Need advice on recourse....

[BigBear]

I understand y'all ain't lawyers and all that stuff...

As we all know, poor Bear is poor. Got a MM degree, didn't find a job to use it at and is now working a not so great job not in his field (but praise God I have a job).

Now, I'm practically living pay check to pay check (serisouly, no cable, etc.) and have several student loans and school payments stuff that are automatically withdrawn each paycheck.

There is this one bill for around $35K. This particular one is being paid through a law firm - TERI loan from my undergraduate, went through the grace period, had a derrment for Masters degree, and now defaulted due to the amount of other student loans, etc I'm paying. I'm paying $200 a month on it. I know, I know, 200 ain't gonna do jack on $35K but it's ALL I have.

I just got off the phone with the lawyer talking about getting a statement, etc so the wife and I can really try to get a handle on this - planning on going to one of those free money managment seminar things but need actual paperwork to show people, etc.

Lawyer says he can't give me a statement. So then I ask him to give me a break down on the payments, etc. He said that I haven't paid anything towards principal and have just been paying interest and his fees all this time and I should really pay more. Which I agree, but I honestly can't. So, after regaining my vision and getting rid of the instant headache (blood pressure spike) I told him thank you and hung up.

So, what would happen if I just stopped paying this bill for now and put the $200 towards a different bill to get something else paid off quicker. I don't like the thought of "throwing away" $200 a paycheck when I'm not digging myself out of this never ending hole.... I know we don't have a debtors prison system anymore and I'm sure my credit is shot to hell, I don't really have anything in my apartment they can take... so bottom line is all they can do is garnish my wages?... Would they touch my wife's? etc.

I guess what I'm asking is, what recourses do I have?

I accept responsibility for the debts as they are mine. I'm not trying to shirk them, I just think that the $200 can be put to better use paying off a different debt... but then interest will continue to rise on that one.... etc..

Thoughts?


#$%^&$%^*%&*%^&*( I hate my life.

[Irving]

It sucks to make minimum payments on stuff, but I think it would be worse to not pay at all.

[Wulf202]

First off you really need to take into account all of your debts, expenses and spending

I really think you need to read dave ramseys book
http://www.amazon.com/Total-Money-Ma...6877058&sr=1-3

It's not a get rich quick scheme thing, it's get your damn finances in balance and set a plan for this to NEVER happen again scheme.

My copy hasn't come back from loaning it and I am writing it off at this time. He also has a radio show. Try your local library.

[sniper7]

they will be a lot less willing to work with you if you pay nothing. trying does get your somewhere.
I am not really a go to guy on the debt/loan questions, but I think it is best to continue paying.
maybe knock $50 off the payment possibly, but don't just stop all together.
maybe apply that $50 to another loan that you can finish paying off faster and then come back to this one.

[Hoosier]

The internet is a powerful tool, you can do a lot of research. It'll take some hours of reading, but you'll find what you need.

I'd suggest looking at various Not For Profit consumer credit help places. They can often get your debts merged together at a reduced APR to make the payments work.

Can you find side work doing something else? I have no idea what your skills are, but perhaps you can tutor, freelance, or just deliver pizza's two nights a week? If you can keep that cash somewhere it's important to build up a "nest egg" for emergencies. Ideally, two months living costs, I know that sounds hard but it can save you from much large problems if (or when) something happens. It'd also give you the occasional chance to do something with your S.O. or help pay down your debts a bit sooner.

There are (low paying) jobs that most anyone can do at https://www.mturk.com/mturk/welcome This is Amazon.com's "Mechanical Turk", a reference to an old Victorian age con where a machine appeared to play chess better than most humans. In fact, it was a midget grand master in a box moving the chess pieces. The moral of the story: A computer that seemed to have human intelligence.

The Turk does this by having computers ask questions which humans are paid to answer. A "HIT" is a human task that is requested by computers. On that page, left side "Make Money", click the yellow "Find HITs Now" button. When I look now, there is a task "Choose the best category for this sports equipment." On the right side, click "View a HIT from this group" and in my case, it shows a picture of a compass and wants someone to determine if that should go in one of two categories. To answer that question, you get paid $0.02. So obviously, the trick is to answer lots of these questions in a small amount of time. It isn't a lot of money, but it's better than zero.

