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How To Legally NOT PAY Your Credit Cards Without Bankruptcy

Updated on June 7, 2011

Tearing 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!

This hub is actually about beating credit card companies at their own games and it has nothing to do with credit card counseling which is nothing but another big rip off created to scam you out of your hard earned money. Don't fall for these scams, read on and learn what your legal rights as a consumer are.

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.

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.

Obama promised there would be credit card reform, well, where is it?? Credit card companies continue to charge outragous interest rates. Don't lay down and take it!Call your local politicians and tell them they better do something about credit card reform, or they will not be getting your vote. Its time we got angry and started to stand up for ourselves or nothing will change.


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    • profile image


      4 years ago

      I couldn't figure anything out really. There's just too many different opinions. I just called a debt relief program and they answered questions for like 30 minutes without charging me anything. They tried to sell eventually on some of their programs eventually, but the advice was great! Here's national debt reliefs number if anyone wants to try it 855-531-0255.

    • profile image

      Bruce mozj 

      5 years ago


    • profile image


      6 years ago

      I have a small debt $850.00 with Capital One and have been with them since 2003. I've paid my paymts before the due date. Back in Novenber 2011 I made the min. pymt and December I made the min. pymt and in January 2012 I received a call telling me I had not made the sufficient pymt anount and if I made my next pymt of 42.00 it would bring the account up to date. After 3 months of being told I still haven't made the sufficeient pymt I called and closed the account. Today Sunday Capital One calls and states I need to make a pymt of 139.00. I advised the customer service rep. I could not make the pymt as I am retired and live on a fixed income. I advised her I was still going to make the monthly pymt as I have been and not to call again asking for more of the pymt. Any suggestion? living in AZ

    • profile image


      6 years ago

      Hello. After reading all these posts I did a lot of searching the web which was helpful so my question is can you really just stop cc payments. I didn't see anybody lay out a list of what to do which would be helpful. My situation is that I get income from a private disability insurance Co,own some land, a pick-up and an RV which I live in at the present. Would I run the risk of these thing being taken away from me? Do I go to court if served or just ignore that. Could really use some help soon as I won't be connected to the net soon. So, if anybody can tell me how to start this adventure I would appreciate that. Thanks Robert

    • profile image


      6 years ago

      Can someone tell me what would happen in this situation: A senior citizen in his 80's has no property and only 2-3 thousand in the bank (Social Security / pension deposits) and has a lot of credit card debt but CAN NOT PAY ANY MORE. A question of survival. He is already on food stamps. WHAT will happens if he stops paying?

    • profile image


      6 years ago

      Excellent comments. I came across this site that explains the legal reasons why most credit card agreements are void...very interesting! Banks are crooks and we are the pawns unless we out manouvre them!

    • profile image

      Gregory Kelly 

      6 years ago

      Thanks for your submission. I would love to say that the first thing you will need to complete is to see if you really need credit score improvement. To do that you will need to get your hands on a copy of your credit profile. That should not be difficult, since the government mandates that you are allowed to be issued one cost-free copy of your credit report on a yearly basis. You just have to request that from the right persons. You can either browse the website for the Federal Trade Commission or contact one of the main credit agencies directly.

    • magnoliazz profile imageAUTHOR


      7 years ago from Wisconsin

      Victorb!! Yippy!! I love hearing stuff like this. Credit cards companies are nothing but the global elite, ripping us off. I wish I could stage a credit card revolt! Its time that we even the score. The banks claimed they needed a bailout after they issue credit cards with 33% interest, give me a break. Who bails us out? We have to take care of ourselves, and I applaud you for doing just that.

      THANK YOU SO MUCH! I hope someone else sees this and does the same thing.

    • profile image


      7 years ago

      I flat out gave up on paying my credit cards then the harassment started so I changed my number,now 6 years later they just charged everything off and my credit started improving again with out paying them 1 cent.

    • molometer profile image


      7 years ago from United Kingdom

      Great hub with timeless advice. Well done Voted up

    • applecsmith profile image

      Carrie Smith 

      7 years ago from Dallas, Texas

      Excellent hub. Very informative and laid out in a way that's easy to understand. Thank you for sharing.

    • Ryan-Palmsy profile image

      Ryan Palmer 

      7 years ago from In a Galaxy far, far away

      This is an awesome Hub! Credit Card companies are so completely unrealistically sly! They need to be regulated, but they're not. It's shocking really, and in the end, we end up in serious financial difficulty!

