let me give you some helpful information

Ok let me give you some helpful information that is not based on opinion. You asked,”Can they still collect on it”? The answer is of course they can, for 100 years or more if they choose. Now that that issue is answered, here is what is really happening with this loan, whether it is yours or not. The loan balance in question goes back a long way. That means that the original creditor chased the delinquent balance for,probably, several years, then sold the account to company that buys debt.

Then those guys chased it for several years, and they sold it. Several things can be happening here, first of all, depending on your name, they may be calling someone completely different than the person to whom owes the debt. You need to ask the people that are calling you what the social security # on the account is. If is isnt you, tell them that and tell them to leave you alone because this isnt your debt. If it is you, ask them who the original lender was. They probably cant tell you. You should obtain a copy of your credit report and check for the account #.

You never stop oweing a debt obligation, however as mentioned in a different responce to your question, there are, what are called, statute of limitations. What that means is that once that time limit has expired, from the date of last payment, you can not effectively be sued for the debt obligation. It doesnt mmean you dont owe the money, it just means that if you know the statute has expired and they do try to sue you, you can tell the judge that the statute has expired and the judge will dismiss it. Just because the statute has expired, does not mean that a collection agenct cant try to collect the debt, or that you dont owe it.

The statute varies from state to state, from 4 years on contracts in writing in TX to 20 years on contracts signed under seal in the Carolinas. All that aside, find out who the original creditor was, when was the last time you made a payment. You can tell the collection agency that you refuse to pay itand to not call you anymore. If it has been more than 7 years, this is the only place where 7 years means anything, the original loan wont be on your credit report any longer either. Dont let them get you going, I was a collector for 15 years. I have been down this road on accounts before. Hope this helps.

Debt collector question

I received a notice in the mail today stating I owed 3000 on a car loan and they would settle for 1000. This was from a collection agency. I had no idea what this was since I own my cars. I called them and they said it was from 1993! I have no idea who this was even. Can they collect on a debt that old? I don’t even know who this car loan is for or for what.

It is my understanding they cannot!! there is a statute of limitations on things. It varies with the type of debt and it varies from state to state but from what I’ve researched there is a 7 year max on average no matter what. This debt is way too old. You dont owe it any longer in my opinion. Ask them to validate it. Unscrupulous debt collectors will try anything to collect and the minute you pay you can start the clock ticking again and its an admission that you owe. Ignore it! OR make them PROVE you owe it now. I doubt they can. Too much time has passed.

I would do a refi and put the bad loans on the house

I would do a refi and put the bad loans on the house before doing bankruptcy. With bankruptcy I believe if you own a home they still make you pay back you loans in a certain number of years, less the finance/interest cost. If you refi, and borrow against the collateral in your house, all of it will be the same finance % as it is on the house.

The interest rates are really good right now and its possible your payments will be the same. THEN pay extra towards your house loan each month. I would personally get a 30 yr and pay 1/2 more of whatever the house loan payment is. Some people say it isn’t worth it and they are right IF you use credit cards again. If you can live with a cash only basis for 1-2 yrs before you refi, you can live without using CC’s again.

That is the key. That and paying extra on your new loan. Call the same place you have your house loan at now AND make sure they reappraise your house, its worth the few hundreds dollars cost in the long run. I did all of the above
and only owe about 5 more years on my house.!!!! Wont be long now.

Next update

His pay showed up online a week early… that’s usual though. So i sat down this morning and figured out our finances for the month of July. I hate money being so tight right now but August will be such a happier month. Fine will be paid off, I’ll be able to go to Maine to visit my mom and sister and her hubby and my nephew 🙂 along with other family and friends. I’ll be up there for a week and the weather will be a nice change from this Texas heat….

Also news that we might be moving to ft carson, co after Iraq sometime. Not sure exactly but some more of the army’s realignment… move from KY to Texas and then probably to colorado LOL I’m like the musical army family in the musical chairs game LOLOL

well hope everyone is doing well..

we are not to Hood yet, it all depends on what the Army decides my dh will do. I understand about the heat– grew up in Arizona and spent the last four years in HEAT.

