Knowledge is certainly power when dealing with creditors. I might say things that you might not agree with or attempt to try as I am an aggressive jerk with these people but it does work.
If you are struggling to pay your bills then DO NOT PAY YOUR CREDIT CARDS. That is unsecured debt and there is little to nothing they can do about it as I soon will share.
Never be nice with credit card companies or creditors on the phone. Nice people do finish last with them and I will explain that too.
Never ever be intimidated by your creditors. You can stop them from calling you and they CANNOT TAKE YOUR HOME OR CAR FROM YOU!!!!
Beware of most debt relief companies as they will soak your money!!!!
Here is what I've learned:
If you realize that you can no longer make your payments or can barely make minimum then stop paying them. Debt Consolidation is often not the best way out of debt. Most people fail on such programs anyways.
Here is exactly what I did with Discover card. I called them and told them that I hit rock bottom and needed their help. Discover told me that they will drop my percentage 2% which basically meant "screw you" to me. I didn't pay them anything. I then received a phone call demanding payment and I said, "Unless you help me then forget you and do not call here again." This went on for 2 months more and then they came down to 9.9% and lowered my monthly payment by $60.00. I told them that they could shove that interest rate since it doesn't help me to get out of debt and hung up on them. Each time the percentage went down.
Can a creditor sue you? Yes, but that is usually last resort especially if you are ignoring them. If you have a balance of over $10,000.00 then they might sue you. Find out your state laws because all they could get from me is 15% max out of my weekly paycheck. They can put a lien on my property but who cares since I am not planning on selling my house anytime soon.
Remember, a creditor can never take away your car or house. I had a creditor threaten my home and this is what I said to him, "Oh really? You are going to call my bank and tell them that you have $300000.00 dollars to buy my home? The bank owns my home you moron so how do you think you can take it?" That shut him up immediately.
Here is what you do to eliminate the chances of lawsuits. Get rid of any assets that you may have (IRA's, extra car, boat, equity, etc). Make life difficult for them by eliminating all or most accounts that have your social security number attached to it. Empty your CD's, Savings Account and so on as they will try to look into that (advice from a lawyer). You want to make them believe that you are flat broke. If you have all the debt and not your spouse then open a new checking account under his/her name and simply sign your paychecks over to that person (advice from lawyer). If you are not going to pay your creditors then do not advertise where you are putting away that extra money now. If they see that you are stashing away $300.00 a week into a savings account or have $3000.00 in there then they will go after that.
Never be nice to these people on the phone. I get great results by not asking open ended questions but making demands. I called a credit card company before and asked if they could remove a late fee and they said "no" and refused to budge. I realized that you have to demand and never ask to get your way and use language that tells them that you mean business. I called that credit card company back later mad and said exactly this, "I want you to remove that late fee now and I am not playing any f***ing games either. Also, change my percentage rate that you guys doubled back to what it was now or give me your damn supervisor." I heard dead silence in the background and then a few seconds later, "It's done sir." I got what I wanted. Now I didn't have to say the ***** but I wanted to be honest as to how I talk to these people.
You can stop creditors from calling too by law. Creditors located my family members and started harassing them. They called my father-in-law and that was the last straw for me. I called them up and said, "Who the **** do you guys think you are calling my family? Are you paying them to be your personal ****ing secretary? If I ever get wind again that you called anyone whether family, friend or neighbor then I am going to file a harassment suit against you and your ass will be a sling!! DO YOU UNDERSTAND ME?" When I did that there again was dead silence on the phone and then a "yes." I told them that their dealings is with me and me only and I will never tolerate that sh** again. Now you do not have to swear but it does seem to get the reaction that I like. I have never found open ended questions to work. If I were to call that creditor and say, "Why did you call my family? You need to stop doing that" then I would get a response that says, "Tough beans!! We will do whatever it takes to get our money!!!!" This is why it never pays to be nice to them. You can tell them to stop all phone calls too and threaten them.
Creditors do not like it when you call their bluff either. If you get one that threatens you with a lawsuit then simply say what I did, "Good!! I actually want you to do that. I have no assets, no equity, no savings, CD's, IRA's and so on. I'm not planning on moving so feel free to place a lien on my property. If you sue me then no other creditor can sue me and they will have to wait in line until my 15% wage garnishment pays off your debt and if you do the math then it will be years before you get full payment. So yes, I want you to sue me and if I cannot afford that 15% to be taken out of my check then I will simply file chapter 13 and you will have to wait a year before it will make it to court and all wage garnishments stop the moment I file. So does this mean that we are done talking and that we will meet again only before a judge?" Watch the reaction you will get because you just spoiled their entire tactic. With creditors that are real jerks then hound them with phone calls asking them questions such as, "Do you have the right by law to threaten law suits? (they don't)" When they say yes then ask them for proof because you will be filing a complaint with your lawyer (bluff only). Ask them if they have yet proceeded with the lawsuit and ask why not if they haven't yet and encourage them to hurry it up. Fax them questions, email them questions and call them every hour if they have been really obnoxious. They will start screaming at you but payback is a *****. Trust me, with this attitude they will not be so willing to call you.
