OT Unsecured debt...

[tireater]

I am down to 1 CC after my 3 other cards jacked my rates and I had to close them...If I lose my last card I will have no credit...
Just big balances on 3 cards...If I have no credit...Why should I be so concerned with what I owe...
These are the people who move your payment due date up and then charge you a $39 late fee...
They think I owe too much so they should double or triple my int rates w/o me missing a payment or being late...EVER...
I think they would have a very hard time serving me ...It would be very hard to attach my wages as I am a commercial fisherman...
I think the economy will take years to recover...By then my credit may be OK again...Should I worry about unsecured debt...?

[Faast Ed]

Should I worry about unsecured debt...?

It won't go away without being paid (unless you file for bankruptcy - and that ain't so easy as it used to be).

[mark61]

   Yes because there is something called "liens"  which anyone call fill against you for just about anything if they know how to use the court system. Cost very little. They can put them again any "real property or future wages".
     I had a realestate appraiser threaten me after he came and try ed to jack me around bout the value of my place then he went back to the office and added $50 to the bill. Even though all was planned through a bank and I had paid them for him upfront  they advised me to just pay it cause the worm loves games like that.  Of course I told 50 people right a way about the worm and an still telling everyone I can 18 years later.....hopefully cost HIM more than $50 over the years.
   Best you take some time and talk to a credit /financial adviser. Don't know where you live but in Pa. I remember seeing the government set up a free contact place for that.

mark61

[Dennis The Menace]

Just heard about this last week on the radio and thought to pass it along.

If you have a debt that goes to collections, a new tactic is for the collection company to make changes to an old collection debt so it shows on your credit record for longer than the usual 7 years.  All they have to do is change the account number, and another 7 years of reporting can begin. 

Its not proper, but companies are doing it, apparently.  A simple challenge to the credit reporting agency disputing it will end it, in most cases.

Of course, if you pay off collections debts and not let them stay long on your report, you hae nothing to worry about.  But, the person that called the radio program didnt even know about the debt, and then it was over 10 years old, and they wondered how it stayed on their report that long.

Moral of the story, stay on top of your credit report and know everything on it.  Dispute anything that doesnt look right.  I am still trying to get an incorrect first name off mine....its a PITA, and takes a long, long time.  So, stay on top of your report, and dispute anythng taht doesnt look right.

menace

[Sonny S.]

another option is to pay what you owe regardless of how it affects your credit or anything else.
You did borrow the money...right ?

[Dakota]

  I'd have to agree with Sonny on this one.  Using a credit card is agreeing to repay the money if they'll lend it to you, so now it's down to how good is your word?  I like to think my word is pretty good so if I use a credit card I'll also pay it off-that was my agreement.

[tireater]

I would have to agree with Sonny too if....They did not decide to triple my int. rate w/o me missing a payment or being late...
As it is now...Screw them...W/o credit...I don't care who gets paid...Sounds like I need a nasty Pit Bull for between the gate and front door...
I didn't change the rules of the game..They did...After 23 years of perfect credit...They can kiss my as$...and feed my new dog...Reach over the fence...

[tireater]

Actually congress passed a law against predatory lending pratices...Such as this..It does not take effect for a year...fug um...!!!

[Ultrashovel]

I am down to 1 CC after my 3 other cards jacked my rates and I had to close them...If I lose my last card I will have no credit...
Just big balances on 3 cards...If I have no credit...Why should I be so concerned with what I owe...
These are the people who move your payment due date up and then charge you a $39 late fee...
They think I owe too much so they should double or triple my int rates w/o me missing a payment or being late...EVER...
I think they would have a very hard time serving me ...It would be very hard to attach my wages as I am a commercial fisherman...
I think the economy will take years to recover...By then my credit may be OK again...Should I worry about unsecured debt...?

It is possible to render yourself "judgment proof". It does take some work to do it, however. You must be very single-minded about not owning any real or personal property in your own name. I'm referring to houses, cars, motorcycles, boats, airplanes, tanks, trains, planes, etc. You basically also have to be paid in cash and avoid any involvement with a government database. That's a very difficult proposition.

