Jump to content
SASS Wire Forum
Sign in to follow this  
Utah Bob #35998

Debt

Recommended Posts

Heard a commercial on the radio the morning from one of those “debt reducing” companies.

They said, “Don’t let the credit card companies trick you into thinking you have to pay off your debt”

”Trick You”.  Seriously? What’s this country coming to? Complete lack of responsibility. :angry:

 

  • Like 7
  • Thanks 3

Share this post


Link to post
Share on other sites

UB sir, next time you make a post like this, please put a warning in the title not to read right after eating......I think I'm gonna hurl now.....:blink:

Share this post


Link to post
Share on other sites

I guess we are old school too (I know we are old). We got by without things (furniture, cars...) until we could afford to pay in full and still have a cushion in savings.

  • Thanks 3

Share this post


Link to post
Share on other sites

I'm just surprised they didn't say it was unconstitutional to have to pay your debts!!!

  • Haha 1

Share this post


Link to post
Share on other sites

Last Oct, Ima:wub: and I bought a new 2019 Subaru Outback with all the bells and stuff.

We saved up for over 3 yrs, and paid cash.

It can be done........

OLG

  • Like 8

Share this post


Link to post
Share on other sites

Being a financial guy and all, my wife and I over the years, whenever interest rates were lowered and everyone was refinancing for a lower mortgage payment, we kept the payment the same and dropped the number of years.

We did a 5 year budget when I was 45 years old with a goal to be mortgage free by my 50th Birthday, and that goal was met.

Haven't looked back since.

  • Like 4

Share this post


Link to post
Share on other sites

We did a re-fi one time when Ima:wub: worked for BoA. Got a deal only available to employees.

Took the money saved and put it to the principle, house was quickly paid off.

OLG

 

  • Like 4

Share this post


Link to post
Share on other sites

Worse yet, their debt relief process has no basis in law.  They get your credit so bad that the companies accept a reduced amount, but your credit is wrecked for a decade.  They also have you pay them while you don't pay creditors.  It should be illegal, it is fraudulent in my opinion.

 

But from a moral basis keep in mind that religiously there was the Year of Jubilee and at law there are the various Bankruptcy types which have limitations and protections built in to fairly distribute assets when you are insolvent or to adjust debts to a reduced amount consistent with your ability to pay.  Sometimes it is medical bills and other unforeseen issues that put people underwater. (Floods without flood insurance)

 

But these companies have no moral compass, only greed.

  • Like 4
  • Thanks 1
  • Sad 1

Share this post


Link to post
Share on other sites
3 hours ago, Tascosa, SASS# 24838 said:

I'm just surprised they didn't say it was unconstitutional to have to pay your debts!!!

 

Just like the current political promises to pay off student loan debt, that rationale is a comin'!

 

 

  • Like 1

Share this post


Link to post
Share on other sites
4 hours ago, Tascosa, SASS# 24838 said:

I'm just surprised they didn't say it was unconstitutional to have to pay your debts!!!

They came close. Said you had a right to not pay off the debt!

 

  • Like 1

Share this post


Link to post
Share on other sites

I moved away from home when I was 16 years old .

I found if you want something in life you just had to work for it.

I never went back home .

My wife and I got Married at 20 years old .

We are still together and at 52 we are debt free .

With Not a single handout  from the State or Government or Mom and Dad .

Kids today dont have a clue what a hard days work is .

Or How to put one in !

Rooster    

  • Like 5
  • Confused 1

Share this post


Link to post
Share on other sites

Advertisement.  I owed the IRS $10,000 but called XYZ Company and they negotiated with the IRS and I only had to pay $100. 

 

That means the rest of the Taxpayers paid more to compensate!  Why didn't you pay your taxes as due instead of letting it accumulate to $10,000!!!!!!!!

  • Like 1
  • Thanks 3

Share this post


Link to post
Share on other sites

My sister continually attended school to keep from working.  She has been out of school for 6 years now, still has a ton of debt and no job.  She keeps hoping someone will be elected that will erase student loan debt so she won't have to pay any of it back.

 

BTW - my sister is 55.........

 

It's not just the young people...........

