Can they do this?

[Inanna]

What a beautiful post Madisun... I felt triumphant reading your rise to freedom from debt! What an amazing accomplishment! You rock!

Another 1st Time you will get through this - but as Mad says it's never them that get stuffed it's your credit rating that will be stuffed...

What is Mr Budget???

[LimeSlice]

My Budget...they have a website Deb think its an au site

[*Beema*]

What is Mr Budget???

When you are in financial strife, and getting into a lot of debt that you can't get out of, defaulting on loans or contracts, they come in a look at all of your income, and your expenditure, they they speak with all of your service providors, creditors etc, and work out payment plans to get you back on track, unfortunately for us landlords, we are the first to lose our income as not paying rent doesn't affect your credit rating - and that is what they aim to salvage, it just affects your ability to rent properties easily in the future....

They certainly have their place and do help a lot of people and in the end someone will miss out on getting paid while it is all being sorted... eventually they do start paying rent, but after a lot of the initial catchup is done.

[Madissun]

Wow Beema, thats really unfair! Having said that though, a mark against your name with the rental board stays with you for 7 years (i think, or it may be 5). Trust me, i learnt that the hard way too

PS- Thanks Inanna

[alioops]

If you think the $600 doesn't add up with what you have/haven't paid then I would suggest getting a statement from them of your account and comparing it to your bank statement. Having recently been bailed out of a LOT of debt I can assure you that unless you and DF are doing groceries on $150 or less then you can reduce your shopping. You will be eating very boring things like snags and mash, but you will be able to get out of debt. My last grocery bill for myself and 3 children was $150 for a fortnight. It is do-able. Also controlling portion sizes will help. If your DF is anything like my DH, I have had to say that if there is no food left after X amount of time I take it from his pocket money (we budget $50 each per fortnight pocket money). You can run a household on $250 per week before bills. So if you can get your spending total (including fuel, food and luxuries) down to $250 the rest is for bills.

Do you have anything that is not currently under contract that you can disconnect? Disconnecting internet if you are under contract can also cost a fair bit. Pre-paid mobiles can be sold (luxury) any video game consoles can be sold (luxury) TV's can be sold (luxury). If you have anything that is unencumbered and not absolutely essential, Sell it now (cash converters will do cash in hand) and when you are back in the black you can buy a new one. There is not a lot that is absolutely essential, and in the meantime you can say that you trying a minimalist look. It will also mean less for you to clean

I understand what you mean about not wanting to pay a contract that you dont have the products for which I why I am suggesting selling anything that is unencumbered so that you are only paying for what you have. As soon as the laptops and internet come out of contract if you are still struggling financially I would recommend cancelling them and using the facilities at the local public library.

One thing I would like to say though is I think there has been a fair bit of rudeness in this thread, 1st time is where I was last year financially and I was miserable enough. If I had posted about it and gotten these responses I would have left BB pretty quickly. Re-read before posting, a little eloquence wouldn't go astray. I you would get offended at someone saying the same to you, then maybe you should just offer suggestions rather than telling her off. In this situation I am sure 1st time does not to hear the old parental line of 'Welcome to the real world', she is telling herself enough.

1st time

[fionas]

Totally agree with what alioops just said. I think that some of what has been said to First Time, particularly the comments in regard to adult world and her age, is unnecessary and unhelpful.

[Mak]

Alioops has some great suggestions and ideas - it is hard work and a little daunting but once you get the swing of a tight budget and start to get sorted you will be really proud of yourself. It is hard and confronting tho - we spent years with very little $$ to spend but honestly looking back it was the best thing we did. Take care - hopefully you have some sleep and a few new options come up over the next few days. xx

[avanliamsmum]

Totally agree with alioops about people being a bit nicer about the situation... We all make mistakes! Even older people.

[Traveller]

I find a really good way to save money is to plan meals in advance (write a menu and stick to it). Freeze leftovers and make sure you use them. Buy in bulk and choose rice over chips, and sausages over steak. Don't shop in one supermarket, buy everything you can from aldi, then a cheap greengrocers for your veg, and only shop in the big supermarket for things you cannot get elsewhere. You will save a fortune.

