About to lose everything

[Ange&Seth]

K, I don't really expect any answers to this vent, but I just need to let it out.

We got a default notice on my personal loan the other day, I have 2 weeks to pay nearly $1000 in back payments. Impossible. We owe money everywhere because DP goes crazy with Credit Cards and I just can't stop him. It's looking like we'll have to sell our house, which we've only been in for 3 months, just to survive.

I went back to work in January, and after 7 shifts was giving the option of resigning or being fired. Seems someone didn't like me being there, I'm guessing my replacement. There were a whole heap of stories made up about me which my boss chose to believe, without any proof. And now i'm hearing rumours that they think I was stealing medication from the clinic (I worked as a Medical Receptioninst). It's all completely false. I feel so cheated coz I gave my all to that clinic, I even helped open the damn place, and the only reason that we bought the house was coz my boss promised to let me work from home and with flexible hours and if needed, he would help pay for childcare costs!!!! And now they've ripped the rug right out from under my feet!! I've been applying for jobs, but I didn't want to put bub in childcare, and it's hard to apply for jobs without having a childcare placement for him, but I can't afford to pay the childcare without a job!

We've called GE to try and get a consolidation loan to help us out, but they can only give us a 1/4 of what we need and even though that's going to help us out a bit, it's not gonna get us out of the s**t. I can't believe it's gotten this bad.

It seems like our only option now is to ask DPs parents if they'll get a loan in their name and we'll just make the repayments on it. They've said they'll go guarantour on a loan if we need it but no one will touch us. If that doesn't work, we have to sell our house.

I'm so upset now. As I said I just needed to vent so I don't realy expect any replies to this post but if you've got any answers for me, then please let me know. We need help!

[InSaneOne]

oh girl :hugs: i so know how you feel. you need to hang in there things will eventually start to get better even if it doesn't seem like it now. i want to give you one piece of advice that i was given when in a similar situation. "DON'T GO BANKRUPT!" it is the worst thing to do. while you might have trouble now getting a loan and for the next few years it will be just as bad (or you will get one with a ridiculously high interest rate) things will get easier after the bad debt rating comes off you in about 5 - 7 years. however a bankrupt sign will be permanent. if you need to talk pm me. meanwjile stay strong :hugs:


P.S. oh and cut up your dh's credit cards they will just get you into more and more trouble. then half fill a largeish container with water and freeze. then when frozen put in your credit cards with a little water (just enought to cover them). when that is frozen add more water to the top of the container. KEEP FROZEN!!!!!! if you do think about buying something you can't get unless on credit put the container on the bench and let defrost naturally without any help. by the time the container has melted you will have thought about what it is you wanted to buy and probably changed your mind.

[M O P]

Definately hang in there Ange!
There's no shame in turning to your family for help either. But follow Billie&Beth's advice and get rid of your other half's cards.

[MilkOnTap]

My DH and I have gone through something similar before. We called the company and spoke to them, explained our situation and they were happy to accommodate us to pay it off. I was firm about what we COULD afford to pay and what frequency we could make those payments and they were happy to compromise.

Best Wishes! :hugs:

[Starlet]

Aww hun :hugs:

Hang in there hun, I'm on msn if you need to talk!

[sugar n spice]

I am really sorry about what has happened, defienetly freeze or better still cut up the cards if need be well his anyway. So you cant get the bank to roll all debts into one so that you are paying intrest on only the one loan. I would talk to the bank as you look better to them if they no your in trouble then waiting till it get beyond bad. The bank should hopefully roll your debts into your homeloan making it easier by having the one repayment and only one lot of interest.

They always say with c/c if you have a few roll them into the one with the lowest intrest rate.

hope things brighten up. thinking of you:hugs:

[Sabby]

Hi Ange&Seth,

I hope I will be able to help you.. I'm a collection officer and I work in the finance industry. I worked for GE for 8 years so my recommendation is not to refinance through them at this stage.. only as a last resort. You will be going backwards if you refinance through them... They will put you on a very high interest rate as you will be classed as a high risk.

