|
|
Elite Veteran
Posts: 617
 
| I have a good friend that recently told me hes got a lot of medical bills and a couple credit cards in collections. Hes a total of like 15,000 in debt and quit trying to pay it a couple years ago since he couldn't make the bills because hes also in college. He is still going to school, so he doesn't have a lot of time to work. He said in another 5 years (so 7 told) it wont be on his credit score anymore, which he feels is the best route since hes still in school. I would like to give advice, but i know nothing about that kind of stuff. What are some options? I thought consolidation... not sure how that works. Any input appreciated... i know nothing! lol Thanks!
Edited by cn1705 2014-02-04 10:49 PM
|
|
| |
|
 Elite Veteran
Posts: 1062
 
Location: Probably On the Road to the Next Barrel Race! | dont know where you are, but in TX I was told cc collectors drop you after 4years. |
|
| |
|
 A Barrel Of Monkeys
Posts: 12972
 
Location: Texas | Yep, I think it is 7 years. Tell him not to make a payment b/c the time starts over then. |
|
| |
|
 Dog Resuce Agent
Posts: 3459
Location: southeast Texas | Just because a CC company drops the debt, they do sell the debt to others who DO go after the debt and do report it as a failure to pay. I would tell the friend to talk with a subject matter expert. |
|
| |
|
 Tried and True
Posts: 21185
Location: Where I am happiest | Sorry but it doesnt just go away. They can file leins, get judgements, attach your taxes, and they will just keep rolling the debt over and attaching interest. His now $15,000 in debt can turn into $45,000 in debt pretty easily because of interest and collection fee's.
The only course to make it "Just go away" is to file bankruptcy. That will wipe away the debt, and his credit starts all new. |
|
| |
|
 Undercover Amish Mafia Member
Posts: 9992
Location: Kansas | ThreeCorners - 2014-02-05 7:19 AM
Sorry but it doesnt just go away. They can file leins, get judgements, attach your taxes, and they will just keep rolling the debt over and attaching interest. His now $15,000 in debt can turn into $45,000 in debt pretty easily because of interest and collection fee's.
The only course to make it "Just go away" is to file bankruptcy. That will wipe away the debt, and his credit starts all new.
agreed.I had a credit card for my root canal, cost me $1,825.00. When I applied for the credit card I didn't read the fine print. So when I put the cost of the dental work on the credit card, I was paying an outrageous amount if interest. Thankfully, my bank let me take a note out on the truck and I paid off the credit card to settle for a lower interest rate. I was paying 24.99% on the card, with the loan it's 7.89%. I think bankruptcy is his only option unfortunately |
|
| |
|
 Cute Little Imp
Posts: 2747
Location: N Texas | ThreeCorners - 2014-02-05 7:19 AM
Sorry but it doesnt just go away. They can file leins, get judgements, attach your taxes, and they will just keep rolling the debt over and attaching interest. His now $15,000 in debt can turn into $45,000 in debt pretty easily because of interest and collection fee's.
The only course to make it "Just go away" is to file bankruptcy. That will wipe away the debt, and his credit starts all new.
That's what I was thinking, that bankruptcy is the only way to "get rid of it" so to speak. Then your credit is screwed for the next seven years, till it drops off your credit...at least that's my understanding.
The RESPONSIBLE thing to do is pay what he can. He racked up the debt, he should pay it off. Sometimes collection agencies will settle with you and allow you to pay a lower lump sum just to get it taken care of. |
|
| |
|
Extreme Veteran
Posts: 464
| Many years ago, I worked in collections. Things have probably changed. More than likely his debt was purchased for pennies on the dollar. The collection agency when faced with bankruptcy will usually settle for what they have invested in the debt. Anything is better than nothing. |
|
| |
|
Elite Veteran
Posts: 667
| I work for the legal department for a medical collection agency. I do not know what kind of bills he has racked up but the bills don't just go away. If he is working they will try to verify his employement and then file suit. Judgments, ganishments, liens, ect.... sounds like he is in school which means that he probably does not have a full time job so it would be difficult for a collections agency to sue him. We are "picky" about our suits because we review every account and everyones credit before sending to our attorneys.
