Financial Challenges Support Group
This community is for people who are struggling to meet financial obligations of any kind. Financial challenges include everything from the day-to-day challenges of making ends meet to managing credit card debt to bankruptcy. Get support from others who are going through similar obstacles on the road back to financial stability.
I have made a lot of bad decisions when it comes to money the day I moved out of my parents house and lived on my own...that was 7 years ago and now my credit cards are maxed and I can't make the payments...I currently owe Visa $1400 (that is just the money they want immediately). The debt accrued when I met hubby...he wasn't making payments on his student loan or health care and he owed about $12,500 altogether. I had my own debts, so I wasn't going to hold that against him, we were in love. Well once we became common law the debt just got larger. He smokes a lot (about $20/day) and we would spend lot's of money on alcohol as well. That combination combined with me getting sucked into scams online made my credit go up. The sad thing is is that 1.5 years ago my Visa was completely payed off. My dad had me get a mastercard in my name that he used for his business (always paid it off...he is an accountant) and when we sat down to do a budget for my hubby and I he said lets use the mastercard to do a balance transfer. I got an interest rate of 5.99% and transferred the $10,000 owing on Visa over to mastercard. Now I have maxed out both cards. About $35,000 right there. Our total debt is about $50,000. I can't even remember how it got so bad. I have been in touch with a company called Debtors Advocates here in Canada and we just need to decide if we want to go ahead and fill out the paperwork. Our consultant suggested Debt pooling where they negotiate with our creditors and pay them off and in turn we pay the Debt program each month (one lump sum payment). It just seems like so much work as she wants us to switch bank accounts ( I carry an overdraft of $3000 ) and start fresh. The amount of money that my hubby and I bring in should allow us to work with this program and still save $500 per month. We would pay about $1170 to the debt company and be debt free in 4.5 years. The only worry I have is getting hubby to stick to our VERY TIGHT budget that I am working on today. He will have to cut back on smoking which is hard for him because he is a long haul truck driver and he gets bored. We don't even pay $1000 on our debt each month right now. I know we can do it, we just have to cut back. Anyone else had experience with this?
-
I invited Bill to have dinner with me last Sunday. He wasn't willing to drive 7 hours to mid Michigan and teased me with his beautiful ribs!!! So, of course I ate alone and had cedar salmon
-
check out that smoke ring. It tasted really good. I smothered it with Maulls BBQ sauce which is Local to St. Louis and one of the best I ever had.....
Good luck
I am at a stand still. This seemed like our last resort :( It sounded so good to me. I need help fast though, I can't keep ignoring calls from my creditors!
www.daveramsey.com
I've been in your shoes, and working in finance and debt management - thought not in Canada - and one thing I know for sure - is that unless you address the issues that cause you to be so undisciplined with money in the first place - you will end up right back in debt again. You need to take a look at what is driving your behaviour. Both of you.
Thats not a quick fix - but there is no point in going to a debt mediator if you can't maintain the agreement or change your habits.
I went with a Debt Management Plan through a CCCS agency (acredited through the National Foundation for Credit Counseling), this is in the U. S., sorry not sure about Canada. Anyway, they managed to get all of my creditors to either eliminat or greatly reduce the interest on my accounts. I will be debt free in less than four years.
To offset using credit, I save for the thing I want to buy or use layaway...so far, so good!
Good luck to you!
There is a difference. Many companies are for real while most are not.
I would call the credit card company get a recommendation from them directly. They do offer this as they work with many of them. Then in the US I would call my State attourney General and the BBB to check them out. Not sure what the Canadian equal is.
Good Luck to you.
I am in the same situation as you. If you do not make a decision quickly and take your time to really do some research you should be okay. It took a while to dig the hole. Take the time to dig out safely. If you end up not paying a few months so be it. Your credit is going to take a hit either way and will be repaired in the end. My FIL filed bankruptsy and got 20 credit cards the next six months. "They" want to give you credit, it is how they make money. So no worries of going without. You might pay a higher rate though til the score gets repaired. In order to rebuild your credit score fast I would pick a card that best meets these qualities. You have available credit, you owe very little on it and it has a low interest rate. Keep this card and pay it off on your own. On time and then in full every month if you do use it. It will be your established credit in good standing after all this is over.
This is my plan anyway. It was given from several who have been there done that.
I was told if I can deal with stress of them calling I could do settlement on your own. Instead of paying your monthly payments you put it in savings. When you have about 1/3-1/2 of a balance owed on 1 card you offer it to them as a settlement. Telling them it is better than nothing. You have not been paying them so they usually take it. Continue for all debts. Personally I have too many health problems and enough stress as it is. That is what my debt is from. Putting medical on cards. So, I do not think I have what it takes to do it. Maybe you do?
Good luck!