My recommendation is that you phoned the finance company and ask for variation under hardship (they must offer this to you under the Uniform Consumer Credit Code). You need to advise them that you just need another 30 days to have your current arrears and next monthy repayments deferred. Explain your financial situations. If they won't listen, ask to speak to a supervisor and do a standard letter that you can send out to all your creditors. You must be specific with asking for a variations under hardship.

In regards to your home loan, check with the creditor if you added an CCI insurance. This is an insurance if you become unemployed for 3 months that the insurance will pay for your mortgage repayments.

If you cant get a variation, just ask your DP’s parents for a loan just to pay all your arrears amount before the default notice expires.. If it expires you could be listed as a default on Baycorp which means basically 'black listed' for 5 years.

Talk to your creditors.. it makes them realise that you are concern about your debts and you do have intention of paying it. Do not make any promises of paying something if you cannot do it.. you will make it worse for your self. They don't like it if you break 'promises to pay'. Just advise them you are working out your finances and the best payment arrangement to offer them. Asked them to give you a week to get to them at least then you know what you may be able to do to then.

hope this helps.

[Ange&Seth]

Thanks for all your help guys.

Sabby - what you said makes alot of sense. In regards to the default notice, I have contacted them several times, and made small payments when i could. They said they would send out 'declaration of hardship' forms, but I have never recieved them. I am going to call them again though and hopefully I can get somewhere. At the moment, that personal loan is the biggest problem. I've told them every time I've called them that I'm not working and that I can't afford to make the repayments, but they can't do anything apparently without the forms and I have never recieved them. I just feel like no one is willing to help.

We've decided not to go with GE, I have also contacted FoxSymes today as another bubhubber suggested them. I'm going to get DP to phone his parents to ask if they can help us out with money to pay the arrears on the loan. If we can get that out of the way, then it shouldn't be too much of a problem. He doesn't like asking them for money though so it's just a matter of getting him to actually pick up the phone.

I'm hoping he'll call them tonight.

[Ana Gram]

The credit cards definately need to go. We live without them. Basically if we want something and don't have to money for it, wee start saving towards it. Obviously there is no instant gratifaction of buying something but by the time we have enough money for it, it has usually come down in price.

Do you think your partner has a shopping addiction?

[Ange&Seth]

I don't think he has a 'shopping addiction' just an addiction to 'stuff' - stuff for the ute, stuff for the shed, stuff for work, and he likes to have beer in the fridge for a cold one after work. Not that he has a drinking problem at all, I don't think that for one second, but he likes to buy a slab every week or two. Basically, I think he just doesn't like to 'go without' anything

[Ange&Seth]

I have picked up a form from the branch, but the ones they were sending out had instructions on how to fill it out, and what supporting documents needed to accompany it. I've rang the bank again tonight and spoken to someone about it. He gave me the instructions, and it's now sitting here for me to take to the bank tomorrow and fax away. I've also typed a cover letter for it, so hopefully that'll help. The guy I spoke to also said that the default notice was an automatic thing but seeing as I contacted them as soon as I knew we were in a bit of trouble (which was a few months ago) they won't hold me to having to pay the arrears within 2 weeks. I feel like a big weight has been lifted. I even feel like I've got a bit more motivation, we're both getting stuck into cleaning up around the place now. I keep taking breaks to check on what's happening with bubhub but hey, everyone's gotta have a vice right :rolleyes:

Again, thank you so much guys. I don't think anyone who isn't a hub member realises how much support is virtually right there at the click of a button. Just in the last 3 hours you guys have helped me so much, Thankyou just doesn't cover it.

We're not going to go with GE as they couldn't really help us anyway, but we're going to wait and see what happens with the FoxSymes ppl. If they can't really help us either, at least the loan is sort-of being managed now.

:thumbsup: you guys are tops!!

[kiwibird27]

then half fill a largeish container with water and freeze. then when frozen put in your credit cards with a little water (just enought to cover them). when that is frozen add more water to the top of the container. KEEP FROZEN!!!!!! if you do think about buying something you can't get unless on credit put the container on the bench and let defrost naturally without any help. by the time the container has melted you will have thought about what it is you wanted to buy and probably changed your mind.