I would also agree with bankruptcy. It may seem like a horrible thing to do but ultimatly he needs to get this cleaned up no so he can start a fresh future when it falls off his credit. This will not just go away and like someone else said.. they will be sold..reported..interested tacked on.. and so on. I hate to say it because this is his debt but ignoring it isn't the answer. Not sure about which is which.. but Chapter 7 and Chapter 11 bankruptcies are options.. one is where you can consolidated debt and make monthly payments and the other is a full wipe out.
anyways good luck... and JMO :) |
|
| |
|
Miracle in the Making
Posts: 4013
| i disagree that is what is wrong now tell him he needs to pay 5.00 10.00 something towards it as
we who pay are bills are picking up the tab . that what wrong now you do something and if you can pay oh well
the consumer ends up with higher bill do deadbeats like him
|
|
| |
|
 Warmblood with Wings
Posts: 27846
Location: Florida.. | This kinda irks me.. people telling him it goes away after so many year.. NOW he did it.. why should he not have to pay it? just curoius as to why this is ok with others? if you run up debt.. then pay it even 10 bucks a month. I think the company will work with you.. and the fact hes in school.. which by the way costs money and so he cant work ?????
ALot of people go to school and get a job to pay off "HIS " debt and responsibility.. Wow.. so wrong. |
|
| |
|
 Chatty Kathy
Posts: 6635
Location: In Ky following Barrel Races & Walker hounds. | They can and will garnish his wages. My husband and I have about $10k in medical bills we are paying on. We have had car problems the last couple months and are having to get a new one and(stupidly) put off the hospital bills, even though we stayed in c,contact with them they still sent him a garnishment paper. Luckily we have been able to get it straightened out. Trust me, it won't just "go away". |
|
| |
|
 That's White "Man" to You
Posts: 5515
| This idea represents many of the proplems with America today. What happened to responsibility and self respect? |
|
| |
|
 Expert
Posts: 1295
Location: Chehalis, Washington | bankruptcy is his only option to whip away his debt and start fresh. Otherwise when he does finish school and start working again they WILL garnish his wages.. and the only way to stop the garnishment is again, bankruptcy. Which bankruptcy costs money as well. But its 10% or so of what he currenntly owes in debt. |
|
| |
|
Chatty Kathy
Posts: 6635
Location: In Ky following Barrel Races & Walker hounds. | jackismacki - 2014-02-05 4:16 PM
bankruptcy is his only option to whip away his debt and start fresh. Otherwise when he does finish school and start working again they WILL garnish his wages.. and the only way to stop the garnishment is again, bankruptcy. Which bankruptcy costs money as well. But its 10% or so of what he currenntly owes in debt.
No, bankruptcy is not the only way. He needs to call the collections agency or the law firm it is with and talk to them. |
|
| |
|
 Friendly horse swapper
Posts: 4122
Location: Buffalo, TX | I take credit apps for trailers nearly every day....I see a lot of buyers who think they have good credit because they are sure their old bills have disappeared after 7 or 10 years...but they don't.
The only way they really disappear is if you file chapter 7 bankruptcy....and actually, if they have good income, most people can still get a truck or trailer loan a few months after filing chapter 7 because their debt is wiped clean...I just got a family a loan for a nice LQ trailer 4 months after filing.....of course, you pay outrageous interest for many years to buy anything on credit again....
I would tell him to call his creditors and try to settle with them, but even then, it will appear on his credit history as a charge off and he'll pay higher interest rates when he goes to borrow on anything...and liens and judgements never go away if they aren't paid...although I can say that a lot of banks will be more lenient on medical bills if the others are current....
