Personal Finance

Locked: In debt. What to do now...

  • Last Updated:
  • Aug 15th, 2017 1:01 pm
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Deal Addict
Dec 16, 2005
2536 posts
615 upvotes
angel_wing0 wrote:
Aug 12th, 2017 1:38 pm
Giving them your bank info will not let them access your bank account. It will only allow them to setup a transfer of an agreed amount of funds from your account to their account on a monthly/weekly or whatever schedule basis you allow them to.

$4500 is a manageable debt and you should start paying it off asap (consider you have a job too). Getting your credit ruined over that amount is not worth it.
Credit is already ruined. Collections calling daily means debt was probably sold to 3rd party or at least assigned to 3rd party.

Best option is to negotiate settlement
Deal Addict
Jan 3, 2009
1433 posts
224 upvotes
theforgottenone99 wrote:
Aug 9th, 2017 7:31 pm
Hello. Okay first of all I'm an idiot. I racked up a CC debt of about $4500. I keep getting harassed everyday by the debt collectors but every time they call I'm at work. I've heard things and am worried about how I'm going to pay this off. I've heard it's bad to give hem your banking info because they can then access your account which I do not want.

How can I go about paying this off without giving them my banking or work info? Should I open an account at another bank and only put money in it specifically for debt or what should I do, what are my other options to pay this without them finding my real bank acc? Also, I do not wanting them know where I work.

Thank you.
It's 4500. Seriously? Do you know what you have done to yourself? I hope you know the implications of what you've done relative to the minimal - and I mean MINIMAL - work it would take to pay that off, even with a minimum wage job.

Get another job. Have a garage sale. Work on the weekends. Work more hours.

I'm so confused.
Deal Expert
User avatar
Jan 27, 2004
36165 posts
2273 upvotes
Toronto
The minimum payment on that is $135

Tell us your monthly take home pay and list out all your expenses. Include rent, housing cost, phone, bills, food, car etc.

We can help you budget.
[OP]
Banned
Aug 8, 2017
3 posts
Hi guys. Thanks for all the info. I guess I'll just give them a call and hopefully we can agree on a payment plan since I cannot afford to pay it all at once.

I'm just a bit afraid to call because they know I've been ignoring them and I'm kinda nervous on what they will say to me to me or how much they're gunna drill me for info. The reason I'm so reluctant on giving them my new bank info well a few years ago when I actually had the card and was using it I missed a payment by like a week and they took $250 out of my bank without informing me but I found out about that after. So yeah they can just go into your bank acc and take what they want.. this is why I'm afraid I don't want that happening again.

I'm probably gunna go open another random account elsewhere at a different bank and then just pay them with what I add to that account . Hopefully that works.. something really tells me not to trust these bastards.
Deal Addict
Nov 22, 2015
1956 posts
1046 upvotes
theforgottenone99 wrote:
Aug 13th, 2017 3:01 pm
Hi guys. Thanks for all the info. I guess I'll just give them a call and hopefully we can agree on a payment plan since I cannot afford to pay it all at once.

I'm just a bit afraid to call because they know I've been ignoring them and I'm kinda nervous on what they will say to me to me or how much they're gunna drill me for info. The reason I'm so reluctant on giving them my new bank info well a few years ago when I actually had the card and was using it I missed a payment by like a week and they took $250 out of my bank without informing me but I found out about that after. So yeah they can just go into your bank acc and take what they want.. this is why I'm afraid I don't want that happening again.

I'm probably gunna go open another random account elsewhere at a different bank and then just pay them with what I add to that account . Hopefully that works.. something really tells me not to trust these bastards.
Sounds to me like you're the one that's not to be trusted when it comes to borrowing money.

Pay your debts and quit making excuses. Of course they can take money from your account if you provided that info... Check your cardholder agreement.. you literally agreed to allow them to take money from your account should you fail to pay as promised.
Deal Addict
Jan 3, 2009
1433 posts
224 upvotes
theforgottenone99 wrote:
Aug 13th, 2017 3:01 pm
something really tells me not to trust these bastards.
How old are you?

