My Remaining Debt

iVillage Member
Registered: 07-05-2006
My Remaining Debt
9
Wed, 09-30-2009 - 11:00am

I just found out that my condo association upped the late fee's and are charging me a finance charge/legal fee for having a past due balance. So now I'm thinking I should re-arrange my money and pay off the damn condo association! I was on such a roll too with my other debt! I was almost done with 3 bills! And my plan was to start paying off the condo association as soon as I was done with my other 3 debtors. But they changed the game on me! Here's my current debt:

Dentist - $70 (they do not charge me interest and I don't think it shows up on a credit report. I have a deal going with them to send them $50 dollars a month, but if I called them I'm sure I could lower it for a few months to $20)

Dartmouth Hitchcock - $54.76 ( I worked out a payment arrangement with them for $20 dollars a month)

Gap Credit Card - $101.03 (interest rate of 21.9. I usually pay them $50 dollars a month plus the finance charges -around $3.50 - and any purchases I may have made, which is RARE! But the minimum is only $10 dollars)

Condo Association - $1,102.71 (I pay them my fee of $225 each month on time. They are charging me $50 dollars in late fees since I have a balance from previously unpaid condo fees. They are also charging me $25 a month for legal fees since I'm kind of in 'collections' with them although I haven't seen this on my credit report. I have not been paying them anything towards my debt at this point, but have just been trying to keep current with monthly fees. They used to only charge me $25 dollars a month. I'm pretty sure this is the first month of their changed policy.)

Mortgage - $145,749.13 with an interest rate of 6.125. My mortgage payment is $1,239.95, but I have been late each month by a week and the late fee is $46.93 each month.

Total debt, excluding Mortgage = $1328.50
Debt payments and late fees, excluding mortgage payment = $246.93
Total I could put towards Condo Fee if I switched money around = $121.93

I am currently working hard to get my mortgage back on time so I won't have that late fee anymore. I haven't gone past 30 days in at least 6 months and being a week late is not affecting my credit, but I'm sure I'm being charged more interest because of being late.

Next I need to figure out what to focus on. Before I was completely ignoring my condo fee, but now that the late fee has gone up and they've added a sort of 'finance charge', I'm thinking I should put that as my next goal after getting my mortgage up to date. I mean, they are putting $75 dollars on my account each month that I haven't paid this debt off! That's a HUGE interest rate even though they don't charge me interest!

If I switched things around and #1 stopped paying late fees on my mortgage, #2 decreased my monthly payments on my other debt to the minimum, then I could put $121.93 towards this condo debt. Then I need to find any extra money possible to get rid of them for good! In my opinion, the other debt can wait!

And on top of that, I need to buy a washer and save $2,000 dollars for a car! I can do it! I can do it! Sorry if this has been repetitive but I really needed to get this all down and organized in my head. Thanks for reading if you made it this far! Sheesh!

iVillage Member
Registered: 11-14-2008
Wed, 09-30-2009 - 11:55am

I don't always have the best advice about this sort of thing so I will just repeat what I have heard in the past. Taking care of your shelter, food and basic necessities comes first. Once they are not charging you those fees you will have more money to put towards your other goals. I know it is hard to change gears with the priorities, but sometimes it just makes sense.

You will figure it out.


iVillage Member
Registered: 09-26-2006
Wed, 09-30-2009 - 2:27pm
Am I reading this right that you are being expected to pay your Condo Association $75 in late and collections fees per month? And this is on a balance that is only $1102 and some? That is outrageous, and I can see why you want to rearrange your priorities. If you can't pay the Condo Association immediately, is there a way to get a loan from somewhere else for something like 10% yearly interest instead of about 90% interest? Wowowow!
iVillage Member
Registered: 07-05-2006
Wed, 09-30-2009 - 2:36pm
No kidding, right! As I keep on going through this in my head, I'm thinking "If I just left this debt alone, in a year I'd be $900 dollars more in debt! Crap! I should probably give them a call first and see if there's anything I can do. Maybe if I set up some kind of payment arrangement, they would waive the penalty fees. Otherwise, I think your idea of getting another loan to cover it may be something I should look in to! Maybe this is their way of getting my attention. They got it!

iVillage Member
Registered: 07-02-2008
Wed, 09-30-2009 - 3:49pm

Hugs - you are trying to do your best.

