Anyone walked away from credit cards?

[ourjourneys]

I know this is very private, however I am in hopes of someone having some experience with this... I was reading the Dave Ramsey posts and have been meaning to read his books (just do not have time)...

Have any of you walked away from credit cards (meaning did not pay and just let them go)? (without filing bankruptcy)

There are circumstances where someone would be able to go through credit counseling and consolidate them, and there are circumstances where someone just does not have an extra $1 to pay on them.

Anyone want to share their experiences or know of others who have gone through this?

[Renee in NC]

I will PM you.

[Scuff]

DR says to take care of your basic neccessities first. If after that you don't have $1 to pay them, than you don't. You should do what you can to scrape together a bit (easier said than done sometimes) to offer than as a settlement. After you don't pay them for a year, they will settle for about half. (from what he says, I don't have experience. Sorry you have to face this) I did walk away from a Talk America Bill I couldn't convince them I didn't owe. But it was only about $50.

[ourjourneys]

Thank you to all of you who sent private messages... I guess there are many in this same boat. I appreciate all of your advice and experiences. :)

[Mosaicmind]

Not cc but medical bills. We haven't been able to pay a dime on alot of our medical bills; some have gone to collection agencies. I honestly don't know what to tell you to do.

[Mommyof4ks]

I would work with the cc company and try to work something out, because a friend of mine ended up being taken to court by the cc company and had her bank account wiped out and wages garnished to pay the balance back. She did not appear in court which is why she was wiped out, but I would think that working with the cc company would be cheaper than a lawyer for court. Good luck, financial issues are always so hard to deal with. :grouphug:

[KnitWit]

We did *not* walk away. We paid all of ours off and never went back. HOWEVER...they are LIARS. Beware of the *deals* they will offer to *settle*. AND be aware that a *settlement* *will* look negative on your credit report.

 

Even with us paying ours off eventually, they lied. They agreed to things, never sent it in writing and said they never agreed. I know DR *says* to get it in writing but it was like pulling teeth out of stone and we STILL never saw anything in writing. Also, when we paid them off, we closed the accounts. We shouldn't have because it creates a different picture on your credit report than paying them off and leaving them *open* and yet *unused*. We didn't know. HOWEVER, *two* of our cards reported that *they* initiated the close of the account, which was NOT true and that has NEVER been corrected.

 

I'm very sorry you are in this position. The stress is unbelievable, I know. I quit answering my phone for the LONGEST time. :grouphug:

 

You will get past it. You will. Be encouraged. I remember when there was no light on the horizon. :grouphug:

[Nakia]

I would work with the cc company and try to work something out, because a friend of mine ended up being taken to court by the cc company and had her bank account wiped out and wages garnished to pay the balance back. She did not appear in court which is why she was wiped out, but I would think that working with the cc company would be cheaper than a lawyer for court. Good luck, financial issues are always so hard to deal with. :grouphug:

 

I would like to know if there is more to this story. How did they get her bank information? If it is unsecured debt, how can they garnish your wages? Just wondering.

[NavyWifeandMommy]

oos misread the post. The only time I have delt with a credit card company was with my mother in law when she passed away. They wanted their money but she was passed and didn't have a dime not even to give to her children. We sold the house but it took care of the other stuff like taxes that she never paid or the house payment. They finally just stopped calling after we sent them copies of the death certificate.

Edited July 8, 2010 by NavyWifeandMommy

[....]

Dave Ramsey also says that you need to get everything in writing. If you make a verbal agreement over the phone with the cc company, you need to tell them to send you a written copy.

[Renee in NC]

I would like to know if there is more to this story. How did they get her bank information? If it is unsecured debt, how can they garnish your wages? Just wondering.

 

It depends on the state as to what they can do. If you ever sent them a check or paid on their website with your bank account, they have your bank info. However, generally only a judgement will allow them to garnish nad/or seize assets. Most states have an allowance for "exempt property" that allows you to exempt certain items and certain amounts from seizure.

 

Many states also have laws regarding garnishments. In NC, for example, only student loans, taxes, and child support could be garnished. In FL, other creditors can garnish, but they are limited by income (only certain amounts allowed.) Even the IRS has income limits based on family size.

 

Besides that, different states have different rules about spouses. If the credit is in your name and you have no income/assets, then in some states they can go after your spouse, but in many they cannot.

 

Someone in my family almost had assets seized (he went bankrupt quickly to avoid it) but it was because he had ignored the paperwork that was sent to him. He could've exempted things if he'd paid attention to it, but by ignoring it he was forced into bankruptcy (he also had multiple judgements.)

 

If you have assets and/or income, bankruptcy may be the way to go or it may not. So many factors play into whether you can negotiate with them yourself or pay them off in the future. Dave Ramsey, the credit guy extraordinare, went bankrupt in the 80s - this is how he got into the business he is in.

[delaney]

My BIL is in this boat but once they go to claims you can negotiate pennies on the dollar as settlement. Get THAT in writing and that they will file it as fully paid and not partially paid so your credit rating can rebound. We have walked away from using them but if the end of the year gets tight we may have to let them sit until January when DH gets his bonus. I have grown to HATE credit cards...except my Old Navy :D which we pay off and earns great rewards.

[KnitWit]

Dave Ramsey also says that you need to get everything in writing. If you make a verbal agreement over the phone with the cc company, you need to tell them to send you a written copy.

 

Yes, but like I said, getting them to DO this is a miracle that we never saw. They said they would, they said they did, they said it was in the mail, they offered to fax and said they showed it went/we never rec'd...what a big pain in the patootie.

[coffeefreak]

I would like to know if there is more to this story. How did they get her bank information? If it is unsecured debt, how can they garnish your wages? Just wondering.

 

She might have given it to them at one time agreeing to a "settlement." That's why DR says NEVER to give them access because they ALWAYS do this. As for garnishing her wages, when you are sued in court, they are able to do it through the state.