Suze Orman and the New Rules of Credit Card Debt

winston r rice

Kerry: Tell your friend to not bother spendng one dime paying an attorney to put him in to bankruptcy for debts that are, totally unsecured.

All credit card debt is unsecured, which means they cannot attach your assets, bank accounts, autos, homes, or garnish wages. From the second your friend stops paying his credit cards, the clock starts ticking and after 7 years all three credit agencies must remove all negative past information by law.

However, If your friend declares bankruptcy, this will stay on his credit agencies for a mandatory ten years. And in some states depending on whether he declares chater 7 or 13 bankruptcy, his car or home might not be protected.

The reason the credit card companies have been able to charge such high interest rates and other hidden charges are because they are not secured loans, and are the most profitable of all banking activity, more than business, home and auto loans combined.

Tell your friend not to worry, keep his checking account record spottless, use an ATM card. Eventually when he has saved enough money, if he wants to improve his credit, or FICO score, he can apply for a secured credit card and re-build his credit early. But be very carefull in which secured card he chooses at the time and the terms this card is offerring.

Things will get Better, Good Luck

winston r rice of CA @ Nov 17, 2009 22:49:59 PM