Credit Card Debt Default

Sometimes i get letters from credit card debt angencies saying i owe the same balance that i had for 6 years, but sometimes shows more balance with intrestest but only one letter said this, the rest all had same balances which were 6 years ago when i was in debt of £2,000, but one letter said £6,000, i have not replied or ever gotten back to the debt credit card collectors, agencies etc, so whats going on, does default mean no intrest charges?

Like I've already told you, you just wait until they finally catch up with you and you're in for the surprise of your life! "Interest" won't come into it ! ! !

2007-10-31 10:06:14 by Tramadol

www.financemoneybusiness.com Credit cards used to be used for emergencies only. Now they are being used for a better style of living - but people ...

I don't have a job(I'm looking everyday), no money what so ever, so how can I possibly pay my debt of 1200.00 dollars? Luckily, I'm living with my mom and she's is paying for my Comcast bill, that's enough guilt I have to carry for a while. Would you just default it? What should I do?

(P.S. Please don't say to apply for unemployment and pay the minimum balance, I also have bad credit) Thank you!

Are there other financial obligations you must meet? If you have car loans, insurance, utilities, etc. you should pay those first. If it comes down to deciding between one of those and your credit card bills, the credit card bills can wait.

What I recommend doing is actually calling your credit card company and letting them know your situation. They should be more than pleasant and willing to help you out. I believe they call it Hardship Assistance and it is NOT uncommon in this economy to work out some sort of deal.

If they are not willing to assist you, you CAN not pay your bills for a while until you can start making payments again. It will negatively effect your credit rating, but what can you do without income? The worst that will happen besides a credit rating drop is a bunch of harassing calls. You may also find that they will be unwilling to increase your credit limit for a while and other companies will not be willing to offer you a new credit card.

The money that credit companies receive from us is more than half interest in the first place, so you have no need to worry about us paying for it like the other guy said.

If you let it go long enough, however, they will most likely SHUT DOWN your accounts and you will find yourself without ANY available credit.

2009-08-31 08:50:16 by James

Price: $22.95

I have A LOT of credit card debt from opening a business and having to sell it in one year because of family responsibilities. Saw a bankruptcy attorney, but the options don't seem to work for me as there's no way I could ever pay off these debts.
I know it's very immoral, but what will actually happen if I just stop paying on them? I know I'll be inendated with phone calls and lose my good credit standing, but can they attach my bank account or any other asset?

I am a paralegal for a bankruptcy attorney who specializes in Chapter 7 and Chapter 13. The first thing you need to ask yourself is--can you live if these creditors get garnishments against you? A creditor can get up to 25% of your paycheck. If the debt is small enough to where it can be paid off rather quickly through the garnishment, then it may not be so detrimental. However, if you are living paycheck to paycheck, it may not be the best situation for you to be in. The other issue is that a judgment, if certified, can attach to your assets, particularly any property you own. If you should want to refinance or even sell your home, those judgments will have to be satisfied and they can often screw up any financing that you have acquired.
Bankruptcy is not as negative as everyone thinks it is. It can stay on your credit report for up to 7 to 10 years. It depends on the credit reporting agenxt. Experian typically reports for 10; transunion and equifax are typically 7 years. However, there have been a multitude of studies recently that show that after you get out of bankruptcy, your credit rebuilds faster than if you were to attempt to do it on your own.
A Chapter 7 bankruptcy usually lasts from 4 to 5 months. And for most individuals, depending on your income level and the exemption laws of the state you live in, you may be paying a miniscule percentage of what you owe. Think -- you pay $1500.00 for attorney fees in a Chapter 7 and you discharge $40 or $50K worth of credit card debt. While some people think it is immoral--just open your Bible and turn to Nehemiah 10:31 and Deuteronomy 15:1-2. If bankruptcy were immoral, would it be legal and provided for by the U.S. Government -- one of the most prudish governments there is? What you really need to look at is your income level. If you are below the median for your area (which you can find in bankruptcy code books or from the state statutes concerning exemptions, which vary from state to state) then you are eligible to file for a Chapter 7. There are other issues such as personal property and how much of it falls within the exemptions, as well as concerns regarding recent transfers of property. These can all be brought to the attention of a bankruptcy attorney and they can guide you in the right direction.
If your income is OVER the median, then you have no choice but to a Chapter 13 bankruptcy...which can be very long and painful for some people. They last from 3 to 5 years and eat up a lot of your income. The Chapter 13 is ideal for people who are behind on their loans to either mortgage companies or their vehicle lenders or if you are behind in taxes and/or child support payments.
The bankruptcy code is federal and does not change from state to state. However, what does change are the exemptions which are incredibly important so I would recommend seeking counsel on those matters.
I have had a lot of clients who have been screwed over by the credit negotiating programs but if you find one that has good references from people you know and is trustworthy-go for it.

2008-07-21 12:05:49 by perkins

Price: $80.00

I got credit cards to pay for stuff, food, and books for college. My grades going down so i quit my job the cards went into collection and collection agencies. Can collection agencies sue me or bring me to court? Should i be worried 'cause i can't pay until i graduate with decent job in finance. My credit debts don't erase from credit report until 2009. I just wanna hide until i make some money.

Starting life with a bankrupcy doesn't sound a very happy beginning to me, why not get a credit card with ZERO interest for 12 months then pay the debt with it?
However if you are not working this can be nothing more than a way of putting off the evitable but it will give you time asthough It really does little to correct the problem in the long term. That's why many people come back to debt negotiation as a way of getting out of their financial problems and starting fresh start.
More here: http://finance.ebookorama.com
also plenty more to read here
http://credit.ebookorama.com
http://credit-cards.ebookorama.com
http://credit-repair.ebookorama.com
good luck!

2006-11-10 14:42:31 by eelion19

I owe more than $20,000 in credit card debt and I am struggling to keep up with the payments. I dont knowhow much longer I can do it. If I stopped paying, would they be able to repo my car, house, or other property? Or even take money straight out of my bank account?

First, they have to sue you and obtain a judgment to do anything.

Once they have their judgment...depending on what state your in they can garnish your wages, levy your bank account, file a lien on your property, attach assets. Attaching assets includes your car but only if its paid off.

If it is not paid off than they can not because the car does not belong to you, at this time the lender is holding the pink slip.

However, a lien can be filed on your property either way.

As some people think that it is a reflex of a collection agent to tell you to pay the bill...it actually isnt. However, in this case it is my recommendation that if you have assets and in your state wage garnishments are legal...in order to keep yourself out of trouble you need to either continue paying the bill somehow or you need to transfer titles of your assets, pull your money from the bank and pray they dont find your job.

People will tell you to fight it, write this letter do this and do that. Sure you can do all of that and you do have rights. But these people are not professionals and dont know what they need to know to understand the other side because what these people fail to tell you is that creditors and collection agents or agencies also have rights. The law provides them with remedies of recourse.

If it were as easy as some people make it seem...nobody would ever pay their bills and they would just "dispute it" or "fight it " it off.

Think about it. Its only logical.

If you have any questions, email me.

Good Luck

Educate yourself on your rights. Google the FDCPA which stands for Fair Debts Collection Practices Act.

2007-05-15 13:27:16 by Bostonian