What a great idea!!!!!!

Watch out for GE 22 % interest won't help u at all - just behonest with creditors and see what u can work out - most of the time they would rather have some money than lose most of it if u go bankrupt!!!!

[Odessa]

I would not recommend Fox Symes. All they do is negotiate smaller repayments with all your creditors and charged you a fee for the privilege. You can do exactly the same thing yourself without paying the middleman, using the suggestions above.

You can do it! :thumbsup:

Creditors always prefer to negotiate payment than for the debt to go to collection, once the account has reached this stage the creditors sell the debt to a collection house for a fraction of what it's worth. They lose out!

[xkwzit]

Hi Ange
Looks like things are getting a bit better, good on you for being proactive and getting it squared away.:hugs:

But I was definately cut up your CC (I'm not sure that freezing will work for you). If you are defaulting on loan payments, you simply can't afford credit, until you clear that personal loan.

Cheers

[brooke]

:hugs: :hugs:
I feel for you sweet I really do...
It sucks when things are bad.... sometimes it seems like things couldnt get any better but they will.... this isnt the end!
Im not going to tell you to do things you already know you need to do...
my fingers are crossed for you!

[yummmmy_mummy]

oh i wish i could make it better:crying:
i know exaactlly how u feel we have debts everywhere and nothing to show for it especially ours biggest which is our car loan its over $13000 the car has long since been repoed and was resold for a $1000 as it had been in an accident and we couldnt afford to get it fixed so were also being chased for insurence and we cant get our current **** box inssured as it will cost to much we almost couldnt get our electricity conected in our new house as my dh had an unpayed bill from years ago. if we dont get the consolidation loan were trying for we will have to declare bank ruptcy which weve been trying to avoid. i know how much it can get u down but try not to worry to much as long as theres a roof over ur head and food for the kids its not over.

[Ange&Seth]

oh yummy mummy - that's terrible. Do you mind if I ask which company you're going through for your consolidation loan? I hope everything works out for you guys :fingerscrossed: for both of us

[Fairyfloss]

yummy mummy it is a hard position to be in, my thoughs are with you, hang in there:hugs:

[CJJHRA]

Yummy mummy, I really hope you dont have to declare bankruptsy at all, because if you and your parnter both have to, you wont have a very good time trying to get into a rental, because legally you are not allowed to sign a contract, which is what a lease agreement is.

Years ago we went to a financial councellor and she suggested bankruptsy (over a measly (14000) and we thought, yeah! anything to stop the damn collection acency rining at least once aweek

If only we knew then, how hard it was to find a rental... ok, we couldnt get one, we applied for like 6 houses, turned down on every single one, until one agent finally told us why... (she was only new, and she said she could have got into trouble if anyone found out she told us) Anyway, we had to go live with my parents, as there was no other option at all! (but we have NEVER told my dad the real reason, he would go bonkers!! and I would never hear the end of it, even that was years ago now, and we have been out of it almost 5 years now)

[maybe1more]

Its so hard sometimes, i bet you wish you had a magic wand!!!
When i meant my df (dp then) he had a credit card of $20,000.00 and it was all from gambeling:eek: We had money invested for our house that we had to used to pay of his debt as we couldnt apply for a house because of it:mad: So 3 years of saving down the drain. I has put us so far behind, that i dispice credit card, i do realise how easy they are to "buy now pay later" But they are such a trap. Now we are stuck living with the brother in law to try and save money to do it all again, its just sooo hard.
I really hope you ahead and things work out, also i does sound like the ladies at your work "ganged "up on you. Sorry to hear you had to go thru that:hugs:

[Sabby]

