by Bruce Campbell

Created on: January 15, 2010   Last Updated: January 16, 2010

In recent years, many good, reputable lawyers have offered the following advice: "I am a lawyer, and I can't advise you NOT to pay your debts. However, I can tell you that if you stop paying your debts, you will go to the front of the line and the banks will then be willing to negotiate and talk with you. They'd rather get something than nothing." This advice is usually followed with an unblinking, expressionless stare, as if to say "Are you getting it?" 

If you are one of the hundreds of thousands of people who struggle to pay the minimum payments on your credit cards, but you do manage to pay every month, and the rates keep going up and make it harder and harder to keep up, then you should start by calling your bank and having a conversation. Point out that you have been a great, loyal customer for years and have usually made your payments on time.

The bank person will tell you they need to talk it over with their manager and put you on hold for a few minutes. They get these call ALL day long now. Eventually they will come back on the line and tell you they are sorry, there's nothing they can do. Point out that it is getting to the point of impossible to keep making your payments on time. Again, they won't care. They just want you to get off the phone. They only want to talk with you when it's convenient for them to call and harass you. So be it! 

Well, you tried, and now you must decide if you are ready to take the plunge. Are you ready to grow a pair? Stop being a victim? Are you ready to get in the game and get dirty? You are a good, decent, hard-working person and it doesn't feel right to just stop paying your bills. However, there is a hierarchy of needs. First, you have to have food, right? Then you need shelter. Electricity and heat are nice. In this day and age it is important to have phone and internet. The credit cards are now getting down on the list.

You have to pay the other stuff first and see what's left for the credit cards. If there's not enough left, and the banks won't work with you to lower the rate, then take your cash and buy yourself a steak dinner AND a new pair of shoes. When the banks call to collect, be polite and ask them if they are ready to negotiate. If they seem puzzled, ask them to call back when they are ready to talk. Then snuggle up on the couch with a glass of chardonnay and a classic movie. Huzz-ah! Welcome to the new USA! 

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