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This is how they will get around regulators and will be able to borrow from the Treasury. Expect the trend to follow.
The Bush regime is more interested in throwing cash at their buddies than saving the American consumer from the crimes that have been committed against them.
My son and I have not had credit cards for several years, and the last one was used only to take advantage of no interest for a year on a range purchase from Sears. Additionally, I don't even use a bank account for my SS check anymore--just deposit what I need to in my son's account and deal with cash for groceries and other expenditures when needed.
It works great.
One person did that about five years ago. He owed about $60,000!!! and just quite paying ($30,000 was a car that he totaled). Today his credit score is fine. He can get all the credit he wants now. He says he doesn't understand it.
Another guy did it about two years ago -- he says there hasn't been any negative fallout -- but it's not like he's trying to buy anything with credit now anyway.
Another person did that about one year ago and negotiated with the credit card companies to pay back lower amounts or nothing. For instance, he owed $6,000 to Chase (I believe) and they settled for $2,500. Cards that he owed smaller amounts, like $600, wouldn't negotiate. He was approved for a $250,000 mortgage not long after he did that -- but didn't buy a house and I don't know if he could do that today.
Hmmm. Does anyone have anything further on this? I'm going to research.
I'm sick of all of this bailout shit--and if the auto industry gets govt help, it will break the unions, industry wide.
Regulate the credit cards in a way that balances the interests of both parties.
I would say the most common piece of advice I give now is to pay creditors £1 per month if clients can afford it, till their circumstances improve, as they are non priority debts. In many cases these people may pay £1 per month till the day they die, unless bankruptcy is an option.
Fortunately, the banks have far less power to pursue these debts than people believe they do, particularly where people have no assets.. Of course there are people who borrowed irresponsibly, but the banks were culpable in enabling this and should suffer the consequences
Personally, I use credit cards for everything but I get cashback and pay the bills in full every month. I like to think I cost the banks money and reard it as a form of guerilla warfare.