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Author
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Topic: Credit Payments Doubling
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fayte.m
unregistered
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posted January 17, 2006 02:59 PM
 
http://newjersey.craigslist.org/fns/122311251.html
http://abcnews.go.com/GMA/MellodyHobson/story?id=954593&page=1
http://www.consumeraffairs.com/news04/2005/credit_crunch.html IP: Logged |
LibraSparkle
unregistered
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posted January 17, 2006 06:32 PM
"One solution is to think about refinancing their home loan or perhaps arranging a line of credit, and paying off their credit cards and getting back on track with their finances."
... or perhaps stop it with the credit cards?
I think most Americans need to learn to live within their means. IP: Logged |
fayte.m
unregistered
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posted January 17, 2006 09:08 PM
Not all credit burdened people are spendthrifts and credit crazies!
Some folks cannot refinance. They live in homes that do not have equity or are not worth more than 20grand. Debt consolidation loans only work if your home is worth at least 50grand in equity. They could barely afford their home. But it is often cheaper than renting. Then they had to use credit to fix it up so it was minimally habitable.
Some folks debt is because of medical and necessities like a place to live and a way to get to work. Not everyone is being wild with the credit. Those are the ones who are going to suffer.
Folks like that were slowly coming up and out of debt...making every effort to cut back on virtually all but the basics.
They had no choice but to aquire credit because there was no other way to live except on the streets. And starting out without anything....no one gives you low interest or a real loan. You get raked over the coals.
But until this fiasco...these folks were going to get out of debt...in a few years.
These were/are not the ones racking them back up. These were/are the ones who used credit for a leg up in the world and were paying their bills on time and paying the debt off one credit at a time.
But now what?
This puts them back on the street again...or puts them into a bankrupty they would not have to have to do if things had not changed.Yeah...some folks can make the double payments...some can cut back.....
But only the rich ones who have non basics to cut back on!
But what if alot of medical and other life basics put you there?
And now they want the rest of your income. Not every credit heavy person is a silly frivolous deadbeat. Many are strugglers who finally got a lift and were going to pull through..until this happened. IP: Logged |
LibraSparkle
unregistered
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posted January 17, 2006 09:59 PM
No... not all, Fayte. That is true. BUT I would be willing to bet money that most people with large amounts of credit card debt are not living within their means.I agree that this makes things difficult for them. Really sucks... and bankruptcy laws have changed making it more difficult for individuals to file bankruptcy. I'm sure there is a smaller group of people who have been forced to live on credit, for one reason or another, who are not in debt because of their spending habits. I feel badly for them. The rest... not so much. I'm thankful that I have chosen to live within my means without credit card debt. If I can't pay cash (or use my debit card), I don't need it... or I can wait... or simply do without because it isn't within my means. (I do have a car loan though. It'll be paid off in about 8 months! yay!) I believe it is our "keep up with the Joneses" spending style that accounts for the ugly taste we (as Americans) seem to leave in the rest of the world's mouths. We're such consumers. We consume everything. Perhaps this will slow down our consumption for the time being.
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fayte.m
unregistered
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posted January 17, 2006 11:29 PM
Yes..it will make the deadbeats and those living high on the hog pay up..and those folks can.
But for those of us who got trapped with medical debt and no where to go or live or a way to get transportation to work etcetera...
Except to go into debt...or stay out of work...live on the streets or on welfare.
Those folks are are screwed.
What will folks like that do now?   IP: Logged |
beebuddy
unregistered
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posted January 18, 2006 08:53 AM
Didn't the laws regarding bankruptcy just get harsher too? Hm. IP: Logged |
proxieme
unregistered
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posted January 18, 2006 10:04 AM
Yep, but from what I understand it hasn't had all that much of an impact.Something about the new law acting to primarily set a cap on the available assets of the person declaring (to deter well-to-do people from doing so just to protect themselves).
I mean, that's probably not exactly right - I just half heard it while listening to NPR. ~~~ RE: Americans and their spending: Hear, hear, LibraSparkle. Y'know, when I saw the title "Experts: U.S. is spending its way to financial ruin" I expected it to link to how we, as Americans, are actually saving a net negative amount of our income.
(That is, we're driving ourselves deeper and deeper into debt.) Right now we have car debt (grrr...I hate being in debt) and a nice little chunk of credit card debt that accumulated because of some car troubles (and because my husband, frankly, ndid not research his options...grrr again) and some unexpected trips up North because of family illness.
