A prerequisite of this idea is that you don't care what happens with your credit for roughly a year.
You tell the creditors to eat a dick, since the debt is unsecured, and therefore, they are unable to take anything from you. You let the accounts go into collection, where they are legally forbidden from accruing and collecting interest. You save the money that you would normally be paying them in minimum payments, and put it into an interest-bearing account (e.g., a mutual fund). It takes about a year or so for the whole shebang to hit the courts, and your attorney cites any little thing the creditors have done wrong (e.g., calling you back about a payment after you have told them to fuck off and not call you anymore) in order to make the following offer.
Let's assume $75,000 in debt. That amount usually carries a minimum payment of about $2,300 or so. Usually, you would cash out all the equity in your home, and bank it into the same mutual fund. So you start with X amount in the MF, and add the $2,300 each month that would normally be going to credit card interest. By the time the cases have gone to court, your lawyer has them in compromising position. He then makes an offer something like this; "We'll give you $40,000 right now to make this look like it never happened." Of course, the credit supplement stipulation is required (i.e., the delinquency will be erased from your credit report). So you end up paying $40,000 for what you would have paid $75,000 + AT LEAST 1 year of what are essentially interest-only payments (2300 x 12 = 27,600, + 75,000 = $102,600). All the while, there is no extra interest being added to your balances.
Of course, this is a last-ditch, emergency solution, but it fucking works. Seriously -- fuck the credit card companies. They make billions off of the tribulations of the lower middle class. They can eat a dick.
I don't know why you friended me, but I see why I need to friend you back now.
Maybe we can talk sometime about how much I hate credit card companies and want to tell them "Fuck off". Until then, tell me--do you think it's morally justifiable to give an 18-year old a $10,000 credit limit?
Morally justifiable? Unless the kid's parents make at least that much per month, no. That said, I talk to 18 and 19 year old kids on a weekly basis who have 720+ credit, because they understand the way the game works (get approved for a card, use it, pay it off, repeat). These are the ones buying houses before they're done growing (they are, of course, the vast minority).
Maybe everyone under 20 should be required to use only secured cards (i.e., they pay the cc company *before* they can spend the money). I do know one thing, though; I wish I had known what I know now 8 years ago. I made over $70,000 waiting tables for two years in a row, and came out of it with nothing to show but $7,500 in debt.
A prerequisite of this idea is that you don't care what happens with your credit for roughly a year.
You tell the creditors to eat a dick, since the debt is unsecured, and therefore, they are unable to take anything from you. You let the accounts go into collection, where they are legally forbidden from accruing and collecting interest. You save the money that you would normally be paying them in minimum payments, and put it into an interest-bearing account (e.g., a mutual fund). It takes about a year or so for the whole shebang to hit the courts, and your attorney cites any little thing the creditors have done wrong (e.g., calling you back about a payment after you have told them to fuck off and not call you anymore) in order to make the following offer.
Let's assume $75,000 in debt. That amount usually carries a minimum payment of about $2,300 or so. Usually, you would cash out all the equity in your home, and bank it into the same mutual fund. So you start with X amount in the MF, and add the $2,300 each month that would normally be going to credit card interest. By the time the cases have gone to court, your lawyer has them in compromising position. He then makes an offer something like this; "We'll give you $40,000 right now to make this look like it never happened." Of course, the credit supplement stipulation is required (i.e., the delinquency will be erased from your credit report). So you end up paying $40,000 for what you would have paid $75,000 + AT LEAST 1 year of what are essentially interest-only payments (2300 x 12 = 27,600, + 75,000 = $102,600). All the while, there is no extra interest being added to your balances.
Of course, this is a last-ditch, emergency solution, but it fucking works. Seriously -- fuck the credit card companies. They make billions off of the tribulations of the lower middle class. They can eat a dick.
Knowing this makes me feel so damn Fight Club.
Reply
Maybe we can talk sometime about how much I hate credit card companies and want to tell them "Fuck off". Until then, tell me--do you think it's morally justifiable to give an 18-year old a $10,000 credit limit?
Reply
Maybe everyone under 20 should be required to use only secured cards (i.e., they pay the cc company *before* they can spend the money). I do know one thing, though; I wish I had known what I know now 8 years ago. I made over $70,000 waiting tables for two years in a row, and came out of it with nothing to show but $7,500 in debt.
Reply
Leave a comment