Seeking credit advice for pensioner carrying visa bill

[Legless_Marine2]

I've got a friend who's a recent senior citizen. They've been carrying a 7000 Visa debt for the last 7 years, and only making the minimum payments. Now, they are only drawing a pension, and can hardly afford to pay at all.

They feel they've payed their debt, and want out of credit slavery.

From what I understand, if they walk away from their debt, it can eventually be garnisheed out of their govt pension. Also, the cost of a bankruptcy process doesn't seem worth it.

Does anyone else have advice for this person to get out?



Any help appreciated....

[Ven]

Part time job.

[Ajay]

Minimum payments is hardly paying the debt. The minimum payments is essentially doing nothing but killing the interest that keeps compounding every bill cycle.

Don't think there's much this person can do except possibly see a credit counselor about the matter and work out a payment plan with the creditor.

[rage2]

Originally posted by Legless_Marine2
They've been carrying a 7000 Visa debt for the last 7 years, and only making the minimum payments. Now, they are only drawing a pension, and can hardly afford to pay at all.

They feel they've payed their debt, and want out of credit slavery.

Wow. Talk about a WTFBBQ! So if I buy a house, get a mortgage, pay minumim for 7 years, feeling like I've "paid my debt", I shouldn't have to pay anymore?

[sputnik]

Originally posted by Legless_Marine2
I've got a friend who's a recent senior citizen. They've been carrying a 7000 Visa debt for the last 7 years, and only making the minimum payments. Now, they are only drawing a pension, and can hardly afford to pay at all.

They feel they've payed their debt, and want out of credit slavery.

From what I understand, if they walk away from their debt, it can eventually be garnisheed out of their govt pension. Also, the cost of a bankruptcy process doesn't seem worth it.

Does anyone else have advice for this person to get out?



Any help appreciated....

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[asuth077]

Go talk to a bank. It is ridiculous for him to think he has "paid" his debt. But putting it into a loan might lower the interest rate and ensure it is actually being paid off.

[JRSC00LUDE]

Originally posted by sputnik



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You heartless son of a bitch, my hat is off to you!

[Super_Geo]

Tell him to get a lower interest line of credit. His credit card is charing him what... 19.00%? A LOC will be much lower, especially if they own their home and they can get a home equity line of credit. HELOCs can be as low as prime -0.8%.

It's a shame seeing seniors who never kept track of how money management evolved in the last 50 or so years. Keeping a $7000 debt on credit cards paying 19% interst a year means that over the past 7 years means he's already paid $9310, and that's just in interest!

If he had it in a HELOC at 6%, he would've only paid $2940 in interest, and that difference of $6370 would have already paid off the rest of the debt.

Get him in to see a financial advisor ASAP.

[natejj]

Originally posted by sputnik



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[barney]

Originally posted by asuth077
Go talk to a bank. It is ridiculous for him to think he has "paid" his debt. But putting it into a loan might lower the interest rate and ensure it is actually being paid off.

X2, if they can find a co-signer, they should be able to get a pretty good rate that will allow them to actually pay this debt off.

That whole minimum payment thing is a crock anyhow.
That's how Visa (and the rest) can sponsor things like the Olympics.

[DepTrotter]

that was a great pic, and i was gonna suggest he work as a door greeter as well, what does he have to lose?.. i would say his dignity, but he already lost that when he said hes paid his dues by paying minimum on his creditcard for 7 years.

[codetrap]

Wow.. just wow. That's a lot of money paid to just maintain a debt. Perhaps he could get a no interest loan from his family to pay it off?

[tictactoe2004]

speachless... wow.. someone retired a little too early.

[nos_efx]

If he's got family willing to help, take out a line of credit and loan it to him so he can pay off the 7g's.

The 20% interest on 7000 is crazy, I cannot believe he maintained that for 7 years.

The fact that he said he feels hes paid enough he should be for it.

Originally posted by Legless_Marine2
I've got a friend who's a recent senior citizen. They've been carrying a 7000 Visa debt for the last 7 years, and only making the minimum payments. Now, they are only drawing a pension, and can hardly afford to pay at all.

They feel they've payed their debt, and want out of credit slavery.

From what I understand, if they walk away from their debt, it can eventually be garnisheed out of their govt pension. Also, the cost of a bankruptcy process doesn't seem worth it.

Does anyone else have advice for this person to get out?



Any help appreciated....

[jdmXSI]

Wow! Id say just not too pay it!!! Last time i checked, i didn't sign anything to VISA or M/C saying i was going to pay them for what i used Worst case scenareo is the C/C company takes him to collections and the account get written off.

Hope everything works ouut for the guy!

[RUQUIKR]

If worse comes to worse, you have the option of going to a credit conselling(sp) service and go into OPD. OPD is orderly paid debt and is basically the only option before declaring bankruptcy. It should make it fisable to pay off the debt without just paying interest.

[Supa Dexta]

Originally posted by jdmXSI
Wow! Id say just not too pay it!!! Last time i checked, i didn't sign anything to VISA or M/C saying i was going to pay them for what i used Worst case scenareo is the C/C company takes him to collections and the account get written off.

Hope everything works ouut for the guy!

what the hell are you talking about...

[asuth077]

Originally posted by Supa Dexta


what the hell are you talking about...

Haha I would also like to hear the explanation for that statement.

[Redlyne_mr2]

Originally posted by sputnik



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hahaha my dad always used to measure failure in life as someone who works as a greeter @ walmart.. he used to always threaten me with that job if I didnt do well in school.

[Legless_Marine2]

Thanks to those who posted helpful replies.

Those who posted replies mocking my friends predicament are disgusting morons.