This time is chance of get out of debt?

Question

I heard about more bank to failures or bankruptcy today. All of people(include me) think about we have many problems about sub prime crisis, gas price crisis, inflation and finally interest rate up around the world.

For bank have many problems too, and more than ours.

I think this is chance to reduce debt or debt cures. Because when some bank failures, some investment institutes or Asset Management company will buy asset(include debts) from bank

What price they buy?

I don't know but basicly

- they cannot buy more than collateral value..(Coll 100 debt ost. 120 they buy only 70 or lower)

- they have cost of fund to buy asset therefore they have to quickly collect cash back..

Follow exp. This is chance to pay only 80 for out of debt or not.

What do you think???

**sorry with my language and short space to write.(more information I wrote in my blog( http://debt-restructuring.blogspot.com/ )

Answer 1

Are you saying you want to go to your bank that has your credit card and offer them say $800 for the $1,000 you owe them?  I don't think they will do that.

It will hurt your credit.  This is the problem with the world today. Let me get all I can and the tell the bank/mortgage co that I can pay that and try to pay less or walk away from it. If you borrow money pay it back.

Now that is the key part. Borrow as little money as possible. Don't charge things. It will only get you in trouble. Live on 80% of what you make. Save 10% and give 10% to your church or charity.  Pay cash when you can. Pay off debts early.

What type of character do you have? Would you want someone to borrow $1,000 from you and just give you back $800?  

Do the right thing.