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[personal profile] geeksdoitbetter posting in [community profile] actyourwage
 am speaking politely and honestly to a creditor right now
 
i love messing with their heads
 
~heh~

i wanted to point something out to y'all:

when you default on a credit card, that debt gets sold to a third party

that debt collection company only expects to recoup something like, less than 10 percent of the debt it buys (10 cents on the dollar), and not even from all the accounts they purchase

now, i'm not even a bit saying that you shouldn't pay for what you got (goods, services, hospital care)

what i *am* saying, is that when the debt collection person tries to get me to agree to a repayment plan of 60 cents on the dollar over 6 months, that might sound awesome, like "wee hoo, i get to just pretend my debt is 40 percent smaller than it is!"

however, if i had that sort of room in my budget, i wouldn't have defaulted on my credit card in the first place, right?

and so, i feel very much ok with continuing the repayment plan that *does* fit my current budget ($50/month with no interest til next june).

and, being in repayment changes the category the debt is listed under for credit score purposes (not that it's even useful to look at my score right now. i won't need to start working toward that until i plan to move again)

tl;dr - being in repayment (with no interest) is a very good place to be. don't let them guilt you into a worse short term deal


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