I can see why you'd want to tackle your quick little bills first (dentist and small credit card.)

I would honestly try to get up to date on the association dues asap. (you clearly know this.) I am on the association townhome board for our homes and this is exactly what we do to late people. Rack up the fees. The association dues are part of your "shelter" needs and should be considered as important as your mortgage. If the association doesn't have $$ to repair roofs, etc. the people in those homes suffer. It's hard - we have a lot of people behind in our townhomes too but we do try to work with them.

I'd see about paying the dentist $10 a month. They will not send you to collections - as long as you are paying. It might take 7 months but that bill will get paid off.

Hugs to you!!!

iVillage Member
Registered: 07-05-2006
Wed, 09-30-2009 - 5:33pm

I'm hoping that I can put a lot more toward all of my debt and get rid of it quickly. Now that I have my baby Efund in place, I feel a little more confident that I can survive a catastrophe. So I'm no longer putting anything in savings now, everything is going towards my debt. I already have at least 100 dollars to snowflake this week and possibly a couple hundred next week. It feels really crappy to have all these little debts under $100 dollars and know that I could pay them off in a few months or less but that it's smarter to put that money towards my bigger, more intimidating debt.

It's good to know that this is a normal practice for condo associations though, raising the fee's. I have been trying really hard to stay up to date with them but $75 dollars a month seems excessive. I'll never get them paid off! I have so much on my plate! One small baby step at a time. At least I have the extra money coming in to actually have a plan.

iVillage Member
Registered: 04-10-2003
Thu, 10-01-2009 - 8:53am

Hi Abbie,


I had a response all ready to go on the first post and then I read your second one, lol. Do I understand that you are paying an extra $50 each month because you have a balance PLUS the $75 a month on the balance or is it all included. I guess it really doesn't matter, it just seems like a lot! Here is what I would do (in this order assuming you still have a hundred to snowflake this week and next):


1) Call the condo board to work out a payment plan. Make sure to make it clear that you are making the $225 payment everymonth and have been for x number of months. Tell them that you will give them post dated checks for a payment plan on the outstanding balance


Bex -

iVillage Member
Registered: 05-26-2004
Thu, 10-01-2009 - 2:31pm

I have to disagree with Bex's one statement about post dated checks. They will cash them ALL in one lot, personal experience here. DO NOT give anyone electronic access to your accounts (they will wipe you out) or post dated checks. Work out a payment plan with them instead.

My 2 cents

Kelly

iVillage Member
Registered: 04-10-2003
Fri, 10-02-2009 - 9:42am
The reason I suggested post dated checks is that its a sign of good faith.

Bex -

iVillage Member
Registered: 04-15-2008
Mon, 10-05-2009 - 9:08pm
You could try looking up the Condo laws in your state. If you are in California they are charging you too much. California Civil Code says they can only charge a 10% late fee and since your condo fees are 225 that would be 22.50. They are also allowed to charge reasonable legal fees and from what I've seen lawyers charge $25 a month is probably reasonable.
Also if it makes you feel any better getting that bill paid off may help your neighbor hood. Banks look at the number of over due units in a Condo complex when someone is applying for a loan. So if you have people trying to sell their units or foreclosed units your neighbor hood will benefit. A lot of Homeowners associations are really suffering because of all the foreclosures. Some associations are having problems making ends meet so this may be why they are increasing your late fees etc.
You may also want to think of it this way. Right now your neighbors are paying for your share of whatever services your condo fees pay for.
I agree your mortgage should be your first priority but personally I think Condo fees should be important too since the upkeep and value of your home depends on those fees being paid.
Okay I'll stop preaching now. I'm on the board of my Condo association so I've become pretty knowledgeable about this stuff.