Wallet vampires

A worthy rant. Rant on, good man.

"Settle your debt for pennies on the dollar!"  Right, and lose any chance of ever getting another loan or job that requires discretion and fiduciary duty.

"You can halve your monthy payment!"  Sure, and double the period until it's paid.  We'll settle your debt with the other companies so what's left of your credit rating gets flushed down the commode and charge you a huge fee to do it - so we're really just transferring the debt you owe them hopefully for something that was worthwhile to us for something that is worth nothing, at the same screwing over the company that provided a valuable (or at least honest) good or service AND conning the consumer into thinking he's getting something he isn't. 

It's a tough economy and folks are in over their heads many times for no cause of their own.  And just when they need help, who do they get instead?  Flipping con men who come to rape what's left of their dignity and credibility in order to fill their own pockets.  Makes me sick. 

My grandma used to say, "You can't cheat an honest man," and normally I'd agree with that and have little sympathy.  But times are particularly tough and while I've still got a good job that I'm grateful to have, there are hundreds of thousands of folks suddenly having to do without and trying to figure out how to handle it.  It's a confusing time, and so here come the thieves.  Wrong, wrong, wrong.  They make me sick.

- Zurf

Obviously they don't want you to close your account.  That's how they work.  There is a little electronic chip in each card that tells them that you just cut up your card and they immediately send you a new one.  (Just so some don't think this actually happens, that was a joke).  Credit card companies comwe up with new fees all the time for late payments, or whatever and they don't tell you this.  That's how they survive.  They want to hit up the people who can't afford it.  They make no money on the rich who pay off their card debt each month.I just read a book on this subject called "Debt Cures They Don't Want You To Know About" by Kevin Trudeau.  A good insight into how they really get your business.  And keep you for life.
At least they have now started to tell you how long it will take you to pay off your present bill while making a minimum payment each month.

Come on, lets here it from the rest of you on your thoughts about this subject.  Lets get fired up.

Years ago, before my hubby and I were married... he got himself into a debt issue.  He used one of those wallet vampires thinking they'd help him.  In the end... his credit still went into the toilet.  While using these companies the creditors still say horrible stuff about you on your credit report.  It took FOREVER for him to "bank" enough money in his account with the vampire wallets to pay off ONE reduced debt... and of course that reduced debt showed on his credit report for 7 years as having been not paid in full, but exactly what it was ... paid late for years then settled.  Horrid, just horrid.  When we got together and were serious, I was able to look at his statements.  The wallet vampires charged him outrageous fees that were never the same (monthly fees and percentages... they were "banking" his money until there was enough for him to pay something off and they were not paying him interest on any of HIS money they were banking.  You know THEY were collecting interest on it!).  This company ended up going bankrupt... opening in a new name... trying to get him as a customer by claiming they simply changed their name... and further having a class action suit against them (which never did go anywhere).  He lost a lot, a LOT of money... and ended up paying off the remainder of his debt within 4 months of me taking over the issue (if the vampires had still had him, it would have been a few more years at the rate they were going).  His creditors were THRILLED to deal with him personally and negotiate a deal with him rather than the vampires.

Lesson learned... deal with your creditors yourself!  No vampire is going to make a deal that you can't make yourself.  If the creditor won't accept a small amount each month, then put it into a savings account and earn interest on it yourself while they go thru the arrangements to take you to small claims court for the few thousand you owe them.  By the time you get a serious threat in the mail, they'll take what you've banked as a settlement.  I'm not suggesting getting further into debt than you can handle as a good idea, and not suggesting that not paying anything is a great idea either... but if it's not going to keep you from collections, this is an option.  The vampires don't do any more than this for you except for take the extra interest you should be earning and then charge you more on top of it.  Most credit companies will happily close your account once you've reached your credit limit, stop adding overage charges, and accept some form of payment rather than NOTHING. 

On another note... if you have non-necessities like cable (and you can afford it, but could really use a little break on the price), call the company up... tell them you're considering shutting it off because the bill is too high... nine times out of ten they'll give you the current "new customer" promo price for the next 12 months.  I just lowered my bill by $30/ month yesterday by doing just that.  Pay minimum balances on your credit cards ON TIME at the very least... late fees can bring your bill up way more than it's worth ($40 late fee in many cases... is it worth $40 extra to you to not pay the minimum that could actually be LESS than the cost of the late fee?).  Pay more on the higher interest items.  Talk to your low interest companies and ask if they'll raise your balance and let you transfer high interest cards to them and then CANCEL that high interest card!

Be proactive, not reactive.  Dig out slow... times will change... and if your debt is that bad, by all means... shut the lights off more often, lower the thermostat by a few degrees, take shorter showers, read library books instead of renting movies, cancel the television service and go out and exercise instead, pick up a babysitting job (there's tons of parents out there in bad $$ shape looking for cheap quality childcare that would love to give you a small amount of cash to play with their kids during the times that you're sitting at home anyway), OH... and take a few minutes each night de-stressing about the money problems by playing your guitar!

Mekidsmom has just distilled every money management seminar worth the price of admission down into one Chordie post.  I ought to print that out, frame it, and hang it over my checkbook.

- Zurf

Hi all ,
    I love this topic so much that I could'nt even take the time to read all the replies before putting in my worthless two cents ... Hope nobody minds ...
    What p@3##sses my off about this is all the people who take all the credit when it's there to take , and then crying about it later ... Now don't get me wrong ... I'm NOT talking about the folks who lose their jobs , or when the credit card companies up their interest rates with no warning ... I'm talking about these people who use the credit they have for stupid sh#t , then cry when the credit card company expects to get back what these people promised to pay back when they took on the debt ... Drives me crazy to think that these people can go to some outfit and get their debt reduced when they should have known what they were getting into in the first place ... They are'nt third graders for god"s sake ... Not withstanding , there will always be people to try to take advantage of folks who are down on their luck , but please ... It just bothers me that these people can get out of a debt so easy that they agreed to and promised to honor ... Not a very Chistian way of living , is it ...
   Sorry for my rant , BUT I CAN'T HELP MYSELF ............................
                                                                             Jerry

PapaTom and GSE - I think that's what my Gram was talking about when she said, "You can't cheat an honest man."  It's not so much a matter of honesty in all cases, but at least unclear thinking in many circumstances.  Again, I'm not talking about folks who are down on their luck for reasons out of their control, because there's a lot of that going around.  I'm talking about folks who made very poor decisions.  Unfortunately, because of that lack of clear-headed thinking I referred to, many of the folks in that circumstance will never know the difference.  It's like that old saying I'm making up on the spot, "Only another can describe your appearance."

Just had to toss in a tidbit for discussion here....

Don't they teach economics in school anymore?  What's with standing in line behind someone at a grocery store and seeing the person in front of you paying for food with a "Credit Card"?  Debit cards are great, so don't get me wrong here, but there has to be something amiss when folks are buying steak on credit, with a hot-dog budget.

Must be some part of the "no child left behind" education policy we got here.... don't leave them behind, but don't learn 'em nuthin' either.

Take Care All;
Doug

Bottom line......if it sounds to good to be true............it is.