I'm in way over my head [VENT]

[*LittleMissSummer*]

Before i start i would like to say that if you have nothing positive or anything helpful to say please don't comment. Last time i posted about this i was left feeling pretty lousy.

Here goes...

Back in 2009 i took out a personal loan of just over $15k to move into a house with my DP. It paid for our bond, furniture, white goods and i bought a car. All was good until a short time later i was made redundant at work. I went into my bank and explained i couldn't pay my loan repayments for possibly up to a month. They said they understood and would freeze my account. Well, they didn't. The repayments came out every week for about 6 weeks until i got another job, i wasnt paid enough to get my bank account back into +$ so they stopped the direct debit and i had to pay manually. I fell behind, i tried to catch up and then eventually i was just so far behind they sent my debt to a debt agency.

I lost my job again, then fell pregnant and because my pregnancy was really bad i couldnt work very much so just kept falling behind. I then started ignoring them when they called. I did try and work out a payment plan a few times but they wanted more than i could afford. I applied for hardship and was knocked as they believed based off my DP's salary and our expenses we could easily afford the debt, how they came up with that i have no idea as literally we had no money.

Over time i just avoided all calls, hung up, screened my calls but recieved letters every fortnight.

Today i recieved another call, saying i owed close to $25k from all the interest and they needed a lump payment of $17,500 by this friday or court officials, the sheriff... im not sure i went into shock and couldnt hear her properly... would come to my house and put lovely red stickers on any belonging i have worth money to put to auction to pay the debt. I explained i don't have that kind of money, neither do my friends or family but she said they didn't care... which to be honest i dont blame them.

I was offered the option of bankruptcy which is looking like what i will be doing.. now i am just so upset and angry i let it get this far. But having spoken to family about it they turned their backs saying its my mess i have to clean it up.

DP is printing off the forms today and tonight we will be filling them out. I feel like such a failure, i look at DD and want to burst into tears as ive let her down. This will go down as by far the worst thing i have ever done...

So yes please don't kick me when i am down. Also i can't work out any kind of payment, live off 2 min noodles as its heading right for legal actions and i really don't have $17,500.... even if i sold all my stuff it wouldnt come close..

Now to go off and cry my eyes out..

[Kazzo]

My brother got into a lot of financial debt and ended up going to fox symes and associates (sp?) and they took over all his debts and so far he has not had any troubles and they really help him out. While with them he has a zero credit rating so can not even get a new phone contract so all temptation is stopped. His debts were a lot more then yours so maybe they could help you?

[*LittleMissSummer*]

We had a bad run in with fox symes a few years back. DP got himself in debt before i met him and they were supposed to help him but they didnt. Hes all out of the woods now. But seems im in them now..

[Kazzo]

Thats is a run of bad luck for you both. That is my only suggestion. Your in a very unfortunate situation, I hope you find some light at the end of the tunnel, are then any free financial aid places you can contact, maybe centerlink has a contact, or even a legal aid?

[OceanPrincess]

Oh hun I'm constantly juggling finances to make ends meet and when we miss mortgage repayments I live in fear of those phone calls... I feel a smidgen of your pain...

What about My Budget? Can they help?

What about a debt consolidation loan?

Just wondering if there are any other options before bankruptcy. It is a pretty final thing... but if that is the road you have to walk, then we will all be here to support you.

You are not a failure. Is your daughter happy? Fed? Clean nappies? I'm sure the answers to those are yes. Then you are not a failure. You might be struggling to handle money, but that is so common it isn't anything to feel like a failure about.



I'd recommend making some calls before submitting the bankruptcy claim.

[OceanPrincess]

... are then any free financial aid places you can contact, maybe centerlink has a contact, or even a legal aid?

Or the Salvos? Smith Family? I'm going to do some googling for you.

[OceanPrincess]

The Salvos offer emergency relief, material aid, advocacy, referral and support to people in personal and financial crisis. This is The Salvation Army Community Services Centre in Canberra:

Canberra Community Services Centre
4 Hawdon Place ****SON ACT 2602
PO Box 1038 ****SON ACT 2602
Ph 02 6247 3635
Fax 02 6257 2791

I'd start with them.

