You're right to an extent. Parents should play a role as well, but you have to admit that it's a little shady for colleges to allow credit card companies to set up shop on campus offering free t-shirts to 18 year-olds when all they have to do is apply for a credit card. I got myself into some major credit card debt, but I'm working my way out of it.
I think it's both, really. CC companies are sleazy in that they use deceptive tactics (such as hidden fees, and adjustable rates) to entice a person into getting into debt. Another one of their age-old tricks is to increase a person's CC limit. When a person gets their limit increased, they are tempted to go out and buy something on the CC. CC companies know that people react this way and the leverage that sentiment to get people into debt. And then, once they're in debt, the compound interest turns the debt into quicksand. It's also consumers' fault. We must educate ourselves to the many tricks that companies (not just CC companies) use to wrest our money from us. We must understand the concepts behind compound interest and the ramifications of using credit/debt. We must understand the difference between good debt and bad debt, and we must protect ourselves at all times. If we don't do these things, we will bring deserved distress upon ourselves and - worse - upon our wives and children. I remember a great line from The Godfather: "I spent my life trying not to be careless -- women and children can be careless, but not men."
yes CC companies use tricks and marketing tactics, but still, the person is the one buying things. The person is the one who didnt take their time to actually think about what they are doing.
does anyone else find it funny or sad that certain elements of society say its ok and even enourages 16 year olds to have sex but then get all pissy when credit card companies start treating them like adults 2 years later?
I have a few question What kind fo car do you drive? How large of a house do you own? Do you have any new big TVs? How big is your cell plan? Cable TV? Maybe you can sell or downgrade your stuff and start using that to minimize your debt.
It isnt anyone in this thread. Its specifically referring to various publications here in NYC and some commentators/editorials I've heard or read. There are people in my neck of the woods who say its perfectly fine and healthy for 16 year old to have sex and then turn around and get down on the credit card companies for treating them like adults two years later.
Dayum, 50k is rough. Are all your cards current or is all this in collections? I have a friend with 22k of debt, yet everything is current. She will be paying for the rest of her life, but her credit is great! If things are in collections, try to negotiate a plan. Most collection companies will allow you to pay a percentage of the total debt. It seems that you have your car, and your home already, so if you don't care about refinancing, etc. you can let one card just go and be wiped off your credit in 7 years. I did that with one item and it did hurt my credit. It didn't hurt it as bad as I thought it would, but it hurt it nonetheless. It is off my report now. But as I said, it seems you have made the biggest purchases in life already, so it won't hurt you that bad.
What is so dangerous about doing a home equity loan?? If he can afford his house payment a month and he is paying so much a month on 12 credit cards, doing a home equity loan will actually reduce his monthly payments in debt. I mean there is always danger doing a loan using an auto or your house as collateral because if you can't pay it, the bank can take the auto or house. Yet, if he has a decent paying job and can stay at it for a good while, there shouldn't be a problem. This isn't any different than doing a refinance of your mortgage loan.
We use an MMA/HELOC to show people how to pay off mortgages in 1/2 to 1/3rd the time remaining without re-financing, without bi-weekly payments and without doubling up on payments. You can also roll other debt into it and, depending on what you rolled in, get it taken care of expeditiously. There are ways to keep some of your money out of the bank's coffers!
Take the Dave Ramsey class and follow everything it tells you to do.....it will work. Its not easy, but its better than being in debt.
I took perverse enjoyment thinking Lay is next door neighbor to Henry Hill where they share an order of fast Italian take out while reminiscing over their golden years of defrauding people.
I share perverse enjoyment in your perverse enjoyment, and by taking it a step further to think that Henry Hill is selling extacy and cocaine to his next door neighbor, his next door neighbor will not be able to pay, and Henry Hill has his next door neighbor's legs broken!
To the OP: Do not just 'not pay'. It will never go away that way. Never. You are going to have to pony up the money to get a lawyer and do two things: 1) Contact every debtor and inform them that you are about to declare bankruptcy, but that you do not WANT to. Instead, tell them you would like to settle the debt, most companies will reduce the debt by anywhere from 50% to 75%. They either do it, or they get nothing when you declare. Then pay off what you settled for. Get a loan from a family member, friend, someone who won't break your legs. But pay off the settlements. 2) For everything else, you are going to have to go through the hell of declaring bankruptcy. Just know that this will destroy your ability to function financially for at least the next ten years, and probably longer than that. However, it is clear that you never were functioning financially. These institutions which lured you into their clutches with all that easy credit deserve to be bloodied by their foolishness in giving you the credit in the first place, and by not cutting you off much sooner. Lastly, never, ever, EVER take another credit card, the rest of your life. Use a debit card. That way, you will never find yourself in that trap again. Save your money, pay cash for everything, even your car. You won't be buying a house before 2020 anyway, so don't worry about that. Do all this, bite the bullet, suck it up, take your medicine, learn your lesson, stop gambling, and never ever allow yourself to fall into this trap again. Ten years from now you will be living a normal life, and be able to hold your head up and have become a wiser person.
It gets me too. You charged it, so pay it back. Nowadays even if you file bankrupsy, you still have to pay a good chunk of it back. As well you should.
To the OP, go to a Credit Counselor. A free one to get some advice. There are some good suggestions in this thread, and some very bad ones. I have even heard of some credit counselors advising clients to just let some things fall off your credit report, so yes that is an option in some cases. If it has been 6 years on a debt, the debt will not be reported in 10 months, why in the hell would you pay that when you could be paying more recent debts? Bottom line is that a professional can work with you to come up with a real plan. During this time, if you feel you can't stick to what they are proposing, speak up. That way you can get a realistic plan that you can live with.
Why do I get the impression we're going to be seeing a LOT more threads like this in the near future?