Beware the impact on your FICO score

One caution, beware the impact on your FICO score if you close out the accounts. Depending on what else you already have in your credit report, and how many other cards you have, you might be better off keeping the accounts open (or maybe just one of them) to maintain your credit history, even if you don’t plan on using them. (Provided of course you’re not worried about the temptation to spend and rack up more $$ if you leave them open).

From experience, I would (now) close the account first and then pay them off, unless you are very disciplined. I say that because I paid off a card 2 months ago thinking I would shred it and call and close it but a couple weeks later, due to very good procrastination on my part, I used it again thinking I really ‘needed’ what I charged. So…now here I am with that stupid card bill all over again!

Credit card debt is unsecured

Therefore if you default, the creditors will call you but basically cannot take anything of worth.

Home equity lines mean that debt is now secured to your HOME. If you default, you lose the roof over your head. Also there are many websites where you can get a loan fast without any collateral. Anyway, better to budget wisely, pay things off (high interest first), and then change your spending habits so you don’t get into the position again.

I do understand unsecured vs. secured.. but at this point, I feel as that this debt is too large to get rid of unless I do something dramatic. I am currently working on eliminating two credit card bills, so that they will be paid off by 12/05, but then I still have over 15 grand in credit card bills… but I was also thinking that if my new payment was say 350 on helic ( now it is 750) , then if I paid more than I can get rid of the debt quicker..

I still have a lot to think about here! thanks for your advice. I truly appreciate it!

At this point, I just feel as if this amount of debt is too high for me to pay off w/o any help… I have transferred some balances to a lower rate.. and by 12/05 I will have 2 more credit card bills paid off, and another one in 6/06.. but then I still have over 15 k in debt.. w/o my car payment.. I have a lot to think about here… I truly appreciate your insights.. 🙂

Don’t borrow against your house

Everything I’ve read is why make secure debt out of un-secured debt? Why increase debt with more house? The whole idea is to get out of debt including the mortgage, live below your means. Save 10% of you salary, pay the necessities, then pay the debt until your out. Period. Cut up the credit cards and live on cash.

Its amazing how much they (the banks) will give you, that is not a measurement of if you are okay financially. Do not get a 2nd mortgage, do not sell your house unless it is to get a smaller/ cheaper house. You can’t borrow your way out of debt. I know this because I’ve tried, and it hasn’t worked thus far for me.

This has been the most painful journey of my life, thus far, and I refuse to give up, and I will over come this monster of debt I have and never find myself in this position again. There are a lot of good books out there to help you, I have been a sponge for info for 2 months. It has been a eye opener for me. I think you joined the same time I did. What have you found out to win this game?

Please advise

We are either thinking to get a home equity loan out on our current home to eliminate some credit card bills.. or selling the current home, then using the equity in it as a down payment for a new more expensive home then getting a home equity loan on the new house to eliminate our debt..

any feedback would be appreciated. thanks!

p,s, we live in south Florida and there is a huge market boom going on here, so trying to stay ahead so that bubble doesn’t burst and our finances go sour..

Double check the fine print on these “great deals”

I used to get them from Capital one all the time, “guaranteed low interest rates” ….yeah as long as the amount owing is paid off at the end of the month, then if you don’t pay that completely and carry a balance over then interest goes up to 18%, then eventually you are paying 28%.

I called Capital One and told them to stop sending me the “deals” in the mail, and they have.

I advise to stay away, tempting as it is. Just double check the fine print.

Looking for some advice

Does anyone have any information re: these solicitations from credit card companies, i.e., Capital One offering to dismiss interest on debt w/a collection company and build credit with them if you are willing to accept the offer. I get these all the time.

Actually the wording is as such: “If you accept the offer outlined in the enclosed insert, ownership of your account will be transferred to Capital One. Your balance will be transferred to a new Capital One Visa Account. The initial balance will be “$$$” – it will not include the “$$$” in interest and fees that have built up since your account charged off”.

It says you will earn $25 credit limit increase for every $100 of charged-off debt you repay.

How legitimate is this? Or should I ask how reasonable is this? What happens to debt once its charged off? What will my report state once this occurs? Will it say XYZ company is paid in full and show a new opened account with Capital One?

