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U.S. Credit Card Debt Soars To Un precedented Hights

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posted on Apr, 28 2008 @ 03:04 PM
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reply to post by ModernAcademia
 

That is one of the biggest lies of the credit industry. If you have a good work history, have kept up you taxes, and paid rent on time then you will qualify for a mortgage. There are reputable lenders that do not use credit scores to qualify buyers. You will however have to shop for them. By the way no credit is history is really not a strike against you as many cc companies will tell you. I too fell into that trap when I was younger.


respectfully

reluctantpawn




posted on Apr, 28 2008 @ 03:35 PM
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I work in a credit based industry and have seen it all.

Here is a great way that some people have eliminated credit card debts once and for all, Im NOT advising anyone here to do it, just letting you in on a little secret that has worked for some in the past.


If, say for instance, you owe $5000 on a credit card there are ways to have that account settled and closed. Someone alluded to the idea earlier but did not have it exactly right.

You see, any time you write out a personal check, that piece of paper is, for all intents and purposes, a legal and binding contract. Now what people would do is write the credit card company a check for X amount, and on the back of this check they write : By accepting this payment and cashing this check you are agreeing to accept the amount being paid as PAYMENT IN FULL. If the company processes that payment and cashes your check, then by law they have just accepted that amount as payment in full balance and must honor that amount. If not you have the ability to sue that company for breech of contract.

It is a bit underhanded and may sound a little shifty, certainly operating in a gray area at the very least, but I have seen it work many times. Also, when I do a refinance for someone on their home and I am paying off old debts, I normally will contact the creditor being paid on behalf of my client and have the balances settles for a fraction of the balance showing due. This is very simple if the account has gone to collections, and even works for a tax lien or judgement. Many times I have settle accounts for 10 and 20 cents on the dollar. It can be done, especially with collections because these companies know that it is better to get some money than none at all, and half of the time they have already written the debt off anyway.

Know your rights people.

[edit on 4/28/08 by BlackOps719]



posted on Apr, 28 2008 @ 03:40 PM
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Originally posted by reluctantpawn
reply to post by ModernAcademia
 

That is one of the biggest lies of the credit industry. If you have a good work history, have kept up you taxes, and paid rent on time then you will qualify for a mortgage. There are reputable lenders that do not use credit scores to qualify buyers. You will however have to shop for them. By the way no credit is history is really not a strike against you as many cc companies will tell you. I too fell into that trap when I was younger.


respectfully

reluctantpawn



That is interesting....would you mind sharing with me who these lenders are who do not use a credit score for qualifying purposes?

Frankly, I am a mortgage broker and I am not familiar with ANY lender that does not use FICO score as a direct factor in determining a loan. Even FHA programs use a credit score cut off now. This market is very different even from what it was just six months or a year ago. The no credit, no income verification loans as well as the negative am loans are now a dinosaur, a thing of the past.



posted on Apr, 28 2008 @ 05:19 PM
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Originally posted by BlackOps719

Now what people would do is write the credit card company a check for X amount, and on the back of this check they write : By accepting this payment and cashing this check you are agreeing to accept the amount being paid as PAYMENT IN FULL. If the company processes that payment and cashes your check, then by law they have just accepted that amount as payment in full balance and must honor that amount. If not you have the ability to sue that company for breech of contract.

[edit on 4/28/08 by BlackOps719]


If you have been in good standing with the company, and just want to close your accounts to eliminate debt, say (hypothetically), you wrote them a check for 3/4 your balance, and wrote the above statement on the back of the check, and the company cashes the check. Do they read the backs of checks to know? Or will they put you in collections when you fail to make any further payments? Can you do this without negatively impacting your credit score?



posted on Apr, 28 2008 @ 05:40 PM
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reply to post by keeb333
 




Oh believe me, the company will not like it one bit, the fact that you just got over on them. But legally they can't do a thing. As I said, it is a binding and legal contract, something that most consumers do not know. By cashing that check they are willfully submitting to the terms that have been written out.