Also please rethink the $600 cot, your daughter will be more grateful for a stress free mama than a beautiful bed that could have funded a larger bill. Shop for 2nd hand items or cheap ones from kmart. They will work just as well. Also try freecycle, many people are just giving away baby items. I gave away a beautiful rocking chair once that just needed some new fabric so someone lucked out there!

Perhaps contact RR and ask if you can return 1 laptop and continue paying for the other one? They might see this as a less risky way out of the situation. Please approach them in a "I know I am in the wrong and I just want to work a way out" sort of way. They will appreciate this. also have a look at what you are paying for and see where you can cut back. Do you have an expensive mobile phone contract that could be downgraded? Or a foxtel contract that could be cancelled? Can you downgrade your car or sell some jewellery?

Most of all a good sleep will help you see this clearer

T
xx

[~clover~]

1stTimeMumma - This is why DH & I very, very rarely loan money in any way. Back when DD1 was younger we went out & got us a video camera on contract.
After a while I defaulted the payments (TBH, it was quite a few months & I just forgot about it!) Anyway, it was blacklisted against my name & went to a debt collector. It wasn't reposessed (maybe the difference between a rental & a loan? Thay might'nt be so strict on getting it back) Anyway I made an arrangement with the collection agency & paid it off at a similar rate, just weekly instead of monthly & direct debited so I couldn't forget.
Anyway, when DD2 was 6 months old, the camera was stolen 3 weeks later I recieved the call that my final payment was to come out the next week. That sucked!

So other than Radio Rentals, everything we buy is outright. We tried a pc through RR, had more problems & had it taken back. & had to pay out the contract. Just the same as if you enter a contract on a mobile phone plan, you have to pay the minimum contract period amount, even if the service is disconnected.

Its hard, but I'd back up your lappy's, hand them back, make a $10 arrangement (even if it is over the next 5 years) & go to the Good Guys (or similar) & buy one outright. Then later on, when the money comes up again, buy the second one. I almost got a lappy, not a bad one, for $380 on clearance earlier in the year. Only coz they couldn't find the box I couldn't have it! My sister bought the same one only a few months earlier for $850!

Good luck & try not to stress.

[briggsy's girl]

if you've had three of your recent payments missed, you probably copped a fair whack of that debt then - if your monthly amount is 120 (i'm guesstimating from your statements) and you missed a few months, even three, there is 360 - a further 90 for the three missed weekly payments puts it at 450, and then you add three 50 fees (pretty standard for this kind of arrangement) and you've got your 600. rental agreements suck soemtimes with what "hidden" fees exist - it's very easy to see how they've added it up pretty damn quickly

there has been some good advice previously about ditching the non-essentials. if you don't NEED something, get rid of it. i know that we all have things that make life easier (like the internet/mobiles etc) but, given this and previous posts about your current finances, it's time to sort the needs and wants and start getting serious before your baby arrives.

i agree with getting yourself well versed on your contract and what defaults mean for you. it sounds completely normal (unfortunately) for default to result in collection and sale of products, with you still owing the amount left on the contract (minus what the products sold for). some companies will allow you a reduced repayment if necessary if it's paid immediately (which is a JOKE when you're facing financial hardship), but ultimately, they're in the game to make money, and they'll enforce contract defaults when they aren't getting their money.

i would suggest you get some financial counselling for both yourself and your partner. you're in this together, and your finances (or any black marks against either of you) impact both of you and your baby. it's frikken hard when it gets to that point where you've got no idea what way to turn to bail yourself out - sometimes you need an outsider to help with that one

[kirsty_lee]

Being a landlord as well I would not be happy with this either, my rental people have been a week late before and it has a big impact on how I deal with my own finances.