      In England it's easier to stay away from Credit Cards, since we have the NHS amongst other services offering support/services for free, but we pay for this in Taxes, meaning it's easier to live well within your means! However I've noticed a recent trend of 'micro-loans', designed for people who wish to have a small amount of cash in one day...But the APR rate is astronomical, and they don't tell you that (Other than the tiny bit at the bottom saying "Typical APR 2456%)

      I just hope nobody falls into this trap!

      Voted up

    • magnoliazz profile imageAUTHOR


      7 years ago from Wisconsin

      Lone Ranger, sorry to hear about your problems with the cc compainies.

      They are nothing but legal criminals. What ever happened to Obama's promise for cre3dit card reform?? What liar, what a joke on the American people!

    • profile image

      Lone Ranger 

      7 years ago

      I had a little run in with Bank of America. They knew I could not make payments before the 15th of any given month. This, however, would not stop them from trying to move up our agreed payment date (on or around the 20th) of each month to, say, the 13th or so, just to get a $35.00 late fee.

      One day I needed to make a small purchase of $40.00 and it was rejected. My credit limit was $7,000 and my balance was about $3,466. I called them when I returned home (I was out of town) and they told me my credit limit had been reduced from $7,000 down to $3,500. When I inquired why, they said they did not know, but it must be something in my life that made them reassess my credit worthiness. I never did find out what it was, but I have developed a theory.

      At any rate, Bank of America was not done with me yet: their first strike came in the form of placing my limit to within $34 dollars of my balance, then their next strike was calling for a payment around the 13th of the month, knowing that I could not make a payment at that time. I even have in writing from their customer service representative that they would place my payment date on or near the 20th of each month because they understood I could not make payments any earlier. So, to recap: strike one came in the form of a drastically reduced credit limit (without warning or explanation) which they "arbitrarily" set at $34.00 above my current balance, then they hit me with a $35.00 late fee that pushed me over my credit limit by $1.00. Then strike 3 came in the form of doubling my APR to 24.99% because, according to them, I had been a bad boy and needed to be punished for making a late payment and going over my credit limit. This increase in APR to 24.99% essentially doubled my monthly bill.

      I screamed bloody murder and after they had me talk to every department, including bathroom maintenance, they said they would forgive my late fee and over the limit fee, but the 24.99% had to stay. I told them to keep their damn fees and to lower my APR down to its previous level, but they wouldn't budge. Within 3 months, and after I had damned them to Hell, they quickly sold off my account to a debt collector and that's where things are as of today. Best wishes and remember to make purchases in cash or not at all!

    • profile image


      7 years ago

      I just retired at age 62 and after many years of making payments to cc companies, I just elected to stop paying. They can not touch state pension payments and social security.

    • gingeandhales profile image


      7 years ago

      Great information here. My biggest problem is a massive amount student load debt for a field that is in the midst of massive layoffs. I have deferred for many years while waiting for the tide to change, and I see it changing from almost impossible to impossible. Are there any legal strategies for dealing with this kind of debt?

    • profile image


      7 years ago

      There is another way that you can go ahead and not pay your credit cards legally and that is if you go through debt settlement or credit counseling.

      More info:

    • magnoliazz profile imageAUTHOR


      8 years ago from Wisconsin

      Well, well Blake4d!

      You really want to get me a goat?

      Now you have my interest! LOL!!

    • profile image


      8 years ago

      Oh that's what I have been doing wrong all these years. I didn't know you had to pay back the credit card purchases you make. Silly silly me.

      I guess the must really not have like it when I told them that I suggest you find someone in the fraud department and have them pay for this months billing. No wonder they started yelling when I contacted HR and wanted to know the extention to reach this identity theif named Blake4d working under a false name sending his bills to my house.


      Probably should find those cards and send them a nice Xmas gift this year. What do ya think Magnoliazz...?

      Or maybe I could use the last of the credit to fly you out here and have a wild weekend just you and me before they find that 'Blake4d' character and his thugs. I'll buy you a goat if you want.


      Keep on Hubbing. Blake4d

    • triosol profile image


      8 years ago

      Very Informative Hub, I am sure lods of people will be benifited from you valuable information. Voted Up. :)

    • magnoliazz profile imageAUTHOR


      8 years ago from Wisconsin

      Hi ThereMCPhoto

      I am no lawyer, just so you know. I can tell you what a friend of mine did in this situation much like your own.

      First off, no one can touch any kind of disability pay. No matter what bills you have, they cannot come after you. I think the exception is the IRS!

