HELP!!! Served with papers!!!

Hi. We were just served with papers from the courts from a debt we owe for American Express. They want $5000 in 20 days. If only I had it to pay! I am freaking out. SHould I try to call and arrange a payment plan?!?! HELP!!!

AE is the card where you have to pay off the balance at the end of each month. Is this correct? You can call them to arrange a payment plan if they will work with
you, but you must make those payments. Your argument is that the court will delegate a payment plan based on what you can pay. The court will probably take a very hard look at what they think you can pay, not your opinion.

Served with papers! Me too. Yes, call them. I called and made payment arrangements. If I would have let it go they could’ve garnished my wages for 30% of my take home each month. Basically, they settled for monthly payments.

1. Make arrangements and ask for it IN WRITING. That will take about a week.
2. Send them a letter in response of how the payments are arranged so everyone is “on the same page.”
3. Every month when I send the payment I use a money order. I record the money order number, date sent, etc. Then I print out a “receipt”. Basically a updated printout of all the payments I’ve made. Dates, Money order number, etc.

Thanks!! Well we called and offered a payment arrangement. They said they would review it and get back to us within a week. They said not to worry about the court thing since we’ve been in contact with them. I guess its mostly when people ignore that warning that they garnish?? thanks for the help!

New to blog and need help!

hey everyone. i’m so relieved i found this blog. YAY! I’m I’m 27. I have a lot of random debt… I have a lot of defaulted bills and bank accounts and medical bills over the years from being young and stupid. I owe some friends money, and I owe my college (not loans, but my actual institution) around three grand. I think altogether I probably owe in the neighborhood of around $8,000 – $10,000 or so. Fortunately I have no credit card or actual student loan debt. I really want to clean it all up so I can move on with my life. The problem is I can’t find it. I threw all those notices away when I got them, in hopes of avoiding the situation, and it doesn’t show up specifically on my credit report. Do I use one of those debt consolidation services and if so, which one? I’ve heard such horror stories I don’t know who to trust. I’d really appreciate some advice on this; thanks so much.

How in earth did your university allow you to owe them money? I went to a place (both university and high school) that was Jesuit and they kicked you out on your rear if you were late with tuition. They never would have given me a loan.

they did kick me out on my rear. i never finished at that school.

Clarification needed please

Hello all, I have been a member of the blog for some time, but have not been in a situation where I could be on any help to those who need. I now need some help.

I have about $13,000 in unsecured debt. I am getting ready to receive some financial assistance from my family, but am concerned with paying my debts. I heard that once an agency charges off your account, they have claimed it as a loss and therefore receive some tax benefits.

My question is when I am ready to pay off the debts, whom should I be contacting, the initial creditor or the collection agency?

Also, should I be contact the credit bureau’s to let them know that I have paid my outstanding debts? Any help anyone could give would be greatly appreciated. Thanks.

Any suggestions about how to decide what’s real?

Any suggestions about how to decide what’s real and what’s not? I know for sure that this instant approval payday loans website is a real deal. Used them a few times, with great satisfaction.

My wife sells Mary Kay and it IS a legitimate business but it takes a lot of effort to make money which she is just starting to do. One of the benefits of a home-based inventory business is you do get to write off some expenses for your home. But it is not for everybody. I tried Amway many years ago and I was not very successful at it.

But we’ve started so many other “home business” ventures that flopped and I hate to put any money into a start up cost. I want something that someone else will just pay me to do – like my teaching piano or something else. I’ll check out this site, too.

Those boards are full of many lurking to recruit people in those progressive marketing schemes like tupperware, mary kay and avon. There are tons of smaller ones that sell everything from kids cloths to scrap-booking supplies.

Don’t go there. People are very pushy because that is how they make money getting others to “sign up”. Very few people make any money doing this. Besides it is not really working at home because most require you to do “parties” and other things.

