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Forum Post: Credit Cards --- Paying it Back

Posted 12 years ago on Oct. 6, 2011, 5:10 p.m. EST by Divinityfound (112) from Lincoln, NE
This content is user submitted and not an official statement

I had a slightly interesting... unproductive chat with someone about credit cards.

Apparantly I am a banker for believing in paying back debts and loans that are fair...

But the question to me is important for me because of this:

1) Credit cards you agree to payback, and they are usually insignificant in the amount that you can officially borrow, and you can control yourself in how much you spend with it. So any real debt is your fault, and can dig yourself out of just as easily if you are responsible with it.

  • Notes: I have a 7% interest rate after negotiating with a collector after stating I couldn't give a fuck about my credit rating since I rent.

2) Student loans you have a certain amount of expectation that this loan will give you the experience and training necessary to function well in the market place. You have no control over if things will improve or get worse and there is the social stigma of not even having one. But with the costs growing out of control, I am of the opinion that these are far more acceptable to default on (if it was legal) simply because this could be life destroying.

  • Note: I haven't gone to college or a university, but was lucky enough to land a rather decent job that puts me above the poverty line barely.

Maybe I am missing something or something isn't in perspective, what do you guys think?

FYI: Massive supporter of OWS... so don't suggest I'm not. I just don't understand the mentality to not payback smaller more manageable debts.

29 Comments

29 Comments


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[-] 2 points by HHHHHHHH (5) from Philadelphia, PA 12 years ago

I worked at a student loan lending and servicing institution for six years. I can not stress enough how important it is to NOT default on these loans. An education is not a house or car that can be repossessed, but a loan for something that is intangible. Your wages will be garnished if you go into default, and TRUST me you will be hounded relentlessly for repayment. Furthermore, the rates are high and interest will just keep tacking onto your account. Look into a Forberance or Deferment before choosing to default on this type of loan. Interest will still accrue, but at least your credit will remain intact.

I can completely sympathise that many student loans are OUTRAGEOUS. My heart just bleeds for these poor souls that have paid $100,000+ for an education and now can't find a job...it's an atrocity. But try and do your homework before electing to attend a school that's so expensive. Community college first, then transfer. Keeps tuition at a more manageable rate. I know not everyone can do that, depending on the field you enter, always worth looking into.

Remember: Student loan agencies will NOT be sympathetic. Hope this helps.

[-] 1 points by Divinityfound (112) from Lincoln, NE 12 years ago

Begs a few crazy ideas to get out of such a vicious circle... taking out alternative loans to pay that off and defaulting on those alone... may be very expensive and lethal to your credit, but it would at least set you up to be debt free...

But depends on your priorities, I don't know. I'm not a loan legal professional.

But your post does help put certain things into perspective on how the system works... which probably makes me understand why people hate the student loan debt...

[-] 1 points by ObIwAnErIC5 (6) from Cortland, NY 12 years ago

im 18 and im already hopeless about my future. things must change.

[-] 1 points by Divinityfound (112) from Lincoln, NE 12 years ago

20 and I gave up on even starting college. So I had to take a job. But luckily I live somewhere that a dollar goes really far.... but can't say for the same for you man :/

[-] 1 points by HHHHHHHH (5) from Philadelphia, PA 12 years ago

It's an industry poised to make money. I'm not against repaying debt, since it is a choice whether or not one goes to school, but it truly is amazing how a school can charge six figures for an "art degree" when there really is no solid chance its graduate will ever find employment gainful enough to repay what's been borrowed. I have my own student loans, which are very low because I went to a state school and took out loans that would ONLY cover my tuition. NO extra loans for books, housing, food, etc. Getting a college education is doable if gone about the right way. When I graduated from this Big-Ten university, I had only amassed $22,000 - but I worked the entire time to pay for my books and housing out of pocket. Also, pick a major that is in demand. IT, nursing, engineering, accounting - they may not be your dream job, but you will more than likely find a job right out of school, or like some of my friends, have job offers even before graduation. My husband got a job before graduating with an IT degree through an internship he was completing. Do not get a liberal arts or communications degree (like myself) unless you want to work for a student loan agency (if your lucky) which was the most demoralising job I've ever had (although I won't complain, since there's many people who would love to have that much). Basically, there are ways to get an inexpensive, marketable education - you just need to do some homework and produce some elbow grease. It's always easier said then done, I know, but it can work. I'd be happy to give anybody whatever advice I can, or at least point them in a helpful direction. Hang in there, everybody...It seems hopeless, but don't give up!

[-] 1 points by Divinityfound (112) from Lincoln, NE 12 years ago

With the amount of help you could offer is definitely something that is admirable since most people have a "mememe" mentality.

[-] 1 points by HHHHHHHH (5) from Philadelphia, PA 12 years ago

It's our duty to help one another and I'm hoping more people in this forum and committed to this cause will make it a point to do so. I was in your shoes only a few short years ago and hope I can be of assistance where ever I can. I understand - It's so scary, especially for people just entering the work force and thinking about college. It still is for me too! But we can make a difference one person at I time. :)

[-] 1 points by ObIwAnErIC5 (6) from Cortland, NY 12 years ago

you dont understand. this was a cheap school. i need a good education. its the interest rates that killed me. student loan agencies need stricter regulations on how to assess a recent graduate of high school. i havent been on this earth for too long meaning i havent taken out loans for cars or houses. my point is how can they assess me with such an extremely high rate for having no credit history?

