How to Get Out of Debt With the Get Out of Debt Guy » debt collections

I Left My High School Sweetheart and Now My Credit is Trashed. – Christine

Steve Rhode — Fri, 03 Jun 2011 21:39:57 +0000

I left my high school sweethart four years ago which put me in my own apartment. I had a great job at the time and got laid off about one year later.. I have about six credit cards which are all in collections after the past two years. I do work full time but i don’t make even half of what i was making at the job i got laid off from.

i pay all my own bills rent, internet and electric and groceries.. i don’t have a 401k or anything like that. i cant get a personal loan due to me renting an apartment.

nobody can cosign a loan for me either cause their credit is worse than mine.

but i cant seem to pay any of them at all…

i also see these credit card relief programs but they want a monthly fee for getting them paid off plus a big chunk of money to pay off the card…

please help!!!

Is there anything else that could help me with my situation that i don’t know about???

Christine

I’m currently backed-up on answering questions so I’m posting some of the questions here for you to help answer.

This is your chance to be a hero and help out this person by providing your feedback and answer to the question in the comments section below.

@GetOutOfDebtGuy

Hooray, You Are in Collections! The Debt Collector is Calling. The Debt Collector is Calling.

Steve Rhode — Sun, 01 May 2011 17:42:30 +0000

From How to Get Out of Debt

Fear is the worst enemy of the debtor.

Fear allows us to accept false solutions and incorrect thoughts into our consciousness when we are dealing with debt.

Fear is not reality.

Overwhelmingly the pattern that emerges in people facing financial troubles is they eventually become afraid and paralyzed by their situation. They either leap at any solution or do nothing. They fall for fake promises of help or take action that leaves them only further in debt, without money, and still facing the same debt monster.

I wanted to share with you a different point of view on the whole debt experience, one I wish I had fully realized when I was facing my debt demons years ago. Well, on some level I did. You’ll see.

When you fall behind on your bills and don’t think you’ll be able to meet your obligations it is only natural to be concerned and worried, that is unless you are a sociopath like Dexter on that television show that murders people without remorse.

But the emotional whipping we give ourselves distorts reality and we do much more damage to ourselves than we have to; needlessly and senselessly.

Let’s just take one part of the debtor experience, the debt collection call.

Many fear the debt collection call. They feel they are being judged or viewed with moral disdain for not meeting their obligation on a timely basis. Or at least that’s what the voice in the head says.

The reality is that if you could pay your bill, you would. If it was within your ability to make your payment by the due date you would have made the payment. But sometimes shit just happens.

It doesn’t matter if the reason for your inability to make ends meet is that your home was just wiped off the map by a terrible tornado, or the business you worked for was destroyed by fire. The reason could be as simple as you lost your job or slipped and fell and are now laid up injured. Whatever the reason the outcome is the same, you simply can’t make the ends meet. It is what it is and that’s all that it is.

Debtor Shame

Are victims of a hurricane, tornado, or other natural disaster left in a shameful position? Should they feel guilt or moral embarrassment because they can’t make the next payment, or maybe the one after that?

Let’s put all of this mess into perspective.

Nobody wants to be beholden to another and not be able to meet that obligation. It’s not something most start out to strive for. Sure we can point to scammers, crooks, and flim-flam ne’er-do-wells. But if you are reading this, that’s not you.

Debtor shame makes people do stupid and ridiculous things and have stupid and ridiculous thoughts. From the low end of the spectrum it makes people agree to payments they just can’t meet to the high end of the spectrum, they take their own lives in suicide or murder their family in shame.

And that entire spectrum of silly and senseless things is born out of just one issue, we fear the debt instead of embracing it.

Embrace the Debt. Are You Insane?

The actual best move to make when you start to feel the fear of debt creeping into more and more of your waking thoughts is to stop fearing it. The fear harms you more than helps you. It does not change your situation nor does it give you the opportunity to make it better.

The best thing you can do in times like these is to embrace and own the situation, not run from it. If you are in debt and can’t pay the bill, accept it. Live in the moment when you can’t make the next payment but do it from a position of reality, rather than fear.