They aren’t my friends, they are my sister’s friends

They aren’t my friends, they are my sister’s friends. They are significantly younger than me and I don’t have roudy friends like that anyway. I went and got an estimate yesterday from a glass place and confronted them about it; it came out to be $250 out the door with labor and I added $50 “stupid tax” for pain and suffering. I thought it would be fair to add that since I was highly irate about it and then I had to take the time out of my busy work schedule to hunt around for the lowest quote. If they have a hard time coming up with it, I will drop the $50. They said it was XXX who threw it. I don’t see this girl often so my sister said that she would tell the girl and her boyfriend and they could split the amount down the middle.

Even if I don’t get the glass fixed, it’s more of the principal that if you break someone else’s property because of your stupidity, then you must pay. You don’t just break someone’s windshield and then carry on your merry way. They didn’t even apologize or acknowledge that they did it. And yes it is illegal here in Virginia too to drive with a broken windshield if it falls on the driver’s side.

If you can get the financing for it

If it was me, and you can get the financing for it, and your current house is in a town or something, you may want to consider renting it out.

I am in the process of purchasing a house, and we plan to live there for about 5 years and then build one. When we get our next house built, we plan to rent this one out. After 15 years, we will own 2 homes and have huge equity. Some of the stuff I’ve been reading on the net says that the best way to make yourself a millionaire is to purchase property and rent them out.

The downside is that you need to have a home in the right location. You need to become a landlord and find the right tenants. You need to be on top of the rent, and you have to do maintenance on two houses. If you are willing to do that, you will eventually have a lot of self worth.

Consider your options and plan it out that way.

Has anyone had an experience in building a new house?

We bought a house 6 months ago, but we regret not building one… so now are plan to sell our current house and build our new one. has anyone done this before? we are unsure how this process goes. since we will need two loans at the same time.. we plan to live in the current house until the new home is finished and ready to live in..

We will need a construction loan, and we have a standard mortgage now. thanks in advance.

As if things could not get any worse

You won’t know what they can afford to pay for if you don’t ask for it. Get an estimate of the repair quickly and let them know the cost. Remember you don’t really know how much money anyone has unless you are that person’s personal banker. They may not be millionaires but they probably can come up with money to replace your window. my experience is ask. But, I’ve broken my window before (trying to get my keys out of the car). I’m not sure what part of the country you reside in, but where I live here in CA there are many junk yards, salvage yards and it only costs me $50 window and installation. Whereas if I would have went to a retail window installation would have charged me $120. Good luck…research your options

I’m sure these may be good friends to you, but if they can’t help you come up with the money to help you pay for the windsheild that they broke, are they really that great of a friend? They have the money to drink!….are you going to let them get you futher into debt, they didn’t respect your property.

I’m sorry to hear your friends are out of work, but where’d they get money for beer? If someone can afford beer, they can afford to buy you a new windshield. Get two estimates, and then go (be sure to park out of range) ask them to pool their money and pay for the windshield. In my state (Nebraska) it is against the law to have a windshild with cracks that interfere with the drivers vision. If they have to give up beer for a week to pay for their accident, it happens. If you don’t ask, they won’t pay.

I’d say, press charges if they’re unwilling to take care of the windshield. Everyone must deal with the consequences of their not-so-good actions and choices. Make them take responsibility for their behavior. For you, Shaunie, you should try and avoid similar situtations and people in the future. They’re not good for you.

Receiving Credit to Pay off Charge offs w/other creditor

Well, if things could not get any worse, like I said I get one thing done and I get pushed ten steps back, my sister’s friends were fighting and managed to throw a bottle which hit my car and shattered the windshield. More money out of my pocket.

I know who broke the windshield. What happened was the girl who did it threw a bottle at her boyfriend, he blocked the bottle and it hit my car and broke the windshield covering my car with beer. None of these people have jobs, I only have liability insurance so I guess now I have to pay more money out of my pocket to fix the windshield because I know they aren’t.

I have not confronted them about it because I know she does not have any money to even bother about trying to make her pay for it. I swear, if it isn’t one thing its another.

