How To Legally NOT PAY Your Credit Cards Without Bankruptcy
87Tearing out your hair over credit card debt?
The secret the credit card companies don't want you to know!
If you are like most Americans, you are probably under a ton of credit card debt. Lots of people will tell you that it is all your own fault, but I will have to disagree!
Credit cards companies have very devious marketing programs that can get even the most sophisticated consumer into big trouble. Obviously the credit card industry needs a complete over haul, but don’t hold your breath on anything like that happening in the near future. Too many people are making too much money off the sweat of the credit card holders, and we know what that means. Any changes within the credit card industry will not come easily and in the mean time you and I will continue to suffer.
Basically, credit card companies are thieves, pure and simple. Up until now I would just shake my head and grind my teeth in anger. I thought there is probably not a thing I could do about the total injustice of credit card debt, but that’s where I was wrong.
The fact is that you can legally not pay your credit card debts WITHOUT going bankrupt. Some of these ideas are just common sense, while other things like the “statute of limitations” are just pure law.
Do you have an unpaid credit card balance that has been on the books for more than 7 years? Because of a law called the “statute of limitations” you do not have to pay this debt!! Yes, I said you do not have to pay this debt, LEGALLY! Google “statute of limitations” to find out how many years the statute of limitations is in your state.( Most states are 6-7 years). All states are different. The good news here is that from the date that you no longer use your credit card or MADE A PAYMENT on that card……the statute of limitation time starts ticking. Many credit card companies will call you and try to talk you into making a small payment, and then the statute of limitations starts all over again. If you make that payment or use your card for even a penny charge the time starts all over again. So, beware! The statute of limitations also applies to medical bills.
Are you disabled or collecting sick pay? By law no bill collector can touch disability pay! Unsecured credit cards and other unsecured debts are just out of luck. However, this does not mean that your car or house could not be repossessed if you stop making the payments. So if you should become disabled or ill, forget about making your credit card payments and worry about keeping your car and a roof over your head. In fact that makes the most sense if you should find yourself in financial trouble. And once again, this law also applies to medical bills. If you are collecting disability or medical pay, a medical bill collector cannot touch that pay. Don’t let barracuda bill collectors push you around. Know your rights!
Cut credit cards from your life.
- Is it wise to consolidate credit card debt?Investopedia3 days ago
Is it wise to consolidate credit card debt? In most cases, credit card consolidation is a wise decision if you are able to get a lower interest rate with the new company at no or minimal cost to you.
- NJ Law Restricts Campus Credit Card SolicitationsWCBS-TV New York14 hours ago
Credit card companies that want to solicit customers on New Jersey's college campuses are now facing tighter restrictions. Legislation that Gov. Jon Corzine signed bars the companies from buying lists of students' names and addresses from colleges. They also can't offer gifts to entice students to apply for a card. Companies also now must register with colleges if they want to sign up students ...
- New Jersey places tighter restrictions on credit card companies soliciting on college campusesThe Jersey Journal11 hours ago
Jersey Journal file photoTighter restrictions are in place for credit card companies that want to solicit on college campuses in New Jersey.Credit card companies that want to solicit customers on New Jersey's college campuses are now facing tighter restrictions.Legislation that...
- NJ Law Restricts Campus Credit Card Solicitations1010 WINS New York15 hours ago
Credit card companies that want to solicit customers on New Jersey's college campuses are now facing tighter restrictions.
- NJ law restricts campus credit card solicitationsDaily Record9 hours ago
TRENTON, N.J. (AP) — Credit card companies that want to solicit customers on New Jersey's college campuses are now facing tighter restrictions. Legislation that Gov. Jon Corzine signed Friday bars the companies from buying lists of students' names and addresses from colleges.
- Advanta Ventures, Credit Card Issuerâs Unit, Files BankruptcyBloomberg27 hours ago
Nov. 21 (Bloomberg) -- Advanta Ventures Inc., a unit of bankrupt small business credit-card issuer Advanta Corp. , filed for Chapter 11 bankruptcy protection along with Advanta units BizEquity Corp. and Ideablob Corp.
- Canada outlines new code for debt, credit card firmsThe Globe and Mail3 days ago
OTTAWA (Reuters) - Canada laid down new guidelines for credit and debit card firms on Thursday aimed at helping retailers minimize costs associated with the use of these cards by increasing flexibility on fees and charges.
