[Deal Hunter]

Tragic, however it is legal as it is all in the fine print that they hope you never read. Try this fun little activity:

Find out how your finance charge is calculated on your favorite credit card. Generally the finance charge is the interest on the balance you carry on your card. Note: This has nothing to do with the annual percentage rate. The finance charge is calculated with what is known as the “periodic” rate. A finance charge is charged and added to your balance each time the “period” of the periodic rate cycles.

So, question 1: How often does periodic rate on your favorite credit card cycle? Question 2: Do you have just a periodic rate or do you also have a daily periodic rate on your favorite credit card?

Where do you find this information? All those tiny folded pamphlets that come with your monthly statement (that you never read and promptly throw out with the envelope and magazine subscription ads).

Periodi rate cycles by credit card company:
BofA: (Varies) Every 21 days, 15 days, and some are every 24 hours
Capital One: Every 15 days
Chase: Every 10 days
Citi: Every 7 days

[Deal Hunter]

The things that show up on credit are lates, defaults and how much of your available credit you’ve used.

If you renegotiate your loan with your lender, technically you should get a new Note (spelling out new terms, payments and balance) and your old loan arrangment should be gone.

However, if the bank wants to write-off the lost $100K on their tax return, they’ll likely send you a 1099 and it gets reported as bad debt (they were unable to collect) and they can still report this on your credit as a collection (as in a foreclosure).

If they send you a 1099-C, then they report it as bad debt, forgiven. Which means they won’t go after you anymore, ever. It’s still income to you, but the account on your credit will say, “paid in full” or “account closed,” which is not a negative mark on your credit.

[Deal Hunter]

The things that show up on credit are lates, defaults and how much of your available credit you’ve used.

If you renegotiate your loan with your lender, technically you should get a new Note (spelling out new terms, payments and balance) and your old loan arrangment should be gone.

However, if the bank wants to write-off the lost $100K on their tax return, they’ll likely send you a 1099 and it gets reported as bad debt (they were unable to collect) and they can still report this on your credit as a collection (as in a foreclosure).

If they send you a 1099-C, then they report it as bad debt, forgiven. Which means they won’t go after you anymore, ever. It’s still income to you, but the account on your credit will say, “paid in full” or “account closed,” which is not a negative mark on your credit.

[Deal Hunter]

The things that show up on credit are lates, defaults and how much of your available credit you’ve used.

If you renegotiate your loan with your lender, technically you should get a new Note (spelling out new terms, payments and balance) and your old loan arrangment should be gone.

However, if the bank wants to write-off the lost $100K on their tax return, they’ll likely send you a 1099 and it gets reported as bad debt (they were unable to collect) and they can still report this on your credit as a collection (as in a foreclosure).

If they send you a 1099-C, then they report it as bad debt, forgiven. Which means they won’t go after you anymore, ever. It’s still income to you, but the account on your credit will say, “paid in full” or “account closed,” which is not a negative mark on your credit.

[Deal Hunter]

The things that show up on credit are lates, defaults and how much of your available credit you’ve used.

If you renegotiate your loan with your lender, technically you should get a new Note (spelling out new terms, payments and balance) and your old loan arrangment should be gone.

However, if the bank wants to write-off the lost $100K on their tax return, they’ll likely send you a 1099 and it gets reported as bad debt (they were unable to collect) and they can still report this on your credit as a collection (as in a foreclosure).

If they send you a 1099-C, then they report it as bad debt, forgiven. Which means they won’t go after you anymore, ever. It’s still income to you, but the account on your credit will say, “paid in full” or “account closed,” which is not a negative mark on your credit.

[Deal Hunter]

The things that show up on credit are lates, defaults and how much of your available credit you’ve used.

If you renegotiate your loan with your lender, technically you should get a new Note (spelling out new terms, payments and balance) and your old loan arrangment should be gone.

However, if the bank wants to write-off the lost $100K on their tax return, they’ll likely send you a 1099 and it gets reported as bad debt (they were unable to collect) and they can still report this on your credit as a collection (as in a foreclosure).

If they send you a 1099-C, then they report it as bad debt, forgiven. Which means they won’t go after you anymore, ever. It’s still income to you, but the account on your credit will say, “paid in full” or “account closed,” which is not a negative mark on your credit.

[Deal Hunter]

You're right, barsharma.

BB said, "I don't think we're anywhere near the situation that prevailed in the 1970s."

Then, he added, under his breath, "…it's more like the situation that prevailed after 1929."

 

 

[Deal Hunter]

You're right, barsharma.

BB said, "I don't think we're anywhere near the situation that prevailed in the 1970s."

Then, he added, under his breath, "…it's more like the situation that prevailed after 1929."

 

 

[Deal Hunter]

You're right, barsharma.

BB said, "I don't think we're anywhere near the situation that prevailed in the 1970s."

Then, he added, under his breath, "…it's more like the situation that prevailed after 1929."

 

 

[Deal Hunter]

You're right, barsharma.

BB said, "I don't think we're anywhere near the situation that prevailed in the 1970s."

Then, he added, under his breath, "…it's more like the situation that prevailed after 1929."

 

 

[Deal Hunter]

You're right, barsharma.

BB said, "I don't think we're anywhere near the situation that prevailed in the 1970s."

Then, he added, under his breath, "…it's more like the situation that prevailed after 1929."

 

 

[Deal Hunter]

Ignore the Harvard Professor behind the curtain! The great OZ has spoken!

[Deal Hunter]

Ignore the Harvard Professor behind the curtain! The great OZ has spoken!

[Deal Hunter]

Ignore the Harvard Professor behind the curtain! The great OZ has spoken!

[Deal Hunter]

Ignore the Harvard Professor behind the curtain! The great OZ has spoken!

[Author]

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