Banks asking for credit card debt forgiveness

[creechrr]

I’ll add myself to the list of fools. Unless there’s a back lash this country is going to fail. We can’t continue like this.

I bet if I stopped paying taxes I’d be halled off in short order but, stop paying a mortgage or credit cards, I’d get a pat on the a$$…WTF!

[cooperthedog]

This plan to *help* consumers is really a way for the banks to avoid taking a 100% loss if the consumer files for bankruptcy.

From the article, only those deeply in debt are eligible, and the maximum forgiven is 40%, and that is reserved for those “nearing a personal bankruptcy filing”.

Most credit card contracts have a default rate (eg 30%). So after a year of non-payment, your debt is now much higher, you’re about to throw in the towel, when your friendly bank allows you to avoid bankruptcy by forgiving up to 40% of your debt (roughly your penalty interest) and allowing you to pay of the “reduced”, yet original loan principal, over the next X years. In addition you can forestall the income tax you owe on the forgiven debt until you payoff the bank (then you get to make payments to the IRS), and the bank can wait to book its losses – everyone wins!

A consumer drowning in debt should just file bankruptcy and get it over with. 100% debt “forgiveness” and no income tax. Ruined credit and a lesson learned. The banks should take it on the chin for such poor business practices.

[cooperthedog]

This plan to *help* consumers is really a way for the banks to avoid taking a 100% loss if the consumer files for bankruptcy.

From the article, only those deeply in debt are eligible, and the maximum forgiven is 40%, and that is reserved for those “nearing a personal bankruptcy filing”.

Most credit card contracts have a default rate (eg 30%). So after a year of non-payment, your debt is now much higher, you’re about to throw in the towel, when your friendly bank allows you to avoid bankruptcy by forgiving up to 40% of your debt (roughly your penalty interest) and allowing you to pay of the “reduced”, yet original loan principal, over the next X years. In addition you can forestall the income tax you owe on the forgiven debt until you payoff the bank (then you get to make payments to the IRS), and the bank can wait to book its losses – everyone wins!

A consumer drowning in debt should just file bankruptcy and get it over with. 100% debt “forgiveness” and no income tax. Ruined credit and a lesson learned. The banks should take it on the chin for such poor business practices.

[cooperthedog]

This plan to *help* consumers is really a way for the banks to avoid taking a 100% loss if the consumer files for bankruptcy.

From the article, only those deeply in debt are eligible, and the maximum forgiven is 40%, and that is reserved for those “nearing a personal bankruptcy filing”.

Most credit card contracts have a default rate (eg 30%). So after a year of non-payment, your debt is now much higher, you’re about to throw in the towel, when your friendly bank allows you to avoid bankruptcy by forgiving up to 40% of your debt (roughly your penalty interest) and allowing you to pay of the “reduced”, yet original loan principal, over the next X years. In addition you can forestall the income tax you owe on the forgiven debt until you payoff the bank (then you get to make payments to the IRS), and the bank can wait to book its losses – everyone wins!

A consumer drowning in debt should just file bankruptcy and get it over with. 100% debt “forgiveness” and no income tax. Ruined credit and a lesson learned. The banks should take it on the chin for such poor business practices.

[cooperthedog]

This plan to *help* consumers is really a way for the banks to avoid taking a 100% loss if the consumer files for bankruptcy.

From the article, only those deeply in debt are eligible, and the maximum forgiven is 40%, and that is reserved for those “nearing a personal bankruptcy filing”.

Most credit card contracts have a default rate (eg 30%). So after a year of non-payment, your debt is now much higher, you’re about to throw in the towel, when your friendly bank allows you to avoid bankruptcy by forgiving up to 40% of your debt (roughly your penalty interest) and allowing you to pay of the “reduced”, yet original loan principal, over the next X years. In addition you can forestall the income tax you owe on the forgiven debt until you payoff the bank (then you get to make payments to the IRS), and the bank can wait to book its losses – everyone wins!

A consumer drowning in debt should just file bankruptcy and get it over with. 100% debt “forgiveness” and no income tax. Ruined credit and a lesson learned. The banks should take it on the chin for such poor business practices.

[cooperthedog]

This plan to *help* consumers is really a way for the banks to avoid taking a 100% loss if the consumer files for bankruptcy.

From the article, only those deeply in debt are eligible, and the maximum forgiven is 40%, and that is reserved for those “nearing a personal bankruptcy filing”.

Most credit card contracts have a default rate (eg 30%). So after a year of non-payment, your debt is now much higher, you’re about to throw in the towel, when your friendly bank allows you to avoid bankruptcy by forgiving up to 40% of your debt (roughly your penalty interest) and allowing you to pay of the “reduced”, yet original loan principal, over the next X years. In addition you can forestall the income tax you owe on the forgiven debt until you payoff the bank (then you get to make payments to the IRS), and the bank can wait to book its losses – everyone wins!

