CREDIT CARD PAYMENT - Problem Can't Pay

CREDIT CARD PAYMENT - Problem Can't Pay. Remember the story about the poor farmer who broke into the doctor's office to steal the medication for his dying daughter because he could not afford the medication? The debate around this had to do with ethics: Is it OK to steal to save the life of the daughter? Is it correct that pharmaceutical companies charge high prices for a recipe? If the farmer is incarcerated? Are you justified in stealing?

The same story that exists today between credit card companies and we - the consumers. Should not it be illegal for credit card companies charge us 18%, 20%, even 30%? How are we supposed to get out of debt if all you are able to pay the minimum payment each month? If you are a 700 + credit score and you think you have a low rate, I advise you to check their status the next time you arrive in the mail. Your credit card company can raise your interest rate on a whim, and if you do not believe me, read the fine print. As consumers, debt is expected to be in our lifetime. Visa spent $ 600 million last year on advertising that may still be in debt. There is a reason why most of us out there can not afford the minimum payments on our credit cards every month. It's not because consumers are irresponsible (although that plays a small part), but there is a great project that has been engineered to stay, not just debt, but debt in our lifetime.

Each of us wants more disposable income. Everyone definitely wants more time to play with our kids and spending time with family. The fact of the matter is - this is not going to happen in the near future. The perfect storm is brewing in our economy right now: Baby-boomers are starting to retire, Social Security will dry up, the bailouts are provided left and right, mortgage crisis has not bottomed out, interest rates have increased, this is yet another article in itself but credit card as rates rise and the perfect storm takes hold of us - realize they will pay back our accounts / interest until the day of our death.

So how out of this nightmare of a carousel?

What if I just stop paying my credit cards and broke?

First know that there is no such thing as jail credit cards. However, there are repercussions:

Collection and creditor calls: You will be hounded day and night with calls from up to 5 up to 10 times a day. Family, friends and the workplace could be contacted to find out where you are. It will be nice, but you have rights and are protected by the FTC (Federal Trade Commission). For more information see the Fair Debt Collection Practices Act

Credit Rating: You credit score is affected. Late payments will be reflected on your credit report. If you let it go for some time, collections and cancellations will appear on your credit report. These can be removed when the debt is paid or settled.

Legal action: Depending on what state you're in, can be garnished. You may have an aggressive creditor takes you to court and imposes duties and / or judgments. Although the latter may occur, most creditors will sell your debt to a third collection company, simply because it is economical to do so instead of picking fights.

Footnote: If you have a moment in which I recommend to read (and only this type in a search engine and you'll find over a dozen links), the PBS special: The Secret History of the credit card. He was shot down, not just how hooked on credit, but the methods used by credit card companies to make huge profits ..

Although the implications are scary, the good news is that there are legitimate companies out there working in their best interests in mind and that can not only handle this for you, but legally eliminate your debt clean and free from having to creditors . Like anything else, however, do your research and talk to several companies before you enroll in any program.

CREDIT CARD PAYMENT - Problem Can't Pay