How I stuck it to the credit card companies and bought a house with a cash advance. All figures are approximate. Music by Lily Allen (Warning: profanity of the variety shown by the toe).
1. Make all credit card payments on time and establish good credit.
2. Working overtime allowed me to use credit cards for everything and make huge credit card payments every month - always on time.
3. Credit card companies continue to increase my limits. At one point in time my credit limits were over $90,000.00 (unsecured).
4. Take a $10,000.00 cash advance. Deposit some of this money into my sister-in-laws account in Mexico.
5. Continue to make credit card payments on time.
6. Start to build our house in Mexico on my wife’s land that she was given from her mother. The house is started using some of the cash advance from item #4. This money is never re-paid.
7. Continue to make on time payments to the credit card companies.
8. Take out a huge $25,000.00 cash advance and deposit into my Scottrade account.
9. Trade and sell equities in my Scottrade account - making and losing money for about a year.
10. Cash out my IRA account and pay off some credit cards (about $8,000.00)
11. Use the money in My Scottrade account for a down payment ($25,000.00) on a bank owned property. No one ever asked where the money came from in the Scottrade account (cash advance from credit card).
12. Owned a condo before buying the house. Was told by Countrywide agent to make up a fake lease contract so it would “look better” on the application.
13. Rented out the condo after we moved into the new house.
14. Take another cash advance to deposit into Scottrade account (this time will be different).
15. Use credit cards to buy trees, window treatments, appliances for new house.
16. Stock market crashes – lose all the money in the Scottrade account.
17. Hours are reduced at work.
18. First time (actually the second time) late making a credit card payment - one day. Let me repeat that again – ONE DAY LATE.
19. Interest rate increased to 29% on credit card that was late receiving payment.
20. Called Credit Card Company and asked them to lower rate because this was the first time I was ever late. They told me “no this is the second time you were late”. Oh, my mistake but I was only late one day, can you give me a break on the interest rate. Nope! There is nothing anyone can do; you are a risk to the bank.
21. Soon all other cards raise their rates to 29%.
22. Panic for about 1 minute.
23. Reduce my hours at work and stop all payments to all credit cards and condo.
24. File for bankruptcy.
25. Return security deposit I received from my condo tenants and tell them to live there rent free for as long as they can.
26. Bankruptcy finished (about $90,000.00 debt erased). Increase hours at work. Continue building house in Mexico.27. Laughing all the way to the bank.
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