Hey folks, Paul doesn't like it when I give out too much financial/personal information but you all gave me such thoughtful and considerate advice that I just wanted to make our situation a bit more clear.
Paul and I have no credit cards and haven't since we met. We have also accumulated no debt since we met. We have (as far as I have determined) four debts; 2 student loans, one bank loan with a very low interest rate and now this debt that we didn't know about which was a credit card but one that has been closed for many years.
The first three debts mentioned are not in default and we are giving them all small, but absolutely regular monthly payments. The fourth is the only one that is a problem because they won't take payments. Although, I did think that the suggestion of paying them monthy payments anyway was a good idea. If they do sue, as was pointed out, all they'll get is wage garnishment anyway which is probably less than what we're prepared to give them. So we may consider that.
In the past two years we have reduced our debt by a small amount but reduced the number of debts by a tremendous amount. So, we are in pretty good shape now as far as not being harrassed and we have only low interest rates, the problem is simply that our debtload is large.
Now, as far as credit counselling agencies...I tried that like a year ago when we were beginning to work seriously on this and had such poopy luck it wasn't even funny. Two of the four places that I contacted simply said that we did not earn enough to be put on a debt management plan and that there was no way they could help us. One suggested that we file bankruptcy and -I- had to point out that that would be unhelpful since you can't file student loans with your bankruptcy and that is 75 % of our debt. The other two places had me list all of our income and all of our expenses and then told me what I already knew - that we need to make more money. One woman said that the only things she could think of was moving to a cheaper apartment (um, no, cheaper than what we have now would put is in an area where I would never feel safe) or cancelling our cable. Well, okay cancelling cable would help but, dude, I'm home all day, I need my cable. So, credit counselling is not helpful for us.
So, again, let me say that we are doing pretty well except this one issue that we are unable to deal with at this point. Our problem is not reckless spending or credit card use or anything like that, it is simply that we have large debts.
Thanks again for all of your great suggestions and support and I promise to try and keep the money posts to a minimum for a bit ;)
4 comments:
Good Lord, those people were awful!
When I did mine, I was on the phone for about an hour, going over my bills, my rent, my groceries, incidentals like gas/clothing, things like that. They were very helpful. The company I used did have a set-up fee, and I decided to live with that. I think if they had told me to "make more money" I would have shot myself in the head at that point. I had medical bills and CC debt to deal with as well.
There a a number of Christian Debt Counselors, too. You may have better luck there. If some company won't take payments from you and wants XXX thousands, it might be time to get someone else involved.
Our stories are so similar. While it WAS somewhat reckless spending that got us so in the hole, we aren't doing that anymore, and haven't for a long time. I've gotten all the credit cards consolidated into two different accounts, both with zero interest, and I switch them around when that special rate expires, to another one with no interest. Makes a HUGE difference. Our debt load is still high, while our income suffered when W got hurt. I think I'm a litle farther along in the plan of getting out from under, so I'm confident that you'll be ok in the long run, too.
"you need to make more money" makes me laugh my ass off. Who the hell doesnt' need to make more money, regardless of debt issues?
I called a place once, and they didn't help me much either. I had already put us on a strict budget, all the things they advise you to do. But one advantage I see of finding the right place is that THEY would negotiate with the account that is being so bitchy with you.
Keep your chin up, dear, I think you're doing a grand job of handling it.
Judge Mathis would approve.
Judge "Whaddya on crack?!" Mathis is my very favorite. Though sometimes I still get a thrill from Judge Judy.
The rest suck...except for the occasional Barry White-voiced Judge Joe Brown.
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