Vickie is right.....one way or another, we all pay for those who don't pay their debts....he's young, and if he pays a little at a time, he should be able to get it knocked out without the big hickey on his credit report....besides $15k is not what I would call an amount worth ruining your credit and filing bankruptcy for....if he really wanted to get out of debt, he would sell some stuff, get a part time job, or do something extra to get it paid off....in any case, I would steer him towards doing the right thing.... |
|
| |
|
 Elite Veteran
Posts: 805
Location: Montana | I went through this in 2010 with a medical/credit card debt. $17,000 was my total debt. I was making payments every month but was still sent to collections, went through a debt relief company. The best thing I did was go talk to a bankruptcy lawyer, I explained my situation and it was decided that I should file bankruptcy. Now four years later my credit score is 100 points higher and my husband and I were able to get pre approved for a home loan. Now if we could just find something that fits in our budget without costing us a ton to repair. Your friend should go talk to a bankruptcy lawyer most of them offer free consultation. |
|
| |
|
 Money Eating Baggage Owner
Posts: 9586
Location: Phoenix | I would call and explain his situation and try to pay something...$15k doesn't seem worth it to file bankruptcy...especially if he plans to buy anything in the next 7 years. Don't hospitals and medical agencies work with you if can't afford those bills? My boyfriend racked up some hefty medical bills for his appendix surgery. He was still in college and had no job. He was able to lower the amount due to his situation and make payments. |
|
| |
|
Extreme Veteran
Posts: 557
Location: Kansas and loving it | Meanwhile the hospital has to eat all of these costs. |
|
| |
|
| I am a process server. 85% of my serves right now are credit card debt. So then a few months after I'm noticing I have serves I'm doing for garnishment and liens companies are putting.
Make any payments that can be made. Stuff happens in life but a bill is still a responsibility. |
|
| |
|
Warmblood with Wings
Posts: 27846
Location: Florida.. | gunsmoke - 2014-02-05 6:30 PM I am a process server. 85% of my serves right now are credit card debt. So then a few months after I'm noticing I have serves I'm doing for garnishment and liens companies are putting. Make any payments that can be made. Stuff happens in life but a bill is still a responsibility.
AGREE |
|
| |
|
Location: Philly | Unfortunately there are the types that will do whatever it takes to pay the bills and then there are others that have no worries about walking away from the debt responsibility. Neighbor simply left their double wide and after about a year and a half (I guess) the bank came and got it. Bank stopped by one day asking where they were....then you hear about people building houses on credit cards and the. Filing for bankruptcy, debt gone but get to keep the house. Guess everyone has a different outlook on how to handle debt. |
|
| |
|
 MEOW!
Posts: 4477
Location: High heels in the air... | They will take a settlement if he proves he cannot pay...get it in writing before making the settlement payment and make sure copies are sent to all 3 credit bureaus...this happened to a friend of mine who had a major illness and had huge medical debts...the hospital did pro bono and wrote off most of it...she settled the rest due to her deteriorating health for pennies on the dollar... |
|
| |
|
 Elite Veteran
Posts: 1119
| CowboyUp!!! - 2014-02-05 7:52 PM They will take a settlement if he proves he cannot pay...get it in writing before making the settlement payment and make sure copies are sent to all 3 credit bureaus...this happened to a friend of mine who had a major illness and had huge medical debts...the hospital did pro bono and wrote off most of it...she settled the rest due to her deteriorating health for pennies on the dollar...
I agree with this. He could probably settle the debt for a few thousand dollars. Would it be better to pay the whole thing? Yes. But if he settles the debt, and gets it in writing, then he is done with it forever. I would not advise filing bankruptcy over $15k. That follows you for the rest of your life, regardless of whether it's on your credit report or not. I work for a staffing agency and some of our clients will not hire someone who has had a bankruptcy. The only way it will "go away" is if he pays it. He's already behind, so settling the debt will not hurt him and his credit will start to repair itself quicker. |
|
| |
|
 Queen Bee Cat Owner
Posts: 3629
Location: Way up North | My best suggestion would be for him to contact whomever has his debt now if it has been sold and see about working out a settlement; a lawyer could do this for him as well and would have more leverage but it will cost plenty.
I'm in A/R right now and do a fair amount of collections work. We make every effort we can to collect on a debt in full, including interest. When that doesn't pan out we either sell to an outside collection agency or, in some cases, we settle with the client for a lower amount just so we can collect something which would likely still be more than we would get selling it to an ouside agency. We also report to D&B and a lot more companies do than people think.
