Why are credit cards paying people to cut up the card?
Credit Score
I was reading in the news that now companies are not filling our mail boxes with adds for new credit cards.
They are wanting people to pay off their credit cards faster and adding new charges to get you to pay them off faster. I thought that is how they made money?
Because they figure that the cardholders aren’t going to pay them back anyway. The deal is the credit card companies will forgive the debt of some of their worst customers, if they destroy their card and thereby promise not to run up any more bills.
What they are doing is trying to reduce the number of people who don’t carry a balance, or who have a large balance but don’t use the card that often.
I guess they do not need credit accounts to make money?
Or two many people are borrowing with no plans to pay it back.
Illustration:
I was talking to someone who was recently laid off in South Carolina
he saw his neighbors looseing everything. Thrown out in the street with no job, no stuff and no where to go. They forclosed on the house and threw their stuff in a dumpster.
Before that could happen to them he was almost 62 and could get social security soon knew he couldn’t sell the house and the payments were like over 3500 per month, so eventually they were going to loose the house. He had a counsin in McCurtain Oklahoma and knew in this town you could buy a lot in town cheap and it allowed mobil homes. Never dreaming he would leave his 3,000 sq ft dream home. He never paid another bill, he knew it would take time to catch up with him. Using credit cards, savings account and his good credit he got his counsin to purchase a lot for him for $1500. in town in OKlahoma, Where all the utilities were available, such as electricity and sewerage, and bought him a almost new mobil home 16 x 80 they have 1200 sq ft with 3 bedrooms 2 baths and have it brought to the lot. Around 15,000.
Then rented a u – haul truck and loaded up all his stuff and left South Carolina expensive by the golf course neighborhood, came to McCurtain Oklahoma. He was able to get all the utilities and set up. Getting the cash out of his bank savings and checking before he ever missed a payment. Put everything in his counsins name just in case and said they can have what I left behind but at least I have a place to live and money enough to last here until I can get my social security.
He had a lot of credit cards he maxed out for the cash and filed bankruptcy. More people are doing that and leaving the credit card co. holding the bag. His utilities he said were just a portion of what he had been paying. He cancelled everything behind and never got it where he was going like cell phone service, phone service and cable and he said a hundred things from internet to country club membership, we realized we didn’t need and could live without.
But he said we were not going to live on the street at our age.
Actually I thought it was pretty clever, their are cheaper places to live than the big cities. Before you go into forclosure and loose everything you have to act. After you do it is to late to down size.
Ruth is right I see that in McAlester Oklahoma, they sell out when they loose their job for a lot less than they paid for their house and pull the equity out of it and start looking for a cheaper place to live.
They know they cannot keep up payments that are thousands of dollars a month and go to some of these little towns that allow mobil homes or just have cheap houses and relocate from areas that houses cost 350,000. to buy and buy a lot you can put a mobil home on or find a mobil home park that is very inexpensive. It is better than being put out on the street. One women her husband lost his job and so that is what they did and she started VOTECH to be a nurse. Something she thought she would never do. He was a system analysis and got a job as a janitor. People are doing what they have to too to survive. But waiting until you loose everything is not a solution.
i wish mine would let me do that
People are moving into Greenville Texas, from all over because houses are cheaper here and they leave behind unpaid credit cards and unpaid mortgages.
From big fancy jobs they drive to Dallas to find any kind of work.
You can rent any house or apartment out and mobil home parks are filling up.
Some people are living in RV’s and even the RV parks are filling up.
Living in a little town we see that everyday, people are moving from the big cities here because houses are cheap. Especially senior citizens who have lost pensions and perks they thought they had.
They cannot afford to stay it the houses they had before and buy something cheaper here. Small two bedrooms houses are the hottest sellers on the market right now. Where before you couldn’t pay something to take it. Mobil home parks are filling up and so is RV parks.