If you leave open even one channel such as a credit card, they will hound you until your skin falls off. The credit card companies are very resourceful and ruthless. Additionally, since the passage of the Bankruptcy Fraud Prevention Act (so-called Bankruptcy reform) a few years back, it's become difficult even to file bankruptcy. There is a "means test" whereby they look at your income and determine whether you are technically capable of repaying a certain percentage of your debt within a few years. If they think that you can, you can only do a reorganizatioin of debt (Chapter 13) as opposed to a complete discharge of all dischargeable debt (Chapter 7).

I don't recommend any of this stuff. People need to learn to live within their means. I recomment that no one, I mean no one, ever get more than $1,000 in debt on any unsecured debt such as a credit card, an amount that can easily be paid off within 90 days. I'm not referring to secured debt such as houses and cars.

I know several people who have privately admitted to me that they owe more than $100,000 on credit cards. They are living in a financial hell.

You say that you wil have "no credit" if you close your last credit card. That's not really true. Credit is based on your overall payment record. That is, payment of a mortgage or deed of trust, car payment, accounts at places like furniture companies with revolving credit charges. In other words, your overall payment record.

As far as avoiding service, that's another story. I know some folks that are truly unservable in a personal way due to their lifestyle. The problem with that is the process servers sometimes will say that you were served, at least 'in their opinion". In that case, the creditor could easily obtain a default judgment against you if you don't show up in court.

Good luck on all of this. 

[tdrglide]

I just got a letter from Chase about my credit card account. They said they were raising my interest rate from 9% to 13.9% because "they were not making enough profit on my account". They actually said that. I owed about $1000.00 so I paid them off. It had nothing to do with my credit rating which is excellent. They just tried to get more profit from the amount I already owed. In the future I will make sure they make less profit from me a lot less

[tdrglide]

The way I understand it, most credit card debt cannot be discharged in a bk. The credit card companies will write it off as bad debt. Collection agencies can buy this bad debt for pennies and go after you. If you settle with them for less than the full amount, whats left can be sold again to another collections. Each time another bad on your credit report
The days of easy money are over. We're going back to pay as you go. I heard some stores are offering lay-away again

[Princess Butt]

With every person who says "I'm just going to default and let the bank eat it!" doesn't understand how it all works. The reason credit card companies are raising their rates, even if you have good credit, has more to do with breaking even. Since there is a higher default now on loans, who's going to pay for the losses?

That's easy. Anyone who borrows money in the future will pay for those delinquencies. We'll pay for it in the form of higher interest rates. It doesn't matter if your credit is good. Everyone is now a higher credit risk. Therefore, everyone is going to pay higher interest.

One reason I'm glad I bought the new truck 2 months ago. I got a reasonable interest rate on the loan, and I got it for 1/3 off sticker price. I'm set for cars for the next 10 years, minimum.

I won't carry credit card debt. It's too high an interest rate. Every time you think you want to buy something on plastic, think of it this way: if you pay it over time, you'll typically pay twice as much for it.

BnEUC

[Sonny S.]

Times are tough and company's are freekin out. Doesn't mean what's going on is right, but IMHO, it doesn't we should start being part of the problem. Tireater, as a business owner yourself, if you should just happen to have to change the rules a little to keep your company alive, should your customers just screw you outta money owed ?  I know, you wouldn't do what the credit card company's did.... besides the point.

I had 2 cards do the same thing, I applied for another card with a different company, and transfered both balances to a 0 % for one year card. NBD

IMHO, if we start being part of the problem, instead of part of the solution, we forfit ALL RIGHTS to complain about how this country is in such bad shape.

[Ultrashovel]

Times are tough and company's are freekin out. Doesn't mean what's going on is right, but IMHO, it doesn't we should start being part of the problem. Tireater, as a business owner yourself, if you should just happen to have to change the rules a little to keep your company alive, should your customers just screw you outta money owed ?  I know, you wouldn't do what the credit card company's did.... besides the point.

I had 2 cards do the same thing, I applied for another card with a different company, and transfered both balances to a 0 % for one year card. NBD

IMHO, if we start being part of the problem, instead of part of the solution, we forfit ALL RIGHTS to complain about how this country is in such bad shape.

Check your bill on the o% transfer. I believe you will find that there is a minimum 3% one-time transfer fee on those so-called 0% interest deals. I got screwed on one several years ago. It's in the fine print. They are all llike that.