- Chase drops credit-card arbitration policyThe Columbus Dispatch22 hours ago
BOSTON -- JPMorgan Chase & Co. said yesterday that it is dropping a clause from credit-card contracts that required disputes with customers to be handled through binding arbitration, a move that could lead to consumers filing lawsuits.
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The above are just two ways to avoid paying your credit cards without going bankrupt. There are other unconventional ways of handling your credit card debt other than just paying up. If you lost your job, or can’t make your payments for whatever reason, call the credit card company and ask them to work with you.
Credit card companies are happy to get paid…period. Many times they will take up to 90% less of what you owe them. You have nothing to lose by asking if a lesser amount would pay up the account. Of course you have to be reasonable too. If you have no real reason for not paying your credit card accounts other than bad money management and getting in over your head….then, the card companies may not be as lenient. Everyone’s situation is different. However, no matter what the circumstances, because of the dire condition of the economy, I urge everyone with a credit card to call and ask for a reduced pay up balance. Make sure you get it in writing, trust no one! Credit card companies are not at all honorable businesses. Their motto is to lie and deny and to stiff the customer whenever they get the chance.
Once you have your credit cards paid off, you may get an entire slew of new credit card offers in the mail. Don’t fall for these offers again. It is best to have one credit card with a small limit to use in case of real emergencies. A better bet is to get a debit card which works just like a credit card. The good thing about a debit card is that the money comes right out of your bank account. That way you will not be overspending.
Americans have to re-think the way they feel about spending and money. We have become a society of “I want it now” children. We have run amuck and we are paying for it now….big time!
We have forgotten the lessons our great grandparents learned during the Great Depression. My grandmother told me a lot about her days during the Great Depression. Some people only had oatmeal to eat, day in and day out. Other people DIED for lack of proper nutrition. It was a time when just about everyone was POOR.
Let’s face it, things are not that bad now. The good thing about economic bad times is that it brings everyone back down to earth and helps us sort out the things that are vital and important from the STUFF that is just superficial fluff. Actually, being liberated from all that STUFF is very empowering.
So, if you are battling the credit card monster, my heart goes out to you! It is not really all your fault either. I know many very intelligent people, lawyers and doctors, who end up with so much debt they will never be able to pay up. Credit card companies need to be regulated. But, the ordinary person needs to end their love affair with those little cards also. It’s a toxic relationship that will spell doom for your financial life, and will leave you frustrated and miserable. It is always wise to live within your means, and it will also save you a lot of grief and anxiety.
If you don’t get everything you think you have to have, you will appreciate what you DO have all that much more. Have you ever come home from a shopping trip with a bunch of STUFF you charged on your credit card because you thought it was such a great deal, and then 4 years later it is still hanging there in your closet, taking up valuable space and you have yet to wear it? Now, really, what kind of deal is that?
Don’t let the credit cards companies win! Defeat them! Don’t use that card unless you can really, really have an emergency! Then pay it up the next month. The credit card companies will hate you for that. Revenge is sweet.
Little by little the American people are beginning to realize that credit cards do not make them happy, MORE of WHATEVER does not make us happy. Happiness is found in the peace and security of living within your means, a concept that is always relevant no matter which generation you belong to.
Statue Of Limitations Links
- Statute of limitations on debt collection
The statute of limitations refers to the number of years that certian debts can be collected such as credit cards, oral agreements, promissory notes, written contracts and judgments! - Debt Collection Statute of Limitations – What’s the Statute of Limitations On Debt
The statute of limitations on a debt keeps debt collectors from collecting on it forever. The limit varies by state and depends on the account's last date of activity. - FindLaw Bookshelf - Learn About the Law
FREE EBOOKS on credit cared debt and problems! - Statute Of Limitations For Debts
CardReport.Com Credit Card And Banking Tools, News, And Reference - Credit Applications, Directories, And Information - States of Limitations on Debts
Find out the statue of limiations on debts in your state. This is the amountof time a creditor has to sue you for a past-due debt. - Statute of Limitation laws for all 50 states - credit card debt, medical malpractice, personal injur
An idex of the statute of limitation laws for all 50 states.
