But do you think Charles and everyone at VISA wants you to know that? Absolutely not! VISA is a financial powerhouse and wants to continue to be a financial powerhouse (under the radar). Let’s face it. VISA is very successful. The corporation continues to get bigger and bigger every year, growing at an average rate of 8-10% annually. However, according to Forbes Magazine, the most profitable industry in 2015 did not involve VISA, it was the Health Industry. What’s even more bewildering is that the Health Industry ranked first with a net profit margin of only 21 percent! But how can that be you ask? Didn’t you just tell me that VISA has a net profit margin of 50 percent?! Exactly. This statistic is based on TOTAL profit, not net profit margin. This is great for VISA because it allows them to stay under the radar as they continue fill their pockets with cash and collect on high interest rates.
Since VISA is so profitable it makes you wonder why they are so ruthless when it comes to late payments, doesn’t it? Why does VISA hire people to harass, haunt, try to intimidate and embarrass our friends and families who are having a hard time making their payments? Wouldn’t you think they have heart for people caught in a financial struggle? $50,000 to VISA is petty cash. The problem is that VISA is a business. They want to make money and the more money they can make the better. If you file bankruptcy that would cut down on their 7 BILLION dollars in profit a year. So bankruptcy filings cost VISA profit. So VISA wants to have fewer bankruptcy cases filed. The harsh reality is that Visa wants to make you feel bad for not paying them and do everything they can to prevent you from legally breaking up with them.
Believe it or not, after you file bankruptcy odds are that your credit score will go up! There is life after bankruptcy however that is information that VISA certainly does not want you to know. The fact is, though, that after you file bankruptcy you will be debt-free. The ideal candidate for a loan is someone who doesn’t have debt. This is why your credit score goes up after you file a bankruptcy case. Banks and credit card companies don’t care if you don’t pay someone else they only care if you pay THEM. However, don’t get me wrong - filing bankruptcy is a negative credit event but lenders just use it as a justification to get higher interest rates and that’s about it. At the end of the day if you’re swamped with unmanageable debt and struggling to put food on the table, that is the best time to file bankruptcy, eliminate it and get yourself a fresh start again. Filing Bankruptcy allows you to put you and your family first not the creditors, and that’s what’s most important!
Of course they do! Why? Because they subsidize a lot of the debt consolidation companies. VISA benefits from having more people in debt consolidation programs rather than the protection debtors are given in bankruptcy. In a bankruptcy case, VISA cannot call, harass, garnish your wages or approach you in any way to attempt to collect money. All creditor collection activities must stop immediately! Filing Bankruptcy is the last thing VISA wants you to do; debt consolidation is the first. The problem is that debt consolidation is a sure-fire way to put you further into debt than you started. Debt consolidation is merely a way to lump all of your debt together into one payment, spread it out over a longer period of time and tack on an interest rate that makes it profitable for the debt consolidation company.
When you file bankruptcy it’s all about protecting your paycheck and assets, not the creditors or any debt consolidation company. When you file a chapter 7 bankruptcy all of your unsecured debt is completely wiped clean within 90-120 days. Forever. Tax-free. No questions asked! When you file chapter 13 Bankruptcy you set up a 3-5 year, easy repayment plan based on what you can afford after all reasonable and necessary expenses. If you owe $50,000 in debt and you can only afford to pay $200 a month. You pay the $200 a month for a maximum of 60 months and up to $12,000. The remaining $38,000 or more is wiped away. Forever. Tax-free!
However this is far from advantageous to any creditor. To learn more about debt consolidation download our free eBook "The Truth About Debt Consolidation." Find out what Visa and debt consolidation companies aren't telling you and more!