patrick.net

I dunno, 7 years is a biblical thing, you could perhaps say that it is faith-based :-)

Hey the financial institution has loopholes and guidelines that allows them to take a $200 debt and sell it ten times over that in five years that debt is now owed to "Dewey, Cheatem, and Howell" for $2000 or more. Screw them. no love loss from me.

No let me do better, like the remarks I got when I bitched about that very thing when I was on the receiving end. "It was in the fine print, when you signed the damn thing" there that does it.

Well it's in our Credit laws, so as long as we have to protections loopholes or outs, then I have no problem when people use it.

Personally I'd like to see the whole damn thing overhauled. For starters it should be a "Government" agency keeping the credit records and not private companies that sell my info and I have to pay them to know what they have. And that whole thing that you can check once a year for free is crap. Your credit can chance daily.
I think it's horse shit, that checking your credit dings you. I think it's crap that paying on an old debt dings your credit just as bad, as not paying the damn thing. It shows up on your credit report for seven more years, as a late payment, not a positive that you actually paid.
i know that happened to me one, I paid an old FPL debt, even though it was due to cycle off my report.

I think nobody should be exempt from debt and the only deciding factor should be what you make vs what you are asking for, and "are you square with the house?"
Mean if you owed 35000 in 1985, then you still owe it today. But the day you pay it off you are in good standing. Everything else is a bullshit system I have no respect for, no do I have any feelings against those that game the system.

Personally I have opted out of the Credit system all together. I now have a clean blank credit report, which means I have "No Credit" and depending on who you ask, is worse than "Bad Credit". But I don't care as I don't want credit ever. I'm having a ball being a cash payer debt free with disposable income and more money to put in the bank.

Who ever said that credit reporting agencies and credit scores are based in reality or fairness?

This system allows for the rich and powerful to do whatever they want to whomever they want whenever they want in order to remain rich and powerful. As long as credit ratings remain in the hands of big corporations (read the top 1% who is in power in reality) and your potential employer (who wants to be part of the top 1%) can use your "credit rating" in his/her hiring decision making process, "We the People" are going to continue to get the shaft and remain downtrodden slaves who are destined to owe large sums of money to the top 1% because we can't get living wages out of the top 1% who holds most of the weath like Gollum (Smeagol) tried to hold on to the "One Ring to rule them all, One Ring to find them, One Ring to bring them all and in the darkness bind them."

The run-on sentence is intended to show the ridiculousness inherent in the current credit reporting systems and the power they wield over ordinary Americans who are just trying to live their lives.

Tenouncetrout says

Well it’s in our Credit laws, so as long as we have to protections loopholes or outs, then I have no problem when people use it.

whose to say this loophole is going to be there in 7 years? especially given that there are now hundreds of thousands who are now relying on it? You really think banks are that stupid? They need to know who are the freeloaders and theyre going to know.

simchaland says

Who ever said that credit reporting agencies and credit scores are based in reality or fairness?

Im not saying they do, my OP was basically noting that the premise that many of the Walk-Away Fly Boyz base their awesome financial decision on may have more repercussions that they think. There may be some flimsy law or two protecting you now, but how much regularity have we found in the financial system as of late?

One thing you have to consider is many of these people who are going to walk away could really care less where their credit is going, now or in the future. So the credit scoring model doesn't matter. We were lucky that we were able to sell our home when my husband lost his job. We had put money down which allowed us to get out and move where the new job was located. However, now living in a small apartment with no home maintenance, property taxes, closing costs, realtor fees and the ability to go if my husband looses his job again means we could care less about our credit score. The vacancys in rentals now is so huge that even if you have a dinged credit report something as simple as a larger security deposit will get you in. I know this is so cliche but cash will get you where you need to go. And a simpler life is really a good thing.

Simple Life, that wouldn't conform with what most of them are saying. They often suggest that dealing the banks a raw deal isn't so bad and all is forgiven after 7 years.

Simple Life says

One thing you have to consider is many of these people who are going to walk away could really care less where their credit is going, now or in the future. So the credit scoring model doesn’t matter. We were lucky that we were able to sell our home when my husband lost his job. We had put money down which allowed us to get out and move where the new job was located. However, now living in a small apartment with no home maintenance, property taxes, closing costs, realtor fees and the ability to go if my husband looses his job again means we could care less about our credit score. The vacancys in rentals now is so huge that even if you have a dinged credit report something as simple as a larger security deposit will get you in. I know this is so cliche but cash will get you where you need to go. And a simpler life is really a good thing.

but dont expect high vacancies for 7 years. The time will come when landlords can pick and choose among tenants.

I think 7 years will hold true for the banks. No reason not to give you a mortgage as long as you have enough skin in the game and the numbers hold up under worst case scenario.

simchaland says

Who ever said that credit reporting agencies and credit scores are based in reality or fairness?

I have my share of doubt on this matter too.

Back in 2002. I was in credit debts, worked like a dog, lived in a rat hole to pay them all off. A guy told me why put yourself in misery? I will show you the better way. I won't go details, but let me tell ya, he is freakin con artist.

What happened in 7 years? He got cash, stuffs, and now got his credit back. I ain't got nothing except a small inner pride knowing I did what responsibles should do. Do they recognize my sincerity? Hell, no.

I saw enough, learned enough. This credit system in US is one of the stupidest, delusional system man ever made on earth. It is designed to make you spend, not desinged to make you live in your means. Those loopholes are still wide open to exploit, and sure he got his second chance to do it again.

seaside,

The banks are counting on debt slaves (buyers) to pay. Meanwhile they (the banks) are happily taking you tax payer dollars and off loading worthless mortgages to Fannie and Freddie thanks to the our friends the treasury and the Fed.

I agree with you that there is no honor amoung thieves.

I'm not sure where you pull this 7 from. It's just an approximation of the amount of time it takes to be totally clear. Credit card companies will start offering you cards again almost immediately. The other effects are largely mitigated in as little as 2-3 years but it may take longer depending obviously. What do you want here? This is America where people take fresh starts and make something of themselves all the time. Countries with debtors prisons have less mobility and are less vigorous.