Thank you, Monty. The first thing I'm going to do is take the advice at the credit advisor website and order both our credit reports - who knows, the way we've been paying everyone for years, though often late, perhaps we look better on paper than we think since as you say, they make money off of anything so long term from the interest. I am glad you advised that debt settlement is not necessarily a good thing. There are so many ads, particularly US ads, that make it sound too good to be true; I think you know what I mean 'clear up your debts in 3 months and get great credit right away' - if it sounds too good to be true it probably is, right.

I appreciate your advice; I admit to total ignorance in the financial sector! But this seems like a very good place to start. Funny to think I spent ten years as a court reporter and it never occurred to me that people collecting money from you might actually break laws to do it - so naive. Personally, I just want to survive it with my dignity intact. I hate to sound biased, but I am an Atlantic Canadian and think that the information and advice you and yours are providing through your websites is desparately needed in this region. There are so many hard working people who are honestly trying to pay their debtors who have no idea of their rights - I know I'm not the first one who did without groceries to pay off someone who called and bullied you into giving them all you had TODAY or else...I always assumed they had to be this way because there would be many people who just avoid paying their debts, are irresponsible, have gambling problems or goodness knows whatever reasons they won't pay their bills. But I think now it is more the case that it has become big business to squeeze people like they are members of the mob or something, to prove that they are the best collection agency/individuals to hire because they get results. I would like to say you wouldn't believe the things I have been threatened with over the phone or in letters, but I can see now you wouldn't be surprised at all. I will continue with my own pursuit now at a more intelligent, better educated approach to my financial situation, and will certainly feel more than comfortable hiring any services I might need in future by asking you for references to organizations, individuals who specialize in such matters. Funny, I must have sat in on hundreds of bankruptcy hearings as a court reporter and used to think wow, this guy has debts one hundred times larger than mine, and he seems to be walking away with a promise of a 20 dollar payment! It didn't seem fair. Now it is all becoming so much more clear, and your points are made so simple and to the point as to leave no room for misunderstandings - just good, sound, solid advice. Thanks again for your websites relating to credit/money advice.

Warmest Regards,
Sue

That's interesting....
Yes.. yours are good observations. Credit card companies make money from you paying and paying for the long term. They're hoping that people get hooked on credit and pay interest for the rest of their lives.

You CAN negotiate your debts down to a lower level. It's going to hurt your credit badly. The upside is that you won't be paying forever. Your credit score will take a dive for six or more years.

Re-Negotiating your debts is by far better than declaring bankruptcy.

I would advise to make a financial plan if possible. Ie.. this is what we need to do to be out of debt by such and such date. If you're paying 18%-20% interest on credit cards on, mathematically you can calculate how long it will take you to pay your debts off with your current payment structure.

If your credit is bad already, it might be good to take the hit and try to settle your debts with your creditors.

If you need help with that, I can recommend somebody who does debt settlement and negotiation.

The best thing is to make a plan, and figure out based on your current financial situation how long it's going to take to pay your debts based on your current situation. That will at least give you an idea of what you're up against.

Hope that helps.

Monty Loree

Hi. I'll try to make a long story short. When I met my husband he had already had a tough time with his business and had lost all hope of credit. We had to put just about everything in my name, like phone, utilities, and any small loans (at the time I had a very good credit history). I developed health problems shortly after our daughter was born and haven't worked since (9 years ago). In the meantime my husband has been struggling to pay off our debts and keep us afloat. All this time I've been beating off all kinds of people attempting to collect when we are late or have missed a few months, and keep explaining that we're doing our best and try to tell them my situation so that they will understand we are not trying to avoid paying them. By now it seems that for nine years we've been paying people when we can, and not many of the debts have disappeared...we just never can keep up and we are very careful with the money we do have, only spending it on necessities and trying not to lose our house (we already had to make an arrangement with Rev. Canada concerning our being behind in property taxes).

I guess my question is, is there anything else I could possibly do? I keep hearing about people who settled debts for much less than the original amount, how they developed a good credit rating after going through hard times and having terrible credit ratings. It's a lot like being a hamster on a wheel - but I'm beginning to think that by being honest people trying to pay off debts in good faith, that maybe we haven't done ourselves any favours. I wonder too, where I have zero income for years now, why my my husband and I are bothering to pay these debts that are in my name. Well, because we bought something, so the debt's ours, that's why.

So, I can't afford a lawyer or anything and just keep talking away and begging for people to be patient, that I've got to buy clothes for my nine year old, we're waiting for cheques from other people too. I have also been brutally abused by someone trying to collect - it was unbelievable, and I didn't know he was doing anything illegal until I came to this site and the credit repair site.

Oh dear, I don't think I've been very clear - but I hope there is a question in there somewhere. Sorry, I get nervous just thinking about my financial problems. The thing is, my husband finally landed a pretty great job and teaches part time as well, so we are more stable now than we ever were when we were self-employed, but because we got so behind, we're no better off!!! ARGGHHHH!!! Any advice would be greatly appreciated. I live in Saint John NB if that makes a difference.

Thank you