24d ago in 🔊| Announcements
A chess move ♟️- Thinking 2 steps ahead.
It can be easy to think that a $50,000 Credit Card from Chase is Equal to $50,000 Credit Card from TD bank
💳 = 💳
At face value it might seem the same, both giving you $50,000 but like a good chess player one must think 2 moves ahead ♟️
In life, shit happens. We all love to think that we’re going to take $50,000 and flip it. In a perfect world it will work out 100% of the time.
Unfortunately we don’t live in a perfect world. So here’s what happens if you CAN’T pay back the $50,000 with each bank.
Chase Bank 🏦- $50,000 gets charged off after 180 days, they assign the debt to an In-House collection company that does NOT report separately on your credit report.
⏰ The older the debt is, if you’re nice at negotiating you can get a 80% discount or more on the debt. Yup this means that $50,000 you owed can be settled for $10,000
Now let’s look at TD bank
TD Bank 🏦- After 180 days the debt gets charged off. In some cases depending on the debt they will assign the debt not to a collection company but a LAW FIRM.
The law firm is quick to sue on TD bank behalf in order to get a judgement against you but the good news is that they are willing to settle
⏰ they will be willing to settle for around a 35-40% discount. Meaning if they’re feeling generous they’ll settle your $50,000 for $30,000.
So keep this in the back of your mind
It’s not just about who gives you the money, but think about what happens if you can’t pay that money back, what’s your next move ♟️
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A chess move ♟️- Thinking 2 steps ahead.
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