Most Americans are a $400 expense away from bankruptcy!

[StraightEdge]

https://twitter.com/x/status/1684978211807997953

 

[Hamartia Antidote]

Kamala Harris' Half True claim on economic instability

On the 2020 presidential campaign trail, California Sen. Kamala Harris often describes the economic hardships faced by A

www.politifact.com

An unexpected $400 expense would be damaging for many, but Kamala Harris overstates report’s finding​

The findings show that "59 percent of adults in 2017 said they could easily cover (the $400 expense), using entirely cash, savings or a credit card paid off at the next statement."

59% can pay cash or put it on a credit card and pay it all off at the end of the month.

Among those who couldn’t easily pay it,

That means the remaining 100%-59%=41%

43 percent said they would put it on a credit card and pay it off over time

41%*43%= 17.6%

17.6% of people will simply put it on a credit card and pay it over time

26 percent reported they would borrow from a friend or family member

41%*26%=10.6%

10.6% would borrow it from a family member or friend

19 percent said they would sell something

41%*19%=7.7%

7.7% would sell something

9 percent responded that they would use a bank loan or line of credit

41%*9%=3.6%

3.6% would use a bank loan or line of credit

5 percent said they would use a payday loan, deposit advance, or overdraft

41%*5%=2%

2% would use a payday loan, deposit advance, or overdraft

4 percent said they would find an undefined or "other" way to pay

41%*4%=1.6%

1.6% other

59%+17.6%+10.6%+7.7%+3.6%+2%+1%=~100%


So let's see 59% (pay off quickly) +17.6 (pay off over a few months) = 76%

Apparently 76% is not a majority.

 

[jhungary]

Kamala Harris' Half True claim on economic instability

On the 2020 presidential campaign trail, California Sen. Kamala Harris often describes the economic hardships faced by A

www.politifact.com

An unexpected $400 expense would be damaging for many, but Kamala Harris overstates report’s finding​

59% can pay cash or put it on a credit card and pay it all off at the end of the month.


That means the remaining 100%-59%=41%


41%*43%= 17.6%

17.6% of people will simply put it on a credit card and pay it over time


41%*26%=10.6%

10.6% would borrow it from a family member or friend


41%*19%=7.7%

7.7% would sell something


41%*9%=3.6%

3.6% would use a bank loan or line of credit


41%*5%=2%

2% would use a payday loan, deposit advance, or overdraft


41%*4%=1.6%

1.6% other

59%+17.6%+10.6%+7.7%+3.6%+2%+1%=~100%

That's VERY MISLEADING.

In the US, only the court can award your debtor a judgment of Bankruptcy, And the lowest end of the court limit is usually $2500 in small claim court (I think some state goes as low as $1000), which mean technically there are no way someone can be declared bankruptcy if you are $400 away.

small claims court

www.law.cornell.edu

If you are $400 away in debt and you can't pay, the only action a debtor can do is to hire a collection agency and either wait until that debt is over the min amount for small claims or most likely than not, write off a $400 debt, because court and recovery fee are more than $400 already, and you may never recover them to begin with.

 

[Hamartia Antidote]

Hi,

I will give you a personal example.

In the late 80's---due to an error on my part---I lost money in investment---. I had monthly payments on credit cards---. One time I had ZERO dollars on me and a $20 credit card bill which went into a late payment showing on credit---.

Now I am $20 delinquent on payment behind 30 days---. I needed a new loan to get me out of the rut---but as there was an active 30 day delinquency on my credit report---all options of good loans were neutered.

One bad payment---had a multiplier effect that ended up with multiple bad payments resulting in derog credit that would take me 5-6 years to get out of the rut---. Because a negative account stays on credit bureau for 7 years and you cannot go back to the good banks that you defaulted on.

And please people---don't teach me---I have been working as a sales manager / finance manager / general sales manager at car dealerships for over 30 years now ( even though I claimed to be a salesman---a car dealership we all are salesmen from general manager to a salesman )---and I have seen thousands of credit applications of customers where a small glitch turns into a monster---a 15 dollar payment---a 50 dollar payment---even a 5 dollar payment.

1 late / delinquent account may drop your credit score by a 100 points---. 1 charged off account may drop your credit score maybe around 150 points.


From 1.9% --- 2.9% apr you go to 18-20-25 % and higher interest rates---from 350 dollar a month payment you go to 550 dollar a month payment---from a new car you go to a used car---which breaks down and puts you deeper into debt---higher insurance rates due to bad credit---.

This monstrosity just simply don't end---.

The US bankruptcy courts are a stamp machines---. It is like you are on an assembly line and the judge has only a minute to ask you the question and grant you bankruptcy---.

Once you get into the shi-t hole---you just pray and pray hard that your car does not break down ever and takes you to and back from your job.

So Kamala Harris is not wrong what she stated---.

Remember she was once a district attorney and an assistant DA as well---working in the courts---.

Delinquent payments on one account make other creditors stop extending credit on other credit lines---meaning other credit cards start to shut down even though you may have credit on them---.

hmm so around ~1990 there was a recession and companies were not hiring very many people out of college. Plenty of us lived off of the array of Citi/Chase/AMEX/AssociatedBank/etc credit cards that we had applied for as freshman/sophomores from the no-job-required applications that hung from college bulletin boards.

I was even doing cash advances and stuff and I don't recall ever somehow being caught short.

 

[nahtanbob]

Hi,

I will give you a personal example.

In the late 80's---due to an error on my part---I lost money in investment---. I had monthly payments on credit cards---. One time I had ZERO dollars on me and a $20 credit card bill which went into a late payment showing on credit---.