Unfortunately I know that they places like My Budget (in SA) and similar agents some of the first payments they delay ARE rent

Yeah I know the OP has said she wouldn't do that but just on the topic, another person who rents out a home here and recently our tenants were 1 month behind. A WHOLE MONTH Our property manager at the time also resigned so the new property manager was catching up on all the loose ends the first one didnt finish. So we had no idea until we checked our bank account to pay the mortgage and whaddya know.. no freakin money! *shakes head* I would be majorly angry if I found out a tenant didnt want to pay rent so they could pay another debt. Personally I wouldn't renew the lease cause how many other 'debts' will come up. As others have said unfortunately this is the risk you take when you enter into these debts. 600 is nothing at all really compared to the like 300-400 thousand that most people who own houses and stuff have to pay. One way or another you find a way to get it paid. Im sure you will too, because you have to.

[slyder]

Tomorrow when i have calmed down and i'm not so emotional i will call them back and ask to speak to somebody high up whos not in the collection department about my options. And if they still wont hear it i will take it further.

This is the part that concerns me. The rental company holds all the cards (and rightly so) due to the contract you agreed to. The higher they allow you to go up the chain, the less that person is probably going to care because the senior staff will have more pressing matters than your $600 debt. "Taking it further" and all of that is just denying the issue.

I hope you can work it out, and like the others have said, you guys really need to see a financial counsellor. Failing that, for all future transactions - if you can't pay for it outright, or can't clear any agreed debt very quickly, do not purchase. By that I mean, we use credit all the time for big purchases, but also have the capacity to pay it off quickly too, meaning that credit gives us the convenience to get something immediately, but also doesn't put us in a situation where we are burdened for a long period. I personally believe that if anything involves a contract over X number of months or years you shouldn't do it, barring perhaps a modest mobile plan.

[fionas]

Don't even do the mobile phone plan. Just get a pre-paid. My friends make fun of my Nokia pre-paid phone until I told them that I'd spent $12 in three months on calls compared to their $300 on a plan. Then they wonder how it is that I'm going to be mortgage free in a few months ... erm, maybe because I don't spend money on stuff I don't need. Not rocket science. You HAVE to take charge of your finances or they will take charge of you.

[~clover~]

Don't even do the mobile phone plan. Just get a pre-paid. My friends make fun of my Nokia pre-paid phone until I told them that I'd spent $12 in three months on calls compared to their $300 on a plan. Then they wonder how it is that I'm going to be mortgage free in a few months ... erm, maybe because I don't spend money on stuff I don't need. Not rocket science. You HAVE to take charge of your finances or they will take charge of you.

Yep, pre paid here too Have had a plan though. Not worth it! You can get a very good phone on pre paid if you want it. I plan to update when I can, but there's nothing wrong with my $60 phone for now! Works the same

[Inanna]

How are you today 1st time? What do you feel after having a sleep on it?

[ElleJay]

Unfortunately they're allowed to take the laptops, but they have absoultely no right to talk to you the way they did

I've just gone onto a $29 cap on my mobile, from pre-paid because I found I was spending WAY too much money on pre-paid - and with the contract, I can keep a closer eye on it than on my pre-paid.
The computer I'm currently typing on, we got from Radio Rentals and have had it since June/July 08 and we are coming up to the end of our lease (where we can buy it for $1 - which we'll be doing) and we've got our washing machine on an 18 month contract through them too which we started around July 09. Never had a problem with it (which we are so lucky bout!)
I have a mini laptop I bought from JB HiFi back in Dec 09 for $450 - Either hand them back in and look into getting something like that (even if you put it on layby)

More hugs for you hun - I know how bad it feels - Back in 03 (it's only just been cleared) I had a $900 internet bill which I didn't even use - but, because it was in my name, I had to pay it - to which I flat down refused. I kept getting collectors letters until my grandad (bless his heart, may he rest in peace) paid it off and said 'It'll haunt you for 7 years, but once it's gone, it's gone and you'll have a clean slate' - I'm now (as I mentioned before) on a contract as I now have that clean slate.

[Bumperstump Cummerbund]

How're you going today darl?