Jez asked in Business & FinanceCredit · 9 years ago

Financial Help In Debt -Working poor What do i do now?!?

Im 19 and in debt. me and my husband bring home about $1200 a month.

We owe collections 4000 and food stamps from another state 1800

I'm really lost on what to do and how to do it.

We also do not have a car and are really struggling without one. So on top of all our debt we need to somehow save up for a car, nothing fancy.

Last i spoke to the debt collector he said i had 30 days to pay it all or start a payment plan. we of course did not have the sum and the lowest payment plan was 225 a month for 16 months. thats impossible! I asked him what would happen after the 30 days and he said id be sent to credit. Now where does that lead me?

I dont want to be in debt for 7 years. I'm young and trying to get my life on track but it seems like im in a black whole.

The debt for 4000 was from our last apartment. When we first moved in my husband had a great paying job with 40 hours a week. One day he went in and got fired. being a right to work state (FL) there was nothing we could do. And never found out the reason why this happened.

At the time i had an ok job and then switched jobs. In the end we could not come up with the rent. The landlord wanted all or nothing each month.

Anyways, im trying to find guidance.

Please don't reply with stupid answers. This is my life. If your just looking for points go bug someone that wants to know if their ugly or not.

thanks, Jess.

Update:

I don't have any bills except for rent and phone. and i have metro pcs. And still i have no money. my rent is only 660 a month!!!!!!!!

My parents have helped as much as humanly possible. i feel bad to even ask my dad to use his car to do laundry.

Update 2:

... If we dont have jobs then tell me how we make 1200 a month. O yeah i forgot about that money tree i grew in the back yard!

5 Answers

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  • CatDad
    Lv 7
    9 years ago
    Favorite Answer

    First, debt collectors have no direct legal power over you. If you can't pay then you can't pay. Cut expenses to the bone and start saving money to settle the $4K for less in the future, like offering to settle for $1,500 in full up front. Don't engage them in argument. Politely but firmly state that you cannot afford to pay right now.

    I do not advise getting on payment plans with debt collectors as it's likely that every penny will go down the drain in interest and fees.

    - Don't fall for the favorite trick of debt collectors: Offering you a payment plan of $50 a month as long as you give your checking account numbers. Never, ever give debt collectors your bank account #'s as they'll take every cent you have and cause the account to go negative.

    - How to pay collection accounts: https://sites.google.com/site/creditdebtadviceonli...

    - The food stamp debt is a real problem and you're going to have to pay this in full, as with any gov. debt.

  • 9 years ago

    collection agents are often jerks. Be sure to record any calls (yes I know illegal in some states if you do not inform the other party but I grantee they are recording) if the caller threatens you with arrest or uses foul abusive language they have committed a crime and in most states you can use that to have the debt terminated. Generally the creditor upon receiving proof of this with your demand to terminated the debt will do so because the fines for such activities start at $25,000 per occurrence. As to how much you can pay, well that can be a problem. You are already getting calls so your credit is damaged. You will need proof that the creditor refused anything under what you claim. If you are taken to court the court will order what has to be paid and that becomes a real problem the interesting thing is all courts have a formula they must follow and often it is much less then the creditor wanted. For fun check the debt collector out with your state they have to be licensed in your state to make any contact with you at all. You aldo do have the right to have no phone calls at all by writing them and demanding no calls. They can send you all the mail they want and of course can sue you but no creditor can call after being notified in writing

  • 9 years ago

    Don't bother to make *payment arrangements* with debt collectors. Wait until you and hubby have enough money to make a lump sum settlement with the collectors.

    The only thing you can do is find a way to increase your income. If that means the both of you get 2nd jobs, then that is what has to happen.

  • 9 years ago

    at that point i would start collecting cans sell my jewelry cancel the cable anything i dont really need. there are a bunch of videos on youube that show how you can save money during a econemic collapse check out "DemCAD" i started my own little garden and now i have tomatoes and squash,potatoes.

    every one is getting hit hard they say this is a ressesion but its really this is worse than the last depression im sorry =\ maybe you can ask you parents for help

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  • 9 years ago

    19 and you even screwed the state out of foodstamps? And WTF is "sent to credit"? That's the least of your problems. Focus on getting jobs. You can do very little until that happens.

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