Hebrew descent ? That is interesting. Shouldn't that be Jewish ? Wait, for it....Wait, for it.... I feel it coming.
cc in collections - settling vs pay in full
- Thread starter ep1x
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Hebrew descent ? That is interesting. Shouldn't that be Jewish ? Wait, for it....Wait, for it.... I feel it coming.
l84toff
Well-known member
If it's all gone to collections, try and settle with everyone, reasonably. Long time ago in a galaxy far away, I got behind a wee bit. Paid minimum payments on everything but the smallest debt. Pay everything you can on the smallest one till paid off. Move on to the next smallest - rinse and repeat. If you can't even float the minimums, you're in trouble. Like has been said, make a life adjustment. Get a roommate, move back in witht the folks, sell stuff, live very frugally for a while. If you think you have a problem with the poker - be honest with yourself. Maybe cancel the interweb for a while? If it's poker that got you to where you are, perhaps you should try something more…financially rewarding.
To answer your question, you lose nothing by trying to settle when they call.
To answer your question, you lose nothing by trying to settle when they call.
The plan
Pay MasterCard in full; settle visa/chase for lowest possible amount. Start dumping money into tfsa/savings acc; obtain fresh MasterCard to stack and payin full end of month. Obtain increase after 1 year and never let this happen again. Get back into full tilt poker on side and rebuild bankroll for extra income. Strong credit rebuilt by 28.
Pay MasterCard in full; settle visa/chase for lowest possible amount. Start dumping money into tfsa/savings acc; obtain fresh MasterCard to stack and payin full end of month. Obtain increase after 1 year and never let this happen again. Get back into full tilt poker on side and rebuild bankroll for extra income. Strong credit rebuilt by 28.
A friend of mine used to work at a collection agency call centre.
She said most times the credit card company will drop all of the interest off of your balance if you agree to pay the principal in full, becasue the courts will not usually award the credit card company any of the interest anyways, if it were to go to a hearing.
She said most times the credit card company will drop all of the interest off of your balance if you agree to pay the principal in full, becasue the courts will not usually award the credit card company any of the interest anyways, if it were to go to a hearing.
Once you clean up this mess and somehow manage to get another credit card.
Keep the CC limit at $500 until you learn how to control your spendings.
That way you can still rebuild your credit without putting yourself at risk once again.
Worse case scenario, it's $500 that you should be able to pay back at the end of the month.
Keep the CC limit at $500 until you learn how to control your spendings.
That way you can still rebuild your credit without putting yourself at risk once again.
Worse case scenario, it's $500 that you should be able to pay back at the end of the month.
^ This is good advice. When I was a student I didn't have much income coming in, and for years I kept only one cc with a limit of $500. It's much higher now, but for a long time it kept me from digging myself into too deep of a hole. Even now I don't really keep a balance on my card, and if I do it's very low.
that makes no sense. you pay what has the highest interest rate first, how much is left doesn't really help you
Did someone say rinse and repeat?
Your best bet is to repay what you owe. Simply put, a good credit score is essential if you want to have any sort of long-term relationship. Why would a partner want to take on your debt or your bad financial habits? And if they did, believe me, you will end up on one of those credit counselling shows (Til Dept Do Us Part).
The other thing you need to consider is learning how to budget. I don't think saving is your problem. I think that being consistent is what you need to work on so that you can develop good money management habits. Here, Gail Vaz Oxlade (of Debt Do Us Part) could be very helpful. There are also credit counselling services.
You need to consider that while you are young now, with few dependencies, you need to consider what will happen when you are in your mid 30s and you have not planned for your future. Your skills and experience may not be competitive in the job market and you may find yourself in a downward spiral when it comes to income and future prospects. The jails and the homeless shelters are full of very smart people.
It could get a lot more competitive in the next 10 years. More and more of the middle-class, good income jobs will be harder and harder to find. Tax rates may increase and our social safety net could be under severe strain. A lot of employers are taking a closer look at the habits a person has in their personal life and assessing the risk that bad habits may have and this will only increase over time.
Good luck.
The other thing you need to consider is learning how to budget. I don't think saving is your problem. I think that being consistent is what you need to work on so that you can develop good money management habits. Here, Gail Vaz Oxlade (of Debt Do Us Part) could be very helpful. There are also credit counselling services.
