Heard this on Dave Ramsey

[albacore44]

Last night when flicking through the channels, I landed on the Dave Ramsey show. Some guy called in, had about 8 CC and say $50K in debt on them. He had lost his job and was trying to stay afloat. sound familiar......ehh.

Well Dave suggested that he concentrate on paying his secured/mortgage, and send letters to the CC's with a written budget showing how much disposable income he had left each month, and how much he could pay each CC, along with a check for a couple bucks each, what ever you can afford. he said by sending them something, even 2 bucks a month, it messes up their logirithems in their payment system, and will delay charge off, etc.

of course you will still be inundated by incessant collection calls, but it could buy you extra time.

not sure of any truth to this theory, but that's what Dave said.

[liz417]

Hmmmm, I wonder if thats true? I stopped paying anything over 8 months ago and still haven't been sued (knocking on wood) and my cc accounts are still with the original ccs. I guess it just depends on the credit card company....

Off topic:
I noticed you recently added a pic, who is it?

[albacore44]

Hmmmm, I wonder if thats true? I stopped paying anything over 8 months ago and still haven't been sued (knocking on wood) and my cc accounts are still with the original ccs. I guess it just depends on the credit card company....

Off topic:
I noticed you recently added a pic, who is it?

Certainly not me (Ha Ha) Photo came to me on an e-mail titled "Bubba" Thought it was really funny, so I used it.

[liz417]

Certainly not me (Ha Ha) Photo came to me on an e-mail titled "Bubba" Thought it was really funny, so I used it.

LOL!! I was wondering if it was you but didn't want to ask!!! I live in a little town (as you know) and there are plenty of "bubbas" around here!!! Heeehee! I think you need to add a disclaimer to the picture or people are going to assume it's you!!

[Mi Bankruptcy]

I heard about people doing that with Utilities and getting away with it.

[optimistic1]

liz if you dont mind could you list your original creditors?

[HHM]

This is probably one of those things that sounds very plausible, but may or may not be true. Big picture, I am not sure of any real benefit of avoiding charge-off, but that is another topic.

It's plausible in the sense that various requlations require charge-off after 6 months of non-payment, as to specifically how "non-payment is defined? (well, you can do the research project ). My guess is, they could still charge off even if you send less than minimum payments because you are in breach of contract, and there must be some programmer, somewhere, sophisticated enough to program that variable. But he may have a point, so long as some payment is processed, the database may not trigger the non-payment flag for purposes of charge-off

[Trixie007]

This strategy is what Dave Ramsey teaches in his Financial Peace University - which is excellent for many people. What he teaches in conjunction with that is that you call your creditors, or talk to them, every two weeks. But what you also do (in his program) is go out and get extra jobs, sell stuff, etc. So, by the time the cc's might charge off your account, chances are you will be at the point where you can enter into payment arrangements with them. His strategy is only for people who do not want to file BK, so these things would not make much sense if you know you need to file.

This is why DH and I had been sending in small payments - we really thought that we could climb out of this hole on our own. Ha-ha-ha - I kill myself! However, I do think that for someone who needs to extend out the time until filing, using this strategy might delay things and go a long way toward eliminating concerns about OC's saying you never intended to pay...