As someone who has worked very hard to have an excellent credit score and live with in my means, it irritates me when someone tries to schirk their responsibilities and dump it on the rest of us especially those that file one day and seem to go off buying again tomorrow only to repeat the process. I can understand someone drowning in medical bills needing help but I'm not okay with someone buying themselves too deep and wanting a life jacket. |
|
| |
|
 Always Off Topic
Posts: 6382
Location: ND | a responsible individual would deal with the debt instead of shirking it off and going to school......nothing but selfish and then dump on those that loaned him the money.....too bad he can't just be kicked out of school....
Edited by dhdqhllc 2014-02-05 9:33 PM
|
|
| |
|
Elite Veteran
Posts: 617
| dhdqhllc - 2014-02-05 9:32 PM
a responsible individual would deal with the debt instead of shirking it off and going to school......nothing but selfish and then dump on those that loaned him the money.....too bad he can't just be kicked out of school....
hmmm Im all about people bettering themselves. He is not a selfish person at all. He does a lot for our community and is overall an honest person. People make mistakes and when fed incorrect info how to fix things = you shouldnt go to school? I think with an RN salary he'd be able to pay his bills off a lot faster. I will happily agree to disagree. Not everyone is perfect or goes about everything correctly. Not to mention that is very quick to judge someone. Sad.
Edited by cn1705 2014-02-05 11:50 PM
|
|
| |
|
Elite Veteran
Posts: 617
| MissouriJen - 2014-02-05 8:18 PM
CowboyUp!!! - 2014-02-05 7:52 PM They will take a settlement if he proves he cannot pay...get it in writing before making the settlement payment and make sure copies are sent to all 3 credit bureaus...this happened to a friend of mine who had a major illness and had huge medical debts...the hospital did pro bono and wrote off most of it...she settled the rest due to her deteriorating health for pennies on the dollar...
I agree with this. He could probably settle the debt for a few thousand dollars. Would it be better to pay the whole thing? Yes. But if he settles the debt, and gets it in writing, then he is done with it forever. I would not advise filing bankruptcy over $15k. That follows you for the rest of your life, regardless of whether it's on your credit report or not. I work for a staffing agency and some of our clients will not hire someone who has had a bankruptcy. The only way it will "go away" is if he pays it. He's already behind, so settling the debt will not hurt him and his credit will start to repair itself quicker.
Def. something to look into! Do you know anything about consolidation? I was wondering how that works. I'm thinking one big bill would be easier to pay monthly. We are both in school for nursing, so we both only work part time...which is more than most people in our class. lol |
|
| |
|
Industrial Srength Barrel Racer
Posts: 7268
| I have to wonder how he is "paying" for school. I went to school AND worked. I just don't have the kind of conscience to "walk away" from money I owe. I just couldn't live with myself over that. Guess I was just brought up differently. |
|
| |
|
Member
Posts: 14
| If you are in Wisconsin, there is an alternative to bankruptcy that also pays back the debts in full. Unfortunately in today's society, just talking to a creditor does nothing. They charge outrageous interest and fees and will pay those off before the debt accrued while they get bailouts and write-offs for taxes. Under Chapter 128 of the Wisconsin Statutes, a debtor files a petition to amortize the existing debt over three years. The local court approves the trustee and the consumer debt payments. The creditor cannot attempt collections or continue to charge fees once the court has approved the filing. The creditors are paid by the trustee every three months for three years. Because the creditors are paid in full at the conclusion of their term, the credit report will reflect balance paid in full under agreement. Debts will be paid in full, credit reports don't have a bankruptcy listed, and the debtor has 3 years to pay off the entire balance of the debts they accrued. I feel this is a WIN-WIN. Its a very unique opportunity for residents of Wisconsin and can be discussed with any attorney or looked up on the internet under Chapter 128 Wisconsin Statute. |
|
| |
|
Elite Veteran
Posts: 617
| Griz - 2014-02-06 5:40 AM
I have to wonder how he is "paying" for school. I went to school AND worked. I just don't have the kind of conscience to "walk away" from money I owe. I just couldn't live with myself over that. Guess I was just brought up differently.
Its a technical school so tuition is a lot cheaper. They have a payment plan you can do.
