6 ms·

Isn't this also bad for your credit? Well, I guess maybe it's just less bad than bankruptcy or not paying anything at all.

logn 14y ago
I'm no expert in credit scores, but... If the original creditor already filed with the credit bureaus, that's definitely a negative on your credit. But I think the OWS can report that you "repaid" the debt which would be good. They could also bargain with the creditor to remove the negative report. Also, just reducing your balance of debt is good for credit. Plus, I don't think there's anything worse you can do for your score or future hopes of loans than declaring bankruptcy.
- Millennium 14y ago
  IIRC, if your debt is being sold to a broker at pennies on the dollar -which is pretty much the only way OWS can get its hands on it- the bank has already long since given up on getting you to pay, and the credit bureaus have long since been informed. In other words, the damage to your credit is mostly already done; an actual bankruptcy would hurt worse, but you're still in for a world of pain.
  - lifeguard 14y ago
    Wrong! A BK is a unique event from other delinquent accounts on one's credit report that carries extra weight. As do foreclosure and repo.
lifeguard 14y ago
Not only is it bad, a BK on your file means you will have to use 'special' finance to get a car loan and it will be impossible to find a bank to underwrite a sub-prime loan for a house (for seven years). You would also have to pay a higher rent security deposit on an apartment.
- philwelch 14y ago
  If you lose badly enough at credit that you end up declaring bankruptcy, maybe homeownership or car loans aren't for you. Just a thought.
  - marvin 14y ago
    Could be. But there are some unlucky people in there as well - single parents who bought a house at the peak of the housing bubble because they were afraid that home prices would keep rising and leave them without a place to live. And then promptly lost their job in the recession.
    - yummyfajitas 14y ago
      Real estate speculators who made highly leveraged bets that went bad are in fact the sort of people who should, perhaps, not get the opportunity to repeat their mistakes.
    - eru 14y ago
      What about renting?
      - mkr-hn 14y ago
        http://news.ycombinator.com/item?id=4763091 http://news.ycombinator.com/item?id=4763091
        eru 14y ago
        Thanks. I never lived in the US. I came to Britain (from Germany) with neither car nor credit history. They let me rent a place, and I never had to buy a car. (Oh, and didn't have to worry about health insurance, either. But that's a slightly different topic.) I wonder how my move to Singapore will play out. But should I ever come to the US, I'll make sure I have plenty of money.
        14y ago
deleted 14y ago
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logn 14y ago

I'm no expert in credit scores, but... If the original creditor already filed with the credit bureaus, that's definitely a negative on your credit. But I think the OWS can report that you "repaid" the debt which would be good. They could also bargain with the creditor to remove the negative report. Also, just reducing your balance of debt is good for credit. Plus, I don't think there's anything worse you can do for your score or future hopes of loans than declaring bankruptcy.

Millennium 14y ago
IIRC, if your debt is being sold to a broker at pennies on the dollar -which is pretty much the only way OWS can get its hands on it- the bank has already long since given up on getting you to pay, and the credit bureaus have long since been informed. In other words, the damage to your credit is mostly already done; an actual bankruptcy would hurt worse, but you're still in for a world of pain.
- lifeguard 14y ago
  Wrong! A BK is a unique event from other delinquent accounts on one's credit report that carries extra weight. As do foreclosure and repo.

lifeguard 14y ago

Not only is it bad, a BK on your file means you will have to use 'special' finance to get a car loan and it will be impossible to find a bank to underwrite a sub-prime loan for a house (for seven years). You would also have to pay a higher rent security deposit on an apartment.

philwelch 14y ago
If you lose badly enough at credit that you end up declaring bankruptcy, maybe homeownership or car loans aren't for you. Just a thought.
- marvin 14y ago
  Could be. But there are some unlucky people in there as well - single parents who bought a house at the peak of the housing bubble because they were afraid that home prices would keep rising and leave them without a place to live. And then promptly lost their job in the recession.
  - yummyfajitas 14y ago
    Real estate speculators who made highly leveraged bets that went bad are in fact the sort of people who should, perhaps, not get the opportunity to repeat their mistakes.
  - eru 14y ago
    What about renting?
    - mkr-hn 14y ago
      http://news.ycombinator.com/item?id=4763091 http://news.ycombinator.com/item?id=4763091
      - eru 14y ago
        Thanks. I never lived in the US. I came to Britain (from Germany) with neither car nor credit history. They let me rent a place, and I never had to buy a car. (Oh, and didn't have to worry about health insurance, either. But that's a slightly different topic.) I wonder how my move to Singapore will play out. But should I ever come to the US, I'll make sure I have plenty of money.
        14y ago

deleted 14y ago

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