A consumer drowning in debt should just file bankruptcy and get it over with. 100% debt “forgiveness” and no income tax. Ruined credit and a lesson learned. The banks should take it on the chin for such poor business practices.

[peterb]

What’s really sad is that someone can go BK and qualify for a loan within 12 months later. No moral hazard here. It’s a free for all. If you never use credit, what good is it to you?

[peterb]

What’s really sad is that someone can go BK and qualify for a loan within 12 months later. No moral hazard here. It’s a free for all. If you never use credit, what good is it to you?

[peterb]

What’s really sad is that someone can go BK and qualify for a loan within 12 months later. No moral hazard here. It’s a free for all. If you never use credit, what good is it to you?

[peterb]

What’s really sad is that someone can go BK and qualify for a loan within 12 months later. No moral hazard here. It’s a free for all. If you never use credit, what good is it to you?

[peterb]

What’s really sad is that someone can go BK and qualify for a loan within 12 months later. No moral hazard here. It’s a free for all. If you never use credit, what good is it to you?

[Arraya]

Maybe the central banks can give them really low interest rate loans like they are for all of Wall Street, the Big Three, the USG and about 30 or so countries that can’t meet their obligations? This is an epidemic, a sickness that has metastasized on an international level.

The good thing for the banks is they created the money out of thin air. They technically did not put up anything. So it’s really just a paper work thing for them. The banks probably prefer it if people default because it just gives them more control and the just create money with a key stroke anyway.

The IMF and World Bank have been pulling this scam for years on 3rd world countries. Load them up with debt, hope for default and get resources, property of intrinsic value and influence over political decisions in it’s place. It’s the scam of the century.

Personally responsibility is key but it’s kind of undermined when you have a coordinated effort to promote irresponsibility by the MSM/Wall Street-Fed/USG axis, this happens when debt is your main export and need it to keep the economy running.

We have a fundamentally sick economy. One that relies on continuation of debt creation just to keep from collapsing. We have reached the end of the line. This is the twilight of irredeemable debt.

[Arraya]

Maybe the central banks can give them really low interest rate loans like they are for all of Wall Street, the Big Three, the USG and about 30 or so countries that can’t meet their obligations? This is an epidemic, a sickness that has metastasized on an international level.

The good thing for the banks is they created the money out of thin air. They technically did not put up anything. So it’s really just a paper work thing for them. The banks probably prefer it if people default because it just gives them more control and the just create money with a key stroke anyway.

The IMF and World Bank have been pulling this scam for years on 3rd world countries. Load them up with debt, hope for default and get resources, property of intrinsic value and influence over political decisions in it’s place. It’s the scam of the century.

Personally responsibility is key but it’s kind of undermined when you have a coordinated effort to promote irresponsibility by the MSM/Wall Street-Fed/USG axis, this happens when debt is your main export and need it to keep the economy running.

We have a fundamentally sick economy. One that relies on continuation of debt creation just to keep from collapsing. We have reached the end of the line. This is the twilight of irredeemable debt.

[Arraya]

Maybe the central banks can give them really low interest rate loans like they are for all of Wall Street, the Big Three, the USG and about 30 or so countries that can’t meet their obligations? This is an epidemic, a sickness that has metastasized on an international level.

The good thing for the banks is they created the money out of thin air. They technically did not put up anything. So it’s really just a paper work thing for them. The banks probably prefer it if people default because it just gives them more control and the just create money with a key stroke anyway.

The IMF and World Bank have been pulling this scam for years on 3rd world countries. Load them up with debt, hope for default and get resources, property of intrinsic value and influence over political decisions in it’s place. It’s the scam of the century.

Personally responsibility is key but it’s kind of undermined when you have a coordinated effort to promote irresponsibility by the MSM/Wall Street-Fed/USG axis, this happens when debt is your main export and need it to keep the economy running.

We have a fundamentally sick economy. One that relies on continuation of debt creation just to keep from collapsing. We have reached the end of the line. This is the twilight of irredeemable debt.

[Arraya]

Maybe the central banks can give them really low interest rate loans like they are for all of Wall Street, the Big Three, the USG and about 30 or so countries that can’t meet their obligations? This is an epidemic, a sickness that has metastasized on an international level.

The good thing for the banks is they created the money out of thin air. They technically did not put up anything. So it’s really just a paper work thing for them. The banks probably prefer it if people default because it just gives them more control and the just create money with a key stroke anyway.

The IMF and World Bank have been pulling this scam for years on 3rd world countries. Load them up with debt, hope for default and get resources, property of intrinsic value and influence over political decisions in it’s place. It’s the scam of the century.

Personally responsibility is key but it’s kind of undermined when you have a coordinated effort to promote irresponsibility by the MSM/Wall Street-Fed/USG axis, this happens when debt is your main export and need it to keep the economy running.

We have a fundamentally sick economy. One that relies on continuation of debt creation just to keep from collapsing. We have reached the end of the line. This is the twilight of irredeemable debt.

[Author]

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