Quote:
I even asked Collections to define "something". Unfortunately, $100/mo is nowhere near $650/mo and I got my first wake-up call right after Xmas. They tapped my checking account for the remaining $330 that was in there making it nearly impossible to cover my rent check for December. When I called them on it, they referenced my Promissary Note which says that they can do that. I called some other people "in the know" and they informed me that the next play in the Collection's playbook is to either tap my wife's account (currently live in WI) OR begin garnishing my wages.
DO NOT give a collection agency ANY personal information. You are under NO legal obligation to even talk to these people. It is perfectly legal for you to just hang up the phone - and I would recommend doing just that when they call again. They have no legal right to tap into your bank accounts OR garnish your wages until they go to court. They will tell you they can do this, but what they are leaving out is the fact that they MUST go to court in order to do so. They are trying to intimidate you into handing them over a blank check.
My advice to you is this: close your existing accounts and open new ones. Do not give your bank account information to anyone calling you looking for money. As you have seen, they will rob you blind if they are given the opportunity to do so. If they keep calling, then unplug the phone.
Quote:
If I funnel the money through my wife's account......they'll find it eventually. I've already switched bank accounts....but, they'll find that in time.
O.K., I didn't read far enough ahead before I responded. Good, you have new accounts. They may find it, but they CANNOT tap into it unless one of two things occur: either you give them the information voluntarily, or, they go to court and get the LEGAL authority to do so. Remember, they are a collection agency, not a government agency. It's one thing for the government to do something, it's an entirely different thing for a collection agency to do so. Also, research what your rights are with regards to dealing with collectors. For example, it is illegal for them to contact your family, friends, employer, etc., and discuss YOUR situation with THEM.
Quote:
why on earth did I think that borrowing nearly $76k ($23k/federal, $53k/private) was a good investment at making $23k/yr?
Hindsight is always 20/20. Let what is in the past stay there and look forward. i.e., a game-plan to get out of this mess. In your first post, you asked for advice. I'll give you my $0.02 on the topic. You may not like some of it, but hopefully it will be helpful nonetheless.
FIRST: put a written budget on paper. Analyze what is coming in, what is going out, and where is it going. Once you have the basics (food, clothing, and shelter) covered, cut out EVERYTHING that is non-essential from your budget. That may include internet, cable t.v., entertainment, etc.. This may sound drastic, but drastic times call for drastic measures.
SECOND: increase your positive cash flow through extra income. Discuss these questions with your spouse: can either/both of you take on extra work? Can you take a part-time job in your time off? Can you sell some things that may bring you extra income? If you have two cars, can you survive with one? Also, and this might be hard to hear and apply, but do you have any friends or family you can stay with for free or practically free? It would free up some or all of the money you are paying for rent and would allow you to throw it at your debt.
THIRD: for the short-term look at reducing the monthly payments. For the
long-term, however, look at paying this monster off in LESS than 15 years.
You borrowed $76K. You stated your minimum monthly payments are $650.00/month for 15 years. 15 years equates to 180 months. $650/mo over 180 months (15 years) will cost you $117K - $41K more than your principal.
Here is what you have going for you. Your career, through CBA's, will allow you an increase in pay each year. You will also get a pay raise once you upgrade, so you won't be at $23K/yr forever. It's going to be tight for a while, but your pay does increase.
Remember this also. Broke is a condition and poor is a state of mind. Make up your mind right now that you are going to pull out all the stops and erase this debt once and for all. Turn the land inside out looking for every penny you can get your hands on - and then throw every penny you can toward this debt.
It can be done. It's going to require some serious sacrifice, but it is an attainable goal. It's been done before and your situation shouldn't have to be any different.