Credit Cards and Credit Score

**Indymuscleguy** · 01-03-2009, 03:54 PM

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**firmechicano831** · 01-03-2009, 03:56 PM

This guy at my office owed about $80,000. He told me he called his credit card company and said. Listen I don't have alot of money and will offer you 40 cents to the dollar and I will pay it now or else just file for bankrupcy and they took it in a heart beat. Hopefully everything turns good on ur end bro.

**T_Own** · 01-03-2009, 04:03 PM

$80,000? wow...
if they take the lower payment thats good, but unless you do like ^^ and say you'd file bankruptcy, they have no real reason to cut you a break

**Bossman** · 01-03-2009, 04:09 PM

Maybe you should just suck it up and pay your debt.

**Indymuscleguy** · 01-03-2009, 05:17 PM

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**Indymuscleguy** · 01-03-2009, 05:44 PM

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**firmechicano831** · 01-03-2009, 05:46 PM

I negotiated on one of my properties when I sold it. The bank took a hit of 250k, I just had to show proof that my income had declined.

**Indymuscleguy** · 01-03-2009, 06:01 PM

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**firmechicano831** · 01-03-2009, 06:07 PM

My questions would be. How much do u owe on ur credit cards? Would you be able to transfer that debt to a new credit card that starts at 0% interest rate for the first year then tranfer it again to another credit card with 0% interest rate the next year.

**Indymuscleguy** · 01-03-2009, 06:10 PM

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**Bossman** · 01-03-2009, 06:24 PM

Originally Posted by Indymuscleguy

Quite right. However, the more I investigate how horrible credit card companies are and how horrible the debt relief agencies are, I have decided to negotiate with them myself.

We have no late payments on any account, including our home or auto loans. What pissed me off is when the banks are given money, without our government disclosing the terms until after the fact, then I don't feel sorry for them.

1. They kept raising my credit limit and we used it. (dumb I know spare me the lecture)

What consideration did they use to keep raising our credit limits?

No one should have more than one credit card and it should have a maximum limit of 10K.

So, I don't feel badly for the banks and I am going to throw out the bankruptcy card and get the best deal I can, then I'll pay them off in one lump sum.

If the government supports the banks who hire stupid CFO's and the stupid CFO's of the US auto makers, then I want my slice of the 'pie'.

How am I being helped? I pay on-time...and have since my credit has been established, then I want bailed out as well.

Thank-you for your comment

I hear ya bro. I used credit cards to help start up my company in the early 90's. I charged up $25,000 over the course of the first year. With the high interest rates, my CC payments were more then my mortgage. It took many years to turn that mess around.

Good Luck!

**Indymuscleguy** · 01-03-2009, 06:27 PM

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**bodybuilder1107** · 01-03-2009, 06:30 PM

credit can get ugly fast i had a 735 score at one time and had everything i wanted but let it all go to start my business because i became too overextended to get a small business loan and tried to settle but they are impossible, and debt relief agencies suck too they want a mortgage everymonth so if your debts small then settle but bankruptcy is quick and easy its not as bad as people say my mother did it and has 8 credit cards and a new 2008 truck and she file 1.5 years ago

**J431S** · 01-03-2009, 06:34 PM

credit settlement is simple. This is how it works. Call your agency and tell them u need to settle your outstanding credit card debt. They will ask u to fill up a form and seek your consenus to go over your financial record to dig out all your debt account information. Once u agreed they they will also need to know your annual taxable income to calculate to u an affordable payment plan based on your income to debt ratio. It is that simple, not horrible experience at all.
Usually they will offer u different forms of payment plans that u can afford . The step to this settlement plan is now depends on u to "reform" your own budget plan after all the crucial existing debt is taken care of. It is ultimately your responsibility to continue to pay your debt. They job is simply to determine to you the least monthly amount u can afford based on your legal existing income by making as lower as possible but spread into a several months into the future years.
I hope this info has helped. I used to work for collection agency. You will be surprise how many people they have literally "relieved" from anxiety of living with a debt.

**Indymuscleguy** · 01-03-2009, 06:44 PM

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**Indymuscleguy** · 01-03-2009, 08:17 PM

^^bump for more advise^^

(I've been on this site too much today researching my next cycle)

**Indymuscleguy** · 01-04-2009, 11:43 AM

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**J-Dogg** · 01-04-2009, 12:21 PM

You make a valid point.

I own a company and investment properties but only use 2 credit cards and I don't let the balance get very high.

I DON'T feel bad at all for Credit Card companies. They really push the limits in getting creative and they take advantage of people. They try to put people in a situation, that it ruins their life.

A lot of them are irrisponsible lenders, just ilke the morgage companies that are all forclosing on people right now.

I remember lending my little brother money in my late teens. It was a respectible amount. He could not pay me back so like a real man, I went crying to mom. Mom did not bail me out, she just said "you knew he would not be able to pay you back".

My ex had debt, and collection agencys are the worse. They were actually going into my account and taking money after her name was removed from it. We just had the same address and they were taking money out of my account hoping I would not find it.

