Just stop paying

[chet everett]

Traderx:

I don't understand what your position is at all. You seem to feel that defaulting in both "not worth it" for the lender to attempt to collect and no one should need to ever borrow anything. Seems very mixed up to me.

I have always been a saver, but when it comes to many major purchases I have used credit and I have been never trapped or irresponsible. When I have used credit my responsible behavior has resulted in favorable rates. While I know this is due to my good credit scores the fact is that the combination of attractive rates and my own knowledge of what I can ultimately afford keep my within a sensible range.

My income, and that of my spouse, has had ups and downs. I know the WORST time to incur debt is when income is shakiest, and the temptation to over indulge in "fat times" is not easy to overcome but by treating the whole process of borrowing with a healthy respect I do believe I have been able to have a better life than merely socking away every last red cent...

[darstar]

We survive on credit , we fall because of it....its a two edged knife....Those who said the world turns on credit , is correct... However , today credit is still tight , and , getting tighter. Banks won't loan , nothing happens. The bailouts all went to the fat cats.
For the average Joe , the future does not look bright. Most of us will live a more frugle lifestyle for a few years.

[Traderx]

Originally Posted by chet everett

Traderx:

I don't understand what your position is at all. You seem to feel that defaulting in both "not worth it" for the lender to attempt to collect and no one should need to ever borrow anything. Seems very mixed up to me.

...

My position really isn't very hard to understand.

The expense to collect a debt is basically fixed to a large degree therefore to collect a small debt becomes problematic for lender's. On top of that, most people who default on debt do so because they're broke. Thats why banks rarely persue deficiency judgements. Simply put, it doesn't make sense to spend 6K to collect 5K or to spend 6K to collect zero.

As for borrowing, yes, avoid it. All personal debt including mortgages are bad debt. In fact, if you must borrow in order to buy something then clearly you can't afford it.

But what if I have the money, you say, but chose to borrow instead? Well great for guys like you and me then who are loaded and can make that choice. However, the vast majority of people, including the OP by his own admission, don't borrow for strategic reasons they borrow because they want things they can't afford. Unfortunately just because someone will lend them money though they believe they really can afford it.

On top of that we have a system that sucks people into believing that a high credit score equals good sound financial management. In fact, all a high score proves is that you hit the till regularly but pay it back. Not exactly something to be proud of.

The one exception I would make to no borrowing is in business. But even then the borrowing should small relative to the profits and the payback times short. Borrowing to start or buy a business is a serious mistake for all but the most ecperienced.

[liveasy9843]

Originally Posted by e.ortega

Are you drunk right now?

Are you nuts? You cannot just decide not to pay anything off. You are stuck with this bill until it's paid for. The interest rates are going to keep climbing and your balance is going to be so high if you do not pay this off IMMEDIATELY. It is not simply going to DISAPPEAR. Your credit will be RUINED. You won't be able to get an apartment, buy a car and DEFINITELY take out any loans for perhaps a house in the future.

You should pay them off completely and close the accounts so you won't ever have to deal with them again or ask them to lower your interest rates and possibly work with you in getting a payment plan every month if not consolidate, add them all up get a company that will allow you to make a monthly payment towards all of them together, let them decide how much goes to which one.

Good Luck, hope you pay them off. YOU CANNOT JUST NOT PAY ANYMORE!!!!! You will have NO CREDIT!!!! and your BALANCE will be ridiculous!!!

Leave him alone .. they can't do a thing to him all he has to do is not keep any money in the bank, and work a job that pays cash or just writes him check and doe's not hold out taxes..so they can't garnish his wages.. there are lots of jobs out there like that or he can buy and sell on ebay and craigs list and make money that way.. jsut become self employed like me.. to hell with the credit card companies.. He is not stuck with the bill you are dumb as hell for saying that he is.. They cannot make you pay.. You can just walk away.. I know someone very close to me who is doing the same thing right now on over $50,000 worth of unsecured credit.. All they can do is add interest and late fees to it for a while, but in 180 days they have to charge it off as bad debt, then they can write the loss of their taxes . and the loss will be bigger because of all the interest and late fees.. they want you to be late.. they can use the write off.. and then sell the debt to a collector for pennys on the dollar , and all you have to do is send the collector a CEASE AND DESIST letter and your done with them.. they may sell it to another collector and then you do the same thing..The best way to do it is to get on craigs list and look up a house for rent in another state, write down the address, and put this down as your return address on anything to send to the collector.. or the creditor but I remend very little or no contact with the creditor them selfs. the sooner you stop communcating with the the sooner they have to remove it from your credit report , as long as you talk on the phone with tghe origanal creditor you case is still active.. so never talk to them or send them anything , unless its right at the beginning of your DO NOT PAY that what I like to call it.. and go get your self one of those prepaid phones at walmart for $45.00 a month with unlimited min.. and your number wont be listed and if they ever get it .. just record a phone company message on there saying that this number is no longer a working number , this is easy to do.. and they will take your number out of there system when they get this recording as your out going message because they think you changed your number again.. I say to hell with all the banks .. Everyone that can should charge up as much as you can on credit cards and pay the min dues while you build up your balance and then once you own many thousands and have lots of cash advance money and nice new toys to show for it . JUST stop paying them and consider it your Part of the BAIL OUT>>> and walk away forget about it .. as long as you only own one house they can't do anything except put a lien on it. and that only stops you from selling it.or borrowing money on it, and in ten years that lien will expire, if they even go that far.. they really don't have a way to make you PAY if you are willing to do what it take to screw them and get your part of the Bail Out.
And there is no God and no Devil either so you won't have to worry about burning in hell.. it ant there.. when you die you are gone, thats it.
SO no need to fell bad about it.. NO morel issue here , just take back your part of the Bail Out .. We are all going to get screwed in the near future so you should have already been taking what you can get.
If I had the credit.. I would charge it up to the max and then stop paying.. buts its only really worth it if you do it BIG for lots of money ..
The only bad thing about Loose cannons deal is the fact that he only owes the $5000.00 that nothing.. he could have worked right and paid the min for a while and had 20 cards charged up that high... then it would have been nicer....