If you have a good standing with a company and want to ever have credit extended to you again by said company then no, I would not go that route. This is more in the case of already being in poor standing, having a high outstanding balance, and closing out the account once and for all while paying the least amount possible to do so.


EDIT to add - Once again I must emphasize the fact that I AM NOT SUGGESTING THAT YOU DO THIS ...rather I am only letting people know how the game works and letting you all decide for yourselves.

[edit on 4/28/08 by BlackOps719]



posted on Apr, 28 2008 @ 06:30 PM
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reply to post by BlackOps719
 


Due to a poorly designed web payment interface, our payments have consistently been late (we get paid on the 15th or 16th, and the bill is due on the 18th, but for some reason they are unable to take out a payment directly (like pretty much every other company), so we keep getting late fees. Also, they keep changing the web security, and I've not even been able to access the payment site on some days). While it's not a company we EVER plan to have a credit card with again (the interest rate is insane), the parent company (a separate division) handles our home and auto insurance. We have already closed the credit card account.

Here is the really screwy thing though...when I logged in last time to pay our insurance, I could no longer access the credit card account. I don't know how the heck they expect us to pay them! We have had no problem paying the insurance b/c it is due at the end of the month, but the card situation has been ridiculous! They took off the late fees a couple of times after we complained, and let us close the account. I just want to pay the damn thing off and be rid of it!

It has the highest balance and interest rate of all our cards.



posted on Apr, 28 2008 @ 07:13 PM
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Originally posted by BlackOps719
reply to post by keeb333
 




Oh believe me, the company will not like it one bit, the fact that you just got over on them. But legally they can't do a thing. As I said, it is a binding and legal contract, something that most consumers do not know. By cashing that check they are willfully submitting to the terms that have been written out.




EDIT to add - Once again I must emphasize the fact that I AM NOT SUGGESTING THAT YOU DO THIS ...rather I am only letting people know how the game works and letting you all decide for yourselves.

[edit on 4/28/08 by BlackOps719]


You are wise to add that disclaimer at the the end because this is very bad advice. First of all, writing that on the back of a check is deceiving and would not hold up in court. Show me a case where it has worked. A "binding" contract is not binding because you "tricked" some one into accepting it. In fact, the credit card company may turn around and sue YOU for damages. Very bad advice!!



posted on Apr, 29 2008 @ 08:29 AM
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reply to post by Tuebor
 


OK, thanks for the info. I guess I will try and look up any cases regarding this situation and see for myself how they were resolved. If I find any caselaw on this I'll post it.



posted on Apr, 29 2008 @ 08:35 AM
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reply to post by Tuebor
 


I have never done the binding think on a check but the last time I did my last payment to a credit group I wrote a very nasty thing on the check I never got sue to for it.

This was many, many years ago.
I guess it the patriot act was in effect back them I would have been in jail now.



posted on Apr, 29 2008 @ 09:14 AM
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reply to post by BlackOps719
 

I am not sure of the recent rules and regs but we financed our home, when we built through, a local bank. We have always bought and paid in cash after we were married. I don't know what my credit score is. However we did make a larger than the perceived norm for a down payment. Using a local bank and not a mortgage broker might be a way around this. We financed seven years ago. Fortunately we are almost paid off now. Once again I will defer to Dave Ramsey, at my last listen he claimed that it could still be done.

respectfully

reluctantpawn



posted on Apr, 29 2008 @ 12:44 PM
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reply to post by Tuebor
 




Oh contraire, Tubor. It is the Bank's due diligence to read ALL legal documentation before proceeding with a transaction..and that includes depositing or cashing a check. I have seen borrowers clean their entire credit report of collection accounts and bad debt this way. One guy that I used to work with did this not only for customers, but he even did his own personal debt the same way.

