flamin lib
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Tue Aug-23-05 10:57 AM
Original message |
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To all you DUers who may be struggling with credit card debt. If any of you are close to the edge on making your payments take heed. As part of the new bankruptcy law on October 17 card payments will rise to a minimum of 4% of the balance from a min of 2%. If you are paying the minimum your payments may double!!
October 17 is the day the new regulatons take effect and that may severely affect your ability to file bankruptcy and the payment settlement.
Ask me how I know . . .
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kilo
(25 posts)
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Tue Aug-23-05 10:57 AM
Response to Original message |
1. ok, how do you know? n/t |
redqueen
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Tue Aug-23-05 11:08 AM
Response to Reply #1 |
10. I'd like to know as well... |
flamin lib
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Tue Aug-23-05 11:25 AM
Response to Reply #1 |
16. Filing chapter 13 October 1. |
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Job was sent to China 4 years ago. Interviewed for a year. Rave reviews of resume, great phone interviews but when the face to face interview came they took one look at my grey hair and it lasted 3 minutes.
Financed a startup business the only way you can without a job--CCs. Lost $10k the first year. Depleted savings making ends meet. Broke even the second year. Cash advanced to make house payments. Had $20k in dental expense this year. In the black this year, but too deep to recover in this lifetime.
Sad day, but I'm feeling better as there is a light at the end of the tunnel and it isn't a train.
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rooboy
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Tue Aug-23-05 10:59 AM
Response to Original message |
2. The minimum used to be 5%... |
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and the 2% stunt was just a ruse to make people owe more interest by making smaller payments. Hopefully with a 4% rate we'll see people paying off their cards once and for all...
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classof56
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Tue Aug-23-05 11:00 AM
Response to Original message |
3. This is no surprise. I'm pretty sure we're all screwed now. |
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Except for the top 1% of course, that's a given. But just wondering how you do know.
Tired Old Cynic
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Lorien
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Tue Aug-23-05 11:00 AM
Response to Original message |
4. Also, don't use the 2% interest rate checks provided by CC companies |
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A friend of mine did this and discovered that each check cost $45 to use! (It was in the very fine print).
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leveymg
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Tue Aug-23-05 11:00 AM
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5. Is the min. payment rise to 4%/mo on existing debt? |
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Or just on new debt contracted after 10/17/05? Important distinction.
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flamin lib
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Tue Aug-23-05 11:17 AM
Response to Reply #5 |
15. Yes, it is on existing debt. nt |
WI_DEM
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Tue Aug-23-05 11:02 AM
Response to Original message |
6. Knowing this was going to happen in the near future |
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A few months ago I went to a credit card counceling Organization (a very good one) and cancelled all my cards and am on a plan which will get me out of cc debt within four years--instead of the lifetime it would have taken me otherwise.
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Geoff R. Casavant
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Tue Aug-23-05 11:05 AM
Response to Reply #6 |
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Congratulations on your plan. My wife and I did the same thing over a 5-year period. Made our last credit card payment 16 months ago.
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stopbush
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Tue Aug-23-05 11:03 AM
Response to Original message |
7. Interestingly, MBNA's profits have taken a severe hit the |
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last quarter as debt holders are busy getting their cards down to low balances before the 4% kicks in,
My plan this year is to totally elimimate my long-term cc debt, something I should be able to do as I finally landed a real job 2 months ago. I've done this before - I get rid of the lowest balances first and work my way up to most-destructive accounts. It's amazing how fast you can retire that debt if you have the wherewithal to double up on the monthly minimums. I may be eating popcorn for dinner, but it will be worth it in the longrun.
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flamin lib
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Tue Aug-23-05 11:30 AM
Response to Reply #7 |
17. Yes, it is a case of be careful what you ask for. The CC's wrote the |
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new bankruptcy bill. Those on the verge of making payments did the smart thing and filed immediately, those with the wherewithal saw the hand writing and paid down debt. All the chapter 7s and loss on chapter 13s hit the bottom line real hard.
The attorney I spoke to isn't taking any new clients--too busy to make the deadline.
The current laws base settlement on real life situations -- actual income, actual expenses, etc. The new guidelines are just numbers on a chart.
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Squatch
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Tue Aug-23-05 11:07 AM
Response to Original message |
9. If you can't pay for it with cash, you shouldn't use CCs. |
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I never pay interest on my cc's because I:
1) Save up for my purchases. 2) Use the credit card for the purchase. 3) Pay the entire balance with the money I saved.
CCs are a valuable tool, if you are disciplined.
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evlbstrd
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Tue Aug-23-05 11:13 AM
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11. I just got rid of all of mine. |
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It was great timing and a huge relief.
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Double T
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Tue Aug-23-05 11:13 AM
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12. Banks And Their Credit Card Divisions are the modern day loan sharks and |
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street thugs that are ready to track you down and destroy your life once they have their clutches into you. And all of this has been made possible by our friends on both sides of the aisle in D.C., who were more than willing to take bribery payoffs to their campaign funds to vote for legislation that allows the Bank Loan Sharks to get away with this treachery. Remember who screwed you next time you go to the voting booth, and do something about it!!!!!
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tx_dem41
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Tue Aug-23-05 11:15 AM
Response to Reply #12 |
13. Of course, because of this measure, those banks and their CC... |
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divisions are going to make less money in the long run on those CCs.
Consumer credit advocates are for this change.
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demnan
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Tue Aug-23-05 11:16 AM
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14. I financed my credit card debt 4K when I bought my condo |
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When I refinanced I went with a fixed rate mortgage. Monetarily the best thing I ever did was buy that condo.
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