Having a single credit card account for convenience

[swampwiz]

Right before I had made the decision to go BK, I had paid down one of my accounts $2K so that I could use the card for groceries, gas, the occasional $20 at Wal-Mart, pay for modest short term rent hotel, etc, etc.

I would like to keep this account current as the one to use. Of course, to do so, I can't very well stop paying it, since as soon as I would be late, the account would be closed. I guess that I'm looking at staying at a hotel for at least a month or so before I could move into my house, so I should go through that $2K rather quickly, so perhaps this is a moot point.

I guess everyone is going to tell me to just pay cash for now on (which is ironic since credit card purchases have receipts associated with them, which makes them better for accounts.)

Or perhaps I should go and set up a secured credit card with a $500 or so balance, and just start using that, and when the court would seize it, I'd just have my mother give the court that amount so I could keep it.

[CCsAreEvil]

I'm confused. So, you "already" filed for BK or about to? If you paid a creditor more than $600 just recently (before filing), it's called "preferential payment" or something. That's not a good thing to do... especially if you have many other creditors which you are not paying or making minimum payments on.

[Snickers]

I guess everyone is going to tell me to just pay cash for now on (which is ironic since credit card purchases have receipts associated with them, which makes them better for accounts.)

Or perhaps I should go and set up a secured credit card with a $500 or so balance, and just start using that, and when the court would seize it, I'd just have my mother give the court that amount so I could keep it.

Paying cash doesn't necessarily mean walking around with a pocket full of greenbacks and having no paper trail of your expenses.

Why not just get a Debit Card from your bank?

[IBroke]

I would like to keep this account current as the one to use. Of course, to do so, I can't very well stop paying it, since as soon as I would be late, the account would be closed.

But you do know that's probably going to happen anyway, right?

[swampwiz]

It's no big thing. I will just start using cash. I wanted to buy some tires mail order, and it seems difficult if not impossible to buy without using a credit card (they are special tires that can only be bought mail order outside of a mountain winter place like Denver or Salt Lake.) Maybe the place will sell it to me with a money order.

I can't get a debit card because I am in the process of winding down my bank accounts (which are the same institutions where I have a credit card) and shifting all my money into a bank where I do not have a credit card.

I have the first of minimum payments that are going to go late coming up this week. Fortunately, credit card issuers are so damn greedy that they will let a missed payment go for a while so they can collect their fees. HA HA

[swampwiz]

I'm confused. So, you "already" filed for BK or about to? If you paid a creditor more than $600 just recently (before filing), it's called "preferential payment" or something. That's not a good thing to do... especially if you have many other creditors which you are not paying or making minimum payments on.

No. I haven't filed yet. I am in the process of "putting my affairs in order", including buying a home, which I have pledged to do with a grant from the state due to Katrina - and the home comes with a $35K exemption which can be done the day before filing with no problem.

I made some moves that might look strange. I have a line of credit in which I would dump money into and then bleed off during the month, and then the next month dump more money into, etc. I was doing it simply because the line of credit costs 12% interest, so I had rather had the balance lowered than keep the balance out and have a bunch of cash in the checking account earning no interest. Had I known that this was a no-no in BK, I wouldn't have done it, but I don't own a time machine. The last move I made was in September. I also did a net dump of $2K into this account that I first mentioned, also before I had virtually decided to go BK (I won't say that I have *officially* decided yet.) However, there is no reason for a trustee to think that that creditor was in any way favored, and in any case, it does not affect the debtor - it only affects the creditors fighting for the scraps - AND in any case, there will be enough residual cash to be distributed to the creditors - either as cash, or as reaffirmed debt because my home will be worth a little more than the exemption, and the house can not be take in BK, AND in any case, I will be bleeding off cash from my 401K to pay off the difference immediately post BK. (Whew, that was one long sentence!)

[IBroke]

I can't get a debit card because I am in the process of winding down my bank accounts (which are the same institutions where I have a credit card) and shifting all my money into a bank where I do not have a credit card.

You previously mentioned Wal-Mart...

Why don't you obtain their debit-card? I have it and I can only recommend it. No bank-account required. Only costs $3 to set up and $3 to "re-fill".

[swampwiz]

Mainly because a debit card does not have the safeguards like a credit card.

I think I need to just get a secured credit card. That should be treated like a debit card in the eyes of the trustee.

[mike258]

Mainly because a debit card does not have the safeguards like a credit card.

I think I need to just get a secured credit card. That should be treated like a debit card in the eyes of the trustee.

You are filing bankruptcy. Forget about using credit cards for the time being. Do not get a secured card until you are discharged. Use a debit card like the rest of us.

[IBroke]

Mainly because a debit card does not have the safeguards like a credit card.

That's what many people think but it's NOT true. A VISA is a VISA and comes with with the same safeguards (aka "The Visa Zero Liability Policy").

[IBroke]

I think I need to just get a secured credit card. That should be treated like a debit card in the eyes of the trustee.

Now, if you get a "mean" trustee, he might ask you "so that's a secured card? Secured by what?"

Often it's secured by a savings-account set up by the bank which could be treated as asset...

Again, the best way is a debit-card..

[leena]

Forget about credit cards, use a debit card, period. Those "safegaurds" on the CC are mostly things you will never need anyway, and most post BK credit card debt that is taken on in the name of "reestablishing credit" is trouble.

Use BK to get and stay out of the financial mess. Forget about credit cards.

[AngelinaCat]

To answer the question, we have a bankcard that is a debit card but can be used as a credit card. We use the credit side because of the cc safeguards. We rarely use it though. We use cash only as much as possible.

That answers the OP's question.

But be aware all who are following this person: he does not want, need, or will take any advice that we posting members might offer. He is here strictly for his own pleasure, and we posters are his playthings. He is an Internet troll, who's only purpose is to 'stir the pot.'

Please see the following threads contained in this search:

http://www.bkforum.com/search.php?searchid=1750876

[swampwiz]

Sorry, I should have said, when I decided to become interested in BK. (I haven't decided officially yet.) </legalDisclaimer>

[swampwiz]

OK, I'll get the debit card at my new bank. I'll open up a new account at my creditor-less bank into which I will transfer some cash to be used by the debit card, and only use it for mail order stuff.