Re: Debthelp.com (Q for CAK, WhyChat, LadynRed, etc.)

Posted by WhyBother (198.81.26.74) on November 22, 2003 at 20:39:38:

In Reply to: Re: Debthelp.com (Q for CAK, WhyChat, LadynRed, etc.) posted by CAK on November 22, 2003 at 18:57:33:

Actually, in my particular case, you couldn't get my physical address. I'm renting a room from someone and this isn't getting reported anywhere. How would you get it?

How could you get my SSN# in five minutes if you don't have any other info on me? How could you find out my employer just because taxes are withheld? The IRS could of course, but that's a different story. Withheld taxes are not a matter of public record, and my employer wouldn't show up on my credit report unless I happen to apply for credit.

I have used C&D before on three accounts and have never been sued as a result of using it, but they hadn't just defaulted.

I have to strongly disagree about not setting aside at least 10%. I would suggest reading why he said that, but basically the point is the "pay yourself first" approach, not making your creditors rule your life. People just pay and pay creditors, and never build up any assetts. In the long run assets are what's important. For example, what if you get laid off? Do you even have enough cash set aside for one month? I bet a lot of people don't, not to mention having several months of living expenses set aside.

Most of my accounts are charged off and aren't accruing interest. Even if they were, so what, they are eventually going to be charged off if you can't make minimum payments. They usually only accept lump sum payments on accounts that are charged off or are about to be charged off. I don't believe you should have a zero bank balance after each paychek. That's the point of paying yourself 10% first, even if you if you have other demands.

Personally, I would sleep much better at night with several months living expenses in the bank than I would just knowing I'm "saving" money on interest rates though I have absolutely nothing to fall back on should I become laid off or unable to work.

Once a person has several months living expenses in a safe place (and it might not be best to have it in a place where creditors can get at it), then it is debatable what the person should do with the 10% investment amount.

Again, the whole book, which I probably didn't do justice to, is written from the point of view of taking your life back from creditors and collection agencies and even the IRS. And one can always declare a Chapter 13 BK if one wants to pay off his/her debts while keeping their assets. If all you care about is saving money, then this might be the best way to go, though you'll have damaged credit for a while. But I've known several people who have done a Chapter 13 and were able to completely recover from it like it never happened. Not that I'm recommending it, but I think creditors try to portray a worse picture than it really is. Damn, even people like Donald Trump have to declare BK sometimes.

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