[Beautiful Disaster]

Call a company callled Credit repair Australia or my budget. I have a contract with them and they contact your creditors and they freeze all the interest. Plus it stops the harassing calls and letters. PM me if u wanna ask q

STAY AWAY FROM FOX. My agreement was with them and of the $7k I paid back it went to them for fees and the creditor got $300 in 2 years

[LuluHB]

Not sure if the laws are different over east than here, but a little-known loophole is that the bailiff does not actually have the right to enter your house without your permission. He can knock on the door and you can just ignore him. Also, do you have proof of who bought what of value within your house? ie if your DP bought the tv, does he have a receipt from his credit card or whatever? It can be very difficult for bailiffs to execute warrants when a couple isn't married, and when a debt isn't in joint names.

It doesn't solve your problem by any means, but could mean that you don't end up all sitting on the floor staring at four walls.

I was in a pretty tough position lots of years ago too and the feeling of dread every time the phone rings is just awful. Bankruptcy is not the worst of all possible options but it does impact significantly on your future lending capacity so try to think of that when you and your DP are discussing where to go from here. You're very young, and have a long life of potential lending in front of you so make sure you've exhausted all other options before you go down that road.

Good luck.

[OceanPrincess]

Just googled My Budget. They might be able to help - give them a call.

[Kazzo]

Was just popping back to post the exact same thing OP posted I agree, exhaust every avenue before you file for bankruptcy.

[starangelk]

I agree with the other posts, while bankruptcy is certainly an option it should be a last resort, please explore the other options first. Even if you don't proceed at least you are making an informed decision about bankruptcy rather than finding out in a few years time that you could have and would have preferred to do things a different way. While bankruptcy does help make the situation go away in entirety, it's also something you have to live with - potentially for the next 7 years. That means very limited availability for credit and if you do get a job in the future, potential garnishing of wages etc.

Whatever you choose, please seek help for your future finances. There is a positive in this situation. You are in the worst spot now because you are trying to back pay for old debts and also live your life now. I totally understand why your funds don't stretch this far. To make sure you don't get back into this position and feel the way you do right now, I recommend getting help from my budget or even handing your finances over to your DP or a family member. This makes you accountable for the way you spend your money and can help you to get back on track and even get ahead.

Big hugs hun, I know you are trying so hard to do the right thing for you and your family. These debts are from the past, you can't change the situation now. All you can do is make sure you deal with it the best way, make an informed decision and then make sure you are never back here again.

[Calluna]

Sh*t hun I'm so sorry.

[Little Chicken]

Do not go into bankruptcy unless you really really have to. Trust me. I am a bankrupt through a business failure and DP and myself owed hundreds of thousands. We lost our house. Do not fill out those forms without good financial advice first, it is not something you can back out of and will have lasting financial ramifications for years and years. You could still end up losing your car as well, and lose any credit cards or post paid mobile accounts as well. Try for a section 8 i(I think it is called) instead. You will still have to repay the debt but at a more manageable rate.

Please, please get qualified financial advice before doing anything.

[*LittleMissSummer*]

I just want to crawl up in a hole and die to be really honest... cant believe ive let it get this bad.

Ill be back later to read through everything properly..

[Purple Penguin]

No advice, just wanted to give you a Hope you can work something out.

[Little Chicken]

I just want to crawl up in a hole and die to be really honest... cant believe ive let it get this bad.

Ill be back later to read through everything properly..

I know exactly how you feel. It was one of the most stressful times of my life. But now is the time to go out and get help. If the sheriff is already coming around, it probably means the debt company has been to court and got an order to seize property. One of our creditors was going to sell our house to recover a $25,000 debt. The bank can force you into bankruptcy but do try every other option first. Have you kept all the letters? Open them and go through them to find out what your bank plans to do. Call the salvo's and make an appointment ASAP, and get proactive. Don't let your DP file as well unless he really has to.

[Miss_Dee]

I don't really have any advice other than what other people have suggested but wanted to send anyway. I know how overwhelming being a few hundred dollars in debt is so I can't even begin to imagine how you must be feeling. Try to relax (easier said than done) and look at things from a calm and open perspective.