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Justice 
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 Topic: DO I HAVE TO PAY IT BACK
Posted: 01/December/2004 at 9:27pm |
Hello everyone
I went into debt by the age of 19 for the past year and a half i have been harassed by creditors. I had three credit cards that by that time i had cleaned out. Now my debt is about 4000 dollars. I have made a few payments here and there i go to university and i work about 15 hours a week. NOT ENOUGH TO PAY FOR LUNCH LET ALONE A DEBT! now i am not sure if i should pay back this debt because for one it has been passed on to an agency which i assume means the bank sold my account to this agency. Aswell i can not afford to pay it back and i already have bad credit! What will i gain out of paying back this debt! Do I have to PAY IT BACK?
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Islander
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Posted: 01/December/2004 at 9:46pm |
Ah. Here we go again.
You're twenty years old and you owe on a number of credit cards. You can't afford to go to University. It's as simple as that. If you want to go to university, here's what you ought to do:
Work full time for a year and pay off your debts. Then re-enroll at a school that will give you training or education in something that can be turned into an occupation that will pay enough to support the lifestyle you want.
If you choose to go to a university and get a degree, that'll take four years, then a couple of years to get established in your profession or line of work and by then, if you haven't screwed anything else up, your credit report will be clean again. Fresh start.
That year of working before you go back to post secondary will be the smartest thing you ever did. You'll go back to school way more mature than you are now and will therefore benefit more from the experience. And incidentally you'll fix a small problem that will become a huge problem if you just let the debts slide. They WILL collect and you are very easy to find and sue. You will be financial leper for the rest of your productive life unless you deal with this NOW.
That's the objective, practical advice that you didn't exactly ask for.
To answer your questions, YES, OF COURSE YOU HAVE TO PAY IT BACK! You were not mature enough to handle credit and got in over your head. S hit happens. Deal with it. University for you is a luxury that will have to wait.
What will you gain by paying your debts? Where do I start answering that? You will grow up. You will have done something responsible. You will have demonstrated that you have a minimal, baseline foundation of integrity. You will have lived up to your word and your obligations, albeit a little late and a little halfheartedly. The fact that you will stay out of court and will have repaired the damage you have already done to your credit is part of the equation and frankly, a less important consideration than your personal ethics in my view.
You owe the money. Pay it. Get an education. Move on.
Good luck!
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Alfred E Newman
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polyhymnia61
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Posted: 02/December/2004 at 12:52am |
I went back to school at the age of 24, Justice. It's never too late...Go to work, make money, pay debts, SAVE. The fewer student loans you have, the better.
Poly
PS You don't pay your debts, you'll just contribute to the stereotype of the irresponsible youth who deserves to be treated like crap by the system. That isn't you, right?
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momof2
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Posted: 02/December/2004 at 1:45am |
another reason for paying of your debts - when you took out those credit cards, you signed a legally binding agreement to REPAY them if you used them. you used them, so pay them.
some landlords run a credit check befor hey will rent you an apartment so you'd better be paying on those debts if you ever want to move. then there's the creditor's ability to get a judgement and sue you, garnish your wages, etc...
so yes pay the stupid credit cards off, and i strongly recommend you cut them up and burn them.
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professionals built the titanic but amateurs built the ark...
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Islander
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Posted: 02/December/2004 at 1:53am |
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Don't worry, Mom. They're in collections. They're burnt.
Can this be another test of the ethics of the members of this forum? |
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What? Me, worry?
Alfred E Newman
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polyhymnia61
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Posted: 02/December/2004 at 2:01am |
I wondered, actually Islander...Three credit cards by the age of 19? Wow...
I usually give the benefit of the doubt until the followup posting though...
Poly
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momof2
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Posted: 02/December/2004 at 2:03am |
could be, islander
or it could actually be some irresponsible kid who needs advice.
either way, the members of this forum have always given excellent advice and offered support and ideas to those in need. our morals are good, our ethical standards rigid, our character decent and our tolerance for irresponsibilty slim. but we give advice, and people can take it or leave it. i guess it depends if we are saying what they want to hear.
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momof2
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Posted: 02/December/2004 at 2:05am |
poly
witht he whole optional grade 13 thing, students are graduating from high school at 18. the halls of the colleges and universities are lined with those parasites that offer credit cards with no credit checks for first year students, so its not that far fetched.
totally irresponsible, but possible.
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administrator
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Posted: 02/December/2004 at 4:08am |
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Just walk into any college nowadays and there is a booth everyday in the first three weeks asking students to get a credit card so they can establish their credit.
When I went to school, there was no way in hehll that I could get a card as a student. Not these days.
I even overheard one salesrep say "dont worry you dont have to use it. Just applying will help you establish your credit rating" I tore a strip off her...
Anyways, 19 and three credit cards is entirely possible and likely these days...
But there are no courses on credit management unless you have wise parents or sibling...
Should you pay back your debts? Yes!
Mark
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Pigeon
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Posted: 02/December/2004 at 4:17am |
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When I went to university I applied and got 6 different cards all in the name of "building good credit". Justice, gotta disagree with Mom on one small point. Pay off your cards before going to school, and then cancel all of them except one. When I got into CSL trouble the first thing I did was cancel my cards. Unfortunately, now that the majority of my CSL woes are behind me.....the banks won't issue me a credit card. Keep one card around and use it to buy groceries. Pay off the balance every month. This keeps the card active which may come in handy if your university career does not go as planned.