I was willing to chalk that up and put it on our "Emergency Card" with the caveats to Jase that nothing else would touch that plastic and that all of our money that we're getting from our tax refunds'll go straight to wiping it out and securing a little padding in our savings account. IP: Logged |
fayte.m
unregistered
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posted January 18, 2006 12:03 PM
It is scary.
And like I said...not everyone got there by being stupid.
Sometimes it is the only way to get a leg up when you have nothing but the clothes on your back.
Goodwill/Salvation Army clothes at that.
Or stolen out of their dumpsters.So...
For example:
Sample monthlies:
Your monthly credit outgo was $50
Now it will be $100
$100....now $200
$200....now $400
$400....now $800
$800....now $1,600
$1,600...now $3,200
The average person has a $10,000 debt.
That means an old payment of about $250.00 per month will now be $500.00 a month!
And these folks were/are not all deadbeats!
Some of us do not have big TVs or two cars or a house worth over 20 grand. Some of us are still driving old cars..one...and hoping it will hold up. Some of us have none or crap health coverage. Some of us lost everything in nasty divorces or because of previous bankrupcies brought about by idiot ex spouses. Some of us had sick kids. Some of us did not want to live on the streets(again) or on welfare. Some of us were getting up finally....and were paying things off....have great and good credit records...only high. So that great/perfect record of paying on time and everything is still not enough to qualfy for a real loan for consolodation or for cars/homes etcetera. Some of us had student loans..an effort to better ourselves....It is a crazy rat race....some of us would be able to get things paid off in a few years.....if just left as we were......paying off one card at a time and closing it out!!!!! But now....
Double payments?!!!!!! To the folks that were doing things right and had already totally eliminated doing.. or buying... (or Never had)...Christmas/other holidays/Cable/vacations/clothes/a better car..one only/gifts/going out/...etcetera...
Well basically buying only the needed things of life and staying home.
When you have cut and cut and cut and cut back...or never had some things...where on earth do you cut back more?????????????
Ok...keeping the heat at 55F during the day...50F at night. Wearing coats and hats and glove indoors. Never visting family far away. Missing a son's wedding out of state because one could not afford it. Or a gift.
Hanging blankets on the windows.
Only using two rooms or three and sealing off the rest.
Deciding between medical costs and eating right. Never having a honeymoon or a fancy wedding. Just hanging in there surviving. Ok..rant over...
Just wanted to say...not all folks are free spenders. Sometimes it was the only way.....
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proxieme
unregistered
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posted January 18, 2006 02:32 PM
If things really get to that point...well, that's the kind of situation that Bankruptcy law and credit consolodators were made for.There are also ways to negotiate down how much you're paying on debt as long as you can make even a minimal payment on the remaining balance.
(I had a threatened miscarriage and some stupidly expensive emergency room visits w/o health insurance - not the same situation as an ongoing medical problem, I know, but the same mechanisms for aide exist.) I'm not saying that that's not terrible (and that there aren't plenty of people in similar situations); but there are many, many people out there who just live beyond their means purely through choice, purely through a desire to have more because of some constructed sense of want, throwing all sense of planning for the future (and future generations) to the wind. In the process even more debt is accrued because of high (and sometimes abusive) interest rates.
That's what this new law was enacted to curb. IP: Logged |
thirteen
unregistered
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posted January 20, 2006 10:52 AM
It would have been nice lets say if they said well any purchases after jan 2006 will have the higher payment. Then at least the old debt would be the same for everyone. I know it would be a paper mess for a while but i don't think its fair to just change all the rules on everyone. I also beleive that people do spend beyond their means and use credit with no intentions of paying it back... ( my mother who did the bankruptcy thing and got off scott free....). I have no respect for that!IP: Logged |
fayte.m
unregistered
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posted January 20, 2006 02:30 PM
I agree...  I know of several folks who did that...bought all kinds of things and then bailed on their obligations! That is why the bankruptcy laws changed and these new double credit payments are being put into effect.Those deadbeats deserve a good slapping but it hurts really bad the ones who have been honest and never late on paying or were not or rarely using it for nonsense. Yes thirteen...that idea of yours would be great! Only on NEW charges the higher payments! You should go into politics!!!!!  IP: Logged |
TINK
unregistered
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posted January 20, 2006 07:54 PM
I completely agree, thirteen.2 members of my family did the bankruptcy trick.  One of them more than once. IP: Logged |
Lindaland
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