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Bankruptcy now... or never???
clanggedin:
Nowadays, depending on what you claim in your bankruptcy your credit may not take a huge hit. If your Auto credit was 780+ it may only drop to 630. You'll be able to get a loan on a car if you put a little bit down and have a letter stating that the bankruptcy has been discharged.
Remember, you can't file for bankruptcy again for 7 more years. You'll have a really hard time buying a house and you will probably have to pay $400+ as a deposit just to get a cell phone.
If you are under $20,000 in debt, then I would suggest paying it off. It may take a few years, but you'll be better off in the long run.
If you are more than 20K in debt, and there is absolutely no way yan can pay off some of your debtors, then bankruptcy may be your only option.
Unfortunately I see a lot of bankruptcies, since Utah is the #1 bankruptcy state. Just be careful in your decision.
FractalWalk:
--- Quote from: fredster on March 09, 2005, 04:35:59 pm ---Once you clear your debt, why go back and borrow?
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fredster:
--- Quote ---Credit is a good thing as long as you can manage it wisely.
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Exactly. As long as everything goes right, and you follow the cycle the way you are supposed to. Most people can't handle it that well. They miss it once or twice. They let balances build up, or they don't know how to handle the credit anyways. Miss one payment and the interest goes way way up.
Get sick, loose your job, get laid off, etc, and see just how fast they come for you. Believe me, I know. I had cancer for about 9 months and couldn't work right. I had everything paid off. When the local bank found out I had cancer, they wanted to collect my car after I was late. (if you read the fine print on your loans, they can do that if they have reason to believe you won't pay). Medical bills hurt just as much.
If you stay clear of credit, just like drugs, then you don't have to worry.
If you put the money in the bank, pay for it with cash, you earn your interest, it's the same as having 0% interest loans. I've done that too, but it always hangs over your head, because someday you have to pay.
Invest the money and wait. What is the difference of waiting the year and buying it and buying and owing the money now? You eventually have to pay off any bill.
Save the money until you have it all and be debt free. Once you pay off the debt, make the payments to a bank account like it was a necessary thing and collect your interest yourself.
If you don't owe anything to anybody for anything, you are truely free.
In your example Saint, you could have paid the $6000 and went on. You wouldn't have to look back at the loan in 2 years. That freedom is well worth the money. 10% is a nice return, but I'd rather be free and clear.
Santoro:
--- Quote from: DrewKaree on March 09, 2005, 05:11:40 pm ---I've heard about this "man" before...fredster, do you have an address for "the man", because I wanna buy a house, and I heard that guy is gonna keep me down! ;)
Do the old trick - have one credit card for emergencies. Fill up a bowl half full with water. Freeze it. Pull it out, put that emergency credit card in there. Fill it all the way up with water. Freeze it.
Leave it. If you need it for something, now you've gotta do some work to be able to use it, and maybe in that time, you'll realize you don't REALLY need what you were considering to be such an "emergency".
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Wow, that's imaginative.
I put mine in the safe deposit box.
FractalWalk:
--- Quote from: fredster on March 09, 2005, 09:41:31 pm ---In your example Saint
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I'm not Saint