There is a large volume of travel between being afraid of the phone ringing and the words a strange voice on the end of the line is going to say that will judge you, to welcoming the call and the debt collector.

You can react in fear or you can live in joy. The choice is absolutely yours. Which do you want to live in? The choice is entirely yours. It is your choice so what do you chose?

As silly as this may sound, being in debt and having the debt collector call is not the worst thing that can happen to you. Don’t get me wrong, it’s unfortunate, but it’s not the worst thing.

On the scale of horrible things I’d much rather get a collection call than be on fire or get jabbed in the eye with a sharp stick.

We allow ourselves to be panicked by the collection call simply out of a poor sense of prioritizing the reality of the event. On the scale of having our neighborhood hit by a tsunami or getting a collection call, the collection call is less than a nothing.

Here is What You Need to Do When We Get Collection Calls

When you start to get collection calls I’d welcome each one like a long lost friend and be cheerful and cordial as you describe why you can’t pay. What?

You heard me.

The debt collector is not a person to fear, nor is the attorney that might threaten to sue you. None of those people are. The collection folks are not there to judge you. They are there to persuade you into making a payment promise or repay your debt. They are there to do a job. That’s it.

Have you ever seen that show “Parking Wars” where people behave badly when they get parking tickets? The citizen goes off in a rude tirade against the city employee that just issued them a ticket for an obviously expired meter.

Embed Share

But once in a while the person walks up to their car as the ticket is being written and admits it was their fault, they thank the parking ticket writer for being nice about it and they deal with the situation for what it is. Which approach do you think leaves the person with more serenity and a better day?

The ticket person doesn’t morally judge the person they just gave the ticket to. They issue the ticket based on the facts. The debt collector is just doing the same thing. You are behind so they are trying to collect money from you. That’s all it is.

There is a reason that seeking serenity and the Serenity Prayer is a foundational block of helpful programs like Debtors Anonymous. It’s because it helps to put the situation into proper perspective.

The Serenity Prayer

God grant me the serenity
to accept the things I cannot change;
courage to change the things I can;
and wisdom to know the difference.

Living one day at a time,
Enjoying one moment at a time,
Accepting hardship as a pathway to peace,
Taking, as Jesus did,
This sinful world as it is,
Not as I would have it,
Trusting that You will make all things right,
If I surrender to Your will,
So that I may be reasonably happy in this life,
And supremely happy with You forever in the next.

Amen.

–Reinhold Niebuhr

If you are suffering with debt worry, you can’t sleep, you can’t eat, you feel hopeless and your stress level is through the roof; try this alternative approach.

The next time a debt collector calls, welcome the call with enthusiasm, thank the collector for calling and make the person your friend. There is no reason for you to become fearful of what the collector is going to say. They already know you are behind on your bills and you already know they are trying to get a payment out of you. What more can they tell you?

When I was living through my troubles there was the one debt collector that I did become friendly with. It got to the point that I’d look forward to his calls. And a few years later when I started helping people that had money troubles I’d even call him for some advice on different collection situations. He was a great friend to have and tell me how to deal with the collector for this client or that one.

You are not going to disarm a debt collector with nastiness or aggression. But you will absolutely disarm the debt collector by being the nicest person they talk to today. Being nice isn’t going to change the situation but trust me when I tell you that it will radically change your day for the better.

Imagine two debt collection calls. On one you shout, cry and scream at the collector. You end the call by slamming the phone down and carry the exchange with you through the day. You’re mad and angry and it impacts your day from that point forward until something takes over your thoughts.

On the other call you smile, remain friendly, and act cordial. The moment the call is over you can abandon the call in your thoughts and move on knowing you were just the best person you could be.

The debt collector has no power over you unless you let them so why not take their power away by being nice, a joy to call, and a truthful person in their day filled with venom and hateful encounters. By doing this it improves the quality of your day and can even lead to more and better solutions when dealing with the situation.

When your financial situation changes or we need to tackle the underlying debt, there are solutions and don’t worry, I’m always here at GetOutOfDebt.org to help you for free.