Don’t post any contact information and be very cautious who you give it too. These people are always “working their business” and make money convincing people like you to give up some money and time to help them make more They may have a product to sell but they really don’t make money unless they recruit and get thier recruits to sell for them. On top of that your friends and family will flee at the word you are now using them to further thier business.

I have not heard of any users being charged either way.

I have not heard of any users being charged either way. Merchants are sometimes charged based on whether you use debit or cc function.

The big difference is when you use debit, $$ comes out right away; when you use cc it may be 1-2 days before the $$ comes out. To my knowledge, all the guarantees you have on real cc’s do not apply to what Clark Howard calls fake credit cards (VISA/Debit, etc.). However, you are still protected against fraud, either way.

All I can tell ya, is my bank doesn’t charge me to use the debit or credit version. Some banks do.

my guess…. is that you may not be able to have it processed as a debit card at online merchants… or at least those not accepting debit cards. In the situation where a merchant doesn’t take debit cards having a credit card that is directly attached to your bank account (ie your debit card with the visa/mc logo) gives you the ability to purchase from them using your bank account (without having to use a regular “revolving” credit card).

I am not sure if this at all answers any part of your question. :) Someone was saying they saw a student paying for a cup of coffee with a cc. I reasoned at that point it could have been a debit card with a logo on it. Downey savings Does charge .25¢ per ATM in out of network ATM’s. If I used it as a credit card, it come out of the same account, but no fee for my side if it. 5 ATM trannies a day and the bank charging .25¢ that’s a buck twenty five from me. so I do mainly use the ‘credit’ side.

IMO, using the credit side and no charges beats having to find an ATM Downey wouldn’t charge for.

Are there any Dave Ramsey followers on here?

Are there any Dave Ramsey followers on here? If so where are you at in your plan, what are your goals, what are you doing to deal with your debt? I’m trying to get back on the Dave Ramsey “drink the kool-aid and shave my head” mentality. I’m hoping I have a few folks with me on this.

I’m currently setting up a real budget, hiding my debit card from myself and going to use the envelopes this time.

My goals are to pay off a nasty back child support bill that DH2B has hanging over him. Sell my truck that I’m upside down in. And pay off my two credit cards. Once we are out of consumer debt we are going to start going back to school using grants and paying cash.

I bought two of his books, as well as the workbooks. I lent one book to a colleague. Since reading one of the book I moved to a less expensive apartment, sold some expensive artwork, cutup most of the credit cards except one, started shopping for groceries with debit cards instead of credit cards. I started the debt snowball, paying those with smallest balance first. The target for completing paying those the credit cards is about May of next year. Sometimes I slip and use a credit card, for training seminars. I have half of the emergency fund of $1000 saved.

We have made a budget, using envelopes, no credit cards all pai doff and closed accounts, debit card only for emergencies. So far so good. We have paid off 2 cars. Now we have a house and my student loan left. We are still working on house and trying to save money for a car in case of of ours dies. So feel free to share thoughts, problems or tips abouit his program.

Maybe Dave Ramsey needs to set up on or near college campuses and give some common sense advice. Hard for me to believe these Co’s are trying real hard to “educate” students about the responsible use of credit. After all, they are making big bucks off those who make mistakes with credit.

This is a good article and several links to read more on this subject. At the college I teach, I saw a student buying a cup of coffee with a credit card! Remember, most debit cards have cc logos on them. One of mine takes right out of my checking account. If I use it as a cc, no fee. If I use it as an ATM, .25¢ ‘transaction fee’. If that person isn’t careful, it could be a very expensive cup of coffee!

I’ve listened to Dave off and on for a couple years now but haven’t started following the plan yet but by golly its time! I think I’m about to sell the SUV I bought 6 months ago and get a cheaper kid hauler. I’ve got a realistic budget together but implementing it is scary. In order to pay every bill, I have to juggle them.

What are some of the most hard core things you did to get things paid off? Besides my truck which is upside down, I don’t have anything of value to sell. I’m thinking of taking a second job but when would I see my kiddos and would I be able to find someone to watch them in the evenings? Sigh… Just looking for some ideas of how to get it rolling.