[darstar]

Originally Posted by liveasy9843

Leave him alone .. they can't do a thing to him all he has to do is not keep any money in the bank, and work a job that pays cash or just writes him check and doe's not hold out taxes..so they can't garnish his wages.. there are lots of jobs out there like that or he can buy and sell on ebay and craigs list and make money that way.. jsut become self employed like me.. to hell with the credit card companies.. He is not stuck with the bill you are dumb as hell for saying that he is.. They cannot make you pay.. You can just walk away.. I know someone very close to me who is doing the same thing right now on over $50,000 worth of unsecured credit.. All they can do is add interest and late fees to it for a while, but in 180 days they have to charge it off as bad debt, then they can write the loss of their taxes . and the loss will be bigger because of all the interest and late fees.. they want you to be late.. they can use the write off.. and then sell the debt to a collector for pennys on the dollar , and all you have to do is send the collector a CEASE AND DESIST letter and your done with them.. they may sell it to another collector and then you do the same thing..The best way to do it is to get on craigs list and look up a house for rent in another state, write down the address, and put this down as your return address on anything to send to the collector.. or the creditor but I remend very little or no contact with the creditor them selfs. the sooner you stop communcating with the the sooner they have to remove it from your credit report , as long as you talk on the phone with tghe origanal creditor you case is still active.. so never talk to them or send them anything , unless its right at the beginning of your DO NOT PAY that what I like to call it.. and go get your self one of those prepaid phones at walmart for $45.00 a month with unlimited min.. and your number wont be listed and if they ever get it .. just record a phone company message on there saying that this number is no longer a working number , this is easy to do.. and they will take your number out of there system when they get this recording as your out going message because they think you changed your number again.. I say to hell with all the banks .. Everyone that can should charge up as much as you can on credit cards and pay the min dues while you build up your balance and then once you own many thousands and have lots of cash advance money and nice new toys to show for it . JUST stop paying them and consider it your Part of the BAIL OUT>>> and walk away forget about it .. as long as you only own one house they can't do anything except put a lien on it. and that only stops you from selling it.or borrowing money on it, and in ten years that lien will expire, if they even go that far.. they really don't have a way to make you PAY if you are willing to do what it take to screw them and get your part of the Bail Out.
And there is no God and no Devil either so you won't have to worry about burning in hell.. it ant there.. when you die you are gone, thats it.
SO no need to fell bad about it.. NO morel issue here , just take back your part of the Bail Out .. We are all going to get screwed in the near future so you should have already been taking what you can get.
If I had the credit.. I would charge it up to the max and then stop paying.. buts its only really worth it if you do it BIG for lots of money ..
The only bad thing about Loose cannons deal is the fact that he only owes the $5000.00 that nothing.. he could have worked right and paid the min for a while and had 20 cards charged up that high... then it would have been nicer....

As far out as you sound to most readers , one thing stands out true , for sure , thats CREDIT . Its not as important as having cash , or being liquid enough to survive the ups and downs. Those that have told the news meda , (the credit card companies are the suporters of the credit score companies ) HOW IMPORTANT it is having a high credit score, the Banks , the mortage lenders , etc. .. Its all a scam to control to comsumer.

[lumbollo]

Originally Posted by darstar

We survive on credit , we fall because of it....its a two edged knife....Those who said the world turns on credit , is correct... However , today credit is still tight , and , getting tighter. Banks won't loan , nothing happens. The bailouts all went to the fat cats.
For the average Joe , the future does not look bright. Most of us will live a more frugle lifestyle for a few years.

No doubt about the credit part. However what is at issue is not credit, but rather accumulated debt. There is a difference and one that people often confuse.

Over the last 25-30 years the United States has converted its economy from one based on production to one based on leveraged consumption. It doesn't take too much genius to realize this is unsustainable and what we are seeing now is the fall of our economy because of too much accumulated debt without the true wealth creating economy to back it up. (its all been transferred offshore)

The end result is going to be a long decline in the standard of living in the USA. It won't change until money supply is tied back to industrial production and this isn't happening for now because there is still a widespread denial there is anything wrong in this country. Stay tuned.

[darstar]

Originally Posted by lumbollo

No doubt about the credit part. However what is at issue is not credit, but rather accumulated debt. There is a difference and one that people often confuse.

Over the last 25-30 years the United States has converted its economy from one based on production to one based on leveraged consumption. It doesn't take too much genius to realize this is unsustainable and what we are seeing now is the fall of our economy because of too much accumulated debt without the true wealth creating economy to back it up. (its all been transferred offshore)

The end result is going to be a long decline in the standard of living in the USA. It won't change until money supply is tied back to industrial production and this isn't happening for now because there is still a widespread denial there is anything wrong in this country. Stay tuned.

I agree . The Gold Standard would help also.....maybe we all need to start over ( as a Country and Government ). Ether way , we have become a service economy...it won't last forever , not making anything of value.