consolidation vs. settlement
Date: Wed, 03/04/2009 - 10:03
I was pissed that the CC co wont lower my interest rate. I always paid on time all these years, basically borrowing more so that i can always make payments. There is nothing they can take from me but my score, and I can easily file for chapter 7. I meet CA means test (i make 74k family 4). Why do they want to force me to do chapter 7, what power do they think they have over me? I could walk any time.
I gave them their chance and they passed it up. I was wondering if you could advise whether i should try consolidation or settlement.
no matter what i cant use credit anymore so i dont think i need a credit rating.
mr. moneypenny
Consolidation is always better than settlement for your credit r
Consolidation is always better than settlement for your credit rating. If you think you don't need a credit rating you are dead wrong. Employers, rental agencies, banks and many others check your credit and make decisions about your worthiness even to open a checking account or to rent an apartment or even to hire you!
I agree on Frogpatch's remarks, but if you have everything in pl
I agree on Frogpatch's remarks, but if you have everything in place (i.e. a job, bank account, home, etc), then credit rating shouldn't be much of an issue for you. Your #1 issue is your credit card interest draining away your income each month. Credit rating doesn't determine your worth as a person nor is it needed if you have the above items in place and you're able to operate on a cash basis. Look into both solutions and make a decision not based on your credit but on future. Once you eliminate interest altogether, now you can start building what you mentioned on your post: wealth, equity, and assets.
Yes i have a job and a house (with no equity or negative equity
Yes i have a job and a house (with no equity or negative equity to be exact), and a bank account (with my major creditor! 75k secured, 40k unsecured). I could easily open an account at another bank before letting my rating go sour. So i am not worried about those things. Sure, i would like to have credit cards in the future and the possibility to move, but those things seem out of reach anyway if i just go totally spartan and use the next 30 years, putting sawdust in my oatmeal to make it go farther, to pay off the debt.
Credit card interest is killing me and they keep raising it even though I always paid on time. I pay 22% now on an account I have had for 11 years of timely payments! It seems like they are trying to kill me or something.
still, i dont know if i will make it through the settlement process, that i might run out of cash. seems like if you are going to do this you should run up all the rest of your credit to the limit and never spend any of your paycheck, then walk. Is that right? (doesnt sound very nice though).
Not only is it not "nice" that can be construed as fraud. Coup
Not only is it not "nice" that can be construed as fraud. Couple points I should have added - you don't have to settle every card, maybe keep your lowest card out and continue to use it. Also operating on cash also means using your card or cards but paying them off each month.