Its not right to walk away, but when he has people saying "O your credit is poop now, it goes away in x years, don't bother" I mean I can see where he would think that as an option because that's the direction dumb people have told him to go. For your sake I hope you were brought of differently, I sure was also. I am lucky to have a supportive family with ethical values, not everyone is that fortunate though. Although this is a crappy circumstance, I think people mistakes should not define then as a person. |
|
| |
|
Always Off Topic
Posts: 6382
Location: ND | Griz - 2014-02-06 5:40 AM I have to wonder how he is "paying" for school. I went to school AND worked. I just don't have the kind of conscience to "walk away" from money I owe. I just couldn't live with myself over that. Guess I was just brought up differently.
agreed.......a mentality that is becoming more and more common... |
|
| |
|
Elite Veteran
Posts: 617
| dhdqhllc - 2014-02-06 9:55 AM
Griz - 2014-02-06 5:40 AM I have to wonder how he is "paying" for school. I went to school AND worked. I just don't have the kind of conscience to "walk away" from money I owe. I just couldn't live with myself over that. Guess I was just brought up differently.
agreed.......a mentality that is becoming more and more common...
I do agree, hence why people think its the norm. How many bankruptcy commercials do you see on tv? I know a few people that have claimed bankruptcy.. Its nuts. Things DO happen though-I'm not saying its ok...but I have a friend who has cancer. Insurance only covers so much.
Morals of America have turned for the worst in all aspects. BUT lets just keep this on debt now... lol or we will have a 50 page thread and people who needs lots of popcorn!
Edited by cn1705 2014-02-06 10:29 AM
|
|
| |
|
 Fact Checker
Posts: 16575
Location: Displaced Iowegian | dhdqhllc - 2014-02-06 9:55 AM Griz - 2014-02-06 5:40 AM I have to wonder how he is "paying" for school. I went to school AND worked. I just don't have the kind of conscience to "walk away" from money I owe. I just couldn't live with myself over that. Guess I was just brought up differently. agreed.......a mentality that is becoming more and more common...
 You can sure tell the ones who are from the "old school" ethic that you TAKE responsibility for your actions.....It just makes me breathe fire when I see all these posts suggesting that he SKIP out on his obligations.......what about the people or companies that he OWES money to.....what should THEY do when they aren't paid? |
|
| |
|
Always Off Topic
Posts: 6382
Location: ND | NJJ - 2014-02-06 10:30 AM dhdqhllc - 2014-02-06 9:55 AM Griz - 2014-02-06 5:40 AM I have to wonder how he is "paying" for school. I went to school AND worked. I just don't have the kind of conscience to "walk away" from money I owe. I just couldn't live with myself over that. Guess I was just brought up differently. agreed.......a mentality that is becoming more and more common...
pass it on to the paying customers....... |
|
| |
|
 More bootie than waist!
Posts: 18425
Location: Riding Crackhead. | Pay $5 every month until he gets his poop in a group. If he's eager to find a way out of paying it back then I'm not sure that's ever going to happen. Some people think its ok to skip out on tens of thousands owed, I for one am not one of those people.
You said your friend is in a vocational school which is usually a 2 year program but you said he quit paying in a couple years ago so isn't he about done with school so he can work more? $15,000 isn't that much money. Live on mac and cheese, ramen noodles and bologna sandwiches and start paying back the money owed. Don't always look for the easy way out.
As far as consolidation goes I have no idea how to go about it but I would imagine it would save tons of money in interest alone. Start checking around and asking questions at banks or social services. |
|
| |
|
That's White "Man" to You
Posts: 5515
| Why would a bank or anybody else do a consolidation for someone who hostorically hasn't been very faithful in paying his obligations? Especially for someone who doen't have any assets? If he does have assets, they will be liquidated in bankruptsy court, so why not just sell them and pay off the debt? Even after bankruptsy, you can get loans, but you pay about 25% interest, and end up in exactly the same boat he is in now. THIS IS HIS ONE OPPORTUNITY TO SET HIS COURSE IN LIFE. If he doesn't pay, he will never get on top regardless. If he does pay it, however long it takes him, it demonstrates his character and people will see that and give him a second chance! It is up to him, but he needs to talk to the creditor and work out a plan. |
|
| |
|
Industrial Srength Barrel Racer
Posts: 7268
| NJJ - 2014-02-06 10:30 AM dhdqhllc - 2014-02-06 9:55 AM Griz - 2014-02-06 5:40 AM I have to wonder how he is "paying" for school. I went to school AND worked. I just don't have the kind of conscience to "walk away" from money I owe. I just couldn't live with myself over that. Guess I was just brought up differently. agreed.......a mentality that is becoming more and more common...
