreement so you understand your rights and the rights of the leasing company. Good luck!

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