[hdpegscraper]

Sometimes calling and asking the card companies to lower your rate works to get it even lower, before they jack it up, just because.    Periodically, Ill call one of my card companies and ask the interest rate and limit, usually after I haven't used it in a long time. When they tell me, Ill say " wow, thats why I quit using it, whats the chance of lowering the intrest and raising the limit? Cause then Id go back to using your card again."   Its worked for me to get all my cards down to sane interest rates.  Now it would seam if you just got them to lower you rate, they MAY not be as inclined to raise it back up, and it should help on the credit rating also.

[sandrooney]

If the contract you signed said they could raise the rate then pay it, if not fight it. Pretty simple.

[marc]

You also have to remember that in these tough times that credit card debt is the first thing that people do not pay...It is the one of the most risky types of debt out there...I have always paid my credit card debts at the end of each month and I too got a notice that the % on any portion of unpaid debt is going up...

[f-x-d-w-g]

I have a simple rule:  If I can't pay cash for it, I don't buy it.  If I can pay cash for it, I put it on the card and pay the card off completely every month.  Every couple years we get free airline tickets due to the points paid by the card.  Other than the mortgage, I don't owe anyone squat and haven't for years.

[marc]

I have a simple rule:  If I can't pay cash for it, I don't buy it.  If I can I pay cash for it, I put it on the card and pay the card off completely every month.  Every couple years we get free airline tickets due to the points paid by the card.  Other than the mortgage, I don't owe anyone squat and haven't for years.

I agree with you 100%....That was my fathers philosophy except for our house...He would rather buy a used car than go into debt for a new one...I am the same way...Mortgage will be paid off in a few months...

[Sonny S.]

Times are tough and company's are freekin out. Doesn't mean what's going on is right, but IMHO, it doesn't we should start being part of the problem. Tireater, as a business owner yourself, if you should just happen to have to change the rules a little to keep your company alive, should your customers just screw you outta money owed ?  I know, you wouldn't do what the credit card company's did.... besides the point.

I had 2 cards do the same thing, I applied for another card with a different company, and transfered both balances to a 0 % for one year card. NBD

IMHO, if we start being part of the problem, instead of part of the solution, we forfit ALL RIGHTS to complain about how this country is in such bad shape.

Check your bill on the o% transfer. I believe you will find that there is a minimum 3% one-time transfer fee on those so-called 0% interest deals. I got screwed on one several years ago. It's in the fine print. They are all llike that.

no reading the fine print needed, I was aware of the 3% fee. Still better than paying high interest for the next year.
Gas, Grass or Ass...... nobody rides for free 

[Desperado]

Like many of you, I use my plastic for convenience only - paying off the balance at the end of each month.  You know what credit card companies call people like us?  I learned this a few months ago.  DEADBEATS - because they don't make any money off of us.  Boy, have times changed.  There was a time when someone who paid all his bills on time was considered to be a "good customer" and not a "deadbeat".

[tireater]

I have never been late or missed payments in 23 years and they still jacked my int. rate and lowered my credit limits...
After I paid one card off...They raised the rate from 8 to 20%, moved the payment date up and charged me $39 for a late fee...
This was based on me not paying the higher int. they charged me AFTER I paid off the card...$125 in fees after the pay off...
.
I have no payments except for the cards...My truck, bikes, $80k work boat, $35k slip and 20 wide mobile home are all paid for...
If I lose my last card due to games the credit card companies are playing...They can explain why my card went from 5.5% to 13% if we get to court...
As I said...Congress passed a law prohibiting what they are doing to me...So I am not feeling sorry for the credit card companies...frikin thieves...!!!

[Sonny S.]

If they broke the law or a contract in some way I would definitly take it to court.
I'm all for paying my bills..... but not getting screwed over.   

If you would like I can pay your bills for you..... but you gotta pay mine 

[Ultrashovel]

Like many of you, I use my plastic for convenience only - paying off the balance at the end of each month.  You know what credit card companies call people like us?  I learned this a few months ago.  DEADBEATS - because they don't make any money off of us.  Boy, have times changed.  There was a time when someone who paid all his bills on time was considered to be a "good customer" and not a "deadbeat".

Don't feel sorry for the CC companies. they make discount money from the merchants, anywhere from 2-4%.

[tireater]

I quit using my cards a couple months ago...I just paid my rent and utilities thru June with cash...
My lazy g/f might even have to go to work...insted of laying around all day and pestering me for sex...