Don’t fret there is a way out

Been there done that!!!! I am working on it myself. I found this site has a budget program that you can download for free that will help you to manage your money. I also listen to Dave Ramsey at daveramsey.com daily he has very helpful advice for those of us who were pulled under by the credit bug. Those 2 creditors are the worse. If you are behind on both, maybe you can call them to work out some payment arrangements over 3-4 months that will allow you to catch up and bring you out of being late. If they work with you, make sure you ask them to stop the late payment and overlimit fees until you are back on track. which after that time you will be current and then can work furiously to pay them off.

Keeping those accounts open to help with repair your credit and establish a good credit history is BOGUS!!! If you are not going to use the cards anymore then close them after they have been paid off. When SunTrust trust you enough see if they will allow you to get a Visa/MC Debit Card. It can be used for the same purpose as a credit card. When used the funds come directly from your account and you are indebted to no creditors.

The best advice I can give you is to find an additional job (temporarily) to get you back on track. Between the 2 jobs you should be able to catch up and then pay off those creditors. Regarding the car if you know of a good car mechanic take him to the auction with you to look over the car you are interested in and that’ll help you to feel safe.

Get an idea on your finances

Welcome to the group.

The first bit of advice that I can suggest is to get an idea on your finances. Whether it be with spreadsheets or a program like Quicken or Microsoft Money. You need to list out all your debts, and then make a plan on getting things paid off.

The typical rule of thumb on paying off credit cards and debts is to list them out with the interest rate beside them. Then if you are able to, make the minimums on all your payments. If you can spare extra money, you apply the extra to the highest interest debt you have. After a couple of months, you will see a significant decrease in the debt that you had been making the extra payments on. When that debt reaches 0, you apply the previous minimum payment, plus the extra payment you were paying to that debt to the next one in the list.

Here is an example.

Debt Payment Interest Rate


CC1 $150 27% $1400

CC2 $90 18% $1000

So say the first month you make you minimums, plus you had $200 extra. Pay the $150 like you normally do, and also pay $200 to the top card. You will have made a $350 payment that month, and your balance is now down to around $1100. Next month it will be around $900, then $600, then 300, and bingo, it’s paid off.

Then you take the $150 you were paying on the first card, and apply it to the second. Now you may have $250 extra at the end of the month, so you apply that to the second card as well. So your $90 payment becomes $90 + $150 + $250 = $490 and it only takes two more months to have that paid off.

I know this is an extremely simplified version, but that is the principle on how you do it.

The other thing you may want to consider is to track your spending. Everything from a cup of coffee on the way to work to a can of Coke on the way home. You don’t need to change your habits the first two weeks you are tracking, but then at the end of the two weeks add everything up and see where your money goes. You’d be surprised. Then you can get an idea on how to reign in your spending to save more.

About the motor for your car.

I’ve been there and done that. I put a new motor into my truck one time, and it cost me about $4500 after tax and everything. I had the money at the time, but now I’m forced to keep an antiquated truck because it’s not worth it to me to sell it and after I spent the money I can’t not drive it. I would really suggest getting a used car from somewhere rather than fixing your old one. Even if you got some sort of beater car for $500 and it only lasted you a year, that is cheaper than fixing your car and only having it last you for 3 years. Just something to think about.

Hope a bit of this was helpful, and can get you pointed in the right direction.

Useful website to visit

Try Scott Bilker’s website www.debtsmart.com He gives a lot of information on credit cards. And you can negotiate with your credit cards. Speak to supervisors up the chain of command and ask for fees to be waived and lower interest rates! Consumers can fight back!

One more thing. You can check out and complain to the better business bureau regarding abusive practices against the companies that have your cards www.bbb.org and also www.lawyersandsettlements.com regarding class actions against credit card companies and others.

My husband and I know exactly what you mean. The best advice I can offer at this time is to hand all your problems over to God.

Deal with what you can and don’t stress over what you can’t. Stressing yourself out is not taking care of the problems either. Hope you can use this advice and good luck with your credit.

New Member “In Debt” To the Blog

Hello all, My name is Shaunie, I am 27 years old and already in debt; have been for years. I don’t remember a time in my life that I have not been in debt. Most of it began around 1996-97 when I just graduated from high school; to make a long story short, I was stupid. Unfortunately for me, my parents were in debt as well so I was not educated on how to manage my money from day-1; of course high school does not teach you that either.