      That alone should take a weight off your shoulders.

      My disabled friend did not pay her CC, and the only thing they could do is send her letters, because she told them to stop calling her in writing. Eventually, I think it was 6 months, they give you what they call a charge off. Yes, this is not so good for your credit score, but then, no matter what you do now, your score is going to be affected.

      Should you get some more cc and max them out too? Well, I am not sure about that, I think they have laws about getting into debt on purpose. I guess it depends what you bought. If you bought gorceries or things you really needed, paid medical bills, that kind of thing it may be okay. But if you bought luxery items, that may be another story.

      I think you should go and see a bankruptcy lawyer and find out exactly what the laws are in your state.

    • profile image


      8 years ago

      I started receiving SSD 2 years ago from my colon caner at 50 years old.

      My wile filed for divorce at this time saying she doesn't want to take care of me.

      I have since been in debt while doing chemo and not realizing the CC debt I was making.

      Now I have one card at 35k and no way to pay with SSD payments.

      This expense was from having to find a place to live and starting over with living expenses.

      Should I just stop making payments, where would this get me ??

      My first choice was to go for CCdebt help and pay about half with a ccdebt relief company. Will this hurt my credit rating ??

      Should I get more credit and max out my new cards and file bankruptcy ??


    • magnoliazz profile imageAUTHOR


      8 years ago from Wisconsin

      Thank you so much breathetotravel!

      I really appreciate someone with your knowledge stopping by and leaving a message. What you wrote here could help a lot of people.

      I am sure the credit card companies know every dirty trick in the book. Plus they will lie and say anything to get people to pay up. As far as I am concerned these guys should be put out of business, their marketing practices should be deemed illegal. There should be some kind of cap on the interest they charge, and there should be some kind of a disclosure clause which tells you exactly how much something will end up costing if you charge it and pay the minimum balance.

      Also the banks and credit card companies...all one and the same. They charge 25% interest on your cards, and they need a bail out? I do not get it!

    • breathe2travel profile image


      8 years ago from Gulf Coast, USA

      I linked your hub to one of my Stop Credit Harrassment hubs:

      Thanks for the additional info, I think readers will find your tips and information helpful.

      One thing to consider is how "account" definitions vary from state to state. Althought the Fair Credit Act defines credit cards as "open accounts", some states (AL for example) allow silver tongued lawyers to re-categorize these accounts erroneously, simply because one facet of the definition of "written account" is applicable (not all) to ANY account with writing, they'll slap a 6 or 10 year statute of limitations on it rather than the 3 year open-account limit. I know this from experience! I had tried to help someone with methods that proved successful in FL & GA... but the guy lost his case in AL because of the illogical legal practises of AL. I plan to write state legislators to update the outdated law, which was penned prior to the era of credit cards. For example, they give bankruptcy homestead exemption up to a whopping $5,000 or 120 acres.... hmmm... that sounds balanced in conventional rate exchange, right? NOT. Sound like the original legislators actually intended to protect homeowners who hit hard times... but, alas, as much of our legislation's orignal intent has fated... current judicial interpretation doesn't give a "flying flip" about original intent. How sad and unfortunate for this and future generations... but that's enough about that!

      warm regards ~

    • profile image


      8 years ago

      What happens if I decide to leave the country with out paying my Credit Cards? Do they folow you? Is it posible to get in trouble overseas?


    • profile image


      8 years ago

      I am drowning in credit card debt!!! Please help!!! I am being told that if I don't make these payments I will be taken to court and a judgment placed against me ...What to do ..I am barely making enough to pay house payment and groceries.

    • magnoliazz profile imageAUTHOR


      8 years ago from Wisconsin

      Look up Health and Human Services" or "Dept Of Aging" in your home town phone book. Give them a call.

      Many times there is some help for older people, such as fuel assistance, even help paying property taxes, and if you can get food stamps, take them. Why should the illegal aliens get all the help!

      Believe me, it benefits everyone when senoirs stay in their own homes. If you chucked it all and went to assisted living or a nursing home, Medicare would have pay out that 5000.00 per month per person expense, and they don't want that, so there should be some support in your community which helps people just like you.

      Its really a shame you are in this situation at this time of your life. This is not the America I know, and I think it will even be worse in the future.

      Better make that call today, before they run out of resources and not one gets any help.

      God Bless, I really hope this will help you out.