I know it sounds crazy, but it is a tried and proven method. Again, it comes down to how badly you want to rid yourself of this debt and what you are willing to do to see that it happens. Legally you are within your rights, and typically a company wont bother trying to fight it in court because a.) they lose MORE money on legal issues trying to do so and b.) because they know they do not have a leg to stand on.

Again not suggesting you or anyone else do it this way, but it does happen and it is a tried and true method. Worst case scenario, you write the check, they catch the verbage on the back and you have to write another check.



posted on Apr, 29 2008 @ 03:17 PM
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The only reason you should use a credit card is an emergency,thats the way I was brought up,today people see things they like and buy it then later become remorsful, I know my kid got in deep water with his,we payed them off now he uses cash like I do,don't try to keep up with the Joneses because when you get deep in debt the Joneses won't pay your overdo bills



posted on Apr, 29 2008 @ 04:00 PM
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Credit scores are a sham and I dont even regard them anymore...Ive had a spotless credit history and a 750 to 800 score and 2 months ago I went 30 days on a CC because I just have to many bills and I thought I paid it and then got a call after the 30 days hey we want to work with you to make your payment...I told them I made the payment and found out I didnt...I checked my score and it went all the way to 648 AFTER ONLY ONE MISSED PAYMENT IN 10 YEARS~!!!!!! So needless to say I will never use a credit card again and will not buy another house car or anything unless I have the cash in hand plain and simple as that...chuck the banks and the FED....



posted on Apr, 30 2008 @ 07:11 AM
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Thanks to some inherited money, I am paying off all outstanding debt I currently have. I will have a mortgage and a car payment but that will be it.
I recently had a death in my family and I was given power of attorney. I had to administer this persons credit accounts and pay them off. From my experience with this I found (2) banks ultimately controlled every credit card I had to close and pay off. Citibank and Chase were the two banks. I was amazed at how much these two banks controlled credit wise. This was an eye opener for me into a much bigger world of finanace and credit. Because of this, I have decided to pay off my credit cards. I will still end up having one (for emergencies) but it will never be used to replace my everyday spending.
I am fortunate that I have a good paying job and my wife works in the medical field so I don't have the economic hardships others may have. I have been there though. I didn't start out my life in good economic standing and have been to the brink and back a couple of times with credit cards and lenders.
My thoughts, if the credit card industry has a fall out, some big banks are going to get bailed out by the government. Ultimately, we the tax payers will have to assume the burden.
Asside from having a mortgage, car payments and student loans (things I have considered to be necessity), I believe it is best to never use a credit card as supplimentary income UNLESS you pay your balance every month and give the bank no interest.
Credit cards look easy and fun when you are young. They give people some flexibility to buy things that they otherwise may not have been able to purchase. As long as folks are responsible when doing this, It's not a problem, but, when you tack your credit card up so high that the interest alone is eating you alive financially, you have now become a slave to a credit card company.

my 2 cents



posted on Jun, 2 2008 @ 04:00 AM
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I have not used credit cards. I only use checks and have one debit card for convenience. It makes life more peaceful.
___________________________________
karen

Don't be a victim. Stop credit card debt now. We can help. www.stop-credit-card-debt.com...
www.stop-credit-card-debt.com...>



posted on Jul, 10 2008 @ 11:47 AM
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posted on Jul, 10 2008 @ 12:11 PM
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Originally posted by reluctantpawn
Once again I will defer to Dave Ramsey, at my last listen he claimed that it could still be done.


I've heard him say this many times too. He does say how to do it, but I can't remember offhand.

He makes a great case for why "worshiping at the altar of FICO" is stupid. In his case, he's a multi-millionaire that has a ZERO FICO score because he doesn't borrow money for anything. Yet he has millions in the bank. Would any bank in their right mind really reject him because his FICO score is 0?

I'm in the process right now if trying to get my FICO score to zero too. Not by defaulting on payments...but by not using credit ever again.

Hats off to Ramsey. His course should be required reading for every high school graduate in this country.



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