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Credit Card Debt crisis

Discussion in 'Money & Finance Forum' started by Thelt, Oct 10, 2008.

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  1. Oct 17, 2008 at 10:08 AM #11
    jazzbluescat

    jazzbluescat superstar...yo.

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    Between credit cards and "easy"-to-go bankruptcy it's no wonder the economy is shot to hell.
     
  2. Oct 17, 2008 at 10:34 AM #12
    Thelt

    Thelt Full Access Member

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    they made bankruptcy somewhat harder not too long ago.....
     
  3. Oct 17, 2008 at 1:49 PM #13
    wolfpac

    wolfpac Full Access Member

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  4. Oct 17, 2008 at 3:56 PM #14
    Southern_Yankee

    Southern_Yankee Full Access Member

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    you dont think the CC companies wouldn't lien on everything that hasn't been foreclosed on or repo'd?
     
  5. Oct 17, 2008 at 4:10 PM #15
    vpkozel

    vpkozel Professional Calvinballer

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    They might try (I'm not sure that it is securable that way), but they are so far down the line that they wouldn't get jack shit.
     
  6. Oct 17, 2008 at 4:33 PM #16
    wolfpac

    wolfpac Full Access Member

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    Exactly right and it will cost them money in Attorney fees to lien against stuff that might never sell. They could try to sue them and eventually garnish wages but all that takes time and money on top of already losing the debt in the first place.
     
  7. Oct 17, 2008 at 6:51 PM #17
    jazzbluescat

    jazzbluescat superstar...yo.

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    Citibank lowered my credit limit to $5000 because they think I don't need more.
     
  8. Oct 17, 2008 at 7:22 PM #18
    Thelt

    Thelt Full Access Member

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    One thing that sucks for me is my Wachovia card keeps lowering my limit as I pay it off. It is good that it keeps me from running it back up but it is bad because it keeps me looking as if my card is maxed out which hurts my credit score.
     
  9. Oct 20, 2008 at 12:49 PM #19
    wolfpac

    wolfpac Full Access Member

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    Thelt, that is going on a lot. And yep, it really does nail credit scores. Sorta an unintended consequence but let's follow what happens:

    Creditor sees a borrower who looks to be tight so they drop their rate. This, in-turn, really drops their credit score. This prohibits the opportunity for the borrower to then, in-turn, buy a car on credit or get a home loan. ANd, as a follow-up, as they continue to pay off the debt, the creditor - in an attempt to protect their own interests - continues to lower their limit which continues to hurt their credit score in two ways: 1) Makes their debt to limit ratio very high and 2) Drops the denominator in the calculation used by Fair Isaac: Total Debt Obligations/Available Credit. Drop the denomintor in that equation, it makes that % higher and makes them look even worse.


    Now, as a Dave Ramsey follower, I flippantly say GOOD. As someone who knows that large sections of our economy won't ever follow Dave Ramsey, I say this is BAD.
     
  10. Oct 20, 2008 at 12:58 PM #20
    VA49er

    VA49er Full Access Member

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    Credit card debt is unsecured. CCard companies have nothing to lean on except bill collectors.
     
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