HA - YES, I am OLD!  |
|
| |
|
Cute Little Imp
Posts: 2747
Location: N Texas | cn1705 - 2014-02-05 11:29 PM
MissouriJen - 2014-02-05 8:18 PM
CowboyUp!!! - 2014-02-05 7:52 PM They will take a settlement if he proves he cannot pay...get it in writing before making the settlement payment and make sure copies are sent to all 3 credit bureaus...this happened to a friend of mine who had a major illness and had huge medical debts...the hospital did pro bono and wrote off most of it...she settled the rest due to her deteriorating health for pennies on the dollar...
I agree with this. He could probably settle the debt for a few thousand dollars. Would it be better to pay the whole thing? Yes. But if he settles the debt, and gets it in writing, then he is done with it forever. I would not advise filing bankruptcy over $15k. That follows you for the rest of your life, regardless of whether it's on your credit report or not. I work for a staffing agency and some of our clients will not hire someone who has had a bankruptcy. The only way it will "go away" is if he pays it. He's already behind, so settling the debt will not hurt him and his credit will start to repair itself quicker.
Def. something to look into! Do you know anything about consolidation? I was wondering how that works. I'm thinking one big bill would be easier to pay monthly. We are both in school for nursing, so we both only work part time...which is more than most people in our class. lol
Do a google search for "credit consolidation" and "debt consolidation". There are lots of companies out there that can help him. And by help him, I mean make it to where he's paying one company for his whole debt, not "make it go away". I can't tell you what the process or interest is on those types of deals, but do know people who have used that type of service. When picking a company, be sure to look them up with the Better Business Bureau and make sure you're using a legit company.
I'm pretty sure you have to be a certain number of days delinquent, which he definitely fits that. He'd be wasting his time going to a traditional bank or credit union. I doubt they'd want to touch that, as far as consolidating into one loan goes. |
|
| |
|
Friendly horse swapper
Posts: 4122
Location: Buffalo, TX | Whiteboy - 2014-02-06 11:16 AM Why would a bank or anybody else do a consolidation for someone who hostorically hasn't been very faithful in paying his obligations? Especially for someone who doen't have any assets? If he does have assets, they will be liquidated in bankruptsy court, so why not just sell them and pay off the debt? Even after bankruptsy, you can get loans, but you pay about 25% interest, and end up in exactly the same boat he is in now. THIS IS HIS ONE OPPORTUNITY TO SET HIS COURSE IN LIFE. If he doesn't pay, he will never get on top regardless. If he does pay it, however long it takes him, it demonstrates his character and people will see that and give him a second chance! It is up to him, but he needs to talk to the creditor and work out a plan.
Very well said!.......You are 100% right...this is his chance to set the course of his life in both having a good credit score so he CAN buy things...as well as starting a lifetime of having the good character to do the right thing....I know there are bumps in the road, but he's lucky to have someone like the OP who is actually asking how to help him...maybe she can get him going in the right direction, even if it's a little at a time.... |
|
| |
|
Miracle in the Making
Posts: 4013
| my son talked to the lad got lab work reduced from 750.00 to 35,00
hmm the reason health is so high is people that use er like dr office walk away from bills
i broke my neck 2001 bills over 100,000 my part 20000 plus i know longer could really work like i di for a few yrs. it took yrs but we paid them back
i hate deadbeats i wish we would have no welfare no food stamps nothing but from church |
|
| |
|
 Ms. Manners
Posts: 1820
Location: Oklahoma | Lucy's Mom - 2014-02-05 4:39 PM I went through this in 2010 with a medical/credit card debt. $17,000 was my total debt. I was making payments every month but was still sent to collections, went through a debt relief company. The best thing I did was go talk to a bankruptcy lawyer, I explained my situation and it was decided that I should file bankruptcy. Now four years later my credit score is 100 points higher and my husband and I were able to get pre approved for a home loan. Now if we could just find something that fits in our budget without costing us a ton to repair. Your friend should go talk to a bankruptcy lawyer most of them offer free consultation.
