When SHOULDN'T you file for BK?

A lot of times people have to file BK because of unfortunate circumstances, like loss of a job, unforseen medical bills, an accident or lawsuit filed against them, etc ....

Yeah, someone might have ran up a lot of credit card debt, but then what happens if they lose their job, or have to take a cut in pay? Then all of a sudden they are not able to keep up with payments, or are at the point that they can only pay the minimums and realize they will be paying for 30 years now to pay it off.

About paying higher fees, I'm sure that the BK filings are not causing everyone else's rates to really be that much higher. Banks may tell you this, but I'm sure the banks are simply charging as much as they can based on what the market and the economy will allow.

I think the APR's are based more on the economy than anything else.

Also, I see that a lot of people here are getting excellent rates on their CC's, mainly because they don't have a lot of debt, no late pays, etc .... and that's good.

Now, the people who really are paying for all the BK's are the ones who actually have filed, and those who are close to filing - because these are the people who actually are paying all those high APR's!

If someone filed BK, sure, they can get a house in a year or two, but at much higher interest rates. Someone with a good FICO, well, they get a good rate on their mortgage.

So, who is paying for the BK? The person who filed, or course.

And then there are those like me, (I lost a job and after 7 months could only get a job making $13K less a year) All of a sudden, I'm struggling to make my payments, etc ... if I were to file BK it would make my life so mych easier and worth living again.

But, I don't, cause I'm stubborn and am trying to fight my way out of this. But, it seems all the Banks that I have CC's with, they see my situation and I have closed accounts and raised my APR's to the max! Why, cause they fear I might file BK. Again, it is I and those who have already file BK that are paying for BK's with higher interest rates.

Did your rates go up cause I lost my job last year? No, only my rates went up.

So, I don't think the argument is valid that because of people who file BK is causing EVERYONE else to pay higher rates, I think only the people who have filed BK or are in bad enough shape that they MIGHT file BK are the only ones paying for it.



FedUp2003


P.S.

Probably in about 7 to 10 years from now, I'll still be paying this debt, my income will probably just be at or slightly above what I was making when I got laid off, and I will have probably paid for the original amount of debt by threefold (thanks to interest rates, especially since they got raised to 29.9%) and at that time in my life, after paying threefold of the original purchase amounts, I will see that I still have about 85% left to go on my balances and at that time I'll realize that I should have filed BK.

I will by then have realized that I could have saved all that wasted interest money spent, would not still own 85% of the balances still, and will realize that 7-10 years has passed and the BK would be completely off my record.

But, I am dumb and I'll continue to struggle and my family will suffer and I'll pay the bare minimum, and in 7 to 10 years, I'll still be paying and struggling, and in 30 years I'll finally get everything paid off and will be ready to retire, only to find out that because I spent my whole life paying interest that I saved none for retirement.

Then I'll be on welfare and THEN I will be costing the rest of you money.

See ya!


FedUp2003

 

Re: Re: When SHOULDN'T you file for BK?

About paying higher fees, I'm sure that the BK filings are not causing everyone else's rates to really be that much higher. Banks may tell you this, but I'm sure the banks are simply charging as much as they can based on what the market and the economy will allow.

MY WIFE HAS SOMETHING LIKE 0.06% INTEREST ON HER CHECKING ACCOUNT!!! THAT IS WERE THEY MAKE A BUNCH OF THEIR MONEY SINCE THEY LOAN IT OUT LIKE AT 9.90% OR HIGHER!!!

 

My wife and I filed BK in October 2002 and it was discharged in March 2003. We filed because we were overrun with medical bills due to several medical conditions my wife suffers from. Even with help from my family, there just was no way to catch ourselves up.

Just my 2¢ (before inflation),
John

 

Re: Re: Re: When SHOULDN'T you file for BK?

And that 9.9% rate is for a good fico. Car loans may be a tad higher, and un-secured personal loans can be as high as 18%. No doubt the banks make out big by paying 0.6% or no percent on checking accounts, and then lend it out at much higher rates.


FedUp2003

 

I just returned a few days ago from vacation by the way. I advise you all to share NOTHING with this guy. He's made an absolute pest of himself on www.freeadvise.com. Just before I left, he implied said something like "maybe it would be better to commit suicide than file for bankruptcy". This guy has been repeatedly told on FA that he's a "possible" candidate for C13, but definitely not C7. Personally, I think he just craves attention, but that's MHO.