so i did it. i went through my bills and wrote down the amounts owed. some things i didn't have the bill for, so i had to call and find out the balance. what's the damage?
$67,529.65
that is the amount i owe including my student loans. without my loans i owe $6831.62, which isn't THAT high, but as i stated in the last post, most of that is owed to collection agencies.
so now what? i tried to do a preliminary sketch of how much i have to pay out per month and check that against my salary. every month i have to purchase/pay for...
| SallieMae--$350 |
| Discover Card--$335 (will be paid off in October) |
| Babysitting--$400 |
| Baby Formula/Supplies--$150 |
| Bally's Fitness--$36 |
| Netflix--$16.23 |
| Webhosting--$5.98 |
| Gas--$120 |
| O--$300 |
my monthly take home is around $2200/month, and once i switch jobs it will increase, although i'm not sure by how much.
so writing it down has taught me a few things (some i already know).
- i don't owe THAT much: i owe less than $7k, which is totally doable.
- I spend money on random things: I take home nearly $500 more than I need to spend, yet at the end of the pay period i'm always broke.
- I have some room to pay off my other debt, but i have to be smart about it: before i call up the collection agencies and play let's make a deal, i should have an idea of what i can pay and not get bullied into paying more than i can handle.
now....if anyone has advice as to how to deal w/ collections agencies that would be great.
8 comments:
That is a first step to getting a clearer picture of your financial situation. I did that for my credit cards, but I need to do it for all my debt.
Congrats on getting organized and laying it all out on the line.
Paying a collection agency is not always the best thing to do. I'd recommend that you go to creditboards.com and get advice from some of the pros over there. I've been a member for years and my credit has improved tremendously. I'm talking from low 500s to upper 700s. It's empowering when you're armed with the right information.
Calling a collection agency can get you into more trouble than it's worth. It is against the law for them to strong arm or intimidate you into paying. Some of them are bottom feeders, some are unscrupulous, and some are just plain scum. They are not honest people, so don't be quick to pay something just because they send you a bill.
There are laws to protect you as a consumer and you can use them to your advantage. All communication should be in writing, but please before doing anything, spend some time reading at creditboards.com.
If you have any questions or need clarification on something you read, start a new thread on the board and ask. The people over there are so helpful, they'll jump to your assistance if they see you're trying to learn but have firt expended time to find the answer for yourself. If that doesn't work, send me an email and I'll try to help you.
There is no quick fix, but it'll be worth it and save you lots of money in the long run. Please, just take the time to do it right.
Good luck!
Tired: yeah, it is helpful to get a clear picture. i was afraid i owed a lot more, it's good to know my other debt (besides student loans) isn't SO out of control.
Singla Ma: hanks for the advice. i will check out the site & email you if i have any questions. going from low 500s-700s is inspirational, especially to me because i'm at the 500 range. thanks again.
Lost Filer,
thanks. none of my loans are charged off. my student loans are actually the only positive things on my reports. the charge-offs are old credit card debt & just random things i've never paid/didn't pay on time. which brings up the issue of "dead" debt. i have 2 cards that MUST be past the SOL, but i'm just not 100%, but i don't want to mess up and revive it. i received a letter a few months ago about one of them (i think) but it didn't list the old CC company, just the amount. i don't want to inquire and start the clock on that old debt. i know i haven't made a payment in the last 3 years...and i'm pretty sure i didn't make a payment on those 2 accounts in 2002 either...so should i just let it ride? or should i inquire? the total on those 2 accounts is less than 3k (i didn't add that to my total).
Thanks for the advice Lost Filer.
I do have some Collection Accounts that are within the SOL. I've posted over at Credit Boards and I think i will start the validation process. I will probably just pay off the small ones, but only if they remove the negative from my reports once it's paid off (do i make this deal with the CA or the OC?).
The 2 old cards...i'm not sure who the original creditor is anymore. it was "The Associates" but they were bought about by another major company, so I'm not sure. I think Citibank. I'm definitely not paying that $1109, i'm going to let that one ride.
I will definitely focus on keeping things (mainly student loans) current. They are the only "open" accounts I have now. so I need to make sure they are in good standing.
Thanks for the advice.
Knowing WHERE YOU ARE is the first step towards freedom! Most people stick their heads in the sand and avoid thinking about their situations. So, I applaude your taking the bull by the horns.
One step you might want to consider is tracking where your money goes each month. If your bills are less than your take home but you don't have money left over, you have a leak somewhere.
Anyway, you should feel good that you do at least have money left over after your obligations. That at least gives you something to work with.
Best of luck to you and your family. It takes courage to stare those debts in the face!
JLP
AllFinancialMatters
you ROCK for this!!
Sorry for the last post, I didn't keep reading to see your progress.
1. Pay-off baby pics
2. medical payments change to $5.00 per month.
3. Negotiate utilities like I explained in 1st post.
4. Call Discover and TELL them you are lowering your minimum payment to 1/2 of your current payment. This will extend your payments, but allow you to breathe.
5. Keep paying the rest as agreed.
You can start moving forward. Go to my website 2 Nickels Making a Dollar use my links and beginning making a little extra money every month. Apply that dough to the lowest medical bill until paid off (this is in addition to your minimum payment). Send this extra in a separate check or payment. This way it shows you are keeping to your payments and applying any extra dough you have, creates integrity.
You can do this yourself. Email me I would be happy to help you.
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