Ange&Seth - I don't recommend going through Fox Symes because what would happen is they would put you on a Part 9 agreement where they will proposed to have all your unsecured creditors to pay a certain cents in the dollar of what you owe them. Your secured creditors (eg house/car loans) would not be pleased with getting a part 9 proposal as it gives them alarm bells that you are in serious financial hardship. Part 9 is also a form of bankruptcy but not really as you are still going to pay your creditors, so example you owe GE $1000, Fox symes will put a proposal to only pay 75%, however what people don't know that you pay Fox Symes a administration fee and actually equates the other 25% so technically you are actually paying 100% of the debt still. Fox symes is not a bank or a finance company that consolidating your loan. They are simple a company that will administer all your loans and you pay them and they will pay all your creditors on your behalf on a quarterly basis...
I would only recommend going to Fox Symes as a last resort.. because having a mortgage it doesn't look good that you are on a Part9 agreement.
Best that you get that loan from your DP's parents to pay the arrears.

Best that you always make sure your secured accounts such as house and car loans are always paid on time, never on arrears to avoid losing them. And obviously your utilities bill and food. The unsecured creditors you can apply for the hardship as you already are doing...

Hope everything works out well for you and your family. Please cut up the credit card at the moment until you are really get out of hardship.. Guess need to make some sacrificies at this times...

[Ange&Seth]

K guys, here's the update.

FoxSymes called today, went through everything and her advice was 1) declare bankruptcy or 2) struggle through the way we are and I get a job. Once I am earning a wage apparently we won't have any trouble getting a colsolidation loan from the bank etc. So today, have scoured the paper and found 3 jobs which I may be able to do. One of them is even part time which means I still get 4 full days a week with Seth!!

Applications for the jobs close next week so hopefully I'll hear something within a fornight. :fingerscrossed: for me!

I'm going to talk to DP tonight and see what he thinks about asking his parents for a small loan. Oh, and the bugger of it all is that coz I've been looking for jobs and on the phone today, didn't realise the time and bub's just gone down for a nap so I don't reckon I'll be able to get to the bank to fax the hardship forms until tomorrow now. Hopefully DP will get home before 4 so I can race down there and do it.

Again, thanks for all your help guys. You don't realise how much it's appreciated, truly :yes:

[yummmmy_mummy]

were teting to get a consolidation loan through our bank as the loan we already have with them has never been behind and weve been paying it off for 2 years now and we pay extra when we can so heres hoping:fingerscrossed: im trrying to get a job at kfc but i dont think ill get it coz sometimes i wont be able to work as dh goes away for work alot and i dont have anyone to look after dd at night but im gonna try anyway and hope they dont mind to much and that i can get her into family day care:fingerscrossed:

i hate money

what sucks most is that i want to be a nurse but we cant afford for me to go to uni

[Ben Paris]

Look I actually work at a Debt Agreement administrator.

Bankruptcy and Debt Agreements isn't something that's talked a lot about.

Bankruptcy isn't AIDS it isn't permanent unlike what alot of people think or say. It only lasts for three years and is on your credit history for 7 years.

No one is going to sell your furniture. They probably won't sell your car unless your driving a new Mercedes without a loan on it.

After 7 years if you have a good deposit (20%) most banks will provide a mortgage. If you're worried about not being able to get another credit card you're a lost cause anyway.

Unlike what other people have said here the biggest benefit of a debt agreements is that it's legally binding, your creditors can't demand more money if you get a pay rise, etc.

Our average client pays back 75% of what's owed over 4 years, interest free. Yes it's on your credit history but you got 25% of the money back.

There are Debt Agreement administrators who provide a money back guarentee so if your agreement isn't approved you don't get stuck with a fee.

[Butterfly Mummy]

Please ring your local council or someone who can put you in touch with a financial councellor, They will ring the companies on your behalf and arrange smaller payments and most times with little or no interest.

You can apply for hardship on loans and CC but you are better doing through a financial councellor as they will get a better deal for you.

[moozle]

:laughing: look at the date of this thread... it was all the way back in April 2006! I think the OP has well and truely moved on from this now!

[xkwzit]

As this thread was started in 2006, I think that the OP prod has dealt with the issue. I'll close this thread now to prevent any further confusion. Thanks to everyone who has posted to assist the OP.

Cheers