CC debt, the good, the bad, the ugly and finally getting out

[walrus]

...then I sold the house, probably the smartest thing I ever did, erased all the debt and walked away with a tiny bit of money, the house had been losing equity at the rate of $10k a years for several years running.

This surprises me! Is that different location to location? My house has more than doubled in value over 30 years. Mortgage paid off, it is part of our retirement plan. Pure luck, of course, but I'll take it!

walrus

 

[Guildedagain]

Twas the financial crisis of 2008. Homes could had all over the place for a song.

 

[Cougar]

Twas the financial crisis of 2008. Homes could had all over the place for a song.

We had fixed up my place in SoCal and tried to sell back then. No such luck, so we rented it out. (Jeez, for almost 10 years.) This eventually worked out since we then worked a 1031 Exchange (which had to be "a rental for a rental," so that meant that we had to rent out our new house for two years before we could "take residence"). (Now we're just waiting for Mrs. Cougar's massive remodel to get finished so we can finally get settled.)

Anyway, yes, it is certainly best to pay off that credit card every month. We use cards for everything. Cash back!

 

[GAD]

I spent a lot of time with my grandparents when I was young and I absorbed the usual lessons about savings and debt that are taught by people who lived through the Great Depression. So I'm a 7 or 8 year old with an visceral sense that debt is bad. We had a mortgage. We had a a savings account. My long suffering mother had to explain to me how we would lose money of we took cash out of a savings account that was paying 5% and paid off a mortgage that was charging 2%. The attitude stuck and the only times I have paid interest on a credit card have been when the bill or the check were not delivered, by the Post Office, on time. I don't even have a debit card because when they first came out the consumer protections were much weaker than those of a credit card. Part of being a curmudgeon is not changing even if the protections are similar now.

Remember when you could get 5% in a savings account?

 

[fronobulax]

Remember when you could get 5% in a savings account?

And a 2% mortgage. Only one of those seems to be near making a return...

 

[FNG]

Remember when you could get 5% in a savings account?

I read an article the other where T-bills were paying over 17% in the early 80s.

 

[silverfox103]

Remember when you could get 5% in a savings account?

I do, but it's fading into the distance real fast.

I also remember when 90 day certificates were mid to high teens. But mortages were @21% and inflation was about the same. I guess that was why Jimmy Carter was a one termer, at least one of the reasons.

Tom

 

[FNG]

Credit is like a lot of things, booze, drugs, firearms, fast cars, you name it.

A person needs self-discipline, control, and a healthy understanding of self-denial. Without it, something will go off the rails.

 

[silverfox103]

All in all, home ownership is a great investment, no doubt.

I remember what a friend of mine said to me, "Property will never be cheaper than it is today". For the most part, he is absolutely correct.

Tom

 

[twocorgis]

All in all, home ownership is a great investment, no doubt.

I remember what a friend of mine said to me, "Property will never be cheaper than it is today". For the most part, he is absolutely correct.

Tom

Hasn't been so much for me, but timing is everything. I bought my house in 2007 just as things were starting to crumble. Then I promptly watch it lose about 30% of its value. It took until about two years ago until it was worth what I paid for it again.

 

[silverfox103]

When I managed a record store, we had a customer who came in every Friday and spent at least a couple hundred dollars, mostly on opera records. When it was time to pay, he would pull out one CC alter another before picking one. I asked him one time why he did this. With a grin on his face he said I have good credit, so I get tons of offers, every month I pay the minimum on each. I'm a bachelor with no family, so when I die, screw 'em all! Moved to Ohio, probably still at it (unless he's already screwed 'em all!)

I heard this similar saying, it probably has been around "I want to have enough money to last me till the day I die" "then have the check to the undertaker bounce"

Tom

 

[jp]

I heard this similar saying, it probably has been around "I want to have enough money to last me till the day I die" "then have the check to the undertaker bounce"

Tom

Although I don't manage my finances like this, I've always thought of this as winning the game. If you amass tons of credit card debt while enjoying life, as long as you pay the minimums until you die, you win! Game over, man, game over!

 

[adorshki]

Although I don't manage my finances like this, I've always thought of this as winning the game. If you amass tons of credit card debt while enjoying life, as long as you pay the minimums until you die, you win! Game over, man, game over!

I joked about that once myself, but no. They'll come after your estate before they write it off.

 

[Guildedagain]

Maybe not. I've had thoughts of racking up the $23k, wild weekend in Vegas or whatever, the tried and true Entwistle method sounds good to me ;] If you were terminal, which we all are, really.

So I called, physically, called and asked "what happens if I'm gone one day, will you go after my kids?".

Answer was "No, we can't/don't do that", and that's good enough for me if the time comes, my conscience is already cleared ;]

 

[GAD]

I joked about that once myself, but no. They'll come after your estate before they write it off.

This varies by state, but generally credit card debt is not transferable to heirs unless they cosigned, shared the card, or were spouses. If the estate is significant than the CC companies may try to drag out probate, but when my mother died (I was the executer) I called up the CC companies, told them of her death, sent them a copy of the death certificate, and that was that. Same with hospital bills.

LPT: Always get too many copies of the death certificate when someone dies. You'll need a lot of them for stuff like this.

CC companies and debt collectors often try all sorts of illegal crap because people are frightened, scared, and/or grieving. A lot of it is flat-out illegal so learn your rights and know when you can tell them to pound sand.

 

[fronobulax]

I joked about that once myself, but no. They'll come after your estate before they write it off.

You need to consult a lawyer. The first thing a good lawyer tells an executor is not to pay any bill without checking with the lawyer. Some bills don't have to be paid at all, some bills have to be paid by heirs and some are only paid if the estate has enough assets. The big thing is that sometimes the debts must be paid before anything goes to heirs.

 

[GAD]

You need to consult a lawyer. The first thing a good lawyer tells an executor is not to pay any bill without checking with the lawyer. Some bills don't have to be paid at all, some bills have to be paid by heirs and some are only paid if the estate has enough assets. The big thing is that sometimes the debts must be paid before anything goes to heirs.

Yeah I definitely should have added this. A good lawyer is a must because then you can pay them to tell the CC company to pound sand.

 

[F312]

I suppose the lawyer gets his.

 

[Charlie Bernstein]

First off: Congratulations! I know how great it feels to get out from under.

Second, and most important: Don't listen to this!:

 

[adorshki]

I suppose the lawyer gets his.

No, I think he gets yours.