Debts, Who wants them?

Oh now this clarifies me, your in europe, I was thinking of in America... Didn't realize banking system is totally different from your home and my home.

Liebling:-))) said:
Thank you for share your feedback/tip with me. I appreciate it very much.

No, I dont pay any charge because I dont have debt on VISA card. I have to apply if I want credit on VISA card but I already filled out the form that credit is not accept on my VISA card. They give me limit €2,000 ($2,600) on VISA card. I would not accept VISA if I know I have to pay charge when I dont use credit. They only charge you % if you withdraw the money with VISA card at Bank or money automaic machine but I never do that but use my Master card (Bankcard) with no charge if I want withdraw money from bank or money automaic machine. I use VISA card at Supermarkets with double points (PAYBACK points) with no charge because I dont have credit on it.

I received VISA monthly statement to check... All of money where I spend with VISA card for month is transfer from my bank account to VISA company straight way without "monthly payment". They do not charge me because of no "monthly payment" on credit card.

I only use VISA card because they have "PAYBACK" points when I use for every stores..... I receive €15 to €20 credit from points to buy anything what I want which it´s good per month or 2 months.

I only pay charge for re-new VISA card which I get every 3 years, that´s all.
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Many people file bankruptcy to relieve their credit card debts and I think that's the biggest mistake they ever make. Forget what financial professionals tell you. They're wrong as well. I considered bankruptcy but I decided not to after discovering how FICO operates.

First of all, credit agencies made scores using FICO or similair systems. If you're 30 days late, your score gets worse.

Now, if you failed to make a payment for more than 3 months, your score will get worse and it just won't get worse than that. You just screwed up. Deal with it. So, should you file bankruptcy? NO!!! It only makes things worse! Ok, how about paying settlements? Believe it or not, paying them will make the score WORSE!!! So, don't bother to negiotate for a settlement. Ignore them. Don't let their letters upset you. The only time you have a reason to be upset is if you get a formal letter for the court appearance which rarely happens.

The law states that credit reports cannot contain bad credit reports for more than 7 years while a bankrupcty record stays on credit reports for 10 years. Which would you rather have - bad unpaid debts for just 7 years OR bankruptcy with a BAD score for 10 years?

What about harrassing calls? The law protects you - you have the right to tell creditors to stop calling you. You must write a letter telling them to stop the calls. If they threaten to bring a lawsuit against you in court and it's past 4 years after the late payment, they have no case because all states forbid them to do it.

After 7 years, your credit score will be MUCH better and banks will have no way of knowing if you had bad credit or not. It will be in a great shape. It's even better if you ALREADY got credit cards and kept paying on time.

It's that simple.

-jeff
 
One more thing, you STILL can get credit cards even if your score is bad! I got two credit cards without problems. Banks are very competitive and will do anything to get you on their banks so they can make money from interest, transcation fees, and annual fees. They will give you low limit like $300 but that's better than none!

And don't believe when they tell you you don't need credit cards - you DO need them especially if you travel - you need it to rent car, reserve a hotel, etc. Yes, some accept check cards but they tend to charge more. You also get to enjoy the benefits that come with credit card charges - rent a car and the bank pays for insurance. You cannot do the same with a check card.

-jeff
 
Yea when I used debit card, I always do credit cuz it wont charge me the fee. As for the credit card I paid it all off 2 weeks ago. Yay!!!
 
No your wrong in most case, creditors CAN renew their debts, how? Sell them off to another collectors then you have another 7 years on the report. I have seen it happen. My girlfriend's ex creditor had chased her for more than 10 years! I talked with attorney, they said its legally as long as the debts been sold, and that we have new creditor and we are stuck with them until we file bankruptcy. So, how its over, my gf is much happier now. She still was able to open credit card account anyway, could even buy car already! But we had to decline all offers.

