www.DEBTWARRIORS.com

Are you thinking about ‘forcing’ a debt settlement for your bills that are ‘current’ with Creditors (via charge-off)?

You can, but you shouldn’t even consider that route until you’ve read today’s post.

• Are You a Responsible  Credit Card Holder?
• Do you have sky high interest rates or outstanding debt balances?
• Have you been making your minimum monthly payments on time?
• Do you feel like you’re paying way more money than you’re comfortable with, just to keep your Credit Card Accounts current and open?

You may be considering, saying “forget it…” and closing your Credit Card Accounts and letting the accounts go to ‘Collections’. This will force a Debt Settlement because after 180 Days most Creditors will ‘Charge-off’ the account, to receive Tax Breaks.

Maybe you’re thinking about letting the Statue of limitations expire on the debt.  But that is a very long and stressful battle and not for the faint of heart, or anyone who plans on getting a loan for anything over the next 7 to 8 years.

Debt Warriors Do Not Endorse Consumers Forcing A Charge-Off

Forcing a Debt Settlement is not wise. In fact, you should only stop paying bills when you simply cannot afford to pay them.  You may feel ripped-off by your Creditors for jacking up your rates at will. You may have tried to be honest and ask for some help (in vain), you may simply need all the money you have to cover your family’s monthly expenses.

If you are  ‘current’ on your accounts, it would be a mistake to charge off and close those accounts.  before you’ve secured your long-term interests.

What Should You Know?

Creditors have the right to Sue you for the Delinquent Balances. At least this could create numerous Legal Hassles for you. At worst, you may face the a Judgment against you, a lien can be placed on your home or other property, and future wages taken.

Some Credit Lines and Cards have Binding Mandatory Arbitration (BMA) Clauses. BMA Clauses basically state “you loose your right to a fair trial” and “you have to take what we give you”. They call BMA ‘s an alternative method to resolving disputes, but Arbitration Boards usually rule in favor of the Creditors.  Now imagine, that you have to go in front of an Arbitration Board after not paying your bills for months?

I could go on all day about why you should not force a Charge-Off for Credit Accounts that are current. But that won’t provide you the answers you’re looking for. You can stop paying but I do NOT suggest that you do. If you simply can’t afford to pay your bills (say due to job loss or loss of income), there are other more responsible routes.