Abouttbaarr Expertise Questions related to credit card management
and use of credit to achieve your financial goals
I have found on google that my screename has been linked to some garbage
financial sites, that I have nothing to do with
Please ask me to verify this if you are not sure
and let me know who is making any claims so i can sue their asses off
this is my website or my blog
http://www.geocities.com/tbaarr/night_vision.html
http://www.tbaarr.blogspot.com/
Experience i own over 10 credit cards
8 of these have credit limits over 10k and i use 2 of them to invest with
i have the balance as a fixed life of the loan balance transfer
and make 10 points profit on the money
Organizations none
I retired doing this in 1996
and wish to pass on my experience.
BE aware I got married in 1998 and started Driving Rig in 2004 so that I could get affordable quality Heath insurance for my family as I now have 2 beautiful daughters 4 and 8 as of aug 2007, so I may take longer to answer som questions.
i cover such subjects as,
my approach to credit,
how to establish and maintain multiple accounts,
how i get single digit life of the loan balance transfers,
how i use their money for 45 days interest free,
how i use credit cards to invest for 30% a year profit,
and how i maintain a 650+ credit rating while holding 5 or more accounts.
I challege anyone have me compare any answer, that suze orman gives on her tv show,
to what i would suggest
as i find her answers just plain incompetant,
especially when she states that borrowing money from an ira causes you to pay double taxation.
Thats just plain wrong
Question I live in Massachusetts, am unemployed and owe $40,000 on 4 credit cards plus a personal loan. I haven't made any payments in 2 months. I own a condo worth $240,000 and owe $60,000 on the mortgage. I have some money in the bank and just got a large credit line against my condo.
Question: How do I best pay off the credit cards - can I get discounts for paying them off? Do I call and make an offer or wait for them to sue me and make an offer on the resulting judgment? My understanding is that people pay off judgments at a big discount. Should I have someone represent me?
Charlie
Answer if you try to pay less then you actually owe
to clear an account
you will get a negative credit action
plus a possible judgement action
ie you can kiss any single digit interest rates goobye for 7-10 years
i would add the total payments of the credit cards together
for one month
then i would take 100k on the equityline
as long as the interest rate is 7% or less
your payment will be around 7-900 a month
i would pay off the most expensive card as far as interest rate
and then try to negotiate a life of the loan balance transfer
to pay card 2 then 3 then 4
before you pay the cards off you should verify that that card offers a balance transfer that is life of the loan
or at least good for a year
if your bills are say 2k a month
then 100k gives you 4 years of time
plus you are acruing principal payments
that will allow you to do a further balance transfer that can extend your time
before your money runs out
remember when you run away from bills that you can pay
which is exactly what you are planning
based on your framed question
you cast doubts on your integrity
credit is solely based on your integrity
and willingness to pay bills you incured
to now try to walk away is not a good idea
how much is the personal loan
because i know from experience of making personal loans myself
that if you shaft me by not getting honest
you will never get my help again
for anything
if you cant get a job in your field
then you need to take a job outside of your field
i suggest going to your state employment office
and get wia approved
that is a fed program that pays for education for a new profession
if you are low income
and being on unemployment or unemployed usually means that
you qualify
i suggest you take the loan
just like donald trump did when he was in trouble
i suggest you read his books at the library as to how
he cleaned up his own mess in the 90's
this loan will allow you stay current while you have at least 2 years to restablish your employment
and dig out
plus in 2 years
worst case you can sell the condo
and enjoy the section 122 exclusion on your profit
ie no taxes as its your personal home
and pay off all debts
in case you have to move
plus have 30k left over
based on
240-60=180
180-100= 80k
80k-48k =32k
48k should cover any comission and discounts
if you run away from you debts
you may win in the short term
but you will lose in the long term
i will close with this
a friend of mine was in a situation as you 2 years ago
he followed this same advice
now all his credit card debt is single digit life of the loan
except one
and that one he just fliped to a 6 month 5%
and recently the card that got paid off
when he did the flip
just offerred him
a 0% offer for 9 months
so if he wishes
he can reflip that 5% balance to 0%
and knock off extra principle
this plus the wia training he got
has allowed him to enter a profession that cant be outsourced
and pays well enough that he can start making double payments
on his short term loans
and then hit the highest interest life of the loan cards
he plans to be debt free in 4 years
after 2 years he plans to increase his investments
to allow his passive income to help kill his debts