Good luck,

H.

[BigBear]

It sucks to make minimum payments on stuff, but I think it would be worse to not pay at all.

Even if those payments were helping to pay off something else quicker?

I really think you need to read dave ramseys book

I've read it, which brought to mind the thought of: instead of just paying interest, I think it'd be better to take that money and put it somewhere where it will actually get something done.

they will be a lot less willing to work with you if you pay nothing. trying does get your somewhere. I think it is best to continue paying. maybe knock $50 off the payment possibly....finish paying off faster and then come back to this one.

They are complete jerks on the phone, so I'm not worried about them willing to work with me. But I do understand your sentiment. I am trying. $200 is the absolute minimum they'll accept. Either that or don't pay at all.

The internet is a powerful tool,...

Rgr that, it is. I've tried those making money online things before but I always got "play" money. Does this site pay an actual check?

I've thought about trying to pick up a second job, but there are some problems there with the wife's schedule and ever seeing her, plus outside commitments I already have.. that are non-paying... I may have to look at those.... etc.

I'm just fustrated. I'll figure something out. Thanks for the help so far.

[Irving]

Even if those payments were helping to pay off something else quicker?

Yes absolutely. I know that you are in the position where you don't have a lot of room for adjustment. Here is what I did. I made a list on paper of every thing that I owed money on, and how much. I picked one that I wanted to pay off, paid minimums on everything else, and made large payments on my target bill. I think you've already done this, but if you haven't, start tonight.

Writing down all of your expenses and creating a budget will really help refocus your funds into the right places. If you've already done this, then disregard of course. I know that doesn't really answer your recourse question, but that's about the extent of advice I can give you. The reason I bring it up is because by doing what I've suggested, I learned to be able to not only get by on 25% less income than I was making, but actually make more progress on paying down debts than I did when I was making much more money. I cringe at how much money I've thrown away over the years from NOT looking at my finances.

[hurley842002]

They are complete jerks on the phone, so I'm not worried about them willing to work with me. But I do understand your sentiment. I am trying. $200 is the absolute minimum they'll accept. Either that or don't pay at all.

What they say to you on the phone or via mail and what they will actually accept are two different things. I've never heard of a person saying you either pay me X ammount no less, or don't pay me anything at all. I bet if you sent them $150 they wouldn't return your money. They may not like it, but they don't really have a choice. I think in the end, they will take what they can get, and it would benefeit you to keep paying them something.

[BigBear]

Thank you Stu.

Rgr Hurley... I think I might try that... I just wanted to be honest and said something like, "Could I drop that $200 to $100 for a while since I have x/x/x I'm also paying?" And they replied with little less than "No, why don't you just go kill yourself."

Back to the grind.

Dad always said, "Son, you can come home anytime you need to." I've always thought I could "make it on my own" but I'm starting to think I may go home.

No, I wouldn't be a married man living with my parents. We still have grandma's house in the family and I could live there rent free for a while. The problem is, I'd be leaving a decent job for no job and a different state....

GRrrr... Where's that lotto ticket? (I kid.)

[bellavite1]

When I met my wife she had over $40K in debt.
Not for fun things, but for medical expenses for her daughter.
She had been paying minimum payments for more than 10 years,basically just interests.
We try and get ahead but could not.
After a few years we realized the c/c companies had been paid many time over just with the interests my wife paid through the years.
We filed bankruptcy and now, 7 years later we have re-established our credit in the upper '700's.
We do not feel bad about it because it was a big c/c company, rather than an individual (I do pay my personal debts) and because we had no other choice.
Like I said,being at the time a single mother, she could borrow money from the c/c for her daughter surgeries or go on welfare.
She tried to make it through the c/c and than the interests started piling up.
So, I guess, it depends on your own conscience, but, if you tried in good faith and just cannot make it, maybe filing is not such a bad idea...