Don't open random accounts, pay your debt. You need to start treating your credit with respect. Unless you are the top 0.1% earner, you WILL need credit down the line - house, cars, repairs, education, etc. With this type of behaviour, you won't have any of that. Having access to credit is having financial freedom. Your decisions have long standing implications.
Sr. Member
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Mar 9, 2012
675 posts
199 upvotes
KITCHENER
theforgottenone99 wrote:
Aug 13th, 2017 3:01 pm
Hi guys. Thanks for all the info. I guess I'll just give them a call and hopefully we can agree on a payment plan since I cannot afford to pay it all at once.

I'm just a bit afraid to call because they know I've been ignoring them and I'm kinda nervous on what they will say to me to me or how much they're gunna drill me for info. The reason I'm so reluctant on giving them my new bank info well a few years ago when I actually had the card and was using it I missed a payment by like a week and they took $250 out of my bank without informing me but I found out about that after. So yeah they can just go into your bank acc and take what they want.. this is why I'm afraid I don't want that happening again.

I'm probably gunna go open another random account elsewhere at a different bank and then just pay them with what I add to that account . Hopefully that works.. something really tells me not to trust these bastards.
Order cheques from you bank. Call up the CC company, ask them to freeze the interest, and offer to send x-number of post-dated cheques to pay off to an agreed balance. Perhaps tell them $250/month for 12 months which gets them $3,000 which hopefully they feel is fair.
[OP]
Banned
Aug 8, 2017
3 posts
niroopg wrote:
Aug 13th, 2017 5:36 pm
How old are you?

Don't open random accounts, pay your debt. You need to start treating your credit with respect. Unless you are the top 0.1% earner, you WILL need credit down the line - house, cars, repairs, education, etc. With this type of behaviour, you won't have any of that. Having access to credit is having financial freedom. Your decisions have long standing implications.

I think I've already screwed all that up I highly doubt I'll ever get a second chance..once it's paid off I'm sure they will never let me have any credit again. I think I should just take my life to be honest..
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Apr 29, 2008
5730 posts
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theforgottenone99 wrote:
Aug 14th, 2017 3:14 am
I think I've already screwed all that up I highly doubt I'll ever get a second chance..once it's paid off I'm sure they will never let me have any credit again. I think I should just take my life to be honest..
I think you should ask for professional help, to negotiate on your behalf since it stressful for you.

You will be able to get credit for sure again. No reason to take your life.

You should get help regarding how your feel
https://suicideprevention.ca/need-help/
Sr. Member
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Mar 9, 2012
675 posts
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KITCHENER
theforgottenone99 wrote:
Aug 14th, 2017 3:14 am
I think I've already screwed all that up I highly doubt I'll ever get a second chance..once it's paid off I'm sure they will never let me have any credit again. I think I should just take my life to be honest..
Unsure if serious..

As for 'second' chances, people have screwed up their credit way worse than you and a few years later, they're good again. If you do call them to make an agreement, since you are not in bankruptcy, you can open a credit card to rebuild a credit history. If you are worried about calling, send them a letter instead.

If this financial problem is giving you major stress, to the point of ending your life, then you need to seek professional help. Do it now. Believe me, your financial issues are very minor compared to what many get themselves in. It might be true that your current credit card company may not want you as a client again, at least not soon, others will take you for sure. So don't worry about second changes, everyone gets them. People get third chances. My father-in-law has claimed bankruptcy 3 times, if that makes you feel better.
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Jan 27, 2004
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theforgottenone99 wrote:
Aug 14th, 2017 3:14 am
I think I've already screwed all that up I highly doubt I'll ever get a second chance..once it's paid off I'm sure they will never let me have any credit again. I think I should just take my life to be honest..
Hey. I've seen a lot of people work with what I call Ghetto Finances. Living pay check to pay check. Choosing "Rent, Food, or the club?". Seriously here… Booze & cheese burgers is one of them. What else can poor people do for entertainment? ITs stressful enough.
But I wish to help you. Some guys on here can be kinda rough… Because they haven't seen what other people go through. They claim they "lived poor". But there is a whole other level I've seen… lol

I'm not gonna lie. I've been there too. I got lots of debt. But I also have a car, credit cards, lines of credits, I even have RSP in several 10's of thousands of dollars, and some other investments.

