You can face number of problems if you default on your college loans.  As a general rule, you should be committed to payback each dollar along with any interest accrued before thinking about borrowing any money.

Education, especially college education costs a lot of money. In recent years decent college education cost has gone beyond means of ordinary American household.  Most of the students going to college these days take one or more loans in order to pay for the ever increasing expense. It does not matter which type of loan you take for your college education, you have to pay them back after your graduation.

So, What happens if you don’t pay back your loans? Defaults and bankruptcy is very common in current economic environment. Default on loans is a difficult and negative situation for those individuals who can not pay their loans or choose not to repay loans for any reason. Among the results, Financial difficulties, employment problems and relationship issues are common.

Read the full story

These are difficult times for our economy. Each one of us is feeling the pinch due to increased cost of living. It is getting very difficult to make ends meet. In difficult times like this it is very easy to amass a huge credit card debt. It can happen to anyone. Even to people who have been financially responsible. “Can I just don’t pay my credit card bills?” is the question many individual ask themselves and friends. This option is very much there. It also will give you some extra cash for few months ahead. But following are few of major problems you can get yourself into if you stop paying your credit card’s monthly payments.

Collection Calls

This is most scary part of Credit Card Game. Credit Card Companies will constantly call you and demand their money back. Collectors may call you 5 – 7 times a day. They will call you at home, They will call you at work and they will call you on your mobile phone too. There have been some reports that collection agents have been calling bosses, co-workers, and family members (which amounts to harassment and is not legal). They go to any length to get you on phone and when they get you on phone they use a lot of psychological techniques to lure you into giving them checking account numbers and other banking information. They will use every trick to make you pay. One of  the well known methods is that they intimidate and threaten you by telling you that they will take your house, car etc. Or they will bring police to your home. all this can be very stressful on some people. You will also start getting letters in the mail from them that may eventually turn more demanding.

Don’t get intimidated by them, Know your rights and report any violations to police and seek help. Most of the credit cards are unsecured so no one can take your car, house, furniture, etc. Worst thing these credit card companies can do is…  they can really damage your credit score.

Read the full story

Be sure and cancel your credit cards before you die!!

A lady died this past January, and Citibank billed her for February and March for their annual service charges on her credit card, and added late fees and interest on the monthly charge. The balance had been $0.00, now somewhere around $60.00. A family member placed a call to Citibank.

Here is the exchange:

Family Member: “I am calling to tell you she died in January.”

Citibank: “The account was never closed and the late fees and charges still apply.”

Family Member: “Maybe, you should turn it over to collections.”

Citibank: “Since it is two months past due, it already has been.”

Family Member : So, what will they do when they find out she is dead?”

Citibank: “Either report her account to frauds division or report her to the credit bureau, maybe both!”

Family Member: “Do you think God will be mad at her?” (I really liked this part!!!!)

Citibank: “Excuse me?”

Family Member: “Did you just get what I was telling you – the part about her being dead?”

Citibank: “Sir, you’ll have to speak to my supervisor.” (Duh!)

Supervisor gets on the phone:

Family Member: “I’m calling to tell you, she died in January.”

Citibank: “The account was never closed and late fees and charges still apply.” (This must be a phrase taught by the bank!)

Family Member: “You mean you want to collect from her estate?” Read the full story