Well, it I understand you, it sounds like the student loans are under control, so let's look at the rest ... if I understand aside form the student loan, you have $15,000 of debt (probably incurring interest). So any small payments you might make will likely just tread water, rather than improve your situation.

My suggestion is to find a local non-profit credit counselling program, and ask to go on an Orderly Payment of Debt program. They in turn will contact your creditors and ask for interest to cease, and issue a reasonable sum to the creditors pro-rata.

Some creditors will pull your file from the agency if you are on credit counselling. Some collection agencies will accept your OPD proposal. There are no guarantees here, but from what you are explaining, it can't hurt to look at this.

Hope this helps. If you need any further advice, feel free to post or PM me.

Hi, I wasn't sure where to post this. I chose collection agencies because being contacted and threatened is what prompted me to come here I guess. I was hoping I could lay out a general picture of my situation and get some advice. Anything would be appreciated.

I currently live common-law with my spouse and our 2 children. I was a teenage pregnancy with no support system, so needless to say it has been a bumpy ride. As is stands right now I have roughly $50,000 in student loan debts and my husband has roughly $15,000. My student loans are in good standing (I am in the repayment assistance program, as I just entered repayement this year), but my husband defaulted on his a few years back when we were going through an enormous rough patch, and we haven't really been able to make up for the defaulted amount since then. Because of this he does not receive any gst or income tax returns, etc. In late 2006 we both defaulted on our credit cards as well (his was a $1000 limit and mine was a $1500 student credit card) due to extreme financial troubles. They were sent to collections and we have been contacted periodically over the phone through the years since then. It is not that we haven't struggled with attempting to pay them off (we have even attempted to take out a small loan at our bank recently in order to pay them), we just lack the financial means (we are barely subsiding as it is). I currently do not work in order to stay home with my 2 children (however, over the past year I have been attempting to find work unsuccessfully). My husband works in retail, fulltime, but as I said, barely makes enough for the 4 of us to live on.

Recently my account was sent to the Credit Bureau of Canada Collections and the woman I am dealing with (Anita) was very vicious on the initial call. She never strait out threatened me with legal action, but she danced around it as if to imply it will happen. She repeatedly references the "recommendation" she needs to give to her "client," on whether to pursue legal action, etc. She did not want to hear about my financial situation, stating "it is not her problem" during our last conversation, so I have started screening her calls since then. I can not afford to go to court so, even if it is simply a scare tactic it is really working. I am really feeling like I am beginning to drown here and I would appreciate some advice more than you can imagine.

Thank you.

Danhra