IDEA...need opinion.
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IDEA...need opinion.
| Tue, 06-21-2005 - 2:02pm |
So, I've been pondering this idea...I need opinion.
a) Stop paying all the CC's (total of 11).
b) Take the $$ from all those payments and start targeting them individually.
c) When I get one paid off and target the next, I call and tell them if they roll off all the missed and late fees and some of the interest, I'll start paying, otherwise, they get passed over...forever.
Comments?

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I personally think it's a bad idea. I would continue paying the minimum on all except one. Choose a target card. Pay as much as you can on that one. When it's paid off, take what you paid and add it to the minimum of your target card.
In addition, is there a way you could consolidate some or all the credit cards into one. It make paying them easier.
Just a thought.
Good luck.
MYM
Between your AMEX post and this one, it sounds like you're having a rough time, and are pretty frustrated right now. Sometimes it can feel like they're all out to get you and no one's willing to give you the benefit of the doubt. Believe me, I've BTDT and it's not a fun feeling to have. I so hear you.
Unfortunately, it's often that way for all of us as we begin to repay our debts, and in frustration it's easy to do things that may hurt us in the long run.
As for the Amex situation--it sounds like they don't want you owing them a lot of money. They're worried because they aren't used to seeing you pay well on your cards. The best thing you can do is to prove to them that you *are* responsible and you *are* capable, and that you *are* going to pay everything back. Then when you have, you can close that account, and go do business with companies that will treat you better, and never give another penny to the companies that are treating you poorly. Unfortunately, calling to complain at this point probably won't score you any points.
Now, for the idea at hand. It sounds good in theory, but I foresee some pretty major issues you might face. For a start, as soon as you stop paying on the CC's they will start the mean, nasty, horrible collection calls that may drive you to distraction and send your blood pressure through the roof. Then they will start doing ugly things to your credit report. They will rack up the fees, possibly as much as doubling the amount you owe. And even if you can work out a settlement with them later, you will owe taxes for any amount that they "forgive," including all those fees and interest they charged while you weren't paying.
As for the idea that you threaten to stop paying forever, that too has its dangers. For one thing, it's likely to make them mad enough to really give you a hard time. It's possible they could sue you for the total amount plus court fees, and receive a judgment and even garnish your wages. That would be an ugly situation for you to be in.
I think there are other dangers I'm missing, too. All in all, it seems a dangerous and probably counter-productive path to take.
It's easy to get really angry at this stage of the debt process. The cc companies practice some pretty unethical methods to get people in debt and keep them there. But if you really want to get back at them, the best thing you can do is keep plugging until you have enough wealth built to really put them in their place. Then, if you like, you can call them all up, tell them that you're starting an investment plan whereby you and your investment company intend to make plenty of money, and that they are *not* going to be that lucky company. Goodbye. :)
If it makes you feel better. :)
Mean time, keep coming here to vent, and keep plugging.
Blessings,
Heather
Thanks for the advice.
Unfortunately, there is nothing to attack with, not for another 2 1/4 years, when my spousal support from my divorce ends. That will free a big chunk of money ($2800 a month), but until then, there is little I can do. With $70,000 in CC debt from the divorce, and my Ex paying nearly no CS ("I can't work!") There isn't room to service all the debt now. I quit paying Capital One and MBNA 3 months ago.
I've got some savings, but I'm not going to put it on the CC's, especially if the CC's are going to turn around and turn off the credit line...that makes handling disasters impossible.
I'll have to read up on this tax stuff...I hadn't heard of that one. Exactly how does that information get reported to the IRS?
I have to agree with everyone who said "Don't do it!" You have a legal obligation, not to mention a moral one, to pay the debt.
If the rates are too high (to the point where you're only paying interest and not paying down the principal), you can try negotiating with your creditors or working with CCCS to get a lower rate. But not paying is not an option, unless you declare bankruptcy, in which case you will have a very difficult time getting credit for the next 10 years.
Kelly
All my best,
Danni
I talked to three different BKY atty's all gave me identical answers.
The court would not allow Chap 7, only 13. The fees are 8-10 time higher for 13.
They would like demand 50% repayment over 3 years...which would be payments higher than I currently have, which would not help matters.
Spousal Support is fixed and could only be modified by agreement...which is not likely since my Ex LOVES the fact that I'm in deep water.
So, the choice I've made is the only one I have. Those two will have to sit and wait for payment...nothing else I can do.
Edited 6/21/2005 10:12 pm ET ET by az_tbone
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