Not necessarily always bankrupt is best solution. I filed bankruptcy before, and I was able to buy house! From my bankruptcy experience, it is really joke! Sure, I walked away all of the debts, and that creditor no longer can sell the debts to other collectors. They are final stuck with it. Suppose it was 30 years ago, then that is totally different story. bankruptcy back then looks worse than today... Know why? more and more corporation had downsized and lay off alot people, thus ended up forcing alot people filing bankruptcy. Please remember, law allows up to 7 years on report with SAME creditor. So Creditor is playing game with this law by selling the debts, then you get stuck with new creditors for another 7 years and it kepts going.

netrox said:
Many people file bankruptcy to relieve their credit card debts and I think that's the biggest mistake they ever make. Forget what financial professionals tell you. They're wrong as well. I considered bankruptcy but I decided not to after discovering how FICO operates.

First of all, credit agencies made scores using FICO or similair systems. If you're 30 days late, your score gets worse.

Now, if you failed to make a payment for more than 3 months, your score will get worse and it just won't get worse than that. You just screwed up. Deal with it. So, should you file bankruptcy? NO!!! It only makes things worse! Ok, how about paying settlements? Believe it or not, paying them will make the score WORSE!!! So, don't bother to negiotate for a settlement. Ignore them. Don't let their letters upset you. The only time you have a reason to be upset is if you get a formal letter for the court appearance which rarely happens.

The law states that credit reports cannot contain bad credit reports for more than 7 years while a bankrupcty record stays on credit reports for 10 years. Which would you rather have - bad unpaid debts for just 7 years OR bankruptcy with a BAD score for 10 years?

What about harrassing calls? The law protects you - you have the right to tell creditors to stop calling you. You must write a letter telling them to stop the calls. If they threaten to bring a lawsuit against you in court and it's past 4 years after the late payment, they have no case because all states forbid them to do it.

After 7 years, your credit score will be MUCH better and banks will have no way of knowing if you had bad credit or not. It will be in a great shape. It's even better if you ALREADY got credit cards and kept paying on time.

It's that simple.

-jeff
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I would like to warn you all, if you have auto loan, or mortgage to deal with. These two things need to have your attention. Why? First of all, if you want to avoid bankruptcy, and let the creditor repos your car, you could end up owe twice more than what you orignally owed! That is really depending on how the auction went, plus all of baloney services charges involved with repossession. As for mortgage, if you had borrowed more thank 55,000 dollars for the house, and that the mortgage decided to foreclosure your house because of failure in payment WILL COST you LIFETIME on FICO score! I mean the foreclosure will be in record until the day you die! If its less than 55k, then your alrighty after 7 years as long as the debts were paid for after foreclosure. So, that is why sometimes bankruptcy is best solution to save your auto and house. Whats more, any other creditors can take away any remain amount after all of repos and foreclosures. Plus if you have debts, and you died, your kids CAN be responasible for these debts, that is why there is life insurance there to protect your properties, and your relatives as well.
 
Cheri said:
I know that, It is a lot cheaper than interest rates on credit cards. :thumb: $4.95 dollars was forward to monthly maintenance.
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Oh, I'm sorry... :o
 
Sure its cheaper ONLY if you don't pay within time frame. I have used real credit card and pay it off each month when its due, I haven't paid a dime on interest! That is because I took advantage of grace period where you don't have to pay interest charge within time frame. Like 25 days grace period. I pay CC though cc's online payment so that I can pay on time. So, you decide whichever is cheaper.

^Angel^ said:
Oh, I'm sorry... :o
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diehardbiker65 said:
This is MISTAKE!!! Using Debits instead of Credit on transaction cost you on average of $2.00 per transaction!!!
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I guess it depends on which card you have. We don't pay any fees for our debit transactions.
 
Im surprised your bank don't charge service fee on transactions. My bank DO charge 2 dollars each time I use debit rather than credit. OFC it varies from bank to bank. Its important to read all of baloney rules and play ahead of them. That is what I have been doing... Playing ahead of their rules.


Reba said:
I guess it depends on which card you have. We don't pay any fees for our debit transactions.
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^Angel^ said:
Actually they take 4.95 per month for the service of that Debit Master card...Everytime I reload the card and call them to add onto my debit Master credit card, it will also tell me the balance of my account which I noticed they do charge you per monthly for the service charge no matter if you don't use the card often....

So it wouldn't make no difference really.....
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Maybe you could check a different bank or card. I pay nothing for service on my debit card. Also, checking service is free, no minimum balance required.
 