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Comments
Very good and much needed advice. Another ploy credit card companies are hawking these days is the "credit protector" fee. They pretend this is in your best interest because it will pay your credit card balance if you are unable to (like if you become unemployed). In reality, it's basically 'insurance' under which you are paying a % of your monthly charges as a 'hedge" against the possibility you will be unable to pay for a few months. So in essence, it is increasing your monthly charge (and I believe that money also gets charged interest). And if you read the fine print, the situations under which your benevolent credit card company will actually pay under such a program are very, very limited. I got suckered into it and realized I was paying as much for the protector fee as I was in monthly interest. I cancelled it pronto and every time I call the credit card company to inquire about why they have raised my rate or to get a charge (late fee) erased they try HARD to pitch me that program again!
I agree with you we have become a nation of "I want it NOW" babies. This recession is forcing us to learn better financial management.
Great hub! MM
Mighty Mom and James A Watkins...Thanks for the nice comments!
Great hub! Thanks. I actually think it is more responsible for some people NOT to pay their cards. If they are in over their heads and can't file bankruptcy for whatever reason, there comes a point at which it makes more sense to sit down and figure it out. If you've been paying the minimum payment on a large balance for more than a year, chances are good you've paid that back and then some, and I really do think you have to put yourself and your family first.
Some of these companies and charging 29.7% interest plus penalties and for some people (until the Credit Card bill of Rights was passed) the minimums were so low and the interest and penalties so high that they were actually seeing their debt increase month after month without using the card. That's nuts.
You're SO RIGHT!!! Happy people can and DO achieve more!!!
Oooohhh... that makes me so happy! ;-)
--Mary K
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¸.·´ .·´¨¨))
((¸¸.·´ ..·´ -:¦:-
-:¦:- ((¸¸.·´* Light
EXPECT MIRACLES!
Thanks for your comments....to me the bottom line here is that the credit card companies are CROOKS! They have all the advantage and the American consumer is left to deal with the carnage they create.
First off, I never ASKED to be mailed hundreds of credit card offers. They just kept coming, clogging up my mailbox.
I have just one credit card, but I have to be honest, I am tempted time and time again to get a another card with a higher limit to get some new furniture, something that I have not been able to save up for because of one major expense after another.
BUT, I know I really cannot afford to buy furniture on a credit card, and I don't want to pay for that furniture 3-4 times over!
yes, 3-4 times over, thats how much you really pay when you don't pay off the card right away. So, in the end, it is not worth it.
I wonder what would happen if everyone simply stopped using and paying their credit cards? Have a credit card revolt of sorts....
Another ploy that works with the credit card company is to tell them that you are losing your job soon, and ask them if they will take such and such a lump sum to have the card paid off.
My friend did this....he was going to lose his job within the coming year. He owed 6000.00 on a credit card that he had been paying the min balance on for about 3 years, so the credit card company actually did get paid.
He told them that he would give them 1500.00 today to have the card completely paid up, and the credit card company agreed! Just to make sure to get this in writing first.
The way the economy is going today, no matter who you are, you can say that you are going to lose your job within the next year, and that is not really a lie. Even if there is no chance of losing your job, I would still try this ploy.
Sometimes you need to fight fire with fire, and those credit card companies are all insured against things just like this with none other than AIG! they won't lose out on anything at all, so why not give it a try and your credit rating will actually go up because the bill will be paid off in full!!
Yes, some of them will take a settlement now. I read that many debt collection agencies are starting to shy away from buying credit card debt from the banks because they just can't collect. You can't get blood out of a stone. So banks will settle up sometimes now.
There's a guy here at HP (bgamall) is who is calling for everyone to simultaneously default on the credit cards to bring the companies down. He set up a website about it:
Good information. Thanks. I totally agree with you about CC companies. The entire fiscal structure has, and still is to a great extent, based on greed and control of the masses.
A documentary that will open peoples eyes wide about the real control of money is "The Money Masters" and can be watched online at Google Video.
Thanks again magnoliazz for a good hub.
Nice advice and good information for me...Thank you so much magnoliazz
Thanks everyone for your nice comments! My heart goes out to those that are dealing with credit card debt.
I love the idea of a credit card revolt! Thank you pgrundy for this link...
I think I might write a hub about cc revolt and include this very informative link.