ATM vs Credit Card

Maybe you all have discussed this before, but if you don’t mind, could you share some light on this again? Is it that some banks are charging the account holders for using the debit card and not the credit card, and charging the merchants for the customer’s use of the credit card, but not of the debit card?

This weekend, when I did my groceries, I asked the manager of the store regarding charges when using a debit card as either debit or credit card. She said that when customers use the debit card, they are urged to use it as debit because if they use it as a credit card, the store gets charged for the transaction. I asked her if we, the customer, are being charged at our end for using the debit card. The manager, for her personal banking, uses Wells Fargo and BofA. I use BofA. She says that she does not see any charges in her account for using a debit card. I don’t see any charges in my account for using a debit card either.

Why is this being brought up in the list? Are there some of you that are actually charged by your banks for using the debit card? If so I see why one would use the credit card option. If my bank is not charging me for using the debit card, I’m not going to ask them to pass the transaction as a credit card purchase, to make the vendor be charged. Does this change depending on the vendor, as for example, will BofA not charge me if I use the debit card at the grocery store, but might charge me if I use it to pay something on Amazon, or at a Macy’s store?

ATMI used to bank with BOA and never had any charges however I used my debit card. I am now banking with USAA and it is free also.

The only difference is my debit card with them has rewards and I only get the rewards if I choose credit. It takes forever to get enough points to even get those rewards so I don’t really concern myself with it that much.

I think it all depends on the bank, but as far as I know most banks do charge you for using debit as a ‘point of service’ transaction, when you have the ability to use your card as a credit card.

I think the banks reasoning is you are using it almost the same way as a out of network ATM machine; but it is all just a stupid money making scam if you ask me=) No matter what they make .30 per transaction, either from me or from the store!!!!

Dave Anyone?

Hi, We read Ramsey’s *Financial Peace* years and years ago… well it was around 1999. We used the snowball method of debt reduction and the envelope system of money management. We worked hard on our way to financial freedom and were debt free with the exception of car payments and housing since 2008 and then car payments were paid off in 2012. In 2013, we were transfered and used the equity from our old home to purchase a very modest home… No mortgage. We enjoyed total financial freedom for 2 years. I must say, we recently went back into debt to purchase a minivan. We opted to finance as the rate we got on it was lower than we were making on our Money Market.

Not sure if that was the right move, but we have yet to regret it. We have been truly blessed and hope that we can offer support and encouragement to others who find they could relieve stress in their lives if they were to get control of their finances. And to think it all started with *Financial Peace*.

That sounds like a dream existence=) Glad to hear you were able to do it. I am waiting for the books at the library; I cannot afford to attend the classes or buy the materials at this time so…… Anyhow, I like having this blog; when I do get the books I will ask any questions of you guys first.

Thank you to those who had replied to my initial email about “Dave.” Like you, I am waiting for my interlibrary loan book to arrive so that I can read about this method of paying off debt. Thanks!

Еalking to someone at your bank about investments

I’ve noticed that a couple of people mentioned talking to someone at your bank about investments and I’d urge you strongly to avoid your bank for any kind of investing information. Banks are notorious for having expensive products which under perform the market and are best avoided for everything but banking.

If you join Upromise (and why wouldn’t you, it’s free money for college) you’ll be able to connect it to a 529 plan in your state or one through a good provider like Vanguard. This would be a better option than a bank. And if you decide to not join upromise, almost every major brokerage will offer a 529 account.

Also, to those who don’t have kids but may some day or for those who have student loans you’re paying off, Upromise money can be used towards existing loans, it can be saved and transferred to a child later or, it can be distributed quarterly as cash.

My daughters are 1 week, 18 months, and 2-10 year olds. For many birthdays and Christmas we have bought items at dollar general. They know we do not have much to spare. We are figuring about $400 for Christmas $300 for our own family and $100 for niece/nephews total.

