Your explanations are about as convincing as an alcoholic swearing he has drinking problem
You plan is about as brainy as a moss-covered rock.
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Credir card debt --staggering
- Thread starter NY_HOOD
- Start date
Your explanations are about as convincing as an alcoholic swearing he has drinking problem
You plan is about as brainy as a moss-covered rock.
Quote from ProfitTakgFool:
Exactly right. CC debt is great if you have a top shelf credit rating. I have a BAC card with 16k on it that costs me 1.9% per year. In the meantime, I have that 16k in the market earning about 50% per year. Am I gonna pay off that 1.9%? Hell no!
Plus, keeping at least one credit card active keeps your credit history active. Lenders aren't looking for people who have dead credit histories.
Debt is a very powerful yet very dangerous thing but if you can manage your debt wisely then it really works in your favor. Nice work huh!
Exactly, you've nailed the game just right. If you have good credit then banks are fighting each other to get a piece of you right now. And that CC debt in the right hands is a nice income stream and in the wrong hands its a ticking time bomb.
Hey guns don't kill people, people kill people WITH guns. Just like credit cards don't bankrupt people, people bankrupt themselves WITH credit cards. What can I say, I get a little smile on my face every month when I pay my CC company their paltry monthly interest from my investment account which generates more return in a month than the entire years worth of interest I'm going to pay the CC company.
Absolutely not TZ. If your debt to equity ratio is below 1 you are in sound financial health. If the rate of return on your projects exceeds the cost of capital it is a worthwhile project. This is business 101.
What huh is doing is sound business especially considering he is using unsecured debt to run the operation. Businesses don't get that luxury but people do.
You do have to be prepared to face the worst case scenario, which is losing all your trading and/or investing capital. In that case, you are out of business but you are not bankrupt. All businesses go through break even and out of business planning. People are no different. After all, personal finances are not much different than business finances.
What huh is doing is sound business especially considering he is using unsecured debt to run the operation. Businesses don't get that luxury but people do.
You do have to be prepared to face the worst case scenario, which is losing all your trading and/or investing capital. In that case, you are out of business but you are not bankrupt. All businesses go through break even and out of business planning. People are no different. After all, personal finances are not much different than business finances.
Quote from TraderZones:
Your explanations are about as convincing as an alcoholic swearing he has drinking problem
You plan is about as brainy as a moss-covered rock.
so if you doubt a collection agency will sue for 6-8k, then you think they should just let th statute of limitations run out? that could be four years? but then you said at the end of 4 years they might decide to sue? what should this guy do then?
your opinion? you think he can actually ride this thing out?
also,if he files for bk, how will he ever get a car loan/lease,not that he can get one now??
your opinion? you think he can actually ride this thing out?
also,if he files for bk, how will he ever get a car loan/lease,not that he can get one now??
Quote from NY_HOOD:
so if you doubt a collection agency will sue for 6-8k, then you think they should just let th statute of limitations run out? that could be four years? but then you said at the end of 4 years they might decide to sue? what should this guy do then?
your opinion? you think he can actually ride this thing out?
also,if he files for bk, how will he ever get a car loan/lease,not that he can get one now??
Original creditors rarely hold bad debts that long. They will sell it to a slimy junk debt buyer, who will pay 1-2% for it.
The thing is, for reasons that escape me, they hardly ever include any proof when they sell it. THey can almost never legally prove a relatively small debt in court.
They often get around this by lying and saying they served you and you did not go to court. They then win a default judgment.
You do not want a judgment. It can earn 10% against you, whcih varies by state. They generally last 10-12 years but can be renewed so technically they can last for life.
If you ever do have money or equity, they can then attach it.
There are many ways to sow down this process.
It is illegall for a collector to call you if you tell them, in writing, to stop.
Quote from SNYP40A1:
I don't think you will find any credit company which will loan you cash for any use at less than 5% interest.
you thought wrong.
i have one credit card with over $20k @ 3% fixed, and another card almost $30k @ 4.9%.
the main disadvantage to doing this is that it lowers your fico by about 10-20 pts because your ratio of debt to total credit lines goes up. but there are definitely companies that give attractive credit offers.
Quote from NY_HOOD:
what can someone do without the money to pay back the debt
without resorting to bankruptcy? if its in the hands of collections agency,can you still call the origianl card company and negotiate small monthly payments? what else can be done?
That's like asking what you can do about HIV infection because you fucked without a condom.