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How I stuck it to the credit card companies
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2009 Dec 2, 8:00pm 52,378 views 114 comments
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Even though I get why people hate the banks I thank god I had those cards and was able to extract myself from an abusive marriage and protect my kids.
Russell, good for you for making the only sane decision left to you. You would be surprised how many folks would stay in such a situation all due to poor cash flow and damn the kids. You should be commended for being what every parent should be, namely, the protector and nurturer of their children.
Of course this also brings up a good point. Very little in the world is black and white or all good or all bad. Credit is much the same.
This guy bragging is a loser. Deadbeats defaulting on credit cards will make responsible people pay more when they need to borrow.
By the way, there is only one safe state in Mexico where you should build. I wonder where you are putting it? Watch out for squatters because guess what? They can keep the place if you are not careful.
Bragging about being irresponsible or screwing a rich bank or whatever is a sign that you have a screw loose. This is your problem. Good luck with your loose screw down in Mexico.
Full Disclosure: I have lived in Mexico, so I know whereof I speak.
HydroCabron
2011 Oct 3, 1:38am
Deadbeats defaulting on credit cards will make responsible people pay more when they need to borrow.
Bankruptcy reform, thrust upon us in 2006 in order to protect us from those flakes who were ruining the fun of indebtedness for the rest of us, failed to cut interest rates and late fees in general, and - surprise! - boosted the profits of credit card lenders.
Look especially at sections:
-- 4.2. Credit card late fees and over-limit fees increased while grace periods decreased
-- 4.3. Credit card interest rates and the spread above the risk free rate both increased
-- 4.5. Credit card companies achieved record profits
Thanks Buster and Taint Boil! I try to see that most things in life are neutral and that we can put a negative or positive spin on it. Credit card companies charging 29% interest seems pretty negative (and I know how difficult it is to pay off cards at that rate); On the other hand if those cards can get you out of a bad situation then the good outwieghs the bad. No matter what happens I do try to see it as potentially neutral - that there are both good and bad sides to it - and the choice is mine whether to make it positive or negative experience. This has helped me a lot in RE investing in the past b/c even if I really want a deal to work out just being able to dispassionately look at the negative side helps me stay detached - which I believe leads to better investing results. MM may feel good that he 'stuck it to the CC companies' but he won't be gloating if a Mexican drug cartel gets ahold of him after he moves into his new house.
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How I stuck it to the credit card companies and bought a house with a cash advance. All the figures are approximate.
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1.      Make all credit card payments on time and establish good credit.
2.      Working overtime allowed me to use credit cards for everything and make huge credit card payments every month - always on time.
3.      Credit card companies continue to increase my limits. At one point in time my credit limits were over $90,000.00 (unsecured).
4.      Take a $10,000.00 cash advance. Deposit some of this money into my sister-in-laws account in Mexico.
5.      Continue to make credit card payments on time.
6.      Start to build our house in Mexico on my wife’s land that she was given from her mother. The house is started using some of the cash advance from item #4. This money is never re-paid.
7.      Continue to make on time payments to the credit card companies.
8.      Take out a huge $25,000.00 cash advance and deposit into my Scottrade account.
9.      Trade and sell equities in my Scottrade account - making and losing money for about a year.
10.  Cash out my IRA account and pay off some credit cards (about $8,000.00)
11.  Use the money in My Scottrade account for a down payment ($25,000.00) on a bank owned property. No one ever asked where the money came from in the Scottrade account (cash advance from credit card).
12.  Owned a condo before buying the house. Was told by Countrywide agent to make up a fake lease contract so it would “look better†on the application.
13.  Rented out the condo after we moved into the new house.
14.  Take another cash advance to deposit into Scottrade account (this time will be different).
15.  Use credit cards to buy trees, window treatments, appliances for new house.
16.  Stock market crashes – lose all the money in the Scottrade account.
17.  Hours are reduced at work.
18.  First time (actually the second time) late making a credit card payment - one day. Let me repeat that again – ONE DAY LATE.
19.  Interest rate increased to 29% on credit card that was late receiving payment.
20.  Called Credit Card Company and asked them to lower rate because this was the first time I was ever late. They told me “no this is the second time you were lateâ€. Oh, my mistake but I was only late one day, can you give me a break on the interest rate. Nope! There is nothing anyone can do; you are a risk to the bank.
21.  Soon all other cards raise their rates to 29%.
22.  Panic for about 1 minute.
23.  Reduce my hours at work and stop all payments to all credit cards and condo.
24.  File for bankruptcy.
25.  Return security deposit I received from my condo tenants and tell them to live there rent free for as long as they can.
26.  Bankruptcy finished (about $90,000.00 debt erased). Increase hours at work. Continue building house in Mexico.
27. Laughing all the way to the bank.
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