@GetOutOfDebtGuy

I Think Sallie Mae is Violating My Collection Rights. – Robyn

Steve Rhode — Mon, 05 Apr 2010 20:44:29 +0000

From How to Get Out of Debt

Robyn

“Dear Steve,

I have a private student loan with Sallie Mae. I got this loan to go to a computer training school in Massachusetts. I now live in California. They are threatening to default if I do not pay $842 by August 8th. I am not refusing to pay them, I am just not able to make the entire payment by that date.

I have not called them about the payment yet. To be honest I am terrified to speak to them because every time I do they go out of their way to incite an argument, I will not yell and scream, but they do. They are generally verbally abusive and terribly rude. I have also been receiving phone calls from them starting at 5:30am, since my loan went into collections. My cell phone is a Massachusetts number, but I live in California. I have told them repeatedly to stop calling me that early, they have apologize and said that yes, that is much too early to be calling me, but then they continue to do it and call me every morning at 5:30am.

Are they allowed to default my loan if I am not able to make the entire payment? Are they obligated to work with me, or can they default even I offer to make a partial payment?

Is it legal for them to be calling me at 5:30am?

When it comes to a private loan, do borrowers have any rights at all? What are collection officers allowed to say and not allowed to say to me? Is there any kind of conduct code they must follow, or are they allowed to treat me like dirt?

Robyn”

The Answer:

Dear Robyn,

Well there is something called the Fair Debt Collections Practices Act (FDCPA) which says what collectors can and can’t do. The problem is that it does not apply to the original creditor, but to appointed outside collectors on behalf of the debt owner.

Since Sallie Mae is the original creditor this does not apply to them. In California there is a similar piece of legislation called the “Rosenthal Act” that most mirrors the provisions of the FDCPA.

Hours for phone contact: contacting consumers by telephone outside of the hours of 8:00 a.m. to 9:00 p.m. local time
Failure to cease communication upon request: communicating with consumers in any way (other than litigation) after receiving written notice that said consumer wishes no further communication or refuses to pay the alleged debt, with certain exceptions, including advising that collection efforts are being terminated or that the collector intends to file a lawsuit or pursue other remedies where permitted
Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously: with intent to annoy, abuse, or harass any person at the called number.
Communicating with consumers at their place of employment after having been advised that this is unacceptable or prohibited by the employer
Contacting consumer known to be represented by an attorney
Communicating with consumer after request for validation: communicating with the consumer or the pursuing collection efforts by the debt collector after receipt of a consumer’s written request for verification of a debt (or for the name and address of the original creditor on a debt) and before the debt collector mails the consumer the requested verification or original creditor’s name and address
Misrepresentation or deceit: misrepresenting the debt or using deception to collect the debt, including a debt collector’s misrepresentation that he or she is an attorney or law enforcement officer
Publishing the consumer’s name or address on a “bad debt” list
Seeking unjustified amounts, which would include demanding any amounts not permitted under an applicable contract or as provided under applicable law
Threatening arrest or legal action that is either not permitted or not actually contemplated
Abusive or profane language used in the course of communication related to the debt
Communication with third parties: revealing or discussing the nature of debts with third parties (other than the consumer’s spouse or attorney) or threatening such action
Contact by embarrassing media, such as communicating with a consumer regarding a debt by post card, or using any language or symbol, other than the debt collector’s address, on any envelope when communicating with a consumer by use of the mails or by telegram, except that a debt collector may use his business name if such name does not indicate that he is in the debt collection business
Reporting false information on a consumer’s credit report or threatening to do so in the process of collection

SallieMae is notorious for being hard nosed collectors. Once you fall behind they no longer seem to be the same friendly people that lent you the money to begin with.

To overcome the phone issue I would keep a log of their calls if this matter escalates and/or change your telephone number on the phone.

SallieMae has no programs to let people enter affordable repayment plans like government backed student loans do.

Big Hug!

@GetOutOfDebtGuy

Can the Debt Collector Really Do That Under the FDCPA? – Jason

Steve Rhode — Mon, 09 Mar 2009 17:06:21 +0000

From How to Get Out of Debt

“Dear Steve,

Unemployed, increasing debt, previous attempts to settle and/or maintain debt payback inconsistant, delayed and past due payments.

