Comments on: What to do with $175,000 in credit card debt http://asklizweston.com/2009/08/03/what-to-do-with-175000-in-credit-card-debt/ Personal Finance Columnist Thu, 09 Feb 2012 03:37:26 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: lizweston http://asklizweston.com/2009/08/03/what-to-do-with-175000-in-credit-card-debt/comment-page-1/#comment-313 lizweston Sat, 08 Aug 2009 10:44:01 +0000 http://asklizweston.com/?p=1308#comment-313 I had the same gut-level response, but there were people who did it successfully. Forget a payment, though, and it really blows up in your face. I had the same gut-level response, but there were people who did it successfully. Forget a payment, though, and it really blows up in your face.

]]> By: Ryan Ortega http://asklizweston.com/2009/08/03/what-to-do-with-175000-in-credit-card-debt/comment-page-1/#comment-288 Ryan Ortega Tue, 04 Aug 2009 23:37:43 +0000 http://asklizweston.com/?p=1308#comment-288 The debt settlement option will only work if there is a true financial hardship, and believe or not (coming a former debt collector) creditors do know that being overextended is a financial hardship. If you couldn't borrow anymore it is quite obvious there is a financial problem, so why wouldn't this be the same for someone who was able to just continue borrowing on credit they will never ever be able to payback in a single lifetime. Often most people don't realize they have a legitimate reason for being past due, or not paying on time. Just because you could rob peter to pay paul, or borrow from one card to pay another doesn't mean you have the best credit, it simply means you found the way to get the bill paid on time- but does that really mean there was no financial hardship? My advice is to be honest with yourself, understand why so much is owed and make it a point to settle or payback the debt, based on what you can realistically afford. The debt settlement option will only work if there is a true financial hardship, and believe or not (coming a former debt collector) creditors do know that being overextended is a financial hardship.
If you couldn’t borrow anymore it is quite obvious there is a financial problem, so why wouldn’t this be the same for someone who was able to just continue borrowing on credit they will never ever be able to payback in a single lifetime.
Often most people don’t realize they have a legitimate reason for being past due, or not paying on time. Just because you could rob peter to pay paul, or borrow from one card to pay another doesn’t mean you have the best credit, it simply means you found the way to get the bill paid on time- but does that really mean there was no financial hardship? My advice is to be honest with yourself, understand why so much is owed and make it a point to settle or payback the debt, based on what you can realistically afford.

]]> By: Adam http://asklizweston.com/2009/08/03/what-to-do-with-175000-in-credit-card-debt/comment-page-1/#comment-287 Adam Tue, 04 Aug 2009 18:24:34 +0000 http://asklizweston.com/?p=1308#comment-287 I always thought this seemed like too much work and too risky for the amount of potential profits. I understood that it worked, but the idea made me squeamish. I always thought this seemed like too much work and too risky for the amount of potential profits. I understood that it worked, but the idea made me squeamish.

]]> By: lizweston http://asklizweston.com/2009/08/03/what-to-do-with-175000-in-credit-card-debt/comment-page-1/#comment-279 lizweston Mon, 03 Aug 2009 23:46:13 +0000 http://asklizweston.com/?p=1308#comment-279 I would agree--it doesn't look like a hardship situation. BTW, this reader doesn't have the biggest balance I've ever seen. One of our Your Money message board posters used BTs and convenience checks to invest $250,000 in CDs. I would agree–it doesn’t look like a hardship situation. BTW, this reader doesn’t have the biggest balance I’ve ever seen. One of our Your Money message board posters used BTs and convenience checks to invest $250,000 in CDs.

]]> By: lizweston http://asklizweston.com/2009/08/03/what-to-do-with-175000-in-credit-card-debt/comment-page-1/#comment-277 lizweston Mon, 03 Aug 2009 23:43:30 +0000 http://asklizweston.com/?p=1308#comment-277 I'm going to guess quite a few. I wrote about a bunch of folks who used BTs and convenience checks to arbitrage, investing the cash in CDs. That fell apart as interest rates plunged, and those left with balances should know the music is ending soon. I’m going to guess quite a few. I wrote about a bunch of folks who used BTs and convenience checks to arbitrage, investing the cash in CDs. That fell apart as interest rates plunged, and those left with balances should know the music is ending soon.

]]> By: Adam http://asklizweston.com/2009/08/03/what-to-do-with-175000-in-credit-card-debt/comment-page-1/#comment-266 Adam Mon, 03 Aug 2009 18:43:12 +0000 http://asklizweston.com/?p=1308#comment-266 I wonder how many other people playing the "balance transfer game" got caught in the same way? I wonder how many other people playing the “balance transfer game” got caught in the same way?

]]> By: No Debt Plan http://asklizweston.com/2009/08/03/what-to-do-with-175000-in-credit-card-debt/comment-page-1/#comment-260 No Debt Plan Mon, 03 Aug 2009 15:08:02 +0000 http://asklizweston.com/?p=1308#comment-260 What was this $175k spent on? Why were we throwing around that much debt on balance transfers? How is that even possible? Ethically she should pay what she owes -- I would cash out and pay off the debt rather than asking them to settle for less. What was this $175k spent on? Why were we throwing around that much debt on balance transfers? How is that even possible?

Ethically she should pay what she owes — I would cash out and pay off the debt rather than asking them to settle for less.

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