  • Thanks 2
  • Sad 1

Share this post


Link to post
Share on other sites
21 minutes ago, Matthew Duncan said:

Advertisement.  I owed the IRS $10,000 but called XYZ Company and they negotiated with the IRS and I only had to pay $100. 

 

That means the rest of the Taxpayers paid more to compensate!  Why didn't you pay your taxes as due instead of letting it accumulate to $10,000!!!!!!!!

Taxpayers pay nothing in this transaction. The debtor likely only paid $100 of interest or a penalty on the IRS debt in exchange for full payment of the back taxes. What's not mentioned is the $10,000 XYZ paid to the IRS on the debtor's behalf. Which is in fact a loan to the debtor subject to interest and penalties worse than the IRS. No different than paying off your MasterCard with your Visa card. The debtor just owes the money to someone else.

  • Like 1
  • Thanks 3

Share this post


Link to post
Share on other sites
6 minutes ago, Abilene Slim SASS 81783 said:

Taxpayers pay nothing in this transaction. The debtor likely only paid $100 of interest or a penalty on the IRS debt in exchange for full payment of the back taxes. What's not mentioned is the $10,000 XYZ paid to the IRS on the debtor's behalf. Which is in fact a loan to the debtor subject to interest and penalties worse than the IRS. No different than paying off your MasterCard with your Visa card. The debtor just owes the money to someone else.

Correct-The debt is transferred is all. No 'forgiveness' at all..........

OLG

Share this post


Link to post
Share on other sites

What most people don't know is that even if a debtor is successful in getting a credit card balance or loan written off as a bad debt by the creditor, the creditor files a 1099 for that amount with the IRS. Which the IRS tallies as income to the debtor, who is now responsible for paying taxes on the amount.

  • Like 1
  • Thanks 1

Share this post


Link to post
Share on other sites

I got laid off in 2009 and was facing a lot of debt that maybe I was a little nonchalant about accumulating,  I called my one credit card company and they were willing to take about 60 cent on the dollar.  But when I thought about it I didn't like the idea of the debt writeoff on my  credit record, so I buckled down and kept making the minimum payments at least until I got back to work and could make some serious debt repayment.  I finally got to the point that all of my debts except my first mortgage were paid off at the time I retired.  Pop equated paying interest on debt to slavery, complete with chains.  When he died, the first thing I did with my legacy was to pay off my first mortgage.  

  • Like 3

Share this post


Link to post
Share on other sites

Hey Rooster.  You and I have similar stories 

 .  I left at 17, married at 19, 33 years later still hitched and watched my 3 siblings take from my parents and Gov't,  but thankful that God blesses me to never had to 

  • Like 2

Share this post


Link to post
Share on other sites
11 hours ago, Utah Bob #35998 said:

Heard a commercial on the radio the morning from one of those “debt reducing” companies.

They said, “Don’t let the credit card companies trick you into thinking you have to pay off your debt”

”Trick You”.  Seriously? What’s this country coming to? Complete lack of responsibility. :angry:

 

 

 

Considering the number of people holding office at state and federal levels who favor just cancelling student debt, thereby transfering that debt burden to the taxpayers, this isn't a surprise.

 

Not just a lack of responsibility, but also a lack of morals.

  • Like 2

Share this post


Link to post
Share on other sites
9 hours ago, The Original Lumpy Gritz said:

Last Oct, Ima:wub: and I bought a new 2019 Subaru Outback with all the bells and stuff.

We saved up for over 3 yrs, and paid cash.

It can be done........

OLG

I bought my 2018 Impala for cash just a year ago.  It had been bashed up a bit in hailstorm and they knocked over three grand off the price.  It had 3400 miles on the odometer because when they took all the damaged cars to Scottsdale to get repaired they used some of them to shuttle the drivers back and forth: another twenty five hundred off.  It was a year past model car and they dropped twenty eight hundred more off and the sales manager nearly choked when I pointed to a sign in the showroom that promised and ten percent veteran's discount.  If I'd have had a gun in my hand it would have been armed robbery.

 

I got at $24,000.00 car for under $13,000.00, but I had the cash if I'd have had to pay the full price.

