Originally posted by schrodingers dog
In the end it cost me about $4000 to take care of a few default judgements and now I have good credit. But I don't know if this would work today so I don't want to suggest that people just wait it out until the cc companies give up.
A couple of things I will say on the subject of debt.
I accumalated a few debts several years ago that all arrived home to roost when I faced a period of a years unemployment (my choice).
First off, no lender wants to take you to court. Second, no lender wants to lose the money they have invested in you. Bear this in mind when making repayment arrangements. You have the ball where this is concerned. What I did was make repayment arrangements with about 6 lenders to repay $30/mth (a total of approx $10k). Bear in mind I was unemployed at the time so they were hardly in a postion to bargain. If need be, go on unemployment before you make your arrangements. Now, where I got a lender who was not prepared to accept $30/mth I said "ok well its that or I go bankrupt". EVERY single one of them AGREED. They didnt even need time to think about it. Since then Ive paid off almost all the debts. Some offered me reduced settlement amounts which I accepted. If they dont offer, suggest it. You will be surprised how many will cut the bill in half just to get some of their precious money back.
With one lender I checked my contract & found they had erred when it came to the total amount payable on a car loan ( a difference of approx $4000). So I took them to court. It cost me $100 to lodge my application. The bank had the best solicitors in South Australia representing them. I was unrepresented. I had one of their bigwig lawyers say to me after one of the hearings "you are wasting your time, you wont win & all it will do is cost you more in the long run". Well, a hearing later, and with the judge telling me to go away & calculate exactly what I did owe (nothing) I got a letter in the mail a few days later from the law company offering me 'bill of sale' on the car if I agreed to wear my costs (nil) and the bank would wear theirs. The moral of this story is dont let them bully you around - and check your contract.
The alternative is bankruptcy. Bear in mind though, this will mean you cant get credit for 3 years, but if your situations bad enough this may be the only alternative. Its better than being unable to sleep at night, and your health is more important than your creditors.
[edit on 3-7-2008 by Nonchalant]