Credir card debt --staggering

Quote from NY_HOOD:

what if you are self employed?
how long can this go on if you just continue to ignore the debt collectors phone calls?
do they call you for twenty years?
is there a start and cut off from where it stops showing up on a credit report?
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If you are self employed you may not have a wage to garnish if you are a sole proprietorship. But if you are incorporated and you pay yourself wages from the corporation, then yes, they can have that wage garnished.

You can ignore the calls, but after a certain amount of time the collector will sue you in court to collect the debt. How much time they wait varies greatly. They could do it within a year, they may wait five years, it's at their whim. But once they are tired of calling you, they sue. And if you don't show up in court to defend yourself, they win by default and they have a legal claim to your money. They can take the judges order to the sherrif with jurisdiction, go to your bank, and take the money. The bank is legally obligated to comply, in most areas the sherrif will arrest bank employees who do not comply with the order.

As long as you owe the debt, it will continue showing up on your credit report. That's another reason to go to BK court. After ten years, it's gone from the credit report. However, it's still a court record and any amateur investigator can find it.
 
Yea credit card companies arent giving away free money no matter mow much free money the fed pumps into the system. Consumers have so little power against the banks and credit card companies, which is why you should buy Ma and V.
 
Quote from huh:

I apologize for going off the original topic but here is a simplified example of how this works as its been a pretty handy financial tool that I've been able to utilitze.

- Capital one sends you an offer saying you can take out cash up to your capital one credit card limit and you will pay a yearly 3.5% interest rate.
- You tap your credit and write yourself the capital one convenience check and deposit 30K into your bank account.
- You take the 30K in your bank account and invest it and get a 5% per year return.
- So the first month you will generate an interest payment with capital one of (.035/12)*30,000 = 87.5 so your balance due at month end is 30,087.5.
- At the sametime your 30K investment will also earn return in the amount of (.05/12)*30,000 = 125 so your balance on your investment at the end of the month is 30,125.

So now your balances are the following after 1 month:
You owe Capital One = $30087.5
You have in an investment = $30125
So your equity is 30125 - 30087.5 = $37.5 gain.
So you could simply take your investment money out and pay off the entire capital one debt and pocket the $37.5 profit which was generated out of money you didn't have. Obviously rather than pay this off you just simply rinse and repeat for a decade or as long as you can.

The secret is finding an investment that will give you the 5% return.
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I don't think you will find any credit company which will loan you cash for any use at less than 5% interest. As far as credit card debt goes, I currently have $7k debt and I do not plan on paying it off at the end of the month or for several months actually. I have 0% interest on my card for 6 more months, after that I will pay it off in full. Once the 0% interest goes away, I will stop using that card and get another. I have been taking classes and paying for them with my credit card, I get reimbursed by my company after the class is over so it's like getting a free loan. On top of that, I have been hitting the cash back rewards and in the end, I don't see how my credit card company will make money off of me. Also, the secret to not getting credit card offers in the mail is to never pay credit card interest or fees. I have done this and I never get credit card offers even though my credit rating is above 790 last time I checked. It's not as bad as what some people do though...a friend of a friend was here in the US studying and after completing his Ph. D or masters degree, he decided to return to India. Before he left he maxed out the credit card that he had, buying stuff for his friends, giving away money, then he simply left the country.
 
Quote from trendlover:

http://www.thetruthaboutcreditcards.com/debt-collection-and-the-statute-of-limitations/
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This is something I wasn't aware of myself, (from that link):

Many people have been confused by the supposed “resetting” of the statute of limitations if a collection or unpaid debt was paid. A great deal of people feel that if you make a payment it will reset the clock, and the statute of limitations would begin again from the time of the payment. This is not true. The statute of limitations starts from the date of the first delinquency, and will expire at a fixed time regardless of whether the account was paid down, paid off, or disputed.
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Even some BK attornies will tell you that the clock restarts after you resume payments.
 
i just read that collection agencies normally don't file a lawsuit unless the debt is rather large. what is rather large? my friend and his wife have 3 cards tital all with citi bank.
1 card -8k
2 cards 5k and 3k
 
Quote from hughb:

This is something I wasn't aware of myself, (from that link):



Even some BK attornies will tell you that the clock restarts after you resume payments.
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I have no expierence with bankrupcy, I pay cash for most things, but that link is a good learning place for how a free market country with credit works.
 
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