Please remember the story of this poor farmer. He broke into his doctor's office to steal medicine for his dying daughter because he could not afford drugs? The controversy surrounding this issue is related to morality: Can you save the life of your daughter? Is it right for drug companies to charge very high prices for prescriptions? Should farmers be hospitalized? Does he have reason to steal?
The same story exists today between credit card companies and us-consumers. Is it illegal for a credit card company to charge us 18%, 20%, or even 30%? If every month we can pay is the minimum amount of repayment, how can we get out of debt? If your credit score exceeds 700 and you think the credit score is low, I suggest that you check your bill the next time you receive the email. Your credit card company can increase your interest rate as you like; if you don't believe me to read the rules. As consumers, we expect to be in debt all our lives. Visa spent $600 million last year for advertising, so you can still be in debt. This is why most of us can only pay the minimum fee on a credit card every month. This is not because we are irresponsible consumers (though this does play a small part), but there is a magnificent design that has been planned to let us not only debt, but also debt our entire life.
We all long for more disposable income. We all want more free time to play with our children and hang out with family. The truth of the matter is - this will not happen in the near future. At present, our economy is brewing a perfect storm: the baby boomers are starting to retire, social security will be exhausted, aid will be allocated to the left and right, the mortgage crisis has not bottomed out, interest rates have risen; this is definitely Another article, but with the rise of credit card interest rates and the arrival of the perfect storm - we realize that we will repay our bills / interest until the day we die.
So how do we get rid of this carousel nightmare?
What happens if I just stop paying my credit card and tear them?
First to know There is no such thing as a credit card prison but it will have the following impact:
Collections and creditor calls: You will be beaten day and night, every day Phone 5 times, even 10 times. You can contact your relatives, friends and the workplace to find out where you are. This is not pleasant, but you have the right, they are protected by the FTC (Federal Trade Commission). For more information, see the Fair Debt Collection Act.
Credit Score: Your credit score will be affected. Late payments will be reflected in your credit report. If you spend a while, the credit report will show receipts and deductions. Once paid or settled, these can be removed.
Legal proceedings: Depending on the state of your situation, you can be embellished. You can have an active creditor who will bring you to court and impose a lien and/or judgment. Although the latter may happen, most creditors will sell your debt to third-party collection companies simply because they are economical to do so and not seek litigation.
Side note: If you have time, I suggest you watch (and simply enter it into the search engine and you will find dozens of links) PBS Special: The secret history of the credit card. You will not only be credited by how we hook credit, but also the methods used by credit card companies.
Although the impact is terrible, the good news is that there are legitimate companies out there who work with your best interests, who can't just handle these for you, but legally clean up your debts cleanly and let you waive your creditors. Just like everything else, study and communicate with several companies before participating in any plan.
Orignal From: I can't pay my credit card!
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