    • profile image

      still there 

      8 years ago

      Any suggestions for senior citizens, so far under that they never will see daylight? Thanks for taking time to write this. But my problem is not when, but never will be at this rate.

    • Sunnyglitter profile image


      8 years ago from Cyberspace

      I wish I had read this sooner. I thought I knew a lot about credit, but I was not aware of this.

    • Synn profile image


      8 years ago from Brunei

      A very interesting advice here, I myself still have one credit card to closed, I knew it has been a burden having to pay only a minimum amount every month. Thanks for sharing this. You got my vote :)

    • magnoliazz profile imageAUTHOR


      8 years ago from Wisconsin

      Thank you RG Nestle for these great links! Hopefully they will help some people out. I am interested in the Secret History of the Credit Card, that should prove real interesting.

    • RGNestle profile image


      8 years ago from Seattle

      You tell it like it is! So many things are out of the common persons view and could help them so much: like sending a FAX or registered letter to a debt collector telling them to stop calling you or anyone you know. They will only be able to contact you via mail after that, but few people know about it. The Fair Debt Collection Act has all the information you need to deal with these crooks. Everyone can get their free pdf copy here:

      And take a look here, for a wonderful documentary about The Secret History of the Credit Card. It's enlightening!

    • magnoliazz profile imageAUTHOR


      8 years ago from Wisconsin

      Thank you for your comment Jman0001!

      I guess the reason so many people feel they are "entitled" in not paying off their credit cards is because these companies are loan sharks pure and simple!

      Americans get sucked into these credit card offers, never realizing the high interest rates.

      Most people have paid for what they bought over and over again!

      My advice is to stay away from credit cards as much as possible. These companies are making it just about impossible to be able to function without their products, don't you think that is by design?

      If you think you can beat them at their own game, good luck, but I am thinking the credit card companies know about every trick in the book by now.

    • jman00001 profile image


      8 years ago from Texas

      Interesting hub is many ways. I’m writing one from a different perspective now. It relates to something I learned from another a few years back in how to take advantage of select credit cards and actually make money off them by beating them at their own game using their own rules.

      Honestly I wonder if most hub people would prefer that to finding ways to avoid paying off legitimate debt?

      Why do so many hub followers feel that they are entitled to use credit cards for purchases yet not pay them back ( at least what was directly spent plus a reasonable interest rate if the loan is more than 30 days)?

      That’s said I do agree that late fees, hidden fees and high interest rates can be argued as not legitimate debt is some cases. I also tend to agree that the bank credit card departments share similar value to many of the insurance companies and some retail establishments – namely predatory ( and we the consumer are the prey).

      The other HUGE risk most do not know about is “reverse shoplifting” by some companies against those using credit cards. That loss can much greater than credit interest payments.

    • Granny's House profile image

      Granny's House 

      8 years ago from Older and Hopefully Wiser Time

      Cool, great to know. I will bookmark this hub. You never know.

    • profile image


      8 years ago

      Vote up!!

    • profile image

      Credit Card Debt 

      8 years ago

      The statue of limitations is really awesome. Thanks for sharing this great information.

    • Cheeky Girl profile image

      Cassandra Mantis 

      8 years ago from UK and Nerujenia

      Wow, very informative hub, especially interesting about the statute of limitations. Wonder what the heck our UK law equivalent for that is? Heh! Worth bookmarking this! Thanks!

    • profile image


      8 years ago

      hi, great hub. i am from India and here too its become a great menace. actually the entire banking sector is being run on falsehood th world over and making the public their fodder. first they keep calling and bother you with offers and then on recovery .. very inhuman!! i think Mr.Obama, Mr.Brown, Mr.Sarkozy, Mr.Singh and all other world leaders should see to this global problem and tackle this just as they are doing about changing weather, terrorism, global warming, world economic crisis etc. .. cheers mate!!

    • magnoliazz profile imageAUTHOR


      8 years ago from Wisconsin

      Hi Rochelle~

      You are right about credit cards and small business. Much as we hate credit cards, the economy does not do well without them, something I was not thinking of when I wrote this hub.

      Last year Americans charged 17 billion dollars LESS on their credit cards. At first I thought GREAT, but when I started thinking about it...that 17 billion dollars probably paid the wages of thousands of people.

      Its really sad that we have based a huge part of our economy on something like credit cards.

      If only the rest of us had Rochelle's good common sense. How to Use Credit Cards should be a mandatory class in every school. They need displays of how long it takes to pay off an item with all that interest. Even if you get something on sale and you think you got a deal, think again! Add the interest you pay and then you have the TRUE cost, and I can guarantee you, it is an ugly picture!