Don't let creditors push you into paying any money that you cannot afford to give up. You pay your mortage, car payments and utilities ONLY. You can deal with the creditors by phone and tell them that you are working on getting some money and that they need to back off or you will have no choice but to file bankruptcy. The whole time you should be stashing whatever extra money aside until you have enough money to negotiate with them. If you owe them $7000.00 and only saved $2500.00 then you tell the creditors that you can give them a check for $2500.00 and that is ALL you will give them. Make sure you get in writing that the debt is officially DONE and give them the check. You might be required at the end of the year to pay the IRS the savings you made but there are ways around that if you are strapped for cash as there is a form you can fill out. You can negotiate on your own or you can use someone such as Performance Source to help you.
I usually get someone mad at me when I tell them that I refuse to give my credit cards one further dime but too bad as my home is more important to me that their high interest BS credit cards that I will be over 80 years old before it is fully paid back. I know that I screwed up but I am not going to have that weight over my head until I am ready to kick the bucket as I want to enjoy life now!!! There is not much they can really do to you so keep that in mind. You do the pushing and never let them. Make their lives a hell instead of them making yours a hell instead. Bankruptcy is your best threat and will always buy you time as you save money to negotiate with. Never ignore them but tell them that you are trying to get out of a hole and you will try your best to get them a payment soon. They will ask for a date and it is OK to lie to them and say "next month" and then when next month comes say that again to them but I never tell them anything. When they demand I date then I realized that I am losing the control and that I have to turn things around by responding harshly, "I said I don't ****ing know! What part of that do you not understand? When I get the freaking money you will get it, OK? Don't push me or the consequences will hurt us both in the end" and then I hang up. Remember to get rid of any extra assets right away as they might go after that. Use your assets to be used as money that you can later negotiate with. Talk to any lawyer and you will learn that creditors do not have much power over you and that you have the power over them and a lawsuit doesn't mean much.
I should probably make it clear that you can ask collection agencies not to call but you cannot stop the credit cards from calling since your debt is directly with them. I did say that you should never ignore your credit card companies. Discover card is one card that will sue you for little amounts so ignoring them will never make them go away. This is why it is good to get someone to work with them quick. A company that simply ignores them for 8 months like many of them do will most likely get you sued. Most debt negotiation work like that and that is why they have little success with Discover or Citibank.
Most important, Never ever ignore the credit card companies when they call you for long periods of time. I talk to them once a month and always after I missed the payment by about a week. Some people cannot deal with the stress and will ignore their phones always and that is a mistake. However, when you answer the phone then do not allow yourself to be bullied. You bully them and make them sweat. Whenever I talk to them I make sure that they listen to me and that is where a very angry tone and profanity works great. If they give me some bogus deal then I will make them feel like a piece of crap for offering it. I was able to get my creditors to take a $35000.00 debt into a $500.00 a month payment and that isn't bad as it was over $1200.00 before. You have to kick their ass to get it though. You can start with the credit card companies and after their 12 month hardship period is over then you will give Accelerated Debt a call since they (credit cards) are going to jack the interest way back up again.
Remember too, you are negotiating with them on the phone about the monthly payments and interest so make sure it is what you can handle. Remember that they are going to try to make it as high as possible so do not think that if they say 12% and $180.00 a month is final and their best offer. If they say they cannot go any lower then hang up and let them sweat a week. Don't you sweat, let them sweat. It might take 4 months to get what you want but each month pound away at them. The moment you are answering questions and telling them dates is when they are in control and you must stop that immediately. When they ask, "LeftWing, We need a payment today. How much can you give us right now?" Don't fall for that crap as they will seek to pressure the hell out of you and cuss them out if they try threatening you and come back with your own threats. This is what I told one credit card that demanded money and asked how much could I come up with at the present moment, I said, "Not a f***ing penny. I told you what I want and if you can't meet that then there is nothing more to talk about. Your time is running out as you people are leaving me no choice but to file bankruptcy and you can then wait a whole f***ing year before you get your first very low payment. Now, do you have something that will work for me or not? Should I hang up now?" If they tell you that this is all they can offer then hang up as they are probably telling the truth. At that point in the game that is all they are allowed to negotiate. Wait until next month and the amount will drop, trust me on that. If they want their money bad enough then trust me that they will do anything to avoid lawsuits or you filing bankruptcy in order to get it. This is something that most fail to understand and will keep paying Credit cards whatever money they have at 25% or more and that is dumb. Fight those jerks.