1. Can a debt collector call outside of the hours 8am-9pm the debtor’s location and time? Are there any day restrictions (i.e. Sunday, holidays)

2. Is is legal for a debt collector to call a third party (who is an unrelated minor) regarding a debtor’s file?

Jason”

The Answer:

Dear Jason,

When a creditor can call depends on a couple of things. The most important thing is that the Fair Debt Collections Practices Act (FDCPA) regulates activities of third-party debt collectors and not the owner of the actual debt. A collector is prohibited from calling you at certain times but the original creditor can call you almost anytime.

There is no restriction on what days creditors or debt collectors can call but most don’t call on weekends.

A creditor or a debt collector should not discuss the specifics of your debt with anyone else but they could leave a message or ask them to tell you to contact the creditor.

I had a client once that had a debt collector call her while she was out of the house. The debt collector told the child that answered to get a black crayon and write his name and number as large as possible on the white kitchen wall, which he did. The collector told the child to have his mother call him when she got home.

A lawyer in New Jersey, Glen Chulsky, has a great page on your rights under the FDCPA.

I think the underlying issue here is not the unfairness of the debt collector actions but that it appears that you have an unresolved and unpaid debt.

Big Hug!

@GetOutOfDebtGuy

Law Offices and Creditors Are Calling Me Non-Stop, Threatening to Sue and Treating Me Like a Criminal – Avria

Steve Rhode — Mon, 05 Jan 2009 21:21:21 +0000

From How to Get Out of Debt

“Dear Steve,

Early in 2008, I had a sudden turn of events. I had to quit my job due to health problems and lost half of my household income when my ex and I split up. I had just bought a new car and signed on to what would have been smart loans to transition into a more comfortable state but 4 to 5 months had passed and I still couldn’t find a job, my savings were depleted and I was close to losing my apartment and my automobile!

My financial situation spun out of control! Suddenly accounts that have been established for years were closed and some of my newer obligations got charged off, almost immediately! Finally, I was able to secure a job, but I’ve only been able to salvage a few of my major accounts.

Now I have law offices and creditors calling me non-stop; threatening to sue and treating me like a criminal! There is still about $10,000 worth of debt obligations unaccounted for. I took a cash job and am paying out almost 90% of my monthly income, but it still is not enough to get out of this mess.

How do I confront my financial crisis at this point? What are my options and what would be the least damaging route of these options?

Avria”

The Answer:

Dear Avria,

Of course looking at the situation from the outside is a lot different from living it. First, let’s just agree that your situation is what it is. While it makes you feel bad, from the collector point of view you are just another of thousands and thousands on the books that has to be scared into paying.

The collectors are trying to make you feel bad because they know that you are more likely to pay out of fear. It’s just an effective collection tool to use. Creditors and collectors can’t judge you. They really don’t know you. But they can effectively push your buttons and make you live in fear, shame, and doubt. Sounds like they are doing a good job of that with you.

In order to give you some breathing room and peace of mind, I previously wrote How to Hide From Debt Collection, the Debt Collector, and Creditors. This won’t make your debt vanish but if you follow this advice it will significantly diminish the day-to-day pressure you may be feeling from the collectors. By reducing the pressure you’ll begin to feel more stable again and be better able to deal with life.

So, you ask, “How do I confront my financial crisis at this point?” The best answer is head-on. I would suggest that you consider the debt snowball method of eliminating these debts and pay off the smallest balance first. You can read my step-by-step Debt Snowball guide here.

If you are not exactly sure who you owe, get a copy of your consolidated credit report and it will show you all your outstanding accounts.

If a creditor sues you or you can no longer cope with the situation, bankruptcy always remains a legal and viable solution that would eliminate your debt and stop the collectors cold. But before you do that, consider the approach above. It will work.

Big Hug!