Just because you owe debt, it does not mean you are a bad person. Lenders today, or the lenders in the past were creative and used temptation to sell loans. A lender put together a package for me to extract 50k out of a property, escrow in taxes and insurance and keep it all the same. They don't tell you its a ARM, that the term starts another 30 years of payments. They are trained to make the sale, not look out for your intrest. You being their customer, your intrest should be kept in mind. If you fail on the "creative loan" they don't get anything but a house to try to sell.

indy, keep your head up. One thing I've learned in my short life, is it never hurts to ask. I've gotten really good deals on houses, just asking to change terms. I try to negociate about anything. I even call managers over at Meijer if I'm going to buy a lot of somthing on sale, and offer a price to take it all, and it works a lot of the time.

**Indymuscleguy** · 01-04-2009, 04:05 PM

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**Indymuscleguy** · 01-04-2009, 05:53 PM

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**Panzerfaust** · 01-04-2009, 06:18 PM

Originally Posted by cgb6810

Maybe you should just suck it up and pay your debt.

Why don't you add something positive to this thread? You don't know his situation do you? Unless you do, I would either add something positive or stay the **** out of this thread.

Now to the TS:

You need to look at how much you owe total and how much you make. You have a few options such as calling the CC Companies yourself and dealing with them for either a settlement or a lower APR%.

If the amount you owe is so far above what you make and the CC companies will not work with you (alot will not) then you might want to speak to a Lawyer who deals 90% in Bankruptcy law.

I wish you the best as we all know things happen and it is easy to get behind, especially in times as hard as they are now.

The CC industry is digging it's own grave just as the mortgage companies did. They are not working with people and raising interest rates to 32% and in doing so are causing people to claim bankruptcy.

Best of luck and keep us informed. The most important thing is to truly learn from these mistakes and move forward with this knowledge because you know how bad it can be.

**Indymuscleguy** · 01-04-2009, 06:31 PM

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**Oki-Des** · 01-04-2009, 09:11 PM

I did not read everything above so I am sorry if this was already posted. But, you can settle with credit card companies before they go to collections, but not on a payment plan. You may be able to settle for 50% providing you can pay 50% of what you owe. That is the most important thing. Also, if you can pay 50% off you must have an excuse as to why you cant just keep paying a smaller amount over a period of time. This is why you have to add you are going to file for bankruptcy and simply want to take care of one of the accounts first as a good faith gesture and if they dont take it you are just going to pay off another card. Then they will usually take it and you wont actually have to file for bankruptcy. Good Luck

**Indymuscleguy** · 01-04-2009, 09:59 PM

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**XBiker** · 01-04-2009, 10:11 PM

Originally Posted by Indymuscleguy

Quite right. However, the more I investigate how horrible credit card companies are and how horrible the debt relief agencies are, I have decided to negotiate with them myself.

We have no late payments on any account, including our home or auto loans. What pissed me off is when the banks are given money, without our government disclosing the terms until after the fact, then I don't feel sorry for them.

1. They kept raising my credit limit and we used it. (dumb I know spare me the lecture)

What consideration did they use to keep raising our credit limits?

No one should have more than one credit card and it should have a maximum limit of 10K.

So, I don't feel badly for the banks and I am going to throw out the bankruptcy card and get the best deal I can, then I'll pay them off in one lump sum.

If the government supports the banks who hire stupid CFO's and the stupid CFO's of the US auto makers, then I want my slice of the 'pie'.

How am I being helped? I pay on-time...and have since my credit has been established, then I want bailed out as well.

Thank-you for your comment

1. You spend on credit, you pay. Simple enough.

2. They raise your limits based on their own criteria, see # 1.

3. I have multiple cards with limits over 10K, should I cut them up?

4. The banking/financial industries has nothing to do with the fact that you got your own ass in hot water. Stop whining about how unfair life is. Nut-up and take care of your business.

**Tock** · 01-04-2009, 10:42 PM

I knew a guy who charged up 44 credit cards to the max. He figured he couldn't ever pay his way out, so he checked into bankruptcy and credit counseling.

Instead, he kept paying on 4 credit cards and his car payment, and let the rest go. Of course, the bill collectors called, and threatening letters filled his mailbox for a few years. But he consulted a lawyer to find out what his options were. It turns out there are no debtor's prisons in the USA. Under some circumstances, a debtor can get a court's authorization to search your home on only one occasion to search for and retreive the item you didn't pay for.
So, if you borrowed $12,345 to pay for a piano, they can get a court to let them look for a piano. If you borrowed $12,345 for a holiday in Europe, then they're out of luck. If you borrowed $123 for underwear, they can search your home for underwear (but they usually don't bother).

The Republican Congress changed bankruptcy & credit rules to favor money-lenders a few years ago, so you should consult with a lawyer before you do anything. But, it seems to me that if they are going to ruin your credit anyway, it would be much better to be on record for 7 years for non-payment of debts, than to have the scar of bankruptcy on your record for life.