If we stand together, we can get rid of the cc companies. They are evil, pure and simple, they are loan sharks, and there is just nothing "fair" about the way they are doing business. The interest rates are just ridiculous...we are SLAVES to the cc companies.
Another thing I would like to tell people is that you can write the cc companies a letter and tell them not to call you anymore. I tell people to never talk to these criminals over the phone and never trust anything they say unless it is written down, and then they try to lie too.
American tax dollars are bailing out the cc companies, but who is bailing out the American consumer? no one! There should be massive cc reform, but I don't see that happening...we need a CC revolt!
This article is totally on point. I'll admit it, I had a scrupulous law firm that tried to collect on a credit card debt that was over seven years ago, and the local lawyer I hired hipped me to the fact that they would not be able to win this collection. I really didn't even need to hire a lawyer. In California, you can go to a local law library and get help doing the paperwork yourself.
I try to pay my debts because I like having a good credit rating, but like lots of other people, I've experienced poor economic hardships, so I had to let go of some payments in order to pay immediate bills.
Also, don't feel bad about credit card companies. They're making tons of money and no one is hurting because some people don't repay their debt. You're talking about dollar exchanges, not life and death here. It's good to have a great credit rating, but it's impossible for everyone to keep with their debts in an economy where prices are constantly going up and wages remain stagnant.
Also, I'm just learning to live without using credit cards. That's what really keeps us out of debt.
Bakari Chavanu Thanks for your insightful comment, and thanks for the magical words at the end of your post "Also, I'm just learning to live without using credit cards. That's what really keeps us out of debt."
That's what all of us need to learn to do!
nice written.
Excellent hub Magnolia with some excellent tips - pity I don't live in the USA, anyone know what the situation is in the UK ?
Very useful information. Thank you for tips!
A very useful topic. I got into too much credit card debt. When my card company realized I was using my card more, I think they figured that it was a good time to increase my credit line. They know just how to do that when you need it the most. I just stopped charging on my cards and now I'm paying them down over time. It's not hard to get sucked in to that web but very hard to get out. Thanks for focusing on this.
Good to know. My mother is on SSD and is being hassled for a credit card debt that is at least 15 years old. They want an astronomical amount of money from her...interest you know! Somewhere around $30,000. She is 70 years old and a stroke and Alzheimer's patient. I told them she couldn't pay them and to leave her alone! No payment has been made for well over 7 years!
Thanks very much.
Very interesting! Thanks for the info.
I see the ads :)
You don't come to often lately, do you? I am missing you :)
Hello Misha! I am back! I have been so busy with other things that I did not have much time to be here, but now....I get to read all those great hubs that were written when I was gone!
Great advice...thanks everyone!
we have to be wise using the credit card. Don't use it if not in emergency situation.
You can't trust the card companies. Seriously how can you trust them? American Express CEO Kenneth I. Chenault compensation for 2008 has been reported to be anywhere between 27-48 million. And this from a company that was losing money? Then he turned around and took 3.5 Billion from the Bailout fund? Who was bailed out? Why do you reward a person for losing money? The entire credit card industry has been scamming and cheating people for years.
Thank you for that comment MikeNV- I agree with you 100%. if they can't make money charging 29% interest, plus all the other fees on credit cards, then they should go under. The gov bails them out, WHY?
Its a joke and we are all paying for it. We are getting ripped off by the CC companies, and then we are sending in our hard earned taxes so that these crooks will have even MORE money! Who bails us out? No one!
I am praying for a cc revolution where we all get together and tell them to stick those cc cards where the sun does not shine. This is perhaps the greatest swindle on the American people...ever!
Sorry, I got carried away, but I get angry everytime I even think of credit cards. I cannot believe the way they do business is even legal. I just don't know what I can do about it, how I can get a protest started that the government will take notice of.
As far as I am concerned,,,all cc debt should be forgiven, that would boost the economy right there. And as far as that credit rating crap...that should be OUTLAWED. It is not fair, there are more mistakes than anything, and it should be against the law that potential employers hire on the merits of a credit report.
The rich get richer, the poor get poorer, and the credit report system is the first link in the chain to out financial slavery.
We, all of us are being financially raped!
What are we going to do about it?
James A Watkins says:
4 months ago
This is pretty good advice. Thanks for the information.