  • Like 3

Share this post


Link to post
Share on other sites

when I first started looking at the idea of buying a house, I ran about a dozen of the 'mortgage' calculators to see how much I could afford based on my salary....got answers ranging from $150K to a little over $200....now, I know in some places that won't buy much but around here it will get you a pretty decent house.  If nothing goes wrong in the next two weeks (it shouldn't), I will be closing on my new house at a price of $125K....I didn't even bother looking at homes I knew I might qualify for but would take all the money I could possibly afford each month.  Too many people get caught up in getting the very best and most expensive thing they can afford (cars, homes, education) then struggle to afford it if something goes wrong, or they end up wanting even more and get in credit card trouble in a hurry, I didn't want to do that!

 

The place I'm getting isn't perfect, it needs a bunch of cosmetic work to make it look real nice, but the majority of it I can do myself, it just might take a while to get it all done.  Only things I'm really going to need to hire someone for is remodeling the bathroom, fixing the fireplace, and installing central air.  But my mortgage payments will be about $300/month less than I'm paying in rent...and that's about to go up in November.  Need to get at least the living room and bedroom fixed ASAP so I can get moved before then.  And it's a half acre lot, not exactly rural but not "in town" either, and only 15 minutes from work.  I could have gotten one a bit more expensive that wouldn't have taken as much effort, but why...hell, I don't do much in the evenings or on weekends (unless I'm shooting) anyway, might as well have a project to work on.  Now, does anyone close to Cincy/Dayton wanna come have a painting/flooring party?  I'll spring for the pizza and beer.....:D

  • Like 5

Share this post


Link to post
Share on other sites

I took out a 30 year mortgage (knowing full well I probably won't still be here in 30 years), but I should have it paid off in less than 15 years because I pay 3-4 times the actual principal each month (right now about $200/month so I add $400-$800 per month)which will pay off the loan in 10-15 years.  If for some reason I have to fall back to just the actual amount due because of unexpected expenses, I won't be in trouble.  I made sure there is no penalty for early pay-off.

  • Like 6

Share this post


Link to post
Share on other sites

The wonderment of financing. We were debt free. Two years ago we had to replace our truck, totaled in an accident.  So I thought instead of paying the difference between insurance money and the final cost with cash I'd take out a loan for once. Guy comes back with 5 different lending institutions with crazy interest. He says our credit score is bad because, wait for it, we don't have any debt so we don't have any record of paying on time etc. I said my bank account is $XX and will cover the cost of this thing like nothing. Doesn't matter!

Great income, debt free, nice savings......doesn't matter.

Ike

  • Like 4

Share this post


Link to post
Share on other sites

I'm going to be doing that too, Lorelei....AFTER I'm finished fixing the place up a bit....;)

  • Like 1

Share this post


Link to post
Share on other sites
2 hours ago, irish ike, SASS #43615 said:

The wonderment of financing. We were debt free. Two years ago we had to replace our truck, totaled in an accident.  So I thought instead of paying the difference between insurance money and the final cost with cash I'd take out a loan for once. Guy comes back with 5 different lending institutions with crazy interest. He says our credit score is bad because, wait for it, we don't have any debt so we don't have any record of paying on time etc. I said my bank account is $XX and will cover the cost of this thing like nothing. Doesn't matter!

Great income, debt free, nice savings......doesn't matter.

Ike

Hi Ike,

 

Do you use credit cards? I've finally "trained" Hubby to use them for everything. Then, I pay them off in full when we get the bill every month and even get cash back.  Wouldn't that raise your credit score?

 

I ask as when we bought Hubby's latest truck they said they could give us $x,xxx off if we bought it on credit. They told us we could pay it off with the first payment and not owe any interest. So, we did. At that time, they told us we had a super high credit score.

 

Regards,

 

Allie

  • Like 3

Share this post


Link to post
Share on other sites
19 hours ago, Utah Bob #35998 said:

They came close. Said you had a right to not pay off the debt!

 

And the outfit you has the right to put a lien on your property, confiscate some of your property, and kick you out on the street.

