Other than ruining your credit rating, what happens when you default on an (unsecured) credit card balance?

-- Carol McPherson (arizcarol@aol.com), July 20, 1998

Answers

Some companies will bug you as much as possible for the money. If it still is not forthcomming they will sell your "contract" to a debt collection company. This is where the real fun begins. All this of course depends on how much money you defaulted on. If the dollar amount is high, bet on problems. If not, you may just have a big ol zero on your credit rating. Credit card companies may even attempt settle with you for whatever you can afford. Make sure you get it in written form.

Collection companies are lower than "snake spit" and have some interesting third world approaches to life in general. They should be avoided at all costs. If you own anything, they consider it fair game. If you are really poor, you know the old saying about blood from a turnip.

Of course if Y2K turns out to be a real nasty party then it will not matter much will it. Then again, if it turns out to be a walk in the park you have all that debt.

My advice, much like how bad I feel Y2K is going to be, is play the middle of the road. Only enough debt you can afford to work yourself out from if Y2K is minor. Given the amount of time left and the items one should have on hand I would say unless you are rich and have 30k sitting around doing nothing, you started too late.

j

-- j (yada@yada.com), July 20, 1998.

I'm wondering if TSHTF what good would a credit card be anyway? I don't think you will be forgiven the debt, that is, you will still be on record somewhere owing on it. However, if you are in the same boat as a lot of people where you will have no job, then you can tell them to kiss off. It's too early to tell which way it will go. I would pay the minimum on it, and use your extra cash to buy supplies. I myself have paid off everything, closing my bank accounts, getting a mail drop, and use a cell phone, and just sit back. By the way, when I got my new phone number, the previous person who had my number must have owed everyone. I was accused of being that person by the bill collectors, I was harrassed day and night. Finally, I told them that the individual passed away. Sometimes, I would say, "just a minute, I'll get her" and just lay the phone down and then hang it up 20 minutes later! This also works well for those obnoxious solicitors.

-- Barb-Douglas (bardou@yahoo.com), July 20, 1998.