Credit rating is a worry . I had a bad one for 6 years , now I have a good one . It is a temporary setback. In fact , chances are , that with so many in financial difficulties , the term of your bad credit history could well be reduced from the nominal 5/6 years down to a likely 3 years . It serves nobody's interest to punish and make lending more difficult to a sizeable proportion of the population due to global economic recession.

Originally posted by Criskahta
Seriously why don't you take your high and mighty grossly misinformed belief to another thread since this pains you so...The original post was seeking valid information on debt and what to do when backed into a corner and or seeking an alternative...You successfully derailed the thread into your little moral campaign...Well start a thread for your little moral campaign!

I would be willing to guess you are one of possibly a few types out there that has either a) been in serious debt and paid it off painfully living on Ramen noodles b) occupationaly frustrated c) work for a debt collection agency of some kind and or all or parts of the above or perhaps none of the above. Your dedication to never shutting up in this thread points to c but likely still isn't the case. Business is business and skipping out on debts and the best methods in bypassing debt is precisely how the wealthy reach their wealthy status. Don't believe it? Name someone and or entity and how they achieved there wealth by paying their debts in their entirety...Can you?

You really don't know what you are saying do you? "...a) ... b) ... c) ... none of the above... . "... likely still isn't the case... ."

Warren Buffett used his savings to buy stocks that were down and held them 'til they went up. Sean "P. Diddy" Combs came from nowhere because of his drive and talent. Have you ever heard of Benjamin Franklin, Horatio Alger, Jimmy Carter, Clarence Thomas, Frederick Douglass, Ross Perot, Ray Kroc, Abraham Lincoln, Ralph Lauren, Thomas Edison, Albert Einstein, O. Henry, Booker T. Washington, or Henry Ford (maybe even Barack Obama?)? Dozens of others just like them, too.

If you knew any history, you'd know that successful people are not thieves or cheats. I guess it all depends on how you measure "success."

This thread is "How do you cancel credit/mortgage debt legally?" The OP admits he's willing to cheat and steal if the target is big enough. Why don't you lend him $100? $1,000?

The many ways to get out of debt have been described in this thread very well. Personal debt is not the Federal Reserve's fault, the President's fault, the Tri Lateral Commission's, the masons' or that of the Illuminati.

Borrow some cash from a relative. Buy something cheap at Goodwill or Salvation Army. Take it to a consigment shop and sell it. Or use eBay.
Pay back what you borrowed, and use your profit to do it over again.

You don't have to cheat or steal to get ahead in the world.

This website's motto is "Deny Ignorance." Try it before you post trash or trash-talk people here again. Complete thoughts and sentences help, too.



[edit on 20-1-2009 by jdub297]

Originally posted by Drexl
Credit rating is a worry . I had a bad one for 6 years , now I have a good one . It is a temporary setback. In fact , chances are , that with so many in financial difficulties , the term of your bad credit history could well be reduced from the nominal 5/6 years down to a likely 3 years . It serves nobody's interest to punish and make lending more difficult to a sizeable proportion of the population due to global economic recession.

You are absolutely right and very astute.

As personal credit dries (already dried?) up, businesses will lose customers who bought 'on credit.' Small and large businesses, banks, and even the credit-reporting agencies themselves depend on debt- and credit-worthy individuals.

As the economy bottoms out and earnings stabilize, credit will be more readily available to those who can manage it.

Many people have seen their credit rating drop due to medical expenses, death, divorce and other matters not entirely under their control.

"Good credit" can be restored, but it takes time and effort. Many very successful people have failed in business more than once. Edison and Einstein are but 2 examples of men who did not give up, or take the easy way out.

Congrats to you. I hope there are more examples posted here to show that scams are not the answer.

Originally posted by XXXN3O

Please refer yourself to my post.

It might prove useful.

It was pretty much ignored and filled with some nonsense from people who do not have a clue what they are talking about. Some comments have been useful however.

If you read my first post then search under your own countries laws you might find loopholes that I have uncovered.

you haven't any post in this thread before this one

Originally posted by defcon5
. . . .
Though I don't understand how you were able to pay less then the minimum interest payment each month and not end up in foreclosure. I have heard of people paying the minimum payment then sending a second check in each month to be applied to the principal.

The advice I got was to pay a monthly amount which would initially be 90% of the monthly interest charge. As time went on inflation would lower the value of the dollar, diminishing the amount of the loan relative to my income. Therefore paying the same proportion (1/4) of my income would eventually cover it all. It looked fine on paper, but meant I'd be paying off the house, at a comfortable repayment rate, for 45 years.

My objections were:
a, I didn't want to be in debt more than 10 years.
b, I was determined my total interest payment would be less than the principle, and the government scheme would have me paying over twice as much in interest as I was borrowing,
c, this scheme assumed inflation would continue steadily throughout the next 45 years, and the future is that predictable.

Instead I paid 3/4 of my income. I chose a house close to public transport, so I wouldn't need a car, with space for a large vege garden where I grew much of our food, and I got an old sewing machine and made our clothes.

However I sympathise with people who fall for the bankers' tricks that keep you in debt forever. We're taught to respect authorities, and these bankers and economists know much more about borrowing money than most of us.
Many friends of mine thought they were following good advice and laughed at the hardships I put myself through.

