I think I am asking this question for a lot of people when I ask, what do you do when you interest rates on your cards are so high but you don’t qualify to get another low interest rate card or a loan??
It is just plain stupid to continue to pay those crazy rates…there has to be other options. CCCS comes to mind but is there anything else??
BANKRUPTCY IS NOT THE ANSWER. Taking responsibility for your actions is. Work harder. Spend less. Simple steps to live by to avoid this problem altogether. Plus, bankruptcy just passes your debt on to other innocent people.
Sometimes when one has his or her back against the wall, bankruptcy IS the only way out as time is not on your side. Creditors refuse to work with you, they want their money NOW & on their terms! Whether or not you have money is not their concern.
I am a gay man. This list reminds me of one that gays use to explain to people that it’s okay if you’re gay because the following famous people were gay. (Actually a few are in this list.) But I don’t see the connection of why, if it was okay for these people to file for bankruptcy, it’s okay for the average person to do so. I prefer the answer someone gave that bankruptcy is not the answer, but taking responsibility is the answer.
It’s the same with other aspects of your life. Are you going to overeat, so that you subject your body to obesity and the ensuing exposure to diabetes, cardiovascular disease, glaucoma, arthritis? Or are you going to learn to moderate your eating habits and exercise, so that you can enjoy better health? It’s the same with personal finances. Are you going to make an effort to budget, keep track of your finances, and live modestly? Most successful people in this list are achieving this and helping the rest of us by sharing their experiences.
One would wander what excesses drove the people in the list you post to overspend, then need to file for bankruptcy. Why not avoid excesses in the first place? People are not corporations, so please spare us the list of companies that have filed for bankruptcy. Those corporations may have been led by people prone to financial excesses in their personal lives. The current drive to clean out the boardrooms of public companies and disclose the secret golden parachute arrangements they have with top executives is a good trend. It seems that executives who depart make more money when doing so because of secretive lucrative agreements they arranged when hired.
So, what is your best bet once the credit company does a write off on your debt? Do you arrange to make payments with the collection agency or do nothing for the next 7 years or what?
Get the exact amount to pay it off in writing from the company or collection agency. Get a cashier’s check from your bank or a postal money order (both are traceable). Send a copy of the letter and your check to each of the credit bureaus so the debt can be marked as PAID on your credit report. Mail everything PRIORITY MAIL with a SIGNATURE REQUIRED. Documentation is the key.
what if you can’t afford to make the full payment? Should you set up payments with the collection agency? Isn’t a personal check “traceable” as well once it is cashed? With all the other precautions (and others have mentioned sending it registered mail), a personal check is cheaper as there is an additional charge for money orders and cashier checks.
Yes it is. However, you don’t have to wait for a cashier’s check to “clear” like you do with a personal check before you get credit for it from the creditor. It is just like “cash”. No waiting for it to clear. A personal check can bounce (if the check writer buggers up their checkbook), while a cashier’s check or a money order cannot, unless – I guess – the bank goes under while the check is in transit.
My bank will give me some small number of cashier’s checks per month for free, and charges a little bit after that. I think I’ve gotten one in the last decade.