Re: Credit counseling vs. credit negotiation vs. anything better

Posted by shoe box (66.36.249.149) on February 26, 2004 at 20:50:28:

In Reply to: Credit counseling vs. credit negotiation vs. anything better posted by Confused on February 26, 2004 at 18:15:31:

Here’s one possible route.

Quit paying on all your credit cards. Take your $650 a month payment and put it into the Bank of the Shoe Box underneath your bed. If you simultaneously default on all 7 accounts, they will think that you are about to declare bankruptcy. Likely none will sue you. They will sell the accounts to the 5 cents on the dollar debt collectors who won’t have the paperwork to win if they try to sue you. Your credit is already trashed if you are in credit counseling, so doing this won’t hurt it any more. If someone ever actually sues you in 2 years or so, you’ll have a nest egg to make a settlement IF absolutely necessary with ONLY that outfit that is suing you. In 2 years time, if no one sues you, you will have $15,600 in the Bank of the Shoe Box. If all your accounts are only around $4k, that’s not a tremendous amount for a credit card company to actually sue on, but you didn’t say whether you had real property or a wage garnishable job.

You are less likely to be sued doing it yourself, than if you use one of these debt negotiation/elimination scam outfits. The credit card companies are catching wise to these scam outfits, and are starting to sue more quickly when they find out people are using them. When you do it yourself, they won’t know whether you are just preparing yourself to declare bankruptcy, and they won’t want to throw a lot of money on a lawsuit for someone who’s just going to discharge everything in a BK. If you’re lucky, nobody will ever sue you. If anyone does, you’ll have some money to settle. And you get to do it all on your own terms without being a “victim” of the collections industry.

If you decide to do this, just pick a date and quit paying EVERYONE. And never from that moment on speak with anyone or communicate in any way with anyone. Put your money in your piggybank and wait and see if anyone sues. If anyone does, then you’ll have some money to negotiate with. You might want to read up on bankruptcy exemptions to see if you can back yourself up with that also. $27,000 is about what the average BK is in America today. Just keep making that $650 a month payment,, only make it to yourself. If you’re worried about your credit, well making a $650 a month payment to yourself will buy you a car with cash in a few years,, you won’t need an auto loan…think about it…

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