Answers
Banks appear (to me anyways) to be ravenous about signing up new credit card holders. I'm familiar with the statistic that states each American has an average credit card debt of $9000. But I am wondering how much average or median revenue it's worth to a bank to signup a new credit card account? Any verified info that someone can point to would be much appreciated!
- Astro Boy
Thousands.
In terms of signing up new accounts it's the Law of Numbers.
But those new accounts will also go through background checks (which is why your credit score may drop SLIGHTLY from opening new credit card accounts). This is part of Risk Management on their part.
Many of us face credit card debts. Visit creditmattersblog.org to get tips on ways to solve and even avoid credit card debts. People sometimes get ...
my income is over the states median average, but i pass the means test #2, which my income is less than what is going out per month. also, i have 648.00 per month going out in 401k loan. i know 401k loan doesnt count as debt, its counted as disposable income. even not counting 401k loan my debt is still greater than monthly income. i have a house that i dont want to lose. my last cash advance was in january worth about 12,000. is chap 7 feasable wiping slate clean? will i be forced into chap 13? will i lose everything? thanks
Yours is a very complicated position. I suggest that you consult your lawyer A.S.A.P.
It looks like there is no way to get a fresh start with the new law. If you fail a median income test what kind of releif can you get? It seems like the law just tells you to pay your credit card debt. What's the point to file for bunkruptcy under a new law?
If you fail the means test it is still possible that you might be able to file under Chapter 7 rather then Chapter 13 bankruptcy provisions. If this is not an option you could try credit counseling.
If you are unhappy with the current bankruptcy law you should let your Federally elected Congresspeople know.
I'm trying to make a financially sound move, deciding whether or not I should take a second mortgage or home equity loan against the equity in my house. Here's the scenario: 670 median credit score, debt to income is about 40%. House appraised for about 100K, still owe 60K. I have credit card debt and I want to also do home improvement. I have three credit cards, two of which are maxed out because I've been doing home improvements with the availability on them. I want to use about 20K in equity to pay off the cards, and use about 5K of it for home improvement so I can sell the house when the housing market improves in a few years.
Should I go for it?
Live within your means, pay down your debts and think about making the home improvements when the housing market improves and you can afford the costs which you cannot right now. Think about this. Your debt is consuming too much of your income as things are now. It will only get worse as you take on even more debt. Don't do it.
I have reseached the new bankruptcy laws and I know all about the schedule I and schedule J filing requirements. My case is pretty straight forward (only credit card debt) and I make less than the state median. I don't want to pay an attorney $1000 but I want the job done right the first time. What should I do?
If you are going to file bankruptcy yourself, you need to be smart and not make any mistakes. The new bankruptcy laws have made it much more complex to file bankruptcy. If you do anything wrong in filing it could cost you more than an attorney.
Check out this website which explains in detail what the requirements for filing bankruptcy are. And be aware that you can usually get an initial consultation from an attorney for free.
I hope this helps. Good luck!
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...News
Credit CARD Act Requires More Clarity in Billing Statementscreditfyi.com - Dec 23, 2009
For example, credit card issuers will be required to make clear exactly how long it will take consumers to pay off their debt — and how much they'll wind up and more »
Toronto Star - Dec 12, 2009
9, 2009) Wanda Murley knows how easy it is for a low-income earner to get buried under a mountain of credit card debt. Like most in her situation, and more »Kansas City Star - Dec 04, 2009
On a more positive note, the study found that the median level of credit card debt for households in the age 75 and up category fell 27 percent to $800 inCardRatings.com - Dec 09, 2009
The median credit card balance for families with heads of household aged 55-64 rose the fastest of all groups, from $2416 in 2004 to $3600 in 2007.
Bloomberg - Dec 18, 2009
“Gordon Brown is maxing out on the nation's credit card and doesn't care how we are going to repay these debts in the future,” said George Osborne, and more »guardian.co.uk - Dec 11, 2009
BBC News (blog) while three-quarters of households had unsecured credit facilities, such as a credit card or store card, and 48% had unsecured debt, owing an average of Live now, pay later: families say there's no point savingall 45 news articles »
Center For American Progress - Dec 16, 2009
Credit card defaults rose to 10.2% of all credit card debt by the third quarter of 2009—an increase of 143.2% from the fourth quarter of 2007.