But get an attorney's advice, because the rules have changed, and not in your favor. 20 years ago, if you stopped using a charge card and paid 6 minimum monthly payments, you were not guilty of credit fraud. Oh ya - this happened in Texas, and he mentioned that Texas was one of the better states in which to be in debt. They can't garnish wages here, for starters, except for the IRS.

20 years have passed for my friend, and his credit is good. No unhappy marks on his record, no bankruptcies, nothing. He never stopped getting unsolicited credit card applications, but he learned not to fill 'em out and send 'em in.

Good luck . . .
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Ordinarily, I'd root for the creditor in this sort of thing, but it seems that not only do the banks know how to look out for themselves (they do own the finest congressmen that money can buy), but I have no sympathy for banks who send out 6 credit card applications a year to people who are dead, in jail, in rehab, or broke. I have even less sympathy for anyone who knowingly or carelessly lends money to people who are dead, in jail, in rehab, or broke. And any industry that conspires amongst its members to raise my auto insurance rates by 85% just because one cc payment was late, deserves to be taken down a notch or two.

All these banks, they've got taxpayer money to keep them afloat.
Who's gonna keep us taxpayers from sinking?

**Indymuscleguy** · 01-05-2009, 06:57 AM

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**Indymuscleguy** · 01-05-2009, 07:01 AM

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**J-Dogg** · 01-05-2009, 07:44 AM

Keep us updated on how this goes as you go through the processs.

**KatsMeow** · 01-05-2009, 10:46 PM

I heard on Dr. Phil that those credit consolidation places will ruin your credit even more, if you are able to work out something with your credit card company yourself you will be in much better shape, $50,000 is a lot of debt. Try and contact Suze Ormand, she's really good and has a show every Saturday night where she takes callers and all of their information and tells you what the best bet it. If you aren't into calling, she has a website, just google it.

**KatsMeow** · 01-05-2009, 10:47 PM

Geez, i thought I was in bad shape with a $6,000 credit card and a home loan with only $110,000 left.

***D7M*** · 01-07-2009, 07:52 AM

1. I wouldn't recommend settling. It will lower your credit score.
2. You said you have $50k in CC debt, but over how many cards?
3. The new Fair Isaac FICO scoring will be going into effect this spring, so it will be important to keep those cards open (pay down the debt, but don't close the cards).
4. It's possible to do this. I had a lot of debt before (mostly student loans). Just find ways to cut out things in your life you really don't need (extra coffee, HBO, damn, I even canceled my cable and saved over $100/mth) and put it all towards your debt.

Good luck!

**Brown Ninja** · 01-14-2009, 12:49 AM

those debt consol companies are criminal. All they do is call and settle your debt then overcharge you. Say you owe 8k and they call and settle on your behalf and you know owe 3k. They will still charge you 6k with interest. Total shit show

**Brown Ninja** · 01-14-2009, 12:50 AM

you will always be better off settling your own debt but you will have to use the settled amount as taxable income come tax seaon

**Indymuscleguy** · 01-17-2009, 09:15 PM

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**jdizon** · 03-18-2009, 11:36 PM

This guy at my office owed about $80,000. He told me he called his credit card company and said. Listen I don't have alot of money and will offer you 40 cents to the dollar and I will pay it now or else just file for bankrupcy and they took it in a heart beat.

Credit Card Processing Services

**subaruwrx04** · 03-19-2009, 10:40 AM

Bankrupt...

**J-Dogg** · 03-19-2009, 10:55 AM

You took a big step just adding up the debt and looking at it, and making a choice.

I've been behind before, and honestly the hardest part is just sitting down to figure out how far behind you are.

It's also the biggest step to fixing the problem.

**zimmy** · 03-19-2009, 12:21 PM

I worked with a (at the time non profit agency) called in charge. All they did is negotiate with the credit card companies to drop my rate to almost nothing. My highest is like 1.9. I am making the same payment that used to be my minimum...the difference is... i have brought my debt down from 15k to under 4 in just 3 years. My credit score is still aces too.

**B.E.N.** · 03-19-2009, 01:30 PM

Originally Posted by Indymuscleguy

I have a 3/1 arm on my 1st mortgage at 4.99%. We have 14 years left to pay.

^^This makes no sense. If you are on a 3/1 ARM (fixed for three years) then you know your rate will adjust upwards outside the initial 36 months right? So saying you only have 14 years left is kind of silly. You can get a 5% interest rate on a fixed 30 year loan right now. And if your 2nd mortgage is on a 15 year note like you say then maybe you should look into the possiblity of refinancing to a 30 year payment. Lower your mortgage payment and draw out your $30K.

Pay down the high interest cards with the equity you cashed out. Then start paying down the other cards with the money you have freed up being in a 30 year note.

Enrollment in credit counseling is considered a bankruptcy in the eyes of a mortgage underwriter. Poor, poor choice.

If you only pay off 50% or 40% of your debt the creditor will still report the account settle for less than full balance to each credit bureau. Which will hurt your scores.