But at the end of the day we have to trust our own common sense.

Be beholden to others as little as possible,
know that everyone advising you has their own axe to grind,
and remember that even a top economist, if he's telling you how the economy will go for the next 50 years, is no more reliable than a Blossom Goodchild.

You can't just blame the borrower for his debt. Yes, some people run like mad chickens to the store with their plastic in hand, but not everyone does.

The fact still remains a lot of activity dealing with the "inflation" of the debt is absolutely unethical. It's far too easy to get trapped. Fees, interest rates, etc.

The end amount owed is far, far above what was actually borrowed. Why does a debt rise to 10X what was actually borrowed?

It's abusive. Period.

The fact is, it is a money making "trap" that is allowed to exist within the law. A bank can "legally" rob you, and take and take from you, nothing happens. I go and steal $10 from a grocery story, and my but goes to jail. (not that I'm going to do this)

If you want to make money off of a loan, fine. But, you don't have to rip the individual off. Charge them fairly for the service, but don't rip them off.

You could buy the item 10X, with real money, for what you pay a creditor for the item. Why is it legal? It is even more if you have some late fees and stuff in there.

Troy

Edit:

Wrong Thread



[edit on 25-1-2009 by Gun Totin Gerbil]

For me, my credit rating is pretty much destroyed. I will put food on the table before I worry about inflated credit card debt. I send them money when I can.

Honestly, I think I have paid for most everything that was ever purchased on a credit card, plus some.

Yeah, I have had daily calls, early morning till about 9 in the evening, for a long time. I don't talk to them. There isn't much to talk about. "Hey, nice day were having Mr. bill collector. Collected any good bills lately? He He." I've got a life to live, I stopped worrying about the harassing calls. It's not going to help me to sit around and worry about it. They will get the money when I get it. They mostly want this big lump sum, anyway.

I don't have much money to give these folks at the present time, so I guess they are out of luck. I don't have many possessions here in this house that add up to much value, and the house isn't mine, so again, they are out of luck, if they want to try and take things from me.

Putting me in jail would be an utter waste of time. You don't get money from someone who isn't making money.

My main objective is to get my financial situation handled. My computer repair business is rolling along, and I have more business opportunities "in the oven." I do extra work on the side. These guys will get their money, and they will never hear from me again, as a customer. The idea being, to never need a credit card again. Never to want for money again. I just don't see the point of paying 10 times, maybe even more, for something that I could have just waited a short while to purchase.

Funding my business is more important than trying to make my creditors happy. I'm sure they would be happier with more money sooner, rather than me struggling to squeeze out money I don't have, which slows down my business progress. Which actually slows down when they actually get the full amount.

In my opinion, I put family and myself first. Put the really important bills first. Food, shelter, stuff like that. Less important bills go later. I don't even have satelite tv right now. I give the creditors what I can. My credit rating doesn't mean a whole lot to me right now. My rating will eventually improve, but living on credit isn't how I will live my life in the future, so it won't mean much to me personally. It affects insurance to some degree, but like I said, my bills will be paid, and the credit rating will improve in time.

Credit card companies are leaches, they suck the life out of you. They don't really give a fair exchange for what you pay them. It's like a sick game of "I'll trade you...." You give them $10, and they give you a $1 back, in exchange.

We have been trained to borrow, instead of making more money, and living a better life. Credit should never be a permanent solution to your financial well being. If you want more out of life then become more. Start a business, move into a more lucrative field of work. Something.

Credit can be handy in a pinch, but never rely on it for your day to day. Check cards exist for plastic transactions. Use these instead of credit cards whenever possible.

Troy

I'd like to thank everyone for their posts and replies. This was my most productive thread!

Just to clarify, I am not looking for a hand-out and this thread wasn't even meant for me, but answers for a friend. You know, why is it we accept the bailout of major banks, but when a fellow citizen asks for one they are condemned and ridiculed?

I am fully aware and support the idea that if you get in over your head it is your responsibility to get yourself out. But credit cards and loans have so much hidden wording designed to keep you in debt, it is near impossible for some to repair themselves.

Anyway, thanks.

In the UK loans are regarded as either unenforcable or voidable when the loan companies breach the 1974 Consumer Credit Act. The Act protects consumers from unscrupulous practices. There is a very good chance that any loans taken out before April 2007 are not valid due to these companies not following the law and ethical practices. If this is the case and the courts find against them you could take the view that they deserve to suffer a financial loss.

I need some opinions on something.

A woman I work with told me that she got a letter last week from Beneficial Finance whom she has a second mortgage with which has a remaining balance of $23,000. She claims this letter offered to close out her account if she would send them a check for $3,300. She said she called them and asked why and they said "we are getting out of the mortgage business" --- I questioned her and she said she hasn't been behind in her payments.

Does anyone believe this? I mean that they would just want to settle like that, basically give her $20,000? The land where the house is is worth probably $40,000 alone.

I would greatly appreciate any comments on this. This lady is a piece of work and I know for a fact she has been trying to beat others, anyone, out of money for the 20 years I have known her.