Pay Garnishments Rise as Debtors Fall Behind

[jacko]

http://www.nytimes.com/2010/04/02/business/economy/02garnish.html?hp

Time for debtors to quit being dumb about your rights and become pro active to empower yourself in protecting your dough.

[dscurlock]

They are taking more action to get what is rightfully belongs to them. You can not always blame the creditors...there are consumers that just plain out ignore creditors, and do not even bother going to court to defend themselves. If creditors can think of any better ways to collect, I am sure they will try...I have seen users on this forum that are just plain proud of not paying their debt and avoiding all creditors...no wonder creditors are taking more, and more drastic measures.

[jacko]

I think most debtors here wanted to pay their creditors off and tried to ask for relief. But the creditors instead jacked up the interest rates, changed the due dates every other month and attached fees. Now that the damage has been done with a ruined credit report, there is no incentive to care anymore when the creditors start calling with lenient terms and willing to settle after adding to the balance with the fees and interest.

Its a dog eat dog country we live in and everyone has to look out for themselves.

They are taking more action to get what is rightfully belongs to them. You can not always blame the creditors...there are consumers that just plain out ignore creditors, and do not even bother going to court to defend themselves. If creditors can think of any better ways to collect, I am sure they will try...I have seen users on this forum that are just plain proud of not paying their debt and avoiding all creditors...no wonder creditors are taking more, and more drastic measures.

[junker]

They are taking more action to get what is rightfully belongs to them. You can not always blame the creditors...there are consumers that just plain out ignore creditors, and do not even bother going to court to defend themselves. If creditors can think of any better ways to collect, I am sure they will try...I have seen users on this forum that are just plain proud of not paying their debt and avoiding all creditors...no wonder creditors are taking more, and more drastic measures.

you have got to be kidding....you can not blame the creditors????....what ever happened to common sense???? if someone is obviously having a problem...especially now or in the last year....what is the FIRST...VERY FIRST..thing the creditor does....slap you with MORE charges....ie late charge..some added penalty....instead of trying to work something out..like lets put a payment on the end..no added charge... or SOMETHING to work with you...NO...add more charges...to make SURE you go down the tubes....
if someone owed me money...and was paying faithfully every month and then suddenly stopped....i would try to work with that person to get back on track...not throw added fees to drag the person farther in debt...no wonder people start saying ++++ it..i quit, sue me. creditors dont understand people are going to feed their families, children, and make sure, if possible they have a roof over their head,,,before they worry about paying a late payment fee on a credit card....

[Jackdog]

I love the changing the date the bill is due. Home Depot did that to me twice.
I don't think most people here are proud that they are no longer paying their CC debt either. Most posts I've read from seem to be from people like me they weren't sleeping at all and stressed constantly over the situation they are now in. Someone who doesn't care about their debt wouldn't have any issue sleeping at night. I sleep better now that I found this site but I still wake up once a night. Before this site I didn't sleep. I'm not proud and this is my own fault. But, at the same time. It's hard for me to feel much sympathy for my CC's when I begged them for years to work with me on interest rates only to be told no. A 29.99 percent should be illegal.

[Bell30656]

I also agree that the credit companies are the party wronged. We, the debtors signed contracts promising to pay them back with interest. We agreed with all their terms and conditions. No one held a gun to our heads making us sign those papers.

Then when we no longer wanted pay them, we quit answering our phones. We ignore all the threatening emails and then some ignore the summons allowing the collection department or company to get a default judgment. Then we complain when our bank account gets nabbed, our car is seized and our wages garnished.

Now having said all of that... I am also an advocate of filing an answer to any court papers, dragging them out for months even years on the crowded dockets before ultimately filing Chapter 7 just before the creditor gets to collect anything.

