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CA doubled my debt ... how do they get away with this?


Been_Ponzied
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Rule of 72. 72 divided by interest rate = doubling point of balance. Most default rates are 29.9%. 72/29.9 = 2.408. So in 2.4 yrs the balance doubles. It doubles again in another 2.4 years. (double from the double....$2K bal will be $4K then $8K).

As another poster said, interest accrues even while in collections. You stated that this debt was defaulted 5 yrs ago. You are lucky is has only doubled....but, the balance is irrelevant if you have no intention of paying. I would look at your state's SOL. In FL, CC debt that is not a store card hits SOL at 5 yrs. At that point, one can rest easy....if they sue, they won't win.

In the meantime, you have 2 more years of reporting to wait out if you do nothing else.

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