Charged $300 to capitol 1 credit card. Unable to pay, bill now $1200. Collectors calling. What do I do?

The monthly bill on a $300.00 charge should have been around $15.00, now that it is in collections you need to try and get them to reduce the amount that is owed for late fees, over the limit etc. Once they close the account that should stop if from accrueing additional fees as long as you make the payment of $25.00 - $50.00 per month. There is nothing extrememe that they can do to you, and now that you are in collections there is little benefit of paying the full amount, it is time to negotiate. If you have it, offer them from $400.00 to $600.00 to pay off the card and stop collections, they are much more inclined to help when they can get a lump payment such as this. Otherwise set up a payment schedule with them to pay off a reduced amount. There is no way that I would personally be willing to pay more than $600.00 on a $300.00 charge because that is a 100% mark up. Capital One is one of the most corrupt credit card agencies out there and they anticipate making a bundle on over the limit fees and late fees, they are set up for it! Start negotiating with them and see where you can get. Best wishes. Remember since there is really nothing they can do to you have as much fun as possible with it. You have the right to not be called on your mobile or work numbers so let them know you are aware of that if they are calling there. They won't take you to small claims court but in some cases they will write off the debt and send you a 1099 for it (in Texas at least) which is hard on taxes when it is a larger amount.