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Thanks everyone for your responses, I'm feeling a little better now after giving DS a big cuddle. I have has some nice people that I've spoken to but this was just horrible. You're right we WILL get through this sometimes it just seems a long way away and I jsut want to be able to enjoy our lives, not worry about some stupid loan we got when we were being naive and stupid 2 years ago!
Lucy in the sky with diamonds.
Don't expect them to be very professional - Muppity is right about how they are. However NO ONE has the right to speak to you that way. Give them heaps back and tell them what you can pay and to stop the threats xoxoxo
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The way Debt Collection agencies work is they buy the debt from the original company at a lower rate and then attempt to get you to pay the whole thing (which is where they earn their money).
You've bought yourself 4 weeks by agreeing to a payment plan.
What you now need to do is put in writing your income and outgoings as well as what you can realistically afford to repay on a regular basis.
In the letter let them know that you are happy to agree to a 6 monthly review to see if you can afford to increase those payments should your situation change and you will be happy to include any lump sums should they become available (tax etc).
No company wants to see you go bankrupt purely because it means that they lose money in a big way.
Your other option is to wait until they send a sheriff (which is the next step if you ignore it) and go into a Court Ordered Payment Arrangement. Very similar to you going into a direct arrangement with the Debt Collector EXCEPT if you default, the court can order repossession of goods to the value of the debt.
PLUS - dealing with the Debt Collector, if you pay your loan for say 6 months they may offer you a reduced settlement amount in a few months time. If you and your DF are in a better position then, you may be able to afford a lump sum (personal loan, consolidation loan etc) to get rid of it for a lower cost than the original debt.
Also, ask if they have frozen the interest. They should do that if they've bought the debt - in which case even if it takes you 5 years of a payment plan, you may find that after 2 years you can offer a lump sum to completely finalise the debt.
I hope that's helped - don't stress hun - you just got a mega ***** the other day and she had no business speaking to you the way she did and threatening you with things that are not right. It'll get better mate - I promise. Money problems are evil but it does go away and with time, planning and a STRICT budget you'll be smiling back on this in a few years time
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oh sweetbut maybe your hubbie might get some over time ? i dunno but one can hope. Mind you he can only do so much hey. maybe you need to cut back some where where i dunno from our convo's your cutting it very slim. can u cut back on meat? we eat red meat not that often to save money mind u neither of us are big meat fans but im craving loads of beef recently. Do you have energy efficient globes? when we went through a real tough bit i served backed beans 3 times a week and porridge everyday.
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Squidipa- yeah I thought about cutting back meat, but I get anaemic if I don't eat meat 6 out of 7 days a week- it sucks! Really sorry to hear that he didn't get he job, is there anything else coming up on the horizon for him?
Mummato2- thanks darl, it feels really good to have someone be so constructive the way you were, jsut hearing 'it will be ok' sometimes makes all the difference!
Waiting till DF gets home from work tonight and we're going to have a big talk about it cause it's getting me down alot.
Thank you all again for your support don't know what I would do without all the BB girls!
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Awww hun, that just sux. It really is worth finding someone to help you budget, the Salvos I think are able to assist with this else I think I know someone who can.
Are all your other debts consolidated?
Good luck *hugs* and definately call them back, it makes things easier.
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No debts aren't consolidated as I know that means getting a permanent record on your credit file which is what we're trying to avoid. We're super good with budgets, have a different one for each week of the month depending on direct debits and the only thing we could cut out is DF's pack a day habit, but that is easier said than done apparently! lol
Just at a bit of a stand still as I feel like I've explored all the options and just keep hitting brick walls...
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ella would it be cheaper to take iron tablets coles sells them cheap, or maybe u and bub eat meat those days and hubbie misses out... he defenetly should quit smoking as thats money you could put towards re payments easy for em to say i know.
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Get your DF to speak with his GP about a tablet called Champix. My DH was a pack a day smoker as well and couldn't for the life of him quit.
He tried everything! All your Nicobate products are just substitute nicotine - whereas Champix is a drug that works on the neuro-transmitters in the brain that crave nicotine.
You are encouraged to smoke for the first 14 days while taking the tablets and then your DF will find that the cigarettes won't give him that satisfaction they used to and he should be able to drop it.
My DH did it in 10 days and hasn't had a cigarette since.
He'll need a 2 month script, so he'll go in (and HAS to tell the Dr all other attempts have failed) get his first 4 weeks, then in week 3 go back for the next 4 weeks.
The script is about $25 per month - but the catch is you're allowed it once only. After that, it goes to full price at $450 per script - so it's worth giving it a decent go!!
As for feeling like you've exhausted all options and hitting a brick wall - it does get like that especially when your outgoings are a lot more than your incoming.
To that, I would suggest you do anything at all work wise. If you can manage a job throughout the day or night, then your DF can babysit - even better if you both find work try alternatives in Daycare like Family Daycare. It's a lot cheaper than the Long Daycare Centres and the CCB rebate in FDC is higher (33% more in fact) - so both of you working should be profitable. Don't be too proud to give anything a shot - just remember, $20k really isn't that much debt (even though it can feel like that) and with your heads down and bums up - you'll be on the good end of it sooner rather than later
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Ella, I am sorry love, HUGS!!
Filling Bankrupsy is not as bad as what you think it is! Have a look online.. Its sometimes the best way out!!
ONly affects you for 5 years but 3 on borrowing monies etc.. and during that time you can save money to do what you choose in 5 years if you want to borrow money then.. youwill have a bigger deposit.
Hang in there darling!
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You still need to pay the money back though - bankruptcy doesn't mean getting out of your debt scot free plus you can't own assets over a particular value etc......it's not just as simple as not borrowing for 3 years - I'd recommend a serious talk with a Financial Councillor to go through ALL the pros and cons for Bankruptcy before doing it.
Plus you'll find on some finance applications (mortgages etc) the question is "Have you EVER been declared Bankrupt".......even if it isn't on you CRAA it is logged in another database and you will always be a bigger risk to creditors.
I'd recommend it for major financial issues - but honey, $20k really isn't major!
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Thanks everyone for your replys.
As for TTC#2 we're doing it now as I'm doing university this year and looking after Orlando therefore it will be difficult for us to do work for me around that, we figured that having #2 this year is a good idea as it means that once I finish my degree at the end of next year I will be fine to go back to full time work , rather than starting work and taking time off again to have more bubbas. Does that make sense?
We've spoken with a financial counselor and also explored bankruptcy alot and simply cant' see the logic in it. As someone said, you do have to pay back some of the debt anyhow and there is a lifetime mark on your file that will come up everytime a loan is applied for. My in laws were bankrupt 10 years ago and even though they own a huge property, they can't get finance...
DF smokes the cheapest smokes he can, they're tailoreds but are actually cheaper than buying tobacco. He's tried quitting heaps of times, but I think the stress we are under and the pressure he feels to quit makes it too much for him and it always ends in tears.
I thought about buying less meat, but we actually spend very little on meat at all, I go to the butchers and spend $40 for a fortnight and that gets us through...
Mummato2- you're right it's not a huge amount of money, but just feels that way at the moment because financial freedom looks so far away.
Trying to get DF to talk about it today as its his day off, but we are both so stressed we jsut seem to snap at each other at the moment.
Wish me luck
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