Rick Vaughn, Categories: Recently, I came across an article from Chuck Jaffe a CBS Marketwatch columnist. I’m a big fan of Chuck’s articles for the most part but I found one that really hit home:
This is a great article and shows a scenario that in which is rampant and as a collector dealt with on a daily basis. My post today will breakdown this the 1st of 4 parts of this article I would like to discuss. Let’s begin:
“Mackenzie D. is a 20-year-old nursing student putting herself through school just outside of Rochester, N.Y. In her young financial life, she has made two big mistakes: The first was getting into debt beyond her ability to pay, a problem caused mostly by sudden job loss and unexpected medical bills for which she had no insurance. The second, much-bigger error, was that when she fell into dire straits, she panicked, froze up and did nothing. No calls to the creditors. No payments. No attempt to communicate her situation, beyond notifying creditors of a change of address.”
The TRUTH is Mackenzie being young has a lot to do with the situation. God knows what I would have done when I was 20 years old. However, it has been well documented here by being stationary she made the problem much worse for not only herself but many others as we’ll soon find out. If you haven’t made a payment to a creditor (i.e. cable, credit card, mortgage etc…) for 2 months you need to start bracing yourself because the calls are coming. They won’t be anywhere near the concentration of calls you’ll be getting after 6 months of non-payment but they will be coming at a clip of a call per week (estimated). I know at least the credit card industry will be making money here after 30 days they are now going to “smack” you with the default contract rate of lets say conservatively 30% interest. The lesson we should learn here is don’t sit on you hands. Call your creditors’s explain the situation and have an offer in mind. Just burying your head in the sand or wishing it away is not a sound plan.
TO BE CONTINUED!!
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