Will there be a - Y2K - induced CREDIT CRUNCH, if so when,/ solutions for those who have no money for PREPS

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As we all know there are some folks that have visited this forum with some pretty hardend positions, totally committied to one side or the other, and lots riding the fence. I myself sold every-thing last year, home, business and converted it all to a big bag of cash, that I hold. Guess what side of the fence Im on. That being said I also buildlt 30 years of excellant credit which Im sure has a number of defferent values, all of which will come to an end very shortly, I believe, because of Y2K. When I was in business I was always insurered to the max. Folks talk about Y2K preps as Y2K-insurance, I agree. I submit that you become better insured, before any hingki bank problems, start to develope. Consider cashing in on your Credit History, when the crunch comes that value will be history. Pay the minimum faithfully each and every month. Next year, month by month, you make the call on the bank, are they worthy enuff for you ? If things are working out as the Pollys say, put it all back in and look at the interest pay as Y2K prep. If it goes the other way you were abel to cash in on your Y2K insurance policy. For those who have very little prep money, as long as you can get credit cards, charge away, preps,preps, preps.......Now that being said Im additionally formulating a letter, to send out to all my credit card companys, that will lay out some technical, financial, and emotional reasons why I have to in good conscience stop paying until futher notice solely because of Y2K. Looking forward to the day when I will galdly start paying again, if everything is oki-doki. Pollys will veiw this as one more nut case who stands to hurt the banking system prior to the, none event. I submit take out the additonal Y2K insurance before its no longer avaiable......Good Hunting!

-- Les (yoyo@tolate.com), August 22, 1999

Answers

Les, I am not sure that I quite follow your logic here. If you have a good credit history and want to start using your credit cards as a sort of further hedging of your Y2K preps, and go ahead and charge away while just paying the minimum balance, that could be a reasonable option, though perhaps not one that everybody would choose. (And if you think about it, those credit card solicitations with a 3.9%-4.9% APR promotional balance transfer even sweeten the pie -- you could get a respectable cash advance from one credit card, then use the low APR on the other to switch over under the low rate.)

What I don't understand is why you are questioning whether you would not continue to pay on your debt next year, assuming of course that we don't have a complete meltdown. Even if you were worried about the solvency of your bank, you still have the obligation to pay, even if it means forking over the minimum amount due in cash to get a money order (or cashiers check), then mailing it in. Obviously, you want to keep receipts for the money order or cashiers check, and get proof that you mailed it.

Nobody knows what will happen. But the last thing that you want to do is play games with your credit worthiness.

-- Jack (jsprat@eld.net), August 22, 1999.

Jack the quick answer...your looking at Y2K as a 1 to 3 on rickter scale, Im looking at it above 8. That should answer your questions... Thanks

-- Les (yoyo@tolate.com), August 22, 1999.

Les:

Sounds like you've decided to shoot yourself before your gun turns into a pumpkin and you lose your last chance. So I encourage you to DO IT NOW! Go for it!

-- Flint (flintc@mindspring.com), August 22, 1999.


Wow Im honored Flint, I dont look at the up and coming event as the end to my life, Im not a fatalist. I simply reviewed over a 1000hrs of Y2K research and made a call. Every-one out there, that is Y2k savey, is doing the same, analyzing, resarching, trying to make a call. All I simply did is to remove all my obstacles to making an unbias decision. Most folks that I talk to today are pollys because of there worth. If they had nothing to lose most of them would be doomers. I wish not to offend, but only to clarify. That being said I have now come to a place of ready-ness, with no fear. I quite frankly look forward to being apart of living history, perhaps taking notes along the way to give to my decendents. You no just like the luck few that made it of the Titanic...want to help build some life boats?

-- Les (yoyo@tolate.com), August 22, 1999.

IMHO it's a gamble to do absolutely nothing and it's just as much of a gamble to prepare for TEOTWAWKI. You could win big if you place everything on either scenario, but you could crap out too. I'm going middle of the road, I think the odds are better.

"You gotta know when to hold em, know when to fold em....."

-- Mabel Dodge (cynical@me.net), August 22, 1999.



IMHO it's a BIG gamble to do absolutely nothing and it's just as much of a gamble to prepare for TEOTWAWKI. You could win big if you place everything on either scenario, but you could crap out too. I'm going middle of the road, I think the odds are better.

"You gotta know when to hold em, know when to fold em....."

-- Mabel Dodge (cynical@me.net), August 22, 1999.


Sorry about the double posts...must be an early y2k glitch.

-- Mabel Dodge (cynical@me.net), August 22, 1999.

Les:

I think mabel is right on this one. You make your best assessment and act on it. It's your judgment and your call. If you think things will be so bad that you should buy everything you can by borrowing to do it (and your debts will vanish in the meltdown), then time is running out, do it soon.

Personally, I think creditors aren't going away. You will owe back what you borrow, with interest, so best to be able to do it. But if you think all debts will vanish, fine. My guess (and it's a pure guess) is that the single most likely misfortune I face is loss of job, in which case big debts are the worst thing I could have.

-- Flint (flintc@mindspring.com), August 22, 1999.


Mabel made a call, we the lucky ones are all making the call, but like I have been saying all along, the call you make is directly predicated on the amount of Y2K reseacrh you have done. Even the polys at this forum have been given privileged info so as to take anuff action to fire-up there PC to come here time and time agian. That being said think about how lucky or doomed the 99% of this countrys people are that dont have a clue.....

-- Les (yoyo@tolate.com), August 22, 1999.

Im on the east coast and its bed time for me, thanks all for responce Good night...---...

-- Les (yoyo@tolate.com), August 22, 1999.


Why Flint, just go bankrupt, it's the number one sport in America - you'll be in good company when the crash comes... think about it... why do you think Congress is changing the bankruptcy laws asap...?

-- Andy (2000EOD@prodigy.net), August 22, 1999.

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