U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-24-2013, 05:30 PM
 
2,359 posts, read 3,026,727 times
Reputation: 4591

Advertisements

Quote:
Originally Posted by Ninetails View Post
Long story short I have about 4 cards I no longer care
to pay.

Should I let them charge off.

The threat of being sued does not scare or phase me.

I have better things to do with my money than pay cards
I do not want.

How many months from last pay does it take to charge off.

I am not sure what you think "charge off" means but all it means is they charged it off their books as a bad debt. The fact that they charge it off, does not in any way mean you do not have to pay it anymore. A charge off will destroy your credit score. First you will not be able to get any loans or credit. Secondly, your insurance rates will go up probably at least 30% and your insurance companies may not even renew your policy on your next renewal and you will have to go to bad credit insurance market where your insurance rates can be as high as 10 times what your are currently paying if you are approved at all.

Next comes the really bad news, banks now either sue you themselves or sell it to a debt collector who WILL sue you along with blatantly disregarding the law and harassing the hell out of you, calling your employer, calling your family and sometimes even your neighbors.

Once they sue you and get a judgement, they will attach liens to any property you may have such as your home or land. If you ever try to sell it, they will have to be paid prior to closing and they will have by then added interest, fees and penalties. In 10 years a simple $1000 credit card balance could be over $100,000. The judgement doesn't go away for 10 years and in most states they can renew it for another 10 years and in some states even more.

Next they will get a garnishment on your wages and it will be sent to your employer who must then withhold and submit whatever the garnishment order states every pay period until the judgement is paid.

Then they will attach a lien to your bank accounts and sieze any money you have in those accounts up to the balance of the judgement at the time. If you owe them $10,000 and you have $9000 in 6 different bank accounts totally $54,000, all 6 accounts will be seized and the entire $54000 will be transferred to them. You then have to work through the system with an attorney to get your other $44000 back. If you are on any other accounts as a signer such as a joint account, business account, whatever your name is on; they will seize that as well.

Eventually if you still avoid paying them, in many states they can then get a seizure order and show up at your house one day with the police, inventory all of your assets and seize them along with the home if you own it. They will then have an estate auction and sell all of your property. If the auction brings more than the total of the judgement, you will get lucky and get the balance eventually after they take out some fees for the auction. If you tried to outsmart them and transferred ownership of property or assets, they will find it through the investigation of your finances and assets. That really ticks the judge off and he will bury you for that.

I would think before it came to all of this you would have worked out a settlement or payment arrangements or filed bankruptcy but either way by the time it is over with you will have lost far more than whatever you owed them in the first place either by paying attorney fees or higher insurance rates and financing at a latter date. Regardless, you are going to lose if you just "let them go to charge off" if you have the means to pay in the first place. It is a different story when something beyond your control happens such as an illness or loss of job and trouble finding a new job but when you do it intentionally, you will get what you deserve.

Assuming you have the means to pay but just see that it is never ending and want out, your best bet is to call your creditors and tell them that you are overwhelmed, overloaded with debt and want to ask for their help cleaning it up before it spirals out of control soon. Most of them don't want that to happen and will work out payment arrangements and will sometimes agree to lower the interest if you agree to the closing of the account and you pay on time each month thereafter. Some will even reduce the amount of the debt if you are convincing and sincere enough in your plea for help.
Reply With Quote Quick reply to this message

 
Old 02-24-2013, 07:10 PM
 
Location: Brawndo-Thirst-Mutilator-Nation
15,147 posts, read 15,198,298 times
Reputation: 10872
I hope whoever you OWE that money to garnishes your wages to get it back.
Reply With Quote Quick reply to this message
 
Old 02-25-2013, 07:06 AM
 
8,195 posts, read 10,205,914 times
Reputation: 7485
I'm confused..
Is she saying she paid them off,her balance is 0,yet she still has them on hand but doesn't want to pay yearly fees?

That's what I did...balance was 0. Yearly charge was $60. I cancelled. Didn't have time to pay $60 for a card with only 300 on it.
Reply With Quote Quick reply to this message
 
Old 02-25-2013, 10:41 AM
 
Location: Georgia, USA
21,478 posts, read 26,078,274 times
Reputation: 26426
Quote:
Originally Posted by jerseygal4u View Post
I'm confused..
Is she saying she paid them off,her balance is 0,yet she still has them on hand but doesn't want to pay yearly fees?

That's what I did...balance was 0. Yearly charge was $60. I cancelled. Didn't have time to pay $60 for a card with only 300 on it.
I believe OP has cards with balances that he has just decided he does not want to pay.
Reply With Quote Quick reply to this message
 
Old 02-25-2013, 10:49 AM
 
15,385 posts, read 8,679,661 times
Reputation: 13770
Quote:
Originally Posted by Ninetails View Post
Close thread. This is flamebait for those who believe in
paying back every cent they spend vs those who take
a laid back approach to spending.
Laid back approach? You mean have someone else pay for things YOU should be paying for.

