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DIG YOURSELF A HOLE
Posted by: Darrell Castle
December 30, 2009
Topic: Bankruptcy
You have good credit when you get yourself in debt on purpose and then make payments on time every time and then you do it over and over again. Should you fail to make payments on time every time, you will have bad credit. When you continue to pile debt on top of debt, whether your credit is good or bad, you are digging yourself a hole and eventually you will pull the dirt in on top of yourself because you will not be able to repay the debt on time. The first time something bad happens such as a lost job or unexpected illness you are at the bank begging for mercy. You seek mercy in the form of loan re-structuring or Obama mortgage mitigation but you find no mercy.
People dig holes for themselves when they become more concerned about good credit than getting out of debt. A fixation on good credit or repair of a bad credit score is an indication of future trouble. Credit trouble should serve as a warning to people that credit is not always a good thing. In today's economic environment where unemployment is rising and foreclosures are common, if you can't pay cash or at least pay within the month, you don't need it.
Extending credit to so called sub-prime borrowers and other poor credit risks was big business before the collapse in residential housing prices. The borrower could be charged a higher interest rate and when he defaulted the house could be quickly taken and sold for a profit. Now mortgage lenders seem to be in a panic but I suspect it is because foreclosures are not so profitable anymore and not out of a since of mercy for borrowers.
To survive in this economy, forget about credit reports and whether they are good or bad. Get out of debt as fast as possible and stay out of debt. Consider advice from an experienced professional such as those at Darrell Castle and Associates. There is no charge for the consultation.
