Re: Huge CC Debt - Advise Needed

Posted by Stopped Paying (68.106.21.79) on September 26, 2003 at 12:14:59:

In Reply to: Huge CC Debt - Advise Needed posted by Hopeless in TX on September 26, 2003 at 09:43:24:

Do the bankruptcy.

Working through $60,000 of debt in 7 years would cost you approximately $100,000. Why would anyone pay $100,000 so they could keep “good” credit so they could get a $15,000 auto loan? Take the money you would be making in payments and put that into a savings account. In 7 years, you’ll have $100,000.

According to economics literature, far too many people continue to pay long past the point of their own financial well being.

“Only one paper, White (1998), questions whether the standard dichotomous bankruptcy
model may be incomplete. She estimates that if bankruptcy and repayment are the only choices available to borrowers, 15% of U.S. households appear to choose repayment suboptimally.”

WHITE, MICHELLE, “Why Don’t More Households File for Bankruptcy?” The Journal of Law, Economics, & Organization, 14(2), pp.205-30.

The clamor is that the bankruptcy rate is so high. The amazing part is that it is really so low, for the number of people who would really benefit from it.

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