whether or not i should pay off my debt

[DrSavin]

Despite what should be done, i'd be interested in what many would do put in the situation from a first person perspective.

Anyhow, it seems the OP has made up his mind.

[jpg7n16]

Yeah, he said that slaves should obey their masters. Quite the progressive thinker.

Which they should (except for immoral requests). Just like employees should obey their bosses (except when being asked to do something immoral). But you're forgetting that He also spoke for the equality of women, children, and minorities about 2000 years before Western civilization adopted those beliefs. So yeah - pretty "progressive" by that measure.

(Samaritans were minorities and treated with racial prejudice in Israel during His lifetime)

I would love to debate the ethics of Jesus with you, but since this is a personal finance forum, maybe you would rather debate at Christian Forums - Where Christian Community Meets Faith - I'd be more than happy to discuss this with you there.

Not at all. But you can't pay money that you don't have, morals or not. I don't think it is immoral to default on a debt that you truly have no way to repay. That is very different than intentionally defaulting on a debt that you are able to pay.

You don't have to have money to have morals/ethics. We've certainly seen endless examples of people with lots of money and no morals. You do have to have money to repay a debt, though.

Totally agreed.

Despite what should be done, i'd be interested in what many would do put in the situation from a first person perspective.

Anyhow, it seems the OP has made up his mind.

I would personally prefer to have $20k in the bank, 0 debt and a trashed credit score.
But I would also understand my obligations both legally and morally to repay the debt I took out.

So I would personally pay down 15-20k immediately, and the rest over time.

[DavidBibby]

Despite what should be done, i'd be interested in what many would do put in the situation from a first person perspective.

Anyhow, it seems the OP has made up his mind.

If I had $25k in credit card debt, and I also had $25k in the bank and a source of income.. I would, without question, pay the debt.

Then I'd start an emergency fund and prepare for the rest of my debt free financial life.

[LivingAlmostLarge]

Don't forget if you settle with the CC company it's taxable income the amount forgiven. It's not scot free.

[Seeker]

Unlike the others, I am not going to tie your unwillingness to pay off your debt to morals. The credit card companies willingly loaned money to people who perhaps could not afford it in an effort to make huge profits and it worked. I won't even get on the subject of unreasonable fees and interest rate hikes. Greed goes both ways. It's quite unbalanced to suggest that the banks' actions were justified as "just doing business" but consumers have some sort of "moral obligation". It's business both ways. And I am someone who never even pays my bills late. I've never not paid a debt in full. But that's the way I do business. Now the way I treat people and individuals is guided by my morals and principles.

However, I do question the way you use your resources. You are saving the $25K for "emergencies". You've already lost your house and you ran up debt paying off medical bills. What do you consider an emergency? If you had that money on hand or the ability to save that much money, you might have considered paying your mortgage until you were able to get an adjustment or paying your bills outright before you accrued the debt. It's water under the bridge now but for food for thought in the future.

P.S. If you have a good, stable income, then pay the debt off in full. You don't have to pay at once. Start with a lump sum of maybe 10K from your savings and pay the rest off over a year from your income. You'll preserve a good bit of your savings that way. If your job situation is shaky, go for the settlement and hold onto your savings. In the future, pay as you go.

Yes, agree with this 100%.

OP always paid his bills, but never in full? He's just always added to his total debt to one day realize that it might be advantageous to take advantage of the system in a different way; like so many others.

After all, in not paying his debts he was doing other things with the dollars. He already was taking advantage of the system of buying on credit and paying later.

But not paying in full. And that's the key.

OP says he was "responsible" -- please tell me how? Not paying in full each and every month is not a sign of a responsible person.

He was using the dollars for other things. Buying another house. Trying to leverage every dollar.

So, OP is quite proficcient on blaming others for his personal choices. Blame the economy on someone else. Blame the banks and other institutions for his choice.

He's always continued to rack up debt, just because he could.

Now it's turned back on him and so many other Americans. So once again, it's take advantage of the situation time. Just because he can. Just because someone suggested it to him.

Realistically, settling debt has a price. LAL mentioned one of the prices in the post above me.

Five years down the road, he will be back in the same situation. People don't learn by rejecting debt; people learn by admiting that they have made a mistake and working to stop making the same wrong choices.

What you buy and how you pay for it is up to one person: you. If you cannot afford it, don't buy it.

Anything else says a lot about each individual person. How you fix a problem is not by avoiding it, or reducing it. Take your lumps, learn and grow.

[littleroc02us]

Personal responsibility doesn't exist in a lot of people just face it. Honestly, you can only do what is right in this world and try to help others see the way, but if choose not to, then that is a sad case.

[LivingAlmostLarge]

Seeker I agree 100%. It's easier to blame everyone else.

[MonkeyMama]

A good question to ask yourself would be:

If someone owed you $25k and had $25k in the bank, how would you want them to handle that? Would you rather they paid you in full for the money they borrowed? Or would you rather that they settled with you for 20% of what you owe, so they could keep cash on hand?


Whatever your answer to that question is, you should do the same for the people you owe.

Amen! Do unto others...

I am missing the part where the OP is totally broke and could never possibly pay off this $25k.

???

100% I would pay off the debt in his shoes. Maybe not all at once. But I would pay back every penny owed. No doubt about it!

[MonkeyMama]

Five years down the road, he will be back in the same situation. People don't learn by rejecting debt; people learn by admiting that they have made a mistake and working to stop making the same wrong choices.

BINGO!