You need to consider that while you are young now, with few dependencies, you need to consider what will happen when you are in your mid 30s and you have not planned for your future. Your skills and experience may not be competitive in the job market and you may find yourself in a downward spiral when it comes to income and future prospects. The jails and the homeless shelters are full of very smart people.
It could get a lot more competitive in the next 10 years. More and more of the middle-class, good income jobs will be harder and harder to find. Tax rates may increase and our social safety net could be under severe strain. A lot of employers are taking a closer look at the habits a person has in their personal life and assessing the risk that bad habits may have and this will only increase over time.
Good luck.
you know that saying "if it sounds too good to be true it usually is"?
these places have been proven to be scams over and over again
Two things you don't want in Canada, one being bad credit and the other is a criminal record.
Rebuilding your bankroll via poker does not sound like a solid well thought out plan to me.
On any credit card that you ever get in the future ... get it set up on automatic withdrawal to pay the balance IN FULL each and every month.
The credit card is only a convenience so that you don't have to carry as much cash (and in some cases, so that you can earn Air Miles or have travel insurance or some other incentive program) ... it is not to be treated as a magic bottomless source of money.
The credit card is only a convenience so that you don't have to carry as much cash (and in some cases, so that you can earn Air Miles or have travel insurance or some other incentive program) ... it is not to be treated as a magic bottomless source of money.
strictlye
Well-known member
I am a former Credit Specialist for Equifax and form Credit Counsellor for the Collections department of the bank.
To answer your primary question, YES. You can do a settlement and pay back a portion of your debt. This will severely damage your credit score and will be on your credit bureau for 6 years from the date of last activity. So basically it is the same as declaring bankruptcy except with bankruptcy your not repaying your debt. A bankruptcy stays on your bureau for 6 years of last activity. But your debt can be re sold to different collection companies every few years.
Credit Ratings What it Means
R0 Too new to rate; approved but not used
R1 Pays (or paid) within 30 days of payment due date or not over one payment past due
R2 Pays (or paid) in more than 30 days from payment due date, but not more than 60 days, or not more than two payments past due
R3 Pays (or paid) in more than 60 days from payment due date, but not more than 90 days, or not more than three payments past due
R4 Pays (or paid) in more than 90 days from payment due date, but not more than 120 days, or four payments past due
R5 Account is at least 120 days overdue, but is not yet rated "9"
R7 Making regular payments through a special arrangement to settle your debts
R8 Repossession (voluntary or involuntary return of merchandise)
R9 Bad debt; placed for collection; moved without giving a new address
To answer your primary question, YES. You can do a settlement and pay back a portion of your debt. This will severely damage your credit score and will be on your credit bureau for 6 years from the date of last activity. So basically it is the same as declaring bankruptcy except with bankruptcy your not repaying your debt. A bankruptcy stays on your bureau for 6 years of last activity. But your debt can be re sold to different collection companies every few years.
Credit Ratings What it Means
R0 Too new to rate; approved but not used
R1 Pays (or paid) within 30 days of payment due date or not over one payment past due
R2 Pays (or paid) in more than 30 days from payment due date, but not more than 60 days, or not more than two payments past due
R3 Pays (or paid) in more than 60 days from payment due date, but not more than 90 days, or not more than three payments past due
R4 Pays (or paid) in more than 90 days from payment due date, but not more than 120 days, or four payments past due
R5 Account is at least 120 days overdue, but is not yet rated "9"
R7 Making regular payments through a special arrangement to settle your debts
R8 Repossession (voluntary or involuntary return of merchandise)
R9 Bad debt; placed for collection; moved without giving a new address
strictlye
Well-known member
FYI if you have already been sent a credit agency that means the you already have a R9 on your bureau so a settlement is not an option to salvage your credit. The collection agency gets paid because your debt was sold them for 20% less than your original balance. Any thing they collect they get to keep. Everytime you make a payment you update your account and the information will stay your bureau fo longer.
The general name for it is a Debt Snowball, you pay the most you can on the lowest while still making at least the minimum payments on the other...then you go to the next lowest after the first ones paid, paying the original amount you had on the first cc + the minimum...and so on...worked for me, I had about 6000 in debt(cc +loan), got sort of focused, and had it done in about 2 years
