Deeply Worried

iVillage Member
Registered: 01-02-2004
Deeply Worried
Tue, 05-06-2008 - 11:44pm

hello everyone,
I just don't know what to do... so I decided to post here to see if anyone has any suggestions, helpful advice ect.
Okay, so here's my story(in short)... I have been married for 5 1/2 years, we have a 14 month old, I am currently a stay a home mom and my husband is a teacher. When I was pregnant with my daughter I had to quit my job (I was a substitute teacher) because I went into pre-term labor. My daughter arrived a month early with breathing issues. She was in the NICU for 10 days and is doing GREAT now. During the time I was on bed rest and after her birth, we have become very much in debt. In addition, I started working again, but became seriously ill and had to quit my job, once again. Our bills have piled up and we have worked out some payment plans with 3 or the 4 credit cards we owe on.

So, my current worry is: I currently have a alternative student loan that just went to a collection agency. To settle with this we would have to put 50% of the amount due onto a credit card, to obtain the best settlement. However, the problem is, we have terrible credit to get another credit card and all of our credit cards are closed. If we do not pay this settlement by May 30th it will go to small claims court.

I am just beside myself... what can I do and how????

Thanks in advance for anything you can come up with.

iVillage Member
Registered: 11-17-2007
In reply to: heath2004
Wed, 05-07-2008 - 6:40am

If you have room on the credit card charge the money and settle with them. So there will be no judgement If you don't then there is nothing really you can do except to close your checking account. And any saving accounts you may have. And be ready for when they come after your husband's pay for garnishment.

After they get a judgement on you then you can maybe get an agreed judgement with the people but make sure you make those payments on time.

Good luck

Mary Ann

iVillage Member
Registered: 03-20-2008
In reply to: heath2004
Wed, 05-07-2008 - 11:29am

I understand that collection agencies can be very aggressive, but you can only pay them what you can afford. I would not incur a new debt to pay them. I suggest you go through all of your expenses and bills, along with your income and determine what payment amount you would be able to make to them without putting any financial stress on you. Offer them your payment plan. I am sure they will deny your plan, but send them the payment anyway. Keep records of all conversations and follow-up with letters; also keep records of all payments. If they take you to court, show up with your documentation and let them know that you are willing to pay what you owe, but have to make reasonable payments to do this. The courts will see that you are not ignoring the situation and are making an effort to work with the agency. They may tell the agency that they should accept your payment plan, because that is all you can afford. I feel that the courts will see that you are not ignoring the situation and may favor your way. They may even be bothered that the agency is wasting time with a person who is willing to pay what they owe.

iVillage Member
Registered: 01-25-2006
In reply to: heath2004
Wed, 05-07-2008 - 1:06pm

I also would not incur a new debt to pay for this one.