Even more damage to my credit happened in 2011 when my employer went belly-up and I was left without a job to keep up with my bills but with plenty of climbing debt. I did not know enough about managing my finances to think about saving at least 3 months of pay so I went further into debt. My car was repossessed but fortunately I got it back and paid it off with the help of family. I had to move out of my luxurious apartment and had to give up my second car; I even gave away all my pets in order to save more money for needed things; I ended up living back with my Mom and I have no assets or anything of value because I have sold it all to pay off debts; I only have the clothes on my back.

So in a nutshell, I am trying to correct all this damage to my credit because I want to have a family of my own in the future and I don’t want them to go through the same b.s. I had to go through when I was little. Most of my debt is a result of my neglect of ignoring bill collectors, so I guess I got what I deserved. I have now fallen prey to high-interest credit cards, payday loans, scams and banks laugh at me now. I can’t even get credit for even the tiniest things; not even a checking account even though my ChexSystems record is clear. I am so ignorant about money, it was not until I had paid off my car several years later that I realized I had been ripped off with a 20% interest rate and making $300 a month payments on a $9000 car which took me 2.5 years to pay off.

I tried to get a lower interest rate when I initially bought it at my credit union which I had been a member of since I was 12 years old but because of my credit, they denied the loan so I was stuck without transportation so I went ahead and bought the car. My credit is so bad, I had to talk to a manager at SunTrust and practically beg on my knees for them to open an account for me because I got tired of paying $3 to cash my check at WalMart every two weeks, so I have to stay on my Ps and Qs with my SunTrust account or I am sure they will shut me down and close my accounts.

I have tried going to CCCS about two months ago but since I did not make enough money from my current job and I did not have any assets they said they could not help me.

I subscribed to Equifax’s credit score monitor and I paid off at least one item on my report and trying to save to pay off the others. At this time, my credit score is 547 but I just got another judgment/public record yesterday from CapitalONE on an account back in 2010 so I am sure it is going to sink even further by the time you all read this. On top of that, I have two credit cards from the worst banks ever; Orchard Bank and First Premier Bank. I only have them to try and “rebuild” my credit if there is ever such a term. I just got the Premier card with a 9.9% interest rate (but with a $6 program fee every month) but the Orchard I have had for a year.

The interest rate on the card was 18% when I first got it, but then I made a late payment in December and it went to 20% … then just today, I forgot all about the annual fee on the card so I did not have enough to cover it. The balance is now $75 over the limit because they put on a $29 overlimit fee. In addition, I looked at my online statement and was disappointed that the interest rate skyrocketed to a whopping 26.99%! I am at the point I don’t even want the card anymore but I have heard it is not good to close an account that I have built up a history with. So I feel like my hands are tied.

There are people out there who honestly do not care about credit but I am trying so hard to manage my it but this seems hopeless; I get one thing corrected and then 10 other things go wrong to bring me 5 steps down and making my efforts futile. I don’t want to be 30/35 years old still trying to handle this crap like my Mom. Sometimes I feel like I am going to have a mental breakdown or something; my Mom has been suffering from depression for debt problems and I don’t want to be like that. I have no transportation to work because the engine in my car blew up so I have to struggle everyday to find a ride.

So now I am trying to save $3000 to put a new engine in it because I can’t buy a new car. Friends have recommended to try an auction but I am so scared to because I am really sick and tired of wasting money. I am scared I am going to get a bad car that I can’t return. To get a decent car at the auction will run me about $3000 anyway so I figured I would just put a new motor in my own car and be done with it. I can’t even find a place to stay near my job because my credit is so bad, I can’t get anything in my name. I live with my mom which is 30 miles away from my place of employment.

I just got a new job so I am still in training. It pays okay, about $700 every two weeks and I have been through 2 pay days. I have put $1000 to the side so far for emergency money and I use the $200 left over from my checks to pay my utilities.

I wanted to know if anyone can give me some advice. I am so confused as to what I should do about this stupid high interest credit card and everything else. I am very frustrated because I want to get this right but I can’t. I am sorry this is ridiculously long but I had to vent.