We found a way to get debt-free WITHOUT working harder

Lisa writes: Some years ago I wrote to you asking for advice as we were heavily in debt and finding it a bit overwhelming.

Now my husband and I are debt free, our credit score is excellent, we have money in the bank, and we’re paying off a mortgage.

How did we do it? Not by listening to your advice, which was to get two jobs each and slug it out paying thousands in interest and principal to banks to pay off our huge credit card debt.

No, instead we simply stopped paying the credit cards back. The amount we owed was $30,000, which increased to $50,000 with interest. Yet I learnt that, as credit cards are unsecured loans, you don’t actually have to pay them back. So we sat and waited for seven years and, lo and behold, we are no longer in debt, and have excellent credit scores. I would love you to share this with your readers — unlikely, I know! But it’s probably a better tip than working your bum off giving billion-dollar profitable companies money they don’t deserve.

Barefoot responds: I’ve been in the trenches as a financial counsellor and I’ve never seen a lender roll over and not try to recover a $30,000-50,000 debt (which they have every right to do – because you are legally liable to repay the debt).

Regardless, let’s be clear about what’s going on here: someone lent you money in good faith — and you intentionally ripped them off.

You say: “It’s probably a better tip than working your bum off giving billion-dollar profitable companies money they don’t deserve.”

I say: (nothing, my mouth is open, but no words are coming out).