Staggering credit numbers…

[bubba99]

“If it is that simple after the law change…I thought you can no longer declear chapter 7 and have your credit cards charges just disappear like that.”

Correct, Chapter 7 bankruptcy is only available to a few – no income people, and then only after month of “credit counseling”. And even then the judge can force them to chapter 13 if it is mostly consumer debt.

The rest will need to develop a payment plan under Chapter 13, and pay for the rest of their lives.

Unless Paulsen et al create a new bailout for credit card debtors.

[4plexowner]

Does anyone know what happens to the interest rate on credit card debts after going through bankruptcy?

Some of the things I read indicate that a single late payment on ANY credit card can result in ALL the credit cards the consumer uses raising their interest rates to a very high rate (I think I have read 29% but that is ridiculously high)

So a consumer gets into trouble, has a late credit card payment and the next thing they know all of their cards are charging them 20%+ interest – a few months of this and they head to the bankruptcy court

I assume the bankruptcy process modifies the consumer’s debt so the monthly payment is manageable (interest rate and amount of payment)

I hope that the bankruptcy court isn’t sending debtors back into the world with debt charging over 20% interest – if they are, the term ‘debt slave’ is appropriate for these unfortunate consumers – does anyone have insight into the bankruptcy process?

[4plexowner]

Does anyone know what happens to the interest rate on credit card debts after going through bankruptcy?

Some of the things I read indicate that a single late payment on ANY credit card can result in ALL the credit cards the consumer uses raising their interest rates to a very high rate (I think I have read 29% but that is ridiculously high)

So a consumer gets into trouble, has a late credit card payment and the next thing they know all of their cards are charging them 20%+ interest – a few months of this and they head to the bankruptcy court

I assume the bankruptcy process modifies the consumer’s debt so the monthly payment is manageable (interest rate and amount of payment)

I hope that the bankruptcy court isn’t sending debtors back into the world with debt charging over 20% interest – if they are, the term ‘debt slave’ is appropriate for these unfortunate consumers – does anyone have insight into the bankruptcy process?

[4plexowner]

Does anyone know what happens to the interest rate on credit card debts after going through bankruptcy?

Some of the things I read indicate that a single late payment on ANY credit card can result in ALL the credit cards the consumer uses raising their interest rates to a very high rate (I think I have read 29% but that is ridiculously high)

So a consumer gets into trouble, has a late credit card payment and the next thing they know all of their cards are charging them 20%+ interest – a few months of this and they head to the bankruptcy court

I assume the bankruptcy process modifies the consumer’s debt so the monthly payment is manageable (interest rate and amount of payment)

I hope that the bankruptcy court isn’t sending debtors back into the world with debt charging over 20% interest – if they are, the term ‘debt slave’ is appropriate for these unfortunate consumers – does anyone have insight into the bankruptcy process?

[4plexowner]

Does anyone know what happens to the interest rate on credit card debts after going through bankruptcy?

Some of the things I read indicate that a single late payment on ANY credit card can result in ALL the credit cards the consumer uses raising their interest rates to a very high rate (I think I have read 29% but that is ridiculously high)

So a consumer gets into trouble, has a late credit card payment and the next thing they know all of their cards are charging them 20%+ interest – a few months of this and they head to the bankruptcy court

I assume the bankruptcy process modifies the consumer’s debt so the monthly payment is manageable (interest rate and amount of payment)

I hope that the bankruptcy court isn’t sending debtors back into the world with debt charging over 20% interest – if they are, the term ‘debt slave’ is appropriate for these unfortunate consumers – does anyone have insight into the bankruptcy process?

[4plexowner]

Does anyone know what happens to the interest rate on credit card debts after going through bankruptcy?

Some of the things I read indicate that a single late payment on ANY credit card can result in ALL the credit cards the consumer uses raising their interest rates to a very high rate (I think I have read 29% but that is ridiculously high)

So a consumer gets into trouble, has a late credit card payment and the next thing they know all of their cards are charging them 20%+ interest – a few months of this and they head to the bankruptcy court

I assume the bankruptcy process modifies the consumer’s debt so the monthly payment is manageable (interest rate and amount of payment)

I hope that the bankruptcy court isn’t sending debtors back into the world with debt charging over 20% interest – if they are, the term ‘debt slave’ is appropriate for these unfortunate consumers – does anyone have insight into the bankruptcy process?

[Trojan4Life]

PR, not sure what you’re getting at with your reply.

