debt collectors.....help

**ColtAly** · 03-19-2010, 10:36 PM

I filed bankruptcy 6 years ago and am again struggling trying to clean up my finances. Am currently a single mom with two years left of nursing school. I am currently working around 30 hours on top of it. I got served today on a debt of 700.00 from an old credit card.....i could either wipe out my checking acct and pay it. Or i could enter a plea of guilty and find out what happens. to put it plainly theres bigger fish to fry with that money currently and i kind of have to say that i doubt with my income and that the fact that we qualify for just about every state program that they can't probably get me for to much. What do you think my plan of attack should be?

**Greebo** · 03-20-2010, 06:29 AM

Neither.

If you empty your checking account, you can't eat, unless you borrow more money, and borrowing money for you is an addiction.

With regard to this specific debt - call up the attorney listed on the suit. Tell him your situation - what your income is, what your fixed and variable expenses are, and make him an offer of a payment plan - I can't say how much to offer because I don't know your budget - I suspect you don't either - and that's the bigger issue you need to deal with.

Alternatively you could offer him, say, $450, if his client will take that as settled in full with no further liability. The GOOD news is - now you'll be dealing with an attorney, and usually attorneys have half a brain about these matters, unlike debt collectors.

But this one little lawsuit IS NOT your problem. Your problem is your addiction to debt and your money management skills - you don't have any. I say this because you've already had one bankruptcy - you CAN'T file it again, but then you went out and got into debt again - and again into debt you can't repay.

You need to quit this addiction and you need to quit cold turkey. You have GOT to stop trying to fill your short term needs with credit - you have GOT to get on a budget where you cover your four walls first - food, lights, shelter, transportation, basic clothing - and where you don't spend a PENNY unless you already know before you earn that penny where that penny is going to go. NO trying to fill the gaps with credit - that does NOT work, as you obviously know.

There are programs that can help you STOP using the debt - Debtors Anonymous is one, Dave Ramsey's program is another, and unless you stop borrowing money, no matter HOW much money you make - as a nurse or if you win the lottery, you are going to keep getting into these situations.

If you don't address the fundamental problem of your money management, you will just keep having crisis after crisis, like your prior BK, like your current lawsuit.