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Old 08-19-2009, 12:13 AM
 
3 posts, read 9,260 times
Reputation: 11
You're not alone.

First always remember, CASH IS KING. When you know you're bleeding cash you need to find ways to stop the bleeding. The first place to always cut (after luxuries in the household budget) is unsecured debt. And they know that too which is why they charge the highest interest rate. This doesn't make it right or wrong, that's just the way it is, and creditors know it.

There's a right way and a wrong way of dealing with your creditors. The wrong way is ignoring them - they'll get your attention eventually and you may not like it, and the more they escalate the less options you'll have. The right way is TALKING to them. Keep in mind, the person you're talking to has heard over and over again what you're about to tell them, because you're NOT alone. Also, once you talk to a creditor they'll want to find ways to get their money more creatively, like asking for good faith payments, they'll charge you fees and interest vs. principle (principle is either to collect in court), creditors have been burned just too many times for them to say, "Okay Bob, I understand, just pay us when you can..." In their eyes, you're about to default they just don't know when...

HOWEVER, YOU STILL NEED TO TALK TO THEM... You can find very affordable programs like the HelpUBuyTime programs or you can find FREE advice in what to do through the Federal Trade Commission (a great resource).
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Old 08-19-2009, 12:18 AM
 
20 posts, read 28,853 times
Reputation: 11
Default C.C. dept

As soon as you want to. Don't struggle to keep on paying if you can't pay. I quit paying mine a long time ago. They will try to intimidate you but they can do nothing. I talked to a lawyer about this and he told me this, and so far he has been right. They will try to tell you their going to take you to court and so on and so on, but it is just talk. What are they going to do. If you can't pay you can't pay. There is nothing they or a judge can do. Hope this helps. Shoulda stopped sooner.
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Old 08-19-2009, 07:04 AM
 
328 posts, read 539,694 times
Reputation: 192
Quote:
Originally Posted by john5527 View Post
I am in a similar situation. I didn't start a business however. I lost my job and owe around $18,000. I haven't been able to find a full time job with comparable pay. I found part time work, but I can't make the minimum payment so the fees keep piling. Credit card companies could care less if you are unemployed and looking for work. If you break their terms, you pay the penalties. Realistically, if you think you can't dig out, you should consult a bankruptcy attorney. People give me the advice that you made the debt you should suffer. The bankruptcy code was put in place for a reason and people do make mistakes in life. I have found out the hard way that you should never get in this deep. On the other hand, I don't think a person should have to suffer for the rest of their life because they got in over their head.

As to the original poster, have you contacted a consumer credit counseling agency? I attempted this, but you seem to be in a better situation financially that I am in since you have some income. I have none at all. These agencies work directly with credit card companies to reduce your interest charges and to stop overlimit fees. They really do have a purpose when things get tough. If you chose to pay nothing and don't work with anyone, the CCC's will turn your account over to a collection agency after around 6 months. They will hound you constantly and may eventually sue depending on how much you owe. I heard that normally the lawsuit will attach a garnishment to your wages based on your income level. I would contact your CCC's first though to see if they have a hardship program for the unemployed or go the credit couseling route to avoid a lawsuit.
You made an interesting point. Middle Class people can take a risk, fail and file for bankruptcy .Why should people be accountable for their actions? What is available to the working class? They make too much to qualify for any aid but they do not have enough debt to file for bankruptcy and get a clean slate. This is really disturbing.
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Old 08-20-2009, 07:24 PM
 
768 posts, read 577,496 times
Reputation: 326
Quote:
Originally Posted by 8 SNAKE View Post
The debt isn't secured to anything. Why file?

