Interesting advice: But here is another way.
1) Are you upside down on your house?
2) Is your unsecured debt higher than your income?
3) Do you really need a new car? (S)
Better than 1 in 4 are upside down on their homes.
About half have unsecured debt that is higher than their yearly income.
Most of us would be best served by owning our own, older cars.
Limits for bankruptcy are 7000.00 or less in vehicle value. (They can't touch it.)
Let your house go. Bye bye throwing good money after bad. If the housing market recovers in 5 or 10 years, buy into it again then, your credit will be fine again.
Liquidate anything of value you would lose in bankruptcy, then put it into places they can't touch like retirement accounts.
Declare your own personal "wall street or GM" type bankrupcty and absolve yourself of debt, and in the process, the loss of tens of thousands of dollars, or more you would pay out to the leeaches called Credit Cards/Banks etc.
The flip side is folks who have re-financed at new lower rates, and amount using the Obama plan on housing.. Only to have it backfire bigtime for them.
Case in point: Let's say your mortage is 500k. You have income to pay your bills, but the payment is killing you, and the house today is only worth 300k. Using the Obama plan, you re-finance the house for 300k, and lower your monthly payment, but the IRS now considers that you MADE 200k for this tax year.... Yep, and for that CAPITAL GAIN you pay 30% tax, or 60,000.00.
Whoops! Anyone have an extra 60k just laying around! LOL
And you end up doing what anyway?
Bankruptcy, and you still owe 60k to the IRS... Fk'rs.
Be smark my fellow Americans, don't even try and be nice to Banks/WallStreet/Lenders/Card companies... Just Fk'em like they do you, and get them before they get you.
If you really want to scrw'em, you just run up your unsecured debt to the max, stop making your payments on your house and cards, and it takes years to process all this, so you can put the extra you would be paying into your retirement plans, where they can't touch it, or into assets they can't touch, and then when it all comes time to settle up, you walk away from a house you lived in for free for years, sell off your cars for paid for ones with values of 7k and no more, and downsize your own household to a more sensable situation while you wipe your debts clean as a whistle, and Fk'em to the banks with a very good feeling since they have been Fk'ing you for decades, and revenge feels good.
Look around you my fellow Americans, there are more of your neighbors doing just this than you think.
Play with this, and look at what goes on in 2007, 200 and so forth... DUDE! Seriously, the folks that go bankrupt and walk away from these home loans, expensive vehicles and other loans that are KILLING US ALL, will be the smart ones in 5 to 10 years.
Bye bye debt, and hello cash acounting.
Bankruptcy filings, state by state, 2005-2010