I think are only allowed to write off a portion of a charged off debt. So if they settle with you they get your money PLUS the write off.
Re: personal finance preschooler | 14 posts since May 2002 wouldn't they make more money by writing off the debt than settling for so little with me? soren =========== --------------------- ============= If that was true why are they settling for pennies on the $ from the CRAs?
It's not that hard. I just live on less than I make. My parents once told me, "Your income is your largest wealth building asset". As far as buying a house goes...I rent now but over the last few years I've saved enough to put 50% or as a down payment. This will put the ball in my court when negotiating a buy.
It is always to the CC company's benefit to settle with the customer rather than sell to a CA. If it is obvious that the creditor won't get blood from a turnip, they sell to the CA at an substantial discount. But the CA will only purchase if they believe they can get the $$$. This is why they snoop at peoples credit files every-so-often. They're checking to see if you've aquired any new accounts (i.e. car, house). This gives them a firm leg to stand on in court...Their argument will be "If customer J. Doe can afford to pay XYZ bank for a car loan, then they can pay us". Then J. Doe has to explain to the judge why s/he can afford to pay a car/mortgage loan but not other bills. I won't comment on the BK question. I've been toasted by other members' because of what I think about it. -SLOYAROLE-
I was reading sassyinaz post and I am not going to apply for any more cards. Or rather I will not apply until I close out an account. Every one should read sasszyinaz's post about what she would doin hind sught and use it for your fore sight, sober to say the very least. Enough said.
sloyarole, your experience and path is an important balance to other methods of handling finances. thanks for sharing it with me. best of luck for finding the home that your heart is set on.
ibrown maybe saying it is a bad idea to put 50% down on a house because of unsure market values when you go sale, you could loose money. That is one reason to not put down 50% for a down payment on a house.
Good point tonyastime. What I was refering to was putting to much down makes the bank over collateralized and leaves the buyer under leveraghed.
