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
Kerry Kiyabu
Suze, I am assisting a friend who owes approximately $40K in credit card debt. He negotiated lower interest rates through a debt consolidator and still pays $970 per month. The problem is he only takes home $820 in pay and has an apartment that costs $900 per month.
At this point he is negative approximately $1500 per month. He has $30K in his 401K. He has withdrawn $7K to cover his negative cash flow.
Should he declare himself bankrupt? My other friend says the credit companies may still garnishee his pay check. Is this correct? I am under the understanding that the credit card debt i unsecured. I do not see how he can get out of this situation without bankruptcy. Can you help? Mahalo, kk
Kerry Kiyabu
of HI
@
Oct 23, 2009 03:35:23 AM
How to avoid the credit crunch
This how to avoid the credit crunch guide will help people get out of credit card debt. It is an instant download! You can get started today!
Go to:
www.CreditFinanceToday.com
Theresa
of TX
@
Oct 18, 2009 14:30:50 PM
crdut card debt
I saw this on TV.
Debt Crisis in American Credit Card and Debt rellief hotline
1-800-457-3200. and was wondering if it is really something to look into using to help me with my 13000 credit cards i owe.
Pam casey
of IN
@
Aug 03, 2009 22:04:45 PM
SAME SMART THINKING
Thanks to the brainiacs who gave credit cards to high-risk customers AND THEIR DOGS~, I now have had my limits slashed, my interest rates doubled, and minimum payments doubled/tripled!!!
I have never been late/over-limit/anything else on my accounts. Smart thinking-- they are now creating even more trouble for themselves AND America by making it impossible for excellent customers to make even the minimum payments!
Shoulda left well enough alone.
Gail
of TN
@
Jul 18, 2009 11:50:17 AM
creditdebt
what canthe credit companies really do and succed on getting their money back if we stop paying them all together
mike
of TX
@
Apr 26, 2009 19:15:36 PM
CREDIT CARD
I have about 3,000 in credit card debt. I need abut 5,ooo for personal things that are coming up. shoud I try to apply for another credit card to get an advance and pay off existing credit card charges. and which one will giveS you o interest for the first year. thanks, Pat
PAT BIELLO
of NJ
@
Apr 19, 2009 16:23:24 PM
Credit Card Bill of Rights
If you would like to help pressure Congress to pass a Credit Card Bill of Rights please join our voting bloc at: http://votingbloc.org/Credit_Card_Rights.php
pontesisto
of MA
@
Apr 04, 2009 21:25:53 PM
Credit Card Debt
In our uncertain economy, you have all the more reason NOT to charge things unless they are absolutely necessary (medical co-payments) or you are sure you can pay your credit card bill in full when it comes in. Paying credit card interest at the rate of 25% or 30% is the way to bankruptcy.
Rocky
of CA
@
Apr 04, 2009 16:23:13 PM
NAH!
I can't agree, there's no better feeling than being credit card debt free!
winston r rice of CA @ Nov 17, 2009 22:49:59 PM
Kerry Kiyabu of HI @ Oct 23, 2009 03:35:23 AM
Theresa of TX @ Oct 18, 2009 14:30:50 PM
Pam casey of IN @ Aug 03, 2009 22:04:45 PM
Gail of TN @ Jul 18, 2009 11:50:17 AM
mike of TX @ Apr 26, 2009 19:15:36 PM
PAT BIELLO of NJ @ Apr 19, 2009 16:23:24 PM
pontesisto of MA @ Apr 04, 2009 21:25:53 PM
Rocky of CA @ Apr 04, 2009 16:23:13 PM
HS of TX @ Apr 04, 2009 15:33:06 PM
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