Changing the due dates, high interest rates, etc... were in the terms you agreed upon. There is a little clause saying that they can change the terms by sending you a notice. If you don't argue with said notice terms are changed. Everyone should follow one simple rule: READ WHAT YOU SIGN

[jacko]

You are absolutely correct. But I changed the terms on them and walked away. Feels good to be collection proof and not use a CC for over a year.

I also agree that the credit companies are the party wronged. We, the debtors signed contracts promising to pay them back with interest. We agreed with all their terms and conditions. No one held a gun to our heads making us sign those papers.

Then when we no longer wanted pay them, we quit answering our phones. We ignore all the threatening emails and then some ignore the summons allowing the collection department or company to get a default judgment. Then we complain when our bank account gets nabbed, our car is seized and our wages garnished.

Now having said all of that... I am also an advocate of filing an answer to any court papers, dragging them out for months even years on the crowded dockets before ultimately filing Chapter 7 just before the creditor gets to collect anything.

Changing the due dates, high interest rates, etc... were in the terms you agreed upon. There is a little clause saying that they can change the terms by sending you a notice. If you don't argue with said notice terms are changed. Everyone should follow one simple rule: READ WHAT YOU SIGN

[treehugger1]

I'm taking the stand that everyone was wrong. But in the end, it is not relevant who was right and who was wrong. The creditor was in it to make a profit and the debtor in it because they didn't or would not pay cash, using credit instead. That credit was easily and WILLINGLY extended to the debtor. While I agree that one has a tie to the original contractual obligation, I fail to see where anyone has a moral obligation. I don't believe that any of the current mess is truly about the money. The money is just another symptom of some larger problem.

[Bell30656]

You are right Treehugger. It is a bigger problem. Lenders should say NO a whole lot more often. Then borrowers should read what they are agreeing to. Think about it do you need that Lincoln in the driveway? Maybe you could buy a Ford instead? Lenders have weighed the chances of getting repaid and adjusted interest rates accordingly. Now they are doing what they can to get that money back.

Anyone remember when there were CHARGE cards as opposed to CREDIT cards? You racked up a balance each month but paid it off at the end of that month. What a concept.

As for a moral obligation to pay your debts (or mine for that matter)... What is your word worth? I am certainly not proud of the fact that I didn't live up to the commitments that I made. I actually paid back a few of the local debts I had due to the fact that I had to face them. Nothing like going to church and seeing some small business owner that I used CH7 to charge off.

[BROKEDED]

Over the past couple of decades credit has been given out so freely, at least credit card wise, that it's not valued any more. Anyone can get a credit card. When you read stories about children or pets being offered credit cards, it lessens the perception of being "credit worthy".

I read, once, that if you have kittens or puppies that you are trying to give away that you should never offer them for FREE. Always ask at least a nominal fee like $1 or $5. This puts a value on the pet and it was more likely the new owner would take care of it after having given something for it. I think credit cards and to some extent houses are the same way. They have been given out to so many underserving people, at least by media accounts, that there is not as much pride anymore in owning either one.

Likewise, during tough economic times, when financial institutions are seen as thumbing their noses at last years "loyal customers", I think they shoot themselves in the foot. When corporations are seen as being bullies or greedy, it doesn't take long for most people to take a position and it's not usually on the side of corporate America.

Of those that are affected, some will swim to shore and escape with just a few bumps and bruises and will probably be thankful but secretly feel a little invincible after all is said and done. Some will tread water with all that they own but will ultimately go down with the boat, silently screaming the whole way that they are responsible and moral. They will use up their 401ks, savings, kids college funds, just to lose everything in the end and on the banks terms. Others, like a lot of people on this site, will grab ahold of the life preserver. They may swallow alot of water but they eventually make it to shore.

I think when the value of credit cards and houses have lost their glimmer, and the banks are seen for what they are and not what their commercials tell you they are, more folks will see that grabbing a life preserver is not a cop-out or a cowardly act, as many of us have been taught. The life preserver will be seen for what it is and as the name implies, a way to stay alive and move forward.