Liebling:-))) said:
No charge for bank service ?????????????? How could the bank get the profit from their customers?????????????????? Without fee is impossible.
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Banks get their profits from lending money, such as loans for cars and houses. They collect the interest from those loans.
 
Exactly! Sometimes bank do offer free banking service... They still make money because this attracts customer and decided to open checking account, then find it easier to borrow money from them, Viola! Profit generated! Also, they "Buy" savings from you and sell that money to the debtors and collect interest rate. You noticed savings interest rate is rotten low! 1/2 to 3%, while they sells loan 8+%, so there is profit for them to ride on.
Reba said:
Banks get their profits from lending money, such as loans for cars and houses. They collect the interest from those loans.
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Read carefully what I said. I said "Many people file bankruptcy to relieve their credit card debts". I am not talking about mortgages or car loans - they're entirely different and if you have problems with them, you have to get a lawyer or pay minimal payments. Credit cards are basically loans against nothing. They're unsecured.

You said "No your wrong in most case, creditors CAN renew their debts, how? Sell them off to another collectors then you have another 7 years on the report."

It is illegal yet widely practiced. Credit agencies will remove them if you tell them about their illegal acts. It's called "re-aging" the debt. The FCRA said that from the day the "account" became deliquint, it should be removed after seven years. It does NOT matter if the creditor has sold its account to a new collection agency or resold again to a different collection agencies.

-jeff
 
Liebling:-))) said:
No charge for bank service ?????????????? How could the bank get the profit from their customers?????????????????? Without fee is impossible.
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Nope, no fee cost for me when I use Debit card at the stores, gas station, restaurants, etc. Easy!!! I love it!
 
To prove that it's illegal, here's what FCRA said:

(1) In general. The 7-year period referred to in paragraphs (4) and (6)(2) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.

http://www.ftc.gov/os/statutes/fcra.htm

"any delinquent account" is the key - it doesn't matter who owns the account - any bad accounts cannot be reported on credit reports if it's over 7 years old.

-jeff
 
Have you heard of "Loophole"? There is somewhere buried in credit laws that lets other creditors buy bad debts, and report to the agency, thus kick in new 7 years period. I witness, and saw it happened to my gf! I asked her attorney why didn't 7 years limitation stop this, the attorney say there is loophole that lets the sale of debts... That is different than somebody just take it over.


netrox said:
To prove that it's illegal, here's what FCRA said:

(1) In general. The 7-year period referred to in paragraphs (4) and (6)(2) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.

http://www.ftc.gov/os/statutes/fcra.htm

"any delinquent account" is the key - it doesn't matter who owns the account - any bad accounts cannot be reported on credit reports if it's over 7 years old.

-jeff
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Reba said:
Maybe you could check a different bank or card. I pay nothing for service on my debit card. Also, checking service is free, no minimum balance required.
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I didn't say my debit master card was from my bank it was from CVS free and clear debit master card...

You go to CVS store and buy a free and clear reload card and put down any amount of money you would like on the card, then when you arrive home you call the number on the free and clear debit master card and reload it on your debit master credit card....

I hope this help clear up any misunderstanding ;)

Edit: Oh I forgot to add that I had a debit card from my bank when I was married at that time and I pay no fee either but now that we closed our checking account when the divorce was final , I decide to get free and clear debit master card at CVS since I didn't open my own checking account until a couple months later...
 
"Have you heard of "Loophole"? There is somewhere buried in credit laws that lets other creditors buy bad debts, and report to the agency, thus kick in new 7 years period. "

Yes, I know about loopholes but trust me, it's no longer the case. It is illegal and you have a legal ground to sue collection agencies who passed their accounts to "extend" the age. They just cannot do that anymore. Your attorney is wrong.

The old FCRA allowed them to do it because back then they used "last day of activity" instead of "account." Now, it's not the case because of THAT abuse. The new law is clear no MATTER how the account is sold or bought. They just cannot do that.

-jeff
 
And about bankruptcy some people file bankruptcy because their ex max all their credit card and left the wives/girlfriends the debts that they cannot afford to pay, I've heard about that before. It wasn't their fault. There are a lot of reasons why people files bankruptcy. :ily:
 
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