If you are struggling to pay your bills then DO NOT PAY YOUR CREDIT CARDS. That is unsecured debt and there is little to nothing they can do about it as I soon will share.
Never be nice with credit card companies or creditors on the phone. Nice people do finish last with them and I will explain that too.
Never ever be intimidated by your creditors. You can stop them from calling you and they CANNOT TAKE YOUR HOME OR CAR FROM YOU!!!!
Beware of most debt relief companies as they will soak your money!!!!
Here is what I've learned:
If you realize that you can no longer make your payments or can barely make minimum then stop paying them. Debt Consolidation is often not the best way out of debt. Most people fail on such programs anyways.
Here is exactly what I did with Discover card. I called them and told them that I hit rock bottom and needed their help. Discover told me that they will drop my percentage 2% which basically meant "screw you" to me. I didn't pay them anything. I then received a phone call demanding payment and I said, "Unless you help me then forget you and do not call here again." This went on for 2 months more and then they came down to 9.9% and lowered my monthly payment by $60.00. I told them that they could shove that interest rate since it doesn't help me to get out of debt and hung up on them. Each time the percentage went down.
Can a creditor sue you? Yes, but that is usually last resort especially if you are ignoring them. If you have a balance of over $10,000.00 then they might sue you. Find out your state laws because all they could get from me is 15% max out of my weekly paycheck. They can put a lien on my property but who cares since I am not planning on selling my house anytime soon.
Remember, a creditor can never take away your car or house. I had a creditor threaten my home and this is what I said to him, "Oh really? You are going to call my bank and tell them that you have $300000.00 dollars to buy my home? The bank owns my home you moron so how do you think you can take it?" That shut him up immediately.
Here is what you do to eliminate the chances of lawsuits. Get rid of any assets that you may have (IRA's, extra car, boat, equity, etc). Make life difficult for them by eliminating all or most accounts that have your social security number attached to it. Empty your CD's, Savings Account and so on as they will try to look into that (advice from a lawyer). You want to make them believe that you are flat broke. If you have all the debt and not your spouse then open a new checking account under his/her name and simply sign your paychecks over to that person (advice from lawyer). If you are not going to pay your creditors then do not advertise where you are putting away that extra money now. If they see that you are stashing away $300.00 a week into a savings account or have $3000.00 in there then they will go after that.
Never be nice to these people on the phone. I get great results by not asking open ended questions but making demands. I called a credit card company before and asked if they could remove a late fee and they said "no" and refused to budge. I realized that you have to demand and never ask to get your way and use language that tells them that you mean business. I called that credit card company back later mad and said exactly this, "I want you to remove that late fee now and I am not playing any f***ing games either. Also, change my percentage rate that you guys doubled back to what it was now or give me your damn supervisor." I heard dead silence in the background and then a few seconds later, "It's done sir." I got what I wanted. Now I didn't have to say the ***** but I wanted to be honest as to how I talk to these people.
You can stop creditors from calling too by law. Creditors located my family members and started harassing them. They called my father-in-law and that was the last straw for me. I called them up and said, "Who the **** do you guys think you are calling my family? Are you paying them to be your personal ****ing secretary? If I ever get wind again that you called anyone whether family, friend or neighbor then I am going to file a harassment suit against you and your ass will be a sling!! DO YOU UNDERSTAND ME?" When I did that there again was dead silence on the phone and then a "yes." I told them that their dealings is with me and me only and I will never tolerate that sh** again. Now you do not have to swear but it does seem to get the reaction that I like. I have never found open ended questions to work. If I were to call that creditor and say, "Why did you call my family? You need to stop doing that" then I would get a response that says, "Tough beans!! We will do whatever it takes to get our money!!!!" This is why it never pays to be nice to them. You can tell them to stop all phone calls too and threaten them.
Creditors do not like it when you call their bluff either. If you get one that threatens you with a lawsuit then simply say what I did, "Good!! I actually want you to do that. I have no assets, no equity, no savings, CD's, IRA's and so on. I'm not planning on moving so feel free to place a lien on my property. If you sue me then no other creditor can sue me and they will have to wait in line until my 15% wage garnishment pays off your debt and if you do the math then it will be years before you get full payment. So yes, I want you to sue me and if I cannot afford that 15% to be taken out of my check then I will simply file chapter 13 and you will have to wait a year before it will make it to court and all wage garnishments stop the moment I file. So does this mean that we are done talking and that we will meet again only before a judge?" Watch the reaction you will get because you just spoiled their entire tactic. With creditors that are real jerks then hound them with phone calls asking them questions such as, "Do you have the right by law to threaten law suits? (they don't)" When they say yes then ask them for proof because you will be filing a complaint with your lawyer (bluff only). Ask them if they have yet proceeded with the lawsuit and ask why not if they haven't yet and encourage them to hurry it up. Fax them questions, email them questions and call them every hour if they have been really obnoxious. They will start screaming at you but payback is a *****. Trust me, with this attitude they will not be so willing to call you.
