Monthly Archives: August 2016

We have all been in a tight fix at some point

Hey, we have all been in a tight fix at some point in our life so I can understand what you are going through.

Has your debt gone to a collection agency or is it still in house?

Regardless the collector’s job is to secrue the funds and will tell you anything they think will scare you into immediate payment. Depending on if this is a collection agency or an in house collector can make a difference.

First stop talking to them. They don’t care what you have to say or what your situation is. As far as they are concerned you owe them and they want it now and really don’t care if you rob a bank or go hungry or loose your house as long as they get their money NOW!

Second you need to determine your state laws on debt and get yourself a good read on the FCRA and the FDCPA. These will come in handy during your next few years of debt settlement and credit repair.

I started by reading ALL past posts from this blog… took me awhile but I learned alot! I still have a few questions. We are able to make all our payments with some extra but i would love to see us debt free. We have 14,000 in cc(between 2) one with 7.9% and the other 8.9% van loan of 15,000 4.4% and home equity line of credit of 11,050.00 with 0 interest until 11/06.93,000 left on home. We have just over 3,000 in savings.

What is the best way to start paying everything down? I pay extra on the home but was wondering if going after the van first will be better? We are hopping to move in 2 yrs. I know to get rid of the cc balences first but do I pay all our extra to one or split it since the interest are almost the same? We have stopped using them and are collecting recipts for the month to see where our $ goes. And do I keep adding to savings or go straight to the debt? Any help would be great!

Sounds like the Collection Agency is in violation

You don’t say what state you are in, so it’s a little hard to get specific.

First off, it sounds like the Collection Agency is in violation, or running close to violation, of the Fair Debt Practices Act … don’t succumb! Refer them to the CCCS, if they don’t like it, tough! CCCS is there for a reason, and their reason is to help with unsecured debt, which a credit card is. Keep in mind, they are right, they probably don’t deal with CCCS, but creditors do; and there is nothing to say the creditor can’t and won’t pull that account out of debt collection once CCCS sets up your plan.

Send the Collection Agency a letter advising of your participation in CCCS (give them the company, name, ID#, address and telephone of CCCS); tell them all future contacts should be with them. Also tell them no further phone contacts are permitted with you or your husband, they must only contact you via letter at your home per the Fair Debt Collection Practices Act (Google the link). This should stop the harassment; if not, you can file a complaint against them with the FTC (Federal Trade Commission) and your State’s Attorney General. You can read more debt collection tips on the internet.

Now, for garnishment, as I said, I don’t know what state you are in; but I’m in NY; in NY they can only garnish 10% of your gross and that only after they have started the lawsuit and filed the judgment against you. Not great, but not horrendous either. The fees in NY on $5,000 of debt should be less than $500 (roughly) and would be added to the judgment when filed. Then once the garnishment is filed, you would have 20 days to start making the 10% payments each pay period yourself (usually to a Sheriff’s Civil Office or other legal authority not to the creditor directly). If you default in the payments, then, and only then, is the garnishment filed with your employer and the money starts coming out of your paycheck. This is to give you an idea of the procedure; some states don’t allow garnishment; some states allow more to be taken. It’s important you check in your state as to what is and isn’t allowed.

Next, hold your head up; don’t panic … IT’S ONLY MONEY! Your husband is right, don’t risk your home! Work through this together, you can do it … just keep the lines of communication open between you, work with CCCS, and don’t let the creditors or debt collectors browbeat you!

Now, take a deep breath…

And get started … we are here to help you in any way we can and to give you emotional support … remember that 😉

I got myself into a financial mess

So glad I found this group. I live in Maine. I got myself into a financial mess. My husband got sick and we were not prepared for it.

I maxed out one of my credit cards just to get by for food and bills and pay his medical and prescriptions. One thing led to another and I stopped paying on the card. Months have gone by without realizing so much time had elapsed. Now the credit card put it with a collection agency, $5000. and I was going threw InCharge debt solutions, but the lady at the collection agency says they will not deal with credit counseling services. I have already sent my $290 to In Charge, but have not heard from them regarding the $5000.

This lady was telling me she wanted a hardship settlement of $2500 now and another $2500 in a couple of weeks, or she will start litigations. I only bring home $260 a week. At the time my husband got sick we were both working tons of overtime and money was not as tight. Now after he was sick and missed so much work, our work has stopped all overtime(ouch) What can I now expect? I am so stressed over this I could cry all the time. Another group I wrote to told me my first mistake was to use the card for food and gas when I couldn’t afford to pay for them (no kidding) and to get a second job. I wish it was that easy. I was also going to get a home equity loan to pay off the debt, but my husband said no because the interest was 16.95% and he said he did not want to risk losing the house for a credit card. Our mortgage now is 5.50%

can anyone tell me what to expect now? Will she garnish my wages and will the court cost be outrageous? This is why I wanted to get the home equity loan, but my husband refuses to get it. The credit card is in my name only.

sorry so long