      Thanks so much Rochelle for your very insightful comment!

    • Rochelle Frank profile image

      Rochelle Frank 

      9 years ago from California Gold Country

      Too many people just don't understand the concept of interest, and of course the credit card companies don't do anything to help people understand. That would be detrimental to their business.

      I have found them to be a great convenience for buying online, making reservations and for travel when I don't want to carry a lot of cash. I never use them for things I can't afford, and always pay immediately. I use a debit card whenever possible.

      One thing I have noticed is that the time between billing and payment due seems to be getting shorter-- another way to get 'late fees' and interest from people. You have to be careful.

      A little cafe near us will take credit cards for an additional $1.50-- this is clearly stated on their menu because the card companies have raised their fees to businesses and this is tough on small entrepeneuers.

    • magnoliazz profile imageAUTHOR


      9 years ago from Wisconsin

      Dear NJ-

      Yes, those credit cards that are closed are also under the SOL laws. The SOL starts when you STOP making the payments. That's why the credit cards companies will call people up and harass them into making an even small payment, because that starts the SOL all over again! These companies are complete and total criminals!

    • profile image


      9 years ago

      What about credit cards that are closed accounts because you opted out and would not agree to letting them raise your interest rate? Does these count in the statue of limitations?

      Very useful info I wish I knew a long time ago. Thanks a lot!

    • magnoliazz profile imageAUTHOR


      9 years ago from Wisconsin

      The statue of limitations in the UK is 6.5 years. After that time, debtors cannot come after you for the debt. However, I am NOT a lwayer, this is just info that I got off the internet, so if you want to learn more about UK SOL I would consult a reputable legal advisor.

      I hope every country has SOL on the books, for some people it is the only way out. Just so they do not make a habit of it, otherwise the SOL laws will get harder, and life will be difficult for those who need the help most.

    • Sue Adams profile image

      Juliette Kando FI Chor 

      9 years ago from Andalusia

      Great Hub. I was wondering: Does anyone know about a similar law to the statute of limitations in England?

    • magnoliazz profile imageAUTHOR


      9 years ago from Wisconsin

      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?

    • MikeNV profile image


      9 years ago from Henderson, NV

      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.

    • prasetio30 profile image


      9 years ago from malang-indonesia

      we have to be wise using the credit card. Don't use it if not in emergency situation.

    • profile image

      Under water!! 

      9 years ago

      Great advice...thanks everyone!

    • magnoliazz profile imageAUTHOR


      9 years ago from Wisconsin

      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!

    • Misha profile image


      9 years ago from DC Area

      I see the ads :)

      You don't come to often lately, do you? I am missing you :)

    • Kevin30 profile image


      9 years ago from Illinois

      Very interesting! Thanks for the info.

    • brendasue1500 profile image


      9 years ago

      Thanks very much.

    • Kebennett1 profile image


      9 years ago from San Bernardino County, California

      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!

    • Always Frugal profile image

      Always Frugal 

      9 years ago from Maryland

      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.

    • Wanderlust profile image


      9 years ago from New York City

      Very useful information. Thank you for tips!

    • Singular Investor profile image

      Singular Investor 

      9 years ago from Oxford

      Excellent hub Magnolia with some excellent tips - pity I don't live in the USA, anyone know what the situation is in the UK ?

    • profile image


      9 years ago

      nice written.

    • magnoliazz profile imageAUTHOR


      9 years ago from Wisconsin

      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!

    • Bakari Chavanu profile image

      Bakari Chavanu 

      9 years ago from Sacramento, CA

      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.

    • magnoliazz profile imageAUTHOR


      9 years ago from Wisconsin

      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!

    • CorbinZ profile image


      9 years ago

      Nice advice and good information for me...Thank you so much magnoliazz

    • freddyjones2009 profile image


      9 years ago

      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.

    • profile image


      9 years ago

      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:

    • magnoliazz profile imageAUTHOR


      9 years ago from Wisconsin

      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!!

    • magnoliazz profile imageAUTHOR


      9 years ago from Wisconsin

      Thanks for your 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 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....

    • profile image


      9 years ago

      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.

    • magnoliazz profile imageAUTHOR


      9 years ago from Wisconsin

      Mighty Mom and James A Watkins...Thanks for the nice comments!

    • Mighty Mom profile image

      Susan Reid 

      9 years ago from Where Left is Right, CA

      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


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