That evil plastic thing

When I was younger, I thought having all the material things in the world would make me a lot cooler. I was such as stupid kid.

So when I started earning money, I became obsessed with having that “successful” world–which I then blidly equate with having the latest phones, accessories, clothes and a lot of stuff which, of course I do not need at all. And since my take-home pay is not enough to pay my bills, answer my obligations at home and fund my stupidity, I resorted to using credit cards.

That became my downfall.


Of course, I paid only what I could–the minimum. And while it can decrease my total amount, this remained insignificant as I use the plastic again whenever I feel bad and resorted to shopping to boost my mood. This became an ugly cycle.

Finally, I woke up and realized how much shit I put myself into. I started paying bills, left and right–even if I have to suffer from lack of finances in the process. I was literally broke every time. I came to my senses when after pay day, I paid all my bills and literally came home with a thousand pesos left in my pocket–with 15 more days to go before the next pay day and with obligations waiting for me at home.

Now that I am married, I am starting to fix my personal finance. Just this morning, I came across Ready to be Rich, a website which discusses personal finance. I immediately linked it to my blog and started reading the articles. As someone who is basically clueless when it comes to money, having a reference point gives me the motivation to continue on fixing my personal finances.

I also came across an article on credit card debts, I am reprinting it here for your reference:

What happens when you don’t pay your credit card debt?

What happens if I don’t pay my credit card debts?
When you default on your payment, the bank will flag you as a delinquent card member. They will call you to remind you to pay.

If you continue your non-payment, the calls will be more frequent until you reach a pre-determined number of missed payments. After which the bank will dismiss your case and turn your account over to a collection agency.

The collection agency is not a part of the bank. They are a third-party business who buys the delinquent accounts. The collection agency will now take over the responsibility of convincing you to pay your credit card debt. Whatever they collect from you becomes their profit.

You said collection agencies BUY the delinquent accounts?
Yes, the bank sells the accounts to them. This will minimize the bank’s loss. The costs (legal and otherwise) that will incur if the bank continues to pursue the delinquent account can be expensive. Asides, it’s not worth their time anymore – that’s a simple way to explain it.

Furthermore, the bank cannot just freeze and take the money in your savings account to pay for those debts. They would need to have a court judgment against you to make it legal for them to do that. And that will again, cost them money and can take a long time.

So what happens when your account is turned over to a collection agency?
Then it just remains there. The collection agency will do their best to convince you to pay because that’s how they will make money.

I know there are a lot of horror stories when it comes to credit card debt collection. That’s a sad reality that many people around the world actually experience. The best thing to remember is that all those are just empty threats so stay calm and don’t worry.

Read the rest of the article here


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