Quite a few years ago, I went and spoke with a credit counselor who helped map out a plan for repayment and get in touch with all the creditors . . . my credit score went up 100 points in 6 months and after 13 months was 280 points higher than when I visited the advisor. Just because I was irresponsible with my credit when I was young doesn't mean I can chalk it up to being "young and dumb" and let bankruptcy clear my record. Bankruptcy stays on your credit a whole lot longer than actually repaying debt.
|
|
| |
|
Extreme Veteran
Posts: 465
Location: Arkansas | I'll probably get ripped for this, but, IMO, not paying a debt is akin to stealing. You received an item, service, whatever for which there was a price & did not pay for it. |
|
| |
|
 Expert
Posts: 1286
Location: Mississippi | I have worked for a debt buyer for 13 years and I can promise you that it doesn't just go away. Even debt that is out of statute is fair game in most states. My personal suggestion would be that he call the collection agencies and try to work out a payment arrangement or settlement. Our company usually sends a debt to at least 2 different collection groups before it goes into litigation. Once it goes to an attorney, the balance goes up quick with court costs and fees. |
|
| |
|
Ms. Manners
Posts: 1820
Location: Oklahoma | Ask him how he'll feel checking the box "have you filed for bankruptcy in the last . . . " on every credit application and many job applications. |
|
| |
|
 Elite Veteran
Posts: 929
| I have a question...back when I went to college (which was a while ago) you didn't have to start paying your loans back until you were out of school so that while you were there all you had to focus on were classes, and then when you were done and working, you could pay back some debt. Do they still do this or was my class just lucky? (I didn't need a loan, but others in my class did and said they weren't expected to pay their loans back until graduation.) |
|
| |
|
Elite Veteran
Posts: 733
| Just a thought but maybe he should take a break from school and go get a real job untill he pays down his debt. That is what I had to do, I get really sick of the "I am in school, so I don't have to pay it" philosophy. Going to school is a choice, and when you get out of school life is no more covered with roses than when you started. |
|
| |
|
 Tough Patooty
Posts: 2615
Location: Sperry, OK | I don't know how people can just not pay for debt they have incurred. I had a credit score of 780, worked hard to bring my husbands up from the 500's. Had his to the upper 600's when I lost my job. I went a couple of years without a steady job, worked some temp stuff and sometimes didn't have a job at all. I worked my tail off to keep my bills paid... yes they got behind, but I never "didn't pay" or "walked away". I robbed Peter to pay Paul, I flipped and flopped more money than I could keep up with. The end result is my credit now sucks from "late payments", but everything is caught up (as I am working full time again), now I just have to play the "no late payments for a year" to start to see my credit go back up. I will tell you this, I am a very proud person and it kills my soul to know my credit score sucks!!!
The other thing we all need to know/remember is .... it takes 2x the money to get out of debt.. so if you are $100 dollars behind, it will take $200 to get back even. He might think about this with his current debt at $15,000... if he doesn't pay it it will take $30,000 plus for him to get out of it and back even! (hence why it has taken me a year and a half to get caught up, and I am caught up on my bills, but still behind on savings and struggling with extras for groceries and gas... I am not even yet, still!!!)
Edited by ACEINTHEHOLE 2014-02-07 12:28 PM
|
|
| |
|
 Do You Feel Lucky Punk?
Posts: 3156
Location: NM...the Land of Manana | If you call the credit card company and ask to speak to someone in the "hardship" department, sometimes they will lower your interest to a really low rate and cancel the card and allow you to pay it off over time.
Edited by Lightfoot 2014-02-07 1:29 PM
|
|
| |
OT- Collections/Debt