[-] 1 points by Divinityfound (112) from Lincoln, NE 12 years ago

$30-$35K is cheap?! How much are schools on average in NY?!

[-] 1 points by ObIwAnErIC5 (6) from Cortland, NY 12 years ago

i took out an alternative loan for college for $12,000. $6,000 a semester. thats fair. i understand that it is my responsibility to pay that back. however i dont think i am entitled to pay back the 9% interest rate that the bank i took the loan out of set me up with. i dont even have a credit history and the bank is already giving me that rate. that brings my bill up to $26,000 a year for a public school.

[-] 1 points by HankRearden (476) 12 years ago

Ouch, indeed. That might be a more valuable lesson than anything else you learn with that money.

[-] 1 points by Divinityfound (112) from Lincoln, NE 12 years ago

Ouch :( --- Now that sounds painful and unfair :/ --- $26,000 is more than I make in a year.

And 9% for something you will use for the rest of your life? Its a vicious circle...

So you feel the interest rates are the only abusive element to it all?

How would you feel if it was just like double the inflationary rate?

[-] 1 points by ObIwAnErIC5 (6) from Cortland, NY 12 years ago

i feel very strong about the unfairness of the interest rates. that was only one loan agency however. i have loans taken out through new york state with 5% interest rates. for one year of public schooling im guessing ill be 30-35,000 dollars indebt. and as a plan of protest on my behalf i only plan to pay back what added up to my tuition and that only.

[-] 1 points by Divinityfound (112) from Lincoln, NE 12 years ago

$30-35K?!

For crying out loud that is insane debt...

So you don't feel that a bank/investor should make money on a risk that they make with a chance that they won't get their money back?

[-] 1 points by ObIwAnErIC5 (6) from Cortland, NY 12 years ago

your suggestion would be fair.

[-] 1 points by ObIwAnErIC5 (6) from Cortland, NY 12 years ago

i believe that judging someone based on numbers like credit history and applying incredibly high interest rates in unfair. the banks have to be brought down. i cant live my life like that. i cant support a family someday with that debt. im scrambling to find cheaper colleges at the moment in my first year of college. now you tell me this. is that living the college experience properly?

[-] 1 points by Divinityfound (112) from Lincoln, NE 12 years ago

For today? Not ideally but it is the case...

But I think it should be a more pleasant one. Everytime I walk on a college campus, I just envision a random number above each of their heads of how much debt they owe to some institution or another... and its really kinda sad.

[-] 1 points by far2wrld (53) 12 years ago

Times up! for the greedy.

[-] 1 points by Jolibear (47) from Greenfield, MA 12 years ago

I agree that it's only fair to pay back credit cards, but I think that people are feeling vengeful of the credit card companies because of how terrible and overpowering they are. I do not think that is an excuse to take the easy way out and default on these debts. I have never accrued any debt in my life and never intend to, with the exception of a mortgage someday. It is incredibly irresponsible to being paying out money faster than you are making it.
Some credit card debts, though, are probably through a need for money because of not having enough for the necessities such as food and clothing. These debts are a little more debatable than the people who have just spent spent spent as if credit cards were extra money, not something to be paid back every month.

[-] 1 points by Divinityfound (112) from Lincoln, NE 12 years ago

So you think it is just bad blood between the creditor and debtor?

For me, I use the credit card as a security policy to pay my bills online, and then I log into my online banking and pay it all off in two days from money in my checking.

But it is kind of depressing to use credit for essentials :/ --- then again begs the question of the initial purpose of credit.

[-] 1 points by Jolibear (47) from Greenfield, MA 12 years ago

The entire basis of the credit system was to screw us over. The only way they can make money is if we don't pay them back on time. Therefore, their intention was to build worldwide debt. I am the same as you, I use the card as a convenience, and a way to build credit (I almost didn't get an apartment once because of a lack of credit history), and pay it off in full every month. Some people don't have enough common sense to treat it that way. Some people don't have enough money to survive, and supplement with credit. It dishonest and false. We are living in a society that gives no meaning to the balance between labor, resources, and yield.

[-] 1 points by Divinityfound (112) from Lincoln, NE 12 years ago

I think us getting screwed was a side effect of the credit-debt system.

I believe that what is more dangerous is the fractional reserve because that is literally non-existence money popping into existence just because we want to borrow some... I think that it would make more sense to require them to loan real cash.... as opposed to something that is typed into the computer system.

[-] 1 points by Jolibear (47) from Greenfield, MA 12 years ago

I don't think it's an either/or thing. They're both valid points and not mutually exclusive.

[-] 1 points by Divinityfound (112) from Lincoln, NE 12 years ago

Maybe my imagination is lacking. Can you explain?

[-] 1 points by KenBrown (2) 12 years ago

These people are idiots, there in no reasoning with morons.

[-] 1 points by Divinityfound (112) from Lincoln, NE 12 years ago

Care to explain what you mean?

[-] 1 points by KenBrown (2) 12 years ago

These people are idiots, there in no reasoning with morons.

[-] 0 points by far2wrld (53) 12 years ago

Credit Card-Paying back sweating the deal again! Fine print not included this time. I guess they will never give up.

[-] 1 points by Divinityfound (112) from Lincoln, NE 12 years ago

It is a legitimate question.