Just stop paying (student loan, repayment, refinance, saving)

[darstar]

Debt consolidation is a scam. Don't fall for paying someone else to do what you can , ( should ) do yourself.
As we get further into the bowels of a downward jobless society , more and more , new scammers will be competing for your last dollar.... cash is King, preserve it at all costs.

[Pilgrim21784]

Personal debts are a matter of personal honor. You took someone's money, under requirements spelled out in advance - pay your bills.

[Woof Woof Woof!]

Many people, especially working class folk, seem to feel that paying off debt to credit card companies and banks is the honorable thing to do. Financial institutions know this and take advantage. However, banks have taken no responsibility at all for their irresponsible lending, for encouraging spending, and for creating this housing bubble in the first place. What's more, there is simply way more debt in our system then the economy's ability to pay, so some of it must be written down.

If you have to declare bankruptcy, foreclose on a home, or walk away from a credit card, you should not feel any guilt at all. I do not encourage an irresponsible lifestyle, however, this attitude of "you must do whatever you have to in order to pay off your debt" has got to go.

W.

[darstar]

Originally Posted by Woof Woof Woof!

Many people, especially working class folk, seem to feel that paying off debt to credit card companies and banks is the honorable thing to do. Financial institutions know this and take advantage. The fact is that banks have taken no responsibility at all for their irresponsible lending, for encouraging spending, and for creating this housing bubble in the first place. Another fact is that their is simply way more debt in our system then the economy's ability to pay, so some of it must be written down.

If you have to declare bankruptcy, foreclose on a home, or walk away from a credit card, you should not feel any guilt at all. I do not encourage an irresponsible lifestyle, however, this attitude of "you must do whatever you have to in order to pay off your debt" has got to go.

W.

In desperate times , it is most important to retain enough cash to survive , should you loose your job , or , your income is interrupted. If this means not paying unsecured debt, or even upside down mortgages , then so be it.
Suzy Orman , a very conservative economy adviser , agrees. Things are different now. She says everyone needs eight months cash reserves. If it means not paying your debt , to attain the cash , then thats what you should do first.

[rtjr]

If you charged up a credit card, it is your responsibility to pay it off, PERIOD. Deliberately failing to pay off your debt is equal to stealing and is why we are in the financial crisis we are in today. Rationalizing irresponsible behavior by blaming the lenders for making it too easy for people to obtain credit is ridiculous.

[elsapo]

There are times when a real hardship occurs, such as lay offs, medical reasons, death in the family, etc... Unforeseen circumstances that do not allow us to continue to pay our creditors on time, these people need help, they are not turning their backs on their debt, in my experience these are the people that end up apying their debts, the ones with a real hardship.

[MA2NC]

Originally Posted by rtjr

If you charged up a credit card, it is your responsibility to pay it off, PERIOD. Deliberately failing to pay off your debt is equal to stealing and is why we are in the financial crisis we are in today. Rationalizing irresponsible behavior by blaming the lenders for making it too easy for people to obtain credit is ridiculous.

Yes it is a persons responsibilty to pay off what they owe. Unfortunately cc companies take advantage of these people, jack up interest rates, and apply fee's on top of everything else
Also these companies have made a fortune not off of the rich who can afford to pay their balances off or people with good financial sense/experience but off of the poor, uneducated, financially inexperienced ( example: college kids, young adults, people with limited means). They then take advantage and charge high interest rates and they knew all along these were high risk idividuals...So why shouldn't these companies foot part of the blame? It's a game they play, they make the rules and you can't do a thing about it and they know it!
I don't advocate people not paying their debts nor look down on people who are experiencing a hardship. Things happen and if these companies really want their money back they should treat their customers with respect and work with them to keep them on track and get their accounts paid off. Unfortunately they only do the opposite.

[sheriwx]

Originally Posted by Woof Woof Woof!

Many people, especially working class folk, seem to feel that paying off debt to credit card companies and banks is the honorable thing to do. Financial institutions know this and take advantage. However, banks have taken no responsibility at all for their irresponsible lending, for encouraging spending, and for creating this housing bubble in the first place. What's more, there is simply way more debt in our system then the economy's ability to pay, so some of it must be written down.

W.

So you feel that people should not feel obligated to repay money that they borrowed (and spent)? The bank's irresponsible and bad practices have nothing to do with a person not paying back money that they borrowed.

[socal2009]

I think people should not feel bad about walking away from home or a credit card. If bank would go bankrupt, CEO would get his 10 million bonus, and they would not care about average Joe who maybe lost all the savings. FDIC? What if they don't have money anymore?

[darstar]

Originally Posted by rtjr

If you charged up a credit card, it is your responsibility to pay it off, PERIOD. Deliberately failing to pay off your debt is equal to stealing and is why we are in the financial crisis we are in today. Rationalizing irresponsible behavior by blaming the lenders for making it too easy for people to obtain credit is ridiculous.

Sorry , but , the facts are Credit Cards are unsecured debt. One of the reasons the interest rates are so high , is , because its unsecured. The CC companies like it the way it is. They know that through theft , non payers , etc , the profits will be offset by all the money they make from everyone else.
We are not trying to make any excuses , just telling it like it is. When the laws were changed ( bankruptcy ) , a few years ago , ( making it more difficult to get rid of unsecured debt ), it was the CC lobby that promoted it. Also , the encouragement to use tax deduction of the home second mortgage , to pay off the credit debt , was also lobbied by that industry. At one time , all interest was deductible. I blame a lot of the up side down home values , to the CC debt. A lot of folks have not been able to keep up with income , and have been using the credit cards as income. All the wrong thing to do , but , they were encouraged to do so , by the " money lenders ".
We used to have Usury laws to protect the public , most have been removed , or ignored. The problems are huge , all across the land , not just a few unfortunates. If they can bailout AIG , then they can help the Homeowner.