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Well that is one debt they automatically refinanace ;credit cards. That way you pay the minium the rest of your life;they can't lose really. But thry are gonig after bad debts from what I hear more aggrassively.
Those debts are unsecured..there's nothing to take back if it defaults..except a big screen TV maybe.
The government has no business backing CC debt..they have no vested interest in it.
Just moving bad debt from the banks to us..that's all. The banks will get their money from the government and the government will get their money from us.
i think when that happens then they will stop giving them out to the homeless and the shopaholic. (same person different point in the timeline)
i think that is a good thing.
you can trace our debt and high level of divorce back to the 1974 federal law--- anti discrimination credit act.
Last edited by Huckleberry3911948; 11-26-2008 at 06:17 PM..
I'm going to buy myself plenty of christmas gifts and take out lots of cash advances, too! I'm going to apply for more credit cards and max them all out!
I'm going to buy myself plenty of christmas gifts and take out lots of cash advances, too! I'm going to apply for more credit cards and max them all out!
Jingle bells, jingle bells, jingle all the way!
Oh what fun it is to spend, and never have to pay!
Firstly, the cards given to students and other young people have high interest rates, high fees and low limits. They companies know very well that they don't often get paid back. The interest and fee structure is such that they get plenty of money even with high default rates.
Secondly, you can't really walk away from credit card debt. Its resource debt. You can not pay, but the credit card company or whoever they sell the debt to will just sue you if the amount is non-trivial. The courts will then require that you pay off the loan and they can get a court order to garnish your wages.
The only way out of this situation is to file for bankruptcy and the only way you'll actually get bankruptcy protection is if you truly can't pay the debts. Even in this case you're more than likely going to have to pay at least some the debt back.
Anyhow, collection departments use a variety of scores that determine how likely one is to pay off the debt. You may not hear much from them for a few years, but then as soon as they notice your scores improving (say you get nice job, open a few credit cards, pay someone else off) they will start more aggressively trying to collect the debt. The people that "walk away" from credit card debt are in no sense going to get a free ride.
It will actually be interesting to see what happens with all the HELOCs people have walked away from. So far the companies haven't tried to collect it in large numbers, but they have 7 years. I'm sure some collection company will be interested in buying the debt and trying to collect in a couple of years.
This is very true...Credit Cards are given to stupid teenage girls with no concept of money the moment they turn 18 and they max them out. Then they can't pay them off and will either go bankrupt or will go into even more debt to pay them off. This is a cycle with no end. It only gets worse.
I don't think the stupid teenager are the biggest problem. It is their parents who never taught them anything about spending money wisely!
IMO there are more people in their 30-40 and 50 ties in credit card debt than there are teenagers!
I just have to look around in my neighborhood and I see the expensive cars, other luxurious stuff to understand what their credit card behaviour is. One couple just lost their house to foreclosurebut still they are driving in a Mercedes that cost over a $ 100 K, that makes you wonder, and getting even more disgusted. (expensive clothes, etc.)
As I have stated before, in my neighborhood so far there hasn't been a case of losing a home due to lost of a job or a healt issue...all greedy people who bought above their means and 60%-70% are people who own more than 1 proeprty and just wanted to flip fast and couldn't.
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