I’ll have approximately $120K in net income (not including bonuses) and realistically will be in the home for about 12-15 years (once my youngest is established in college, which I already have fully funded). I am in a little different situation from a lot of you in that I am going to be receiving a govt. (military) pension starting this summer at the ripe old age of 42. This retirement check is for life and will start out at approximately $3,100 net and will adjust upward each year. Military retired pay rises each year to ensure that inflation does not erode the purchasing power of retirees, and raises are based on the CPI.

Annual expenses is kind of tricky, because I don’t need to fund a lot of the retirement savings most folks do as aggressively due to my military retirement. We have no debt (as in $0), two newer cars paid off. Kids college funds are already set (pre-paid plan in Florida for 4-yrs of university study) and if they want to go to school in California they will be afforded free tuition due to my injuries received on active duty.

All told, I anticipate a mortgage PITI of (gasp) $5,300 per month, with a net income of slightly over $10K per month.

I’d be more thatn happy to talk to you off-line at [email protected]

Thanks

[Trojan4Life]

PR, not sure what you’re getting at with your reply.

I’ll have approximately $120K in net income (not including bonuses) and realistically will be in the home for about 12-15 years (once my youngest is established in college, which I already have fully funded). I am in a little different situation from a lot of you in that I am going to be receiving a govt. (military) pension starting this summer at the ripe old age of 42. This retirement check is for life and will start out at approximately $3,100 net and will adjust upward each year. Military retired pay rises each year to ensure that inflation does not erode the purchasing power of retirees, and raises are based on the CPI.

Annual expenses is kind of tricky, because I don’t need to fund a lot of the retirement savings most folks do as aggressively due to my military retirement. We have no debt (as in $0), two newer cars paid off. Kids college funds are already set (pre-paid plan in Florida for 4-yrs of university study) and if they want to go to school in California they will be afforded free tuition due to my injuries received on active duty.

All told, I anticipate a mortgage PITI of (gasp) $5,300 per month, with a net income of slightly over $10K per month.

I’d be more thatn happy to talk to you off-line at [email protected]

Thanks

[Trojan4Life]

PR, not sure what you’re getting at with your reply.

I’ll have approximately $120K in net income (not including bonuses) and realistically will be in the home for about 12-15 years (once my youngest is established in college, which I already have fully funded). I am in a little different situation from a lot of you in that I am going to be receiving a govt. (military) pension starting this summer at the ripe old age of 42. This retirement check is for life and will start out at approximately $3,100 net and will adjust upward each year. Military retired pay rises each year to ensure that inflation does not erode the purchasing power of retirees, and raises are based on the CPI.

Annual expenses is kind of tricky, because I don’t need to fund a lot of the retirement savings most folks do as aggressively due to my military retirement. We have no debt (as in $0), two newer cars paid off. Kids college funds are already set (pre-paid plan in Florida for 4-yrs of university study) and if they want to go to school in California they will be afforded free tuition due to my injuries received on active duty.

All told, I anticipate a mortgage PITI of (gasp) $5,300 per month, with a net income of slightly over $10K per month.

I’d be more thatn happy to talk to you off-line at [email protected]

Thanks

[Trojan4Life]

PR, not sure what you’re getting at with your reply.

I’ll have approximately $120K in net income (not including bonuses) and realistically will be in the home for about 12-15 years (once my youngest is established in college, which I already have fully funded). I am in a little different situation from a lot of you in that I am going to be receiving a govt. (military) pension starting this summer at the ripe old age of 42. This retirement check is for life and will start out at approximately $3,100 net and will adjust upward each year. Military retired pay rises each year to ensure that inflation does not erode the purchasing power of retirees, and raises are based on the CPI.

Annual expenses is kind of tricky, because I don’t need to fund a lot of the retirement savings most folks do as aggressively due to my military retirement. We have no debt (as in $0), two newer cars paid off. Kids college funds are already set (pre-paid plan in Florida for 4-yrs of university study) and if they want to go to school in California they will be afforded free tuition due to my injuries received on active duty.

All told, I anticipate a mortgage PITI of (gasp) $5,300 per month, with a net income of slightly over $10K per month.

I’d be more thatn happy to talk to you off-line at [email protected]

Thanks

[Trojan4Life]

PR, not sure what you’re getting at with your reply.

I’ll have approximately $120K in net income (not including bonuses) and realistically will be in the home for about 12-15 years (once my youngest is established in college, which I already have fully funded). I am in a little different situation from a lot of you in that I am going to be receiving a govt. (military) pension starting this summer at the ripe old age of 42. This retirement check is for life and will start out at approximately $3,100 net and will adjust upward each year. Military retired pay rises each year to ensure that inflation does not erode the purchasing power of retirees, and raises are based on the CPI.