  • Like 1

Share this post


Link to post
Share on other sites

When I was a kid my mother charged me interest if I borrowed any money. Not usury like credit card companies but interest. I got my first credit card in 76 or 77 in the time since I have paid interest for only 3 months. I always pay in full. I use the credit cards as cash if I don't have the money in the bank I don't buy with credit cards. I also am not one who tries to keep up with the Jones's.  Irish Ike mentioned buying a vehicle and the dealer had 5 offers with high interest. They get kickbacks from the lenders. The last vehicle that I financed when we came to do the paperwork the credit manager said that we had good credit then offered a loan with about a 15% rate. I said I will go to my credit union and then she said wait that is what comes up at first on her computer. She came back with a comparable rate as my credit union and said that is why we have good credit.

Share this post


Link to post
Share on other sites
18 hours ago, Abilene Slim SASS 81783 said:

Taxpayers pay nothing in this transaction. The debtor likely only paid $100 of interest or a penalty on the IRS debt in exchange for full payment of the back taxes. What's not mentioned is the $10,000 XYZ paid to the IRS on the debtor's behalf. Which is in fact a loan to the debtor subject to interest and penalties worse than the IRS. No different than paying off your MasterCard with your Visa card. The debtor just owes the money to someone else.

 

Well I learnt something new!

Share this post


Link to post
Share on other sites
5 hours ago, irish ike, SASS #43615 said:

.... He says our credit score is bad because, wait for it, we don't have any debt so we don't have any record of paying on time etc. ...

Ike

 

I ran into the same problem with a college loan for the daughter.  Daughter's junior years got on the short end of the stick and asked if I would cosign for a loan.  OK I'll do that.  Loan was turned down because I had only one credit reference, two were required.  

Share this post


Link to post
Share on other sites
24 minutes ago, Matthew Duncan said:

 

I ran into the same problem with a college loan for the daughter.  Daughter's junior years got on the short end of the stick and asked if I would cosign for a loan.  OK I'll do that.  Loan was turned down because I had only one credit reference, two were required.  

There was a time when a man's word was the measure of character when doing business.  A handshake would seal the deal.

The tour guide of the Good Enough silver mine in Tombstone said that the three men who owned the Good Enough mine had no contract other than their word and handshakes.  The guide said those three made millions, evenly split the costs and profits, and never had a dispute over the distribution of profits.

 

In business today the measure of a man's character is his credit rating.

 

Share this post


Link to post
Share on other sites

On my last job I was doing a lot of collection work on unsecured debts.  I started this job back in 2010 and I'm sure a number of people got caught short in the Great Recession.  But some stories were kind of amazing.  One young woman defaulted on her loan and I went to court on behalf of the lender.  The borrower couldn't give the judge any kind of extenuating circumstances or any reference to an attempt to work things out with the lender.  She seemed astonished at the concept that if you borrow money you're expected to pay it back.  

 

I found that I was becoming an impromptu financial counselor to a lot of the debtors.  I often had the authority to enter into a payment plan with the debtors and hold off on having a lien put against them.  I explained how interest worked and told them if any time they could scrape together an extra $20 to send in along in addition to the agreed to payment so that the principal was diminished and there was less money to charge interest for.   I expected that the debtors would be kind of sullen and grumpy about meeting with someone representing the lender but in actuality they were glad to find a warm body representing the lender to talk to.

 

I did feel bad for a lot of the debtors, as I had been out of work for awhile myself.   On first day I was doing the collection work I heard from a debtor that he wanted to make good on the debt  but when he called the lender to try to work out a payment plan he just got bounced from person to person without being able to talk to anyone with the authority to work out a payment plan.  I always felt that when somebody wants to give you money,  you make it as easy as possible for them.  So I went back to the senior partner of my firm and explained the situation I encountered, and to his credit, the next day he said to me if anybody wants to arrange a payment plan they should call one of two designated persons in our office.  I interviewed a lot of debtors as to what income and assets they had that could possibly be used to pay off the judgment against the debtors.  I hope that I treated them with kindness and respect, because I figured they wouldn't pay any faster if you made them feel like dirt.  It gave me a good feeling when the debtors told me that I made the process a lot easier than what they thought it was going to be.

 

 

  • Like 2

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.