Now I am $20 delinquent on payment behind 30 days---. I needed a new loan to get me out of the rut---but as there was an active 30 day delinquency on my credit report---all options of good loans were neutered.

One bad payment---had a multiplier effect that ended up with multiple bad payments resulting in derog credit that would take me 5-6 years to get out of the rut---. Because a negative account stays on credit bureau for 7 years and you cannot go back to the good banks that you defaulted on.

And please people---don't teach me---I have been working as a sales manager / finance manager / general sales manager at car dealerships for over 30 years now ( even though I claimed to be a salesman---a car dealership we all are salesmen from general manager to a salesman )---and I have seen thousands of credit applications of customers where a small glitch turns into a monster---a 15 dollar payment---a 50 dollar payment---even a 5 dollar payment.

1 late / delinquent account may drop your credit score by a 100 points---. 1 charged off account may drop your credit score maybe around 150 points.


From 1.9% --- 2.9% apr you go to 18-20-25 % and higher interest rates---from 350 dollar a month payment you go to 550 dollar a month payment---from a new car you go to a used car---which breaks down and puts you deeper into debt---higher insurance rates due to bad credit---.

This monstrosity just simply don't end---.

The US bankruptcy courts are a stamp machines---. It is like you are on an assembly line and the judge has only a minute to ask you the question and grant you bankruptcy---.

Once you get into the shi-t hole---you just pray and pray hard that your car does not break down ever and takes you to and back from your job.

So Kamala Harris is not wrong what she stated---.

Remember she was once a district attorney and an assistant DA as well---working in the courts---.

Delinquent payments on one account make other creditors stop extending credit on other credit lines---meaning other credit cards start to shut down even though you may have credit on them---.

credit card companies are quiet lenient. that is my experience

 

[Goritoes]

In December last year I accidently made two payments for my car in a single day, My car payment is 530$ per month but I am still not bankrupt so does that means I am rich ?

 

[MastanKhan]

credit card companies are quiet lenient. that is my experience

Hi,

There is a difference between a late payment and a delinquency.

 

[HAIDER]

Kamala Harris' Half True claim on economic instability

On the 2020 presidential campaign trail, California Sen. Kamala Harris often describes the economic hardships faced by A

www.politifact.com

An unexpected $400 expense would be damaging for many, but Kamala Harris overstates report’s finding​

59% can pay cash or put it on a credit card and pay it all off at the end of the month.


That means the remaining 100%-59%=41%


41%*43%= 17.6%

17.6% of people will simply put it on a credit card and pay it over time


41%*26%=10.6%

10.6% would borrow it from a family member or friend


41%*19%=7.7%

7.7% would sell something


41%*9%=3.6%

3.6% would use a bank loan or line of credit


41%*5%=2%

2% would use a payday loan, deposit advance, or overdraft


41%*4%=1.6%

1.6% other

59%+17.6%+10.6%+7.7%+3.6%+2%+1%=~100%


So let's see 59% (pay off quickly) +17.6 (pay off over a few months) = 76%

Apparently 76% is not a majority.

Trump is coming , he will fix ...everyone including this ...

 

[MastanKhan]

hmm so around ~1990 there was a recession and companies were not hiring very many people out of college. Plenty of us lived off of the array of Citi/Chase/AMEX/AssociatedBank/etc credit cards that we had applied for as freshman/sophomores from the no-job-required applications that hung from college bulletin boards.

I was even doing cash advances and stuff and I don't recall ever somehow being caught short.

Hi,

And you kept them upto date in payments by taking cash advance from one and applying to another---till you were not able to keep up---.

 

[beijingwalker]

Americans are having a decreasing life expectancy for a reason

 

[KAL-EL]

Americans are having a decreasing life expectancy for a reason

almost seems like you get off on it

 

[jhungary]

Hi,

There is a difference between a late payment and a delinquency.

It really, like REALLY depends.

My wife used to do a lot of small claim case when she was a legal aid lawyer, my wife said, a judgement is only as good as you can collect it, so most credit card company will go thru risk assessment before putting a delinquent payment on collection. Because collection company aren't free, and court aren't free, even tho you can go back to "collect" those fee if you have a court judgement. But again, you can't put people in jail for debt (well, not federal or state debt anyway) so most people will basically just default those judgement. Which mean at the end of the day, the debtor will be out of pocket for court cost and collector fee.

Most credit card companies know this, which is why they come very strong on collection so you are scared to talk to them, that's because they want you to talk to them and set up a payment plan, most companies would actually settle with a lower amount, just enough to cover cost to write off debt. Because again, you can keep chasing a deadbeat and try to squeeze blood out of a stone, but even if you armed with all kind of judgement, you get nothing unless the other party pays, so court judgement is not a good thing if all the debtor wants is money.

The only instant when a court judgment is useful for debtor is when the debtor is in debt as well, so it can be used to protect them when it's their turn to be sued. Very frequently happened in mortgage, but credit card debt is not like that at all.

On the other hand, you really can't bankrupt a person with $400 dollar, court cost is half that (most state court charge $175), and then you would need to file things (you get charge every time you file stuff) and you will need to go thru the collection process, not to mention PR, that's is even if small claim would take your case, you will be out of pocket hundred or even thousand of dollars just to file a case, most people are not that stupid to pay thousand of dollars to collect a few hundred....Well, some do, but those people tend to do it out of spite, not wanting to collect.

 

[gambit]

Most of the world is only one step away from starvation, so they need this flaw of the US to help them escape from their shiddy status.