Annual expenses is kind of tricky, because I don’t need to fund a lot of the retirement savings most folks do as aggressively due to my military retirement. We have no debt (as in $0), two newer cars paid off. Kids college funds are already set (pre-paid plan in Florida for 4-yrs of university study) and if they want to go to school in California they will be afforded free tuition due to my injuries received on active duty.

All told, I anticipate a mortgage PITI of (gasp) $5,300 per month, with a net income of slightly over $10K per month.

I’d be more thatn happy to talk to you off-line at [email protected]

Thanks

[patientrenter]

Trojan, sorry, I didn’t mean to be obtuse. What I was getting at is that it might be helpful to assess how much you can afford to pay for a home based not on monthly mortgage payments, but rather how much the purchase price is versus your lifetime income and outgo.

For example, if you applied this method using these assumptions (that I just made up):

1. Income (net of taxes and other deductions) = $120K+37K = $157K

2. Expenses (excluding non-expense items such as savings) = $70K.

3. Number of years you’re OK with committing to working at $120K job = 15.

4. Number of years after you’ve quit working the $120K job at which you’re prepared to run out of cash in your old age = 90 – (42+15) = 33

The you’d get total lifetime savings = 15 x 157 + 33 x 37 – (15+33) x 70 = $216K.

So if you have no other things you want to save for, then you can afford about $200K for a home. Plug in the numbers you think are appropriate. It’s just a way to strip out all the “noise” from complicated assumptions about interest and other investment income and inflation. I hope this helps as an alternative view.

Patient renter in OC

[patientrenter]

Trojan, sorry, I didn’t mean to be obtuse. What I was getting at is that it might be helpful to assess how much you can afford to pay for a home based not on monthly mortgage payments, but rather how much the purchase price is versus your lifetime income and outgo.

For example, if you applied this method using these assumptions (that I just made up):

1. Income (net of taxes and other deductions) = $120K+37K = $157K

2. Expenses (excluding non-expense items such as savings) = $70K.

3. Number of years you’re OK with committing to working at $120K job = 15.

4. Number of years after you’ve quit working the $120K job at which you’re prepared to run out of cash in your old age = 90 – (42+15) = 33

The you’d get total lifetime savings = 15 x 157 + 33 x 37 – (15+33) x 70 = $216K.

So if you have no other things you want to save for, then you can afford about $200K for a home. Plug in the numbers you think are appropriate. It’s just a way to strip out all the “noise” from complicated assumptions about interest and other investment income and inflation. I hope this helps as an alternative view.

Patient renter in OC

[patientrenter]

Trojan, sorry, I didn’t mean to be obtuse. What I was getting at is that it might be helpful to assess how much you can afford to pay for a home based not on monthly mortgage payments, but rather how much the purchase price is versus your lifetime income and outgo.

For example, if you applied this method using these assumptions (that I just made up):

1. Income (net of taxes and other deductions) = $120K+37K = $157K

2. Expenses (excluding non-expense items such as savings) = $70K.

3. Number of years you’re OK with committing to working at $120K job = 15.

4. Number of years after you’ve quit working the $120K job at which you’re prepared to run out of cash in your old age = 90 – (42+15) = 33

The you’d get total lifetime savings = 15 x 157 + 33 x 37 – (15+33) x 70 = $216K.

So if you have no other things you want to save for, then you can afford about $200K for a home. Plug in the numbers you think are appropriate. It’s just a way to strip out all the “noise” from complicated assumptions about interest and other investment income and inflation. I hope this helps as an alternative view.

Patient renter in OC

[patientrenter]

Trojan, sorry, I didn’t mean to be obtuse. What I was getting at is that it might be helpful to assess how much you can afford to pay for a home based not on monthly mortgage payments, but rather how much the purchase price is versus your lifetime income and outgo.

For example, if you applied this method using these assumptions (that I just made up):

1. Income (net of taxes and other deductions) = $120K+37K = $157K

2. Expenses (excluding non-expense items such as savings) = $70K.

3. Number of years you’re OK with committing to working at $120K job = 15.

4. Number of years after you’ve quit working the $120K job at which you’re prepared to run out of cash in your old age = 90 – (42+15) = 33

The you’d get total lifetime savings = 15 x 157 + 33 x 37 – (15+33) x 70 = $216K.

So if you have no other things you want to save for, then you can afford about $200K for a home. Plug in the numbers you think are appropriate. It’s just a way to strip out all the “noise” from complicated assumptions about interest and other investment income and inflation. I hope this helps as an alternative view.

Patient renter in OC

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