For cases like this, I'd like to see debtor's prison brought back. You are committing fraud - entering into an agreement with the intent to not pay.
Reply With Quote Quick reply to this message
 
Old 02-25-2013, 11:15 AM
YAZ
 
Location: Phoenix,AZ
7,067 posts, read 11,436,824 times
Reputation: 6281
One should not believe everything that they read on the internet is true.

Walk away from the credit card debt?

One can walk, run, hide.....whatever. It will never go away unless the debtor takes care of it.

Here's what's gonna happen:

Let's just say that someone charged $10k on a credit card, then defaulted. This is unsecured debt, therefore the creditor can't attach a lein on personal property, even merchandise that was purchased under the contract. And it is a contract, with all of the rules and regulations that come with a contract. Trust me, if in some way the creditor can get the stuff back, they wouldn't want it anyway.

The debt will be charged off, which just means that the CC company has reported it as bad debt. A collection agency will purchase the debt and most likely will get a judge to sign off on a judgement. This means the court has recognized the debt as valid and the debtor has a legal obligation to pay.

Can they go after your bank account?

Oh yeah. And they will.

Can they get a wage garnishment?

Oh yeah. And they will.

Can your employer fire you if you have wage garnishments?

Oh yeah. And some will.

Before we get to this step, it's important to negotiate with the debtor. By this time with late fees, penalties, and an obscene interest rate, the debt is now around $20k.

Now is the time to talk.

Do the math and pay for what you "bought" minus the fees. Make sure that your new contract states "With Prejudice".
Reply With Quote Quick reply to this message
 
Old 02-25-2013, 11:18 AM
YAZ
 
Location: Phoenix,AZ
7,067 posts, read 11,436,824 times
Reputation: 6281
Quote:
Originally Posted by ringwise View Post
Laid back approach? You mean have someone else pay for things YOU should be paying for.

For cases like this, I'd like to see debtor's prison brought back. You are committing fraud - entering into an agreement with the intent to not pay.
Federal jails are full of tax cheats.

Reply With Quote Quick reply to this message
 
Old 02-25-2013, 11:23 AM
 
Location: Southern Arizona
9,308 posts, read 25,652,204 times
Reputation: 10566
Quote:
Originally Posted by Ninetails View Post
I don't condone stealing pal. I also don't condone
the usery of credit cards, easily the most annoying
debt, how some people have ten or more of those
things amazes me.
Interesting "lop-sided" way of thinking, Ninetails . . .

You purchased items for which you have no intentions of paying and now it is THE CREDIT CARD'S FAULT?

Sure sounds like BLATANT THEFT to me and you're a perfect candidate for The Slammer.
Reply With Quote Quick reply to this message
 
Old 02-25-2013, 11:59 AM
 
Location: Arizona
5,334 posts, read 5,696,665 times
Reputation: 7023
Quote:
Originally Posted by YAZ View Post
One should not believe everything that they read on the internet is true.

Walk away from the credit card debt?

One can walk, run, hide.....whatever. It will never go away unless the debtor takes care of it.

Here's what's gonna happen:

Let's just say that someone charged $10k on a credit card, then defaulted. This is unsecured debt, therefore the creditor can't attach a lein on personal property, even merchandise that was purchased under the contract. And it is a contract, with all of the rules and regulations that come with a contract. Trust me, if in some way the creditor can get the stuff back, they wouldn't want it anyway.

The debt will be charged off, which just means that the CC company has reported it as bad debt. A collection agency will purchase the debt and most likely will get a judge to sign off on a judgement. This means the court has recognized the debt as valid and the debtor has a legal obligation to pay.

Can they go after your bank account?

Oh yeah. And they will.

Can they get a wage garnishment?

Oh yeah. And they will.

Can your employer fire you if you have wage garnishments?

Oh yeah. And some will.

Before we get to this step, it's important to negotiate with the debtor. By this time with late fees, penalties, and an obscene interest rate, the debt is now around $20k.

Now is the time to talk.

Do the math and pay for what you "bought" minus the fees. Make sure that your new contract states "With Prejudice".
In no way do I favor what the OP is suggesting, but some of this isn't entirely accurate. Not all states allow wage garnishments for credit card debt (although most probably do) and an employer cannot legally fire an employee for a single garnishment (federal law prohibits this). Multiple garnishments may be a different story.

That still doesn't make what he's suggesting right.
Reply With Quote Quick reply to this message
 
Old 02-25-2013, 01:59 PM
 
15,385 posts, read 8,679,661 times
Reputation: 13770
Quote:
Originally Posted by YAZ View Post
Federal jails are full of tax cheats.

This isn't tax fraud.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top