Agreed. The OP's circumstances have changed. Perhaps he should consider walking away and paying cash for everything in the future. I did it and it's been great.
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Old 08-20-2009, 07:28 PM
 
Location: Sierra Vista, AZ
15,952 posts, read 12,082,304 times
Reputation: 7744
Buy a BMW a Big screen TV and declare Bankruptcy.
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Old 08-20-2009, 07:55 PM
 
768 posts, read 577,496 times
Reputation: 326
Quote:
Originally Posted by Belue View Post
As soon as you want to. Don't struggle to keep on paying if you can't pay. I quit paying mine a long time ago. They will try to intimidate you but they can do nothing. I talked to a lawyer about this and he told me this, and so far he has been right. They will try to tell you their going to take you to court and so on and so on, but it is just talk. What are they going to do. If you can't pay you can't pay. There is nothing they or a judge can do. Hope this helps. Shoulda stopped sooner.
Great post and I can attest to it's truth. Until just a few years ago I had stellar credit. A divorce left me in deep credit card debt that I have been unable to pay off. At first I tried to keep up and pay the minimum payments, sometimes hardly having any food in my refrigerator and not really having much of a social life so I could focus on my debts. I haven’t used a credit card in nearly two years and destroyed them all. I pay cash for everything. But the interest and fees keep racking up and it became more difficult to meet my minimum payments and still pay my other bills.

What finally gave me closure so to speak and allowed me to walk away from my debt with a clear conscience was the bail out. The bail out taught me something valuable. The government will always look out for Wall Street and the financial institutions. The government doesn’t give a damn about us because we are not powerful corporate CEO’s with deep pockets and checkbooks at the ready. Additionally, it is completely acceptable for a corporation to lay off employees simply because the economic climate has changed and lay offs will help to lower costs and increase profits. Well didn’t the economic climate change for me as well? Didn’t it change for you? If changing circumstances allow for corporations to toss employees to the street, than it allows me to toss my debt out the window as well. The whole goose and gander thing you know.

Is this fair? No and I don’t even pretend to make anyone think that it is. But is it fair when an employee of twenty years gets tossed out on their ear in the name of lowering costs and increasing profits? So here I am having stopped making credit card payments and of course having a lot more cash because of it. Yes I used to get hounded by the collection agencies, that is until I cancelled my cell phone plan and got onto my girlfriend’s plan. Now I just pay her and I haven’t received a call from a debt collector in months. I cancelled the PO Box I used to receive mail and now I guess the mail just gets returned. I don’t know and I don’t care.

I was served a few times at work since that is the only place they still can contact me and I promptly fed the papers to my shredder and never showed. I’m sure I have a few Judgments against me but I don’t care. I no longer own property and I live in a state where wage garnishment for credit card debt is not legal.

I say all this to empower all who are in my situation to just walk away.
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Old 08-20-2009, 09:21 PM
 
Location: Sierra Vista, AZ
15,952 posts, read 12,082,304 times
Reputation: 7744
Quote:
Originally Posted by Boompa View Post
Buy a BMW a Big screen TV and declare Bankruptcy.
My son went through Bankruptcy ten years ago and thanks to that now has over $100k in the bank and owns his car and house. If he tried to work his way out of it he would have none of it.
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Old 08-22-2009, 01:05 PM
 
Location: San Diego California
5,969 posts, read 3,215,649 times
Reputation: 4227
Bankruptcy will look better on your credit record, as it is better to have just one line that says bankruptcy, than several lines for each thing you quit paying on. Besides you will be in the same boat as hundreds of thousands of other people who were financially devastated by this economy. I agree with the people who say you need to be in survival mode.
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Old 08-22-2009, 01:10 PM
 
Location: southern california
49,278 posts, read 45,802,045 times
Reputation: 40363
my best shot, start listening to dave ramsey .
austerity guru.
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Old 04-22-2010, 04:52 PM
 
Location: Yucaipa, California
8,315 posts, read 10,063,183 times
Reputation: 4590
A friend of mine hasnt paid his mortgage in 18 months. He has not received a forclosure notice yet. Over the 18 months he has spent his money (hes employed full time) unwisely & given some to his family. I told him to start saving over a yr ago. He nets around 2500.00 mo & he could of saved a bare min of 1k month. All he pays for is his utilities, net, dish, food & misc. His car is paid for. It amazes me how ignorant some people are.
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