My older 2 are homeschooled and when they are juniors/seniors they will be able to take some free college classes. One daughter is interested in nursing, the other in respiratory therapy. Both programs are available at our local community colleges (not that they won’t change their minds). Each credit is $100. 10 years ago it was $90 so I do not expect it to go up too much. My husband and I were responsible for paying our own way or finding a way. In my mind I think we will pay for 2 years community college while they stay at home/work PT (while they will pay for books for those first 2 years.) The last 2 years they will be responsible for tuition, we will pay for housing and books.

We are just trying to dig ourselves out of debt and enjoy our family and let go of worries assosiated with money. We are taking small steps to pay off the smallest debt off first, while trying to start investing for the future, even if it is a small amount.

  • We owe $150,000 student loans
  • $80,000 home loan
  • $17,000 credit cards
  • $7,000 car loan
  • $2,000 misc.

But starting with your bank gives you some info about what sort of things are available. There’s also the public library. For college funds you could also try asking people at the schools. My bank offers good options and the cost isn’t all that different from what I’d pay other places, sometimes cheaper and sometimes not. Also, one benefit of using your own bank is that everything is right there in one place. With my Christmas Club every week money is automatically switched from my checking account into it. I get a better interest rate and don’t have to remember to make that deposit.

Read more about Christmas Club on

I won’t do it simply on principle

I agree as tempting as it to take money out of my 2 yr old daughters savings account ($2400 already accrued) I won’t do it simply on principle that it is hers. I have even thought of ways to pay it back in the future but I will not ask my children to pay for my mistakes in any other way so I do not feel that it is okay to take money from their future. Also you can diversify that money into a mutual fund and it will grow. I am 26 and the $3000 my parents put in when I was born is now worth about $25,000 and that was with no changes made to the account. If you actually watch the market and diversify and sell when things go south (my mutual fund was worth almost $50000 when the 1990’s tech market fell through the floor). I would stick to your plan and also create a plan for them. If they are old enough then have them take part in seeing where their money can go. Some banks offer “financial advice for kids”. Wells Fargo does but I would go with a credit union.

My 2 cents: I would not use those children’s bonds. You will forever promise that you will pay it back, but something will always come up and prevent you from paying the kids back. I think that is just human nature! And as us parents are already aware, the time flies FAST and you will then be unprepared for higher education.
I would stick to your original plan; yes things will be tight, but eventually you will have everything caught up and be able to breathe a little.

You didn’t say how old your kids are. Mine are teens (14, 15, & 18!). They mostly understand that I don’t have a lot of money to spend on presents for birthdays or Christmas. As for Christmas my bank offers a Christmas Club where I put in $10 a week for 50 weeks plus interest. When it comes to buying presents I pick up a lot of things from yard sales, auctions, and thrift stores that only cost a few dollars. I also check out the big sales Thanksgiving day and weekend, that’s where i get bigger items like a portable cd-player or a karaoke machine. I only buy things on sale and that I know absolutely my kids will enjoy. I also knit so they get things like scarves and small afghans, I’m not good at making hats or mittens yet. Some of their favorite gifts have been previously loved items.

I agree that if you do cash in the bonds look into special accounts that parents and others can put money into for college expenses. Check at your bank or credit union to see if they have info. Also try a public library, the librarians are really helpful. You should be able to set up payment arrangements for medical bills, stretch out the payments since they don’t have much if any interest.

Learn more on how saving bonds work from this video:

Using those savings bonds would benefit you now but what if something happens in the future and you can’t afford to help pay for college? I’ve got one starting a local college in a couple of weeks and two more coming up. Right now there’s no way I can do more than provide transportation. We’re low income so she qualifies for state grants (which don’t have to be paid back) and can get student loans to cover the rest.

Sometimes asking for help gets you people you tell you what they think you should do. Sometimes it gets you lots of ideas that you may not have thought about before. Good luck no matter what you decide to do.