@GetOutOfDebtGuy

Your Online Debt Collection Rights Guide

Steve Rhode — Tue, 04 Mar 2008 18:36:08 +0000

From How to Get Out of Debt

Here is a Quick Online Debt Collection Guide

Most people make a big mess out of dealing with the debt collector and don’t know what their fair debt collection rights are. Dealing with a debt collector isn’t so much about learning how to beat the debt collector as it is just understanding what the debt collector can and can’t do.

Remember, debt collectors have received credit card debt collection training and are professionals and unless you are a repeat debtor, you’re a rank amateur at this game.

The best way to deal with debt collections is to be cool, organized and cordial. There is no reason to lose your temper or raise you voice to the debt collector. If the debt collector is doing abusive stuff like using abusive language or engaging in debt collection on a bankrupt account, then you can pull out the big guns.

And don’t be afraid to ask to speak to a supervisor if you feel you are being treated poorly. It is just one of the duties of debt collection manager. Just remember that great advice though, be nice, be cool and be cordial.

Let the debt collector know what you can and can’t promise. And NEVER make a payment promise that you can’t keep. It is much better to over-deliver than over-promise.

But you still need to know your rights. “Most people are not aware of their rights. And unfortunately debt collectors take advantage of that fact,” says Joe Ridout of Consumer Action.

Here’s some expert advice on how to fight back against unethical collectors. The Fair Debt Collection Practices Act requires that debt collectors treat you fairly. This doesn’t mean you won’t have to pay your legitimate debt. But here are some basic rights:

A debt collector cannot call you before 8 a.m. or after 9 p.m., unless you agree.

You cannot be contacted at work if the collector knows your employer disapproves.

If you don’t want to hear from a debt collector, write a cease and desist letter to debt collector letter telling them to stop. By law, they have to. Remember, the debt won’t go away and you can still be sued.

The debt collector can contact your attorney — if you have one. If not, your friends and family can be asked about how to get in touch with you. If the collection pressure is getting to be too much, talk to a lawyer.

A debt collector can’t misrepresent the amount of your debt.

A debt collector also cannot use profane or threatening language

Debt collectors can’t say that they will put a lien on your property or file a lawsuit unless the agency really means to do that and it’s legal.

Collectors can’t legally claim federal benefits, such as Social Security or your retirement accounts, like your IRA or 401(k).

Once you’re contacted by phone, you have the right to get a notice that outlines your debt, whom you owe money to, and what action to take if you don’t owe the money. Keep in mind that a debt collector can collect a debt owed by an ex-spouse. If the debt was incurred while you married, you may be liable for the debt after a divorce even if the divorce papers state your spouse is responsible for paying off the debt.

If you’ve been contacted by a debt collector, but you don’t think you owe a debt, you must write a return letter stating that the debt is not yours within 30 days. Once a collector receives your letter, they should send you proof of the debt, such as a copy of the bill. Don’t be coerced into paying a debt you don’t owe. If you do pay just to get rid of the debt collectors, it’s an admission of guilt, and it will have a negative impact on your credit score.

If you still feel like you aren’t getting anywhere, consider enrolling in a debt management plan to get the debt collector off your back while you figure out how to best deal with the situation. Who knows, maybe your find a debt consolidation loan to save you or have to resort to going to the court house to file bankruptcy.

How to Get Out of Debt With the Get Out of Debt Guy » debt collections

I Left My High School Sweetheart and Now My Credit is Trashed. – Christine

Other Related Articles to Read

Hooray, You Are in Collections! The Debt Collector is Calling. The Debt Collector is Calling.

Debtor Shame

Embrace the Debt. Are You Insane?

Here is What You Need to Do When We Get Collection Calls

The Serenity Prayer

Other Related Articles to Read

I Think Sallie Mae is Violating My Collection Rights. – Robyn

The Answer:

Other Related Articles to Read

Can the Debt Collector Really Do That Under the FDCPA? – Jason

The Answer:

Other Related Articles to Read

Law Offices and Creditors Are Calling Me Non-Stop, Threatening to Sue and Treating Me Like a Criminal – Avria

The Answer:

Other Related Articles to Read

Your Online Debt Collection Rights Guide

Here is a Quick Online Debt Collection Guide

Other Related Articles to Read