We’ve discussed default, but I’d like to ask you a different question:
How would you like to keep the next 6 to 18 credit card payments? This is when my confession and admission to my addiction led me to learn – instead of paying a penance for my “sins” I have since come to realize that it takes anywhere from six to eighteen months before any substantial collection action takes place. In other words, according to thousands of statistics and over twelve years of research, this would be the earliest time before I would be faced with a collection lawsuit.
True, I was concerned about what happened in the meantime, such as collection calls and letters. But again, I learned that a collection call is no more than a telemarketing call to get me to fall for their sales pitch by obtaining a payment commitment from me over the phone. I learned to ask the caller to correspond in writing. If the calls didn’t stop (which they did), a simple notification that unwanted telephone calls are a crime was enough to get my point across quickly.
So let me ask you again, if you are not paying your creditors, what are you doing with those monthly payments? Are you improving your financial situation while delaying your creditors? That would be the wisest use of your money in most cases. What could you do with the next eighteen payments?
In the worst case, you will receive paper that is filed in court, and even though this paper can result in the legal taking of your employment income, it won’t do anything else, except delay your ability to continue acquiring more personal debt with your credit history.
In the worst case of all, your paycheck can be garnished, but your bank accounts can be protected and so can your home. Your paycheck has the greatest risk. Did you know that the Consumer Credit Protection Act penalizes employers for taking any action against employees having collection problems? Your employment cannot be terminated because you have collection problems without substantial civil and even criminal penalties imposed against the employer.
The following link will give you a description of the limits imposed against the process of wage garnishments from judgment creditors such as banks, debt collectors and private parties. http://www.cardreport.com/laws/statute-of-limitations.html The summary of it is that a person will pay far less money if he never offers or negotiates a settlement, never joins a consolidation program or files bankruptcy.
We use this to your advantage with our Zero Debt in 90 Days® System.
These garnishment restrictions are imposed under the Consumer Credit Protection Act. The law sets the maximum amount that may be garnished in any work week or pay period, regardless of the number of garnishment orders received by the employer.
Many people want to make a settlement in order to prevent a wage garnishment. First of all, no creditor will talk to you; they might talk to a settlement company. You will pay the settlement company 15% of your total debt for their services. But even then, not all creditors negotiate with them either or stop calling you even if you are using a settlement service.
Don’t settle. PERIOD Settlement requires that you pay from your savings or borrow from friends or family. The result is what you would imagine, less cash to use toward building your net worth, owing people that are close to you, and what most are never informed of is that a settlement creates a federal income tax liability against the amount not collected. So if you settle a $10,000 debt for 50%, or $5,000, your taxable income will increase by $5,000. This income is known as “imputed income” and you will receive a Form 1099 at the end of the year. If you forget to include this in your filing, you could be audited.
Regarding consolidation, statistics show that about 98% of all people enrolled in a consolidation program never complete it and even owe more money when they drop out? These should be illegal. Don’t consolidate. PERIOD
The Zero Debt in 90 Days® System is the only anti-debt system on the planet that allows you to look at your debt situation in terms of your ability and willingness to pay, as opposed to paying a percentage of what the entire world says you owe.
Do the math and you’ll see how keeping your money makes much better sense.