And now a message from the inbox: Black Dynamite, I live in CA and I have about $20k in credit card, car loan and random debt. All of it is about 4 years old in collections. What should I do?? Answer: First, you should figure out what do you WANT to do. Im going to assume you opened those accounts while residing in California. *If your aim is to now live a cash based lifestyle, stop playing the credit game entirely and see more money than youve ever imagined, you could do absolutely nothing and regard your newfound situation as a gift. Changing your habits on spending, saving & investing would then be the focus. These debts are too old to be within the 4 year statute of limitations on debt in CA. Because of this, these debts no longer legally belong to you. You can act as such. *If your aim is to simply get the phone calls to stop, you would send the collector a cease and desist letter. (only when the debt is outside of the statute of limitations. If they can still legally/successfully sue you, and you send them this letter, you can bet youve just fast tracked your way into said lawsuit.) *If your aim is to reconcile these debts because theyre too new to be protected by the 4 year statute of limitation on debt for your state, then you would put each debt into a debt snowball plan and settle each from smallest to largest. You would never make monthly payments on consumer debt in collections - lump sum payment in full only (on the agreed upon settlement amount). *If your aim is to reconcile these debts based on some sort of personal moral obligation, then you would put each debt into a debt snowball plan and settle each from smallest to largest. You would never make monthly payments on consumer debt in collections - lump sum payment in full only (on the agreed upon settlement amount). *If your aim is to qualify for a mortgage, and go deeper into debt, then you would put each debt into a debt snowball plan and settle each from smallest to largest. You should never make monthly payments on consumer debt in collections - lump sum payment in full only (on the agreed upon settlement amount). *If your aim is to qualify for a mortgage with a BETTER RATE, then you would put each debt into a debt snowball plan and PAY EACH DEBT IN FULL (not settle) from smallest to largest. You would never make monthly payments on consumer debt in collections - lump sum payment in full only (on the agreed upon settlement amount). *If your aim is simply to get back on the ho stroll and do the same thing that got you in debt in the first place - trying to raise your credit score for car loans, credit cards and other smoke wit cigarette type hoodrat things with your friends - then you would slap yourself. For everything else, theres filing chapter 7. Does that answer your question?
Posted on: Wed, 14 Jan 2015 02:43:06 +0000
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