friend who established great credit over the years, however he ran out of money, was fed up with this culture/society and decided to travel around the world on credit. He had an incredible time-eating and sleeping in five star fashion and charging all of it-but he is broke. He says that he no longer cares about having good credit and that the credit companies can't do anything because he has no money and does not own anything-he spent the money travelling, not aquiring possessions-they can't take away used flights/hotel rooms and food, etc. And he has no children, so he is not concerned about his debt being passed on. I am in awe of what he has done and not knowing how the credit system works, I want to know how he is able to travel around the world for free?????
2006-07-25 12:47:50 · 14 answers · asked by birdy 3 in Business & Finance ➔ Credit
Let me clarify-he knew that it would mess up his credit-he doesn't want to buy a car or a house on credit anyway, so that is a non-issue for him.
2006-07-25 16:41:30 · update #1
No, cause the bad karma he's created for himself will come back to him. He'll regret the day when he wakes up and finds he can't finance a car, or get a mortgage. He will never be able to take care of a family and provide a secure future for them. So, yes he can do this for "free" in the monetary sense, but he'll pay for it in life.
2006-07-25 12:52:12 · answer #1 · answered by wizibuff 4 · 1⤊ 0⤋
Your friend is nothing but a crook, I don't care how you dress him up. Not much of an ambition or fate to aspire to. He may also being dying...AIDS, HEP C, etc...live it up, die and the debt goes with you. But if you plan on living a long life, the best way to limit that life is to screw up your credit...even a little. You cannot get a motel room, a rental car, without a credit card, and you certainly will never own a home, have anything but a junk car, ... you get my drift. Take care of your credit and it will take care of you. I know...I was there in the bad credit department for a long time...got out of it, own a great home, new cars, and pay my bills ON TIME, every month, do not over spend. I learned the hard way what bad credit can take away from you. NOT a good idea. Your friend, if he is alive and healthy, lived his life at my expense, your expense, and in fact, everyone's expense who had good credit...we pay his way in higher interest rates. Sorry, but I do not think much of your friend and hope you are not looking for such a life.
2006-07-25 13:16:22 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Okay...When your credit is good.. You can get credit cards with no down payments and anywhere from 500-5000$ in credit.. It is like imaginary money you can use up to the amount your credit card company will let you.. You can get away without paying monthly on your credit cards for some time.. But unless you get a loan from a bank, for a car or a house.. They cannot repossess anything you own.. The best a credit card company can do is sell off your account to a collection agency.. And they do their best by harassing you with phone calls and letters to get money back from you.. After a few years of your debt from credit cards being sold from collection agency to collection agency, they tend to give up.. And if you wait 7-10 years if it is under a certain amount of money it is not counted toward your bad credit anymore. So if you get a loan from a bank for your Car or your House and you do not pay, they can repossess your Car or House.. But credit card companies really can't do anything but make your credit look worse. P.S. He will probably never be able to do it again..His credit is ruined for the next 7-10 year or until he pays them back.. No credit card company will give him another card without a deposit..and it will probably be only a 250-500 spending limit at best.
2006-07-25 12:50:02 · answer #3 · answered by ? 5 · 0⤊ 0⤋
I would suggest that you tell your friend to dig an awfully deep hole and hide for the next several years. Here is what is going to happen.
It sounds like he charged a great deal of money to these cards, and I very seriously doubt the credit card companies are going to roll over and excuse it. They will turn this over for collections, and they will most likely sue for it. Once they locate him and serve a the complaint, he's dead!
Once the judgement is issued the creditor can continue to collect for a very long time. In most states judgements run 10 years, and they can be renewed. In Michigan they can go after you forever, as long as it's renewed every 10 years.
Therefore.....does your friend ever plan to get a job, buy a home, get a car????? EVER?
These judgements will continue to collect interest while they just sit there. Some savvy collection specialist will pick up this debt just as an investment. In 10 years he will look up your friend, and if he's working he will garnish his wages. If he has a home, kiss it goodbye.
The bottom line is your friend may think he pulled a fast one, but trust me. He messed up big time.
You may get away with screwing the credit card company for $2000, but from the sounds of it, he went way over that.
2006-07-26 05:27:56 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yep. He'll screw up his credit for 7 years, but he has memories that will last a lifetime.
Get this:
Older dude in undergrad got several high limit credit cards. Every semester, he would pay his tuition, fees and books in full on a different card. When he graduated, he filed for bankruptcy. As you said, they can't take away his paper. He is doing very well now.
He didn't pay a DIME for college.
At the time I didn't understand what he was doing or why, but now I think he was brilliant.
2006-07-25 17:18:14 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No such thing as a free lunch (or round-the-world trip).
Your friend committed fraud every time that he signed a sales slip with the full intention of not paying (even though he agreed to abide by the terms and conditions of his cardmember agreement ... one of which is an explicit promise to repay amounts advanced on his behalf).
Your friend has stolen from every other cardholder in the same manner that a shoplifter steals from the other patrons of a store that has to raise it's prices to cover the 'five finger discount' taken by the shoplifter.
The consequences of your friends actions are bankruptcy. While that does not have the same stigma that it did in the past, it is likely to have repurcussions.
My suggestion to you. Refer to this person as an acquaintence and not a friend ... because someday he is likely to give you the same unpleasant surprise as he gave the credit card issuer.
2006-07-25 13:38:24 · answer #6 · answered by one_observation 3 · 0⤊ 0⤋
It's possible that your friend's creditors will attempt to collect or even take him to court. He could very well get away with his spending spree, but he has to realize that in some states if he doesn't pay back a judgement in 10 years, the creditor can go back to court and have another judgement placed on for another 10 years. Of course he will have bad credit, and no one would lend to him. Basically, your friend has ruined his life and he needs to get his act together.
2006-07-25 13:12:11 · answer #7 · answered by Mrs.S 2 · 0⤊ 0⤋
The next 10 years of his life will be difficult at best, as he obviously has no idea how to purchase with cash. Nobody will loan him cash for a car or to buy a house, let alone credit for a plasma tv.
2006-07-25 12:50:29 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Eventually he will need insurance.Many insurers now run credit histories.So if he ever plans to have a car,own his own home,or get a loan for anythinbg he is out of luck.Also many employers run credit checks.So... it looks like your friends life is going to be very limited.
2006-07-25 12:59:41 · answer #9 · answered by Anonymous · 0⤊ 0⤋
he WAS able to do it for free. Question is can he still do it today? Once credit is used so irresponsibly it sticks with you for years.. It affects everything in terms of substantial furture purchases such as a home, car etc...
If he's still able to do it.. he could be using someone elses name and social.... Believe me it will come back to bite him in the a**
2006-07-25 12:51:57 · answer #10 · answered by kitkool 5 · 0⤊ 0⤋