Credit can be a very valuable tool if you use it wisely… I did the same as you and said "fck it… I can't handle it.. I'm walking away from these loans…". There is NO WAY I would be able to have the quality of life I do right now.

If you want to speak personally… You can PM me. It would need an honest evaluation of your employment, your career prospects, and budgeting.
Also on how to handle your debt. There are ways out and to make it easier on you. As long as you don't completely burn your bridges.

Theres one simple solution that i've suggested to people when I caught them at the breaking point of not paying their bill or just walking away…
Lower the interest. Every single big 5 bank has a low interest rate option for their credit cards. You can switch to this card with no credit check. So you can pull this off even if your credit is destroyed… As long as your credit card account is still open, active, and revolving. (if they freeze the revolving limit and send it too collections its too late). They can switch this over and you just end up being the annual fee. Your interest rate will drop by almost half. You'll save hundreds of dollars on interest.

For example BMO regular credit cards are 19.99% interest. But you can do a product transfer to the "preferred low rate" with no credit check for a $20 ANNUAL fee. It brings it down to 11.99% interest. That means for every $1000 in balance you owe… You save $80 per year. @ $4500 that would be $360 savings per year…
Your minimum payment is $135 per month. So that type of savings would get you an extra 2.66 months of minimum payments. Enough to hold you down until you find work or get your shit together.

I'm a teller.. Whenever I see some broke ass maxing out his credit card because he is struggling.. I tell them straight up… PAy $20 per year… And get down to 11.99% interest. You'll save HUNDREDS of dollars per year… Use that to pay off your debt.
Deal Addict
Jan 3, 2009
1433 posts
224 upvotes
theforgottenone99 wrote:
Aug 14th, 2017 3:14 am
I think I've already screwed all that up I highly doubt I'll ever get a second chance..once it's paid off I'm sure they will never let me have any credit again. I think I should just take my life to be honest..
That's not how credit ratings work. Items fall off your credit report after 7 years. So of course, you have many chances to get it right.


What is done is done. Its not as through many many people have gone through what you are going and many people have reacquired good ratings. It takes some time, but ultimately, the only thing you can control right now is your behaviour. Your behaviour RIGHT NOW defines whether you can learn from this and get to a point where you can get credit again. Otherwise this will be a perpetual thing.

Please don't talk about taking your own life. It's $4500.00. FORTY THOUSAND FIVE HUNDRED DOLLARS. Its really the smallest of small debts. And I really don't want to hear that its a lot of money, because it isn't - even to kids making minimum wage. That kind of money is easily acquired. If you think it isn't, all it means is that you aren't working hard enough. You should be working 100 hour weeks the debt is gone.
Newbie
Feb 13, 2017
37 posts
6 upvotes
toronto, ontario
theforgottenone99 wrote:
Aug 14th, 2017 3:14 am
I think I should just take my life to be honest..
your life > $4,500

good luck, friend.
Deal Guru
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Aug 8, 2012
10173 posts
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BC
renoldman wrote:
Aug 11th, 2017 6:09 pm
Who would have thought that the credit card company (bank) wanted to be repaid?

Are you guys suggesting that there is no free $5k (adjusted from $200 with inflation) when I pass GO in the real life Monopoly game?

Milton Bradley lied to us.
If you have a copy of Milton Bradley's Monopoly then yes, they lied to you... since Parker Brothers makes monopoly:

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Sr. Member
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Dec 13, 2016
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In all seriousness, why should OP repay his debt if the credit has been ruined?

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