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momof2
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Posted: 02/December/2004 at 4:35am |
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actually pigeon i do agree with you. keeping that one 'emergency' card is always a wise move. i had an american express card when i was in school and i loved it because i HAD to pay off the balance in full at the end of the month. a great way to learn responsibility. i said cut them up and burn them, i never said cancel them. but in this particular case, until a little responsibility is learned, im not sure i would suggest it to justice.
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hunter
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Posted: 02/December/2004 at 6:08am |
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I find that post a little immature for my liking. Mind you at that age, it still occurs. And please change your post name. JUSTICE!!! Give me a break.
You maxxed out three credit cards, and you are asking if you have to pay it back.
UH DUH !!!
Yes, and you ask what you will gain if you pay it back.
Well for one, you may eventually grow up and learn from your mistake. After all, that is what the learning process is all about.
Not being able to pay your debt or student loan is one thing, but it is entirely a different ball game when you are not wanting to grow up and face the facts that you signed a legal agreement on a credit card, you are now legally obligated to pay that debt back.
Just wait until the fun starts,and the collectors start calling you at your house, your friends and family's residence and worse yet the university or your job.
Trust me, I have been there, and it will happen.It is not a nice feeling at all being harassed and threatened by collectors.
If you have even a small amount to give them, by all means, do the write thing and at least make the effort to pay your debts.
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Pigeon
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Posted: 02/December/2004 at 6:43am |
my bad mom .
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momof2
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Posted: 02/December/2004 at 7:57am |
pigeon
dont sweat it
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janet604
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Posted: 02/December/2004 at 10:11am |
 Islander wrote:
You can't afford to go to University. It's as simple as that. |
It's so sad but true. At 19, you are a fair bit younger than me. But, I bet you grew up with the same ideals: Parents telling you than if you your degree, life will reward you. Well, that may have been true at some point. But, now it is hogwash.
I did my years of undergrad, applied to my chosen "professional" post-graduate program many times, and never made it.
I should have been a hairdresser. I would have loved doing that, could have made a decent living, been debt free, flexible, and very content.
Instead, I reached "too high" (what a stupid concept....I thought I was so special with all of my ivory tower abstract thinking).
The truth is, for those of us with parents unwilling or unable to support us, the only good way to an "education" is to work.....save..work.......take night classes, etc.
An academic education should be thought of as "travel" or taking time of to pray or meditate or whatever. It is not mandatory, it is not likely to be an investment, it is a fun life enriching experience that should not be financed.
At 20, self supporting, with debt rising..........I would encourage to to really asses your situation. Are you lined up to be one of the "elite" who get into law, pharmacy, or whatever profession is likely to pay well enough the first years after school to pay your debt? Perhaps your are one of these few. Most are not.
The moral of my rant: Work 30-40 hours a week and take your classes at night. Or, make sure you are one of the "elite". Or (as someone already suggested), get some skills training.
Best of luck,
Janet (bearer of bad news)
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Justice
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Posted: 02/December/2004 at 12:26pm |
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Thanks for all your advice! I guess a part of me really wanted a way
out of this but the truth is obvious. I will have to work harder and
pay off my debt. I guess i could afford to pay atleast a hundred
dollars a month. My only concern now is if i start paying them off
monthly will the interest still grow on each of them? or will the
interest stop!
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momof2
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Posted: 02/December/2004 at 1:00pm |
depends on the card and the rate of interest. if you are serious about paying your debts off there are options. try negotiating with your original lenders and see if you can make a smaller monthly payment. maybe inquire about transferring your balances to one card (ie a visa or mc) and make one payment. visa adn mc also ffr a substantilly lower rate of interest than a department store card. if you have a good relationship with your bank they may be able to offer you some help despite your credit rating - approach a bank with all your outstanding bills and see if they will give you a consolidation loan - but you will likely need a cosignor.
perhaps johnny can offer some advice on how to proceed here ?
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Islander
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Posted: 02/December/2004 at 2:00pm |
All that's good advice, Mom, but the bills are in collections. R9s. No way he'll get consolodation loan for a lower rate.
He ought to bite the bullet and go cap in hand to Mom and Dad and ask them to borrow for him if they don't have the cash. Work 40 -48 hours instead of 15 per week and clear this 4K up. Then start socking money into terms, RRSPs or other saving vehicles and consider his future plans. After a year or so, the bills will be paid off and he might be in a position to go to school.
Then a few years of education, training, apprenticeship or whatever and then a few more years getting established in his working life. By then the Bureau will have sorted itself out and he can start fresh.
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What? Me, worry?
Alfred E Newman
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momof2
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Posted: 02/December/2004 at 4:11pm |
god i need some coffee or something. you think i'd remember that justice is already dealing with collectors. maybe i need a vacation from the foot of snow in my driveway.
i think you have the perfcet solution, islander. debts repaid, plan for future, go to school in a few and by then the credit reports will be squeaky clean.
well, justice, how does that sound ? doable ??
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polyhymnia61
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Posted: 03/December/2004 at 1:56am |
Now, would someone talk to my kid?
You'd think that after what I've gone through, he wouldn't even consider university. After all, who's going to pay for it? But now he's dreaming of Montreal...taking MUSIC of all things...and wants to go next September.
I mean, it's better than dreaming of starting a metal band, taking lots of drugs and partying, but the end result could be the same: poverty, bad health and bitterness...
And if you give him the straight facts, his response is "You are trying to discourage me from my dreams!!!"
Doesn't help that he just turned 18, and lives with his grandparents in the most boring city in Canada (if you're not into the great outdoors) and wants to move so badly he can taste it...But there has to be a way to bring him back down to earth before he's a freaking member of this forum.
Thanks for letting me rant...sigh...
Poly
(who should be used to people ignoring her advice by now...)
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DO I HAVE TO PAY IT BACK