Don't let creditors push you into paying any money that you cannot afford to give up. You pay your mortage, car payments and utilities ONLY. You can deal with the creditors by phone and tell them that you are working on getting some money and that they need to back off or you will have no choice but to file bankruptcy. The whole time you should be stashing whatever extra money aside until you have enough money to negotiate with them. If you owe them $7000.00 and only saved $2500.00 then you tell the creditors that you can give them a check for $2500.00 and that is ALL you will give them. Make sure you get in writing that the debt is officially DONE and give them the check. You might be required at the end of the year to pay the IRS the savings you made but there are ways around that if you are strapped for cash as there is a form you can fill out. You can negotiate on your own or you can use someone such as Performance Source to help you.
I usually get someone mad at me when I tell them that I refuse to give my credit cards one further dime but too bad as my home is more important to me that their high interest BS credit cards that I will be over 80 years old before it is fully paid back. I know that I screwed up but I am not going to have that weight over my head until I am ready to kick the bucket as I want to enjoy life now!!! There is not much they can really do to you so keep that in mind. You do the pushing and never let them. Make their lives a hell instead of them making yours a hell instead. Bankruptcy is your best threat and will always buy you time as you save money to negotiate with. Never ignore them but tell them that you are trying to get out of a hole and you will try your best to get them a payment soon. They will ask for a date and it is OK to lie to them and say "next month" and then when next month comes say that again to them but I never tell them anything. When they demand I date then I realized that I am losing the control and that I have to turn things around by responding harshly, "I said I don't ****ing know! What part of that do you not understand? When I get the freaking money you will get it, OK? Don't push me or the consequences will hurt us both in the end" and then I hang up. Remember to get rid of any extra assets right away as they might go after that. Use your assets to be used as money that you can later negotiate with. Talk to any lawyer and you will learn that creditors do not have much power over you and that you have the power over them and a lawsuit doesn't mean much.
I should probably make it clear that you can ask collection agencies not to call but you cannot stop the credit cards from calling since your debt is directly with them. I did say that you should never ignore your credit card companies. Discover card is one card that will sue you for little amounts so ignoring them will never make them go away. This is why it is good to get someone to work with them quick. A company that simply ignores them for 8 months like many of them do will most likely get you sued. Most debt negotiation work like that and that is why they have little success with Discover or Citibank.
Most important, Never ever ignore the credit card companies when they call you for long periods of time. I talk to them once a month and always after I missed the payment by about a week. Some people cannot deal with the stress and will ignore their phones always and that is a mistake. However, when you answer the phone then do not allow yourself to be bullied. You bully them and make them sweat. Whenever I talk to them I make sure that they listen to me and that is where a very angry tone and profanity works great. If they give me some bogus deal then I will make them feel like a piece of crap for offering it. I was able to get my creditors to take a $35000.00 debt into a $500.00 a month payment and that isn't bad as it was over $1200.00 before. You have to kick their ass to get it though. You can start with the credit card companies and after their 12 month hardship period is over then you will give Accelerated Debt a call since they (credit cards) are going to jack the interest way back up again.
Remember too, you are negotiating with them on the phone about the monthly payments and interest so make sure it is what you can handle. Remember that they are going to try to make it as high as possible so do not think that if they say 12% and $180.00 a month is final and their best offer. If they say they cannot go any lower then hang up and let them sweat a week. Don't you sweat, let them sweat. It might take 4 months to get what you want but each month pound away at them. The moment you are answering questions and telling them dates is when they are in control and you must stop that immediately. When they ask, "LeftWing, We need a payment today. How much can you give us right now?" Don't fall for that crap as they will seek to pressure the hell out of you and cuss them out if they try threatening you and come back with your own threats. This is what I told one credit card that demanded money and asked how much could I come up with at the present moment, I said, "Not a f***ing penny. I told you what I want and if you can't meet that then there is nothing more to talk about. Your time is running out as you people are leaving me no choice but to file bankruptcy and you can then wait a whole f***ing year before you get your first very low payment. Now, do you have something that will work for me or not? Should I hang up now?" If they tell you that this is all they can offer then hang up as they are probably telling the truth. At that point in the game that is all they are allowed to negotiate. Wait until next month and the amount will drop, trust me on that. If they want their money bad enough then trust me that they will do anything to avoid lawsuits or you filing bankruptcy in order to get it. This is something that most fail to understand and will keep paying Credit cards whatever money they have at 25% or more and that is dumb. Fight those jerks.