Got myself in trouble!

**Paquita** · 05-27-2006, 11:08 AM

I need some advice. I have a Sears card that DH and I bought a washer and dryers on. I paid some on it but then we had some financial problems and I didn't pay anything for a couple of months. (I know thats bad, but I did it anyway.) Part of the problem is DH would spend money because he thought we had it. Well we did have it in the checking account but it was for paying bills. He just goes to the ATM and looks at the balance and gets happy. I tried to tell him that you can not go by that figure! Anyway now sears (citibank) has called and wants the whole balance paid now. They called this morning and said I had to pay by check over the phone right then. I told them I don't have that much in my account, they said it would not go through until Wed. or Thursday. I was so upset I just hung up on them. Bad Idea but I was too stressed to deal with it. Now what should I do? The balance is $500.23, I could pay some but not all. Plus I do not like to give my account info over the phone like that, I want to pay in person. One good thing, DH now understands that we need to be frugal.

Ann

**motivated** · 05-27-2006, 11:17 AM

Can you pay enough to bring the regular payments up to date? If you can I would just pay that and tell them they will get the next payment on the due dates in future. It costs them money to take any further action on a small debt so just stick firmly to that. You could explain what caused the problem and say that you both realise what caused it so it will not happen again.

**canadian gardener** · 05-27-2006, 11:23 AM

Ann keep your dh out of the bill paying money however you have to. In future he is unlikely to change much, and that will save trouble. Whatever is earmarked for bills, you need to keep in a separate chequing account, and only leave what you don't mind losing where your dh can see it in the ATM.

I suggest you go to an allowance system where you two each get 10$ or something per payday for coffees and magazines and such. Once it's gone it's gone.

In order to figure that out, you need to sit down and figure what you owe, what is coming in, and what your fixed expenses are, plus groceries, gasoline and clothing which aren't as fixed, they can flex, but you do need to be fed, have transportation and be clothed as well as a roof over your head.

In other words, the bare bones budget.

It is usually a bit scary the first time round. You'll see something that a lot of people see, which is that credit cards have actually been making up the difference between what you are spending and what you actually are earning.

That is OK, facing it head on is the first step.

Next you need to squish the food, clothing, gasoline, and utilities a bit to create extra money to pay off debt.

once the debt is paid off, there will be a comfortable margin, you will be putting that margin into an emergency fund, so that if an appliance breaks down, furnace needs repair, car needs tires you have that money for those "unexpected" but really fairly predictable expenses.

It's going to be ok, you are doing the right thing by facing it, and I'm sending you a big hug, and some virtual Kleenex.

Don't feel silly, we've all been there. Sears cards have been my downfall in the past, in JUST the same way-- something necessary that we didn't have the funds for at the time.

Big hugs

**Darlene** · 05-27-2006, 11:27 AM

Wouldn't hurt to let them know that your sorry they got put in the back of the line & you will be making things right. I'd call them and explain that you can pay a certain ammount now and will then be paying x ammount on a regular basis. Good luck.

**dwallyfam** · 05-27-2006, 11:45 AM

Paquita you may have done a good thing by not giving your account information to them. There is a scam going on where they are calling people asking for money on accounts they own. I would call them and ask to speak to someone. Let them know what is going on and let them know what you are going to do about it. As everyone else has suggested set up a budget/allowance for both you and your DH. Get him on board and let him know what is going on. Trim everything else down to the bare bones and work on this bill.

Kellie

**Lorelei** · 05-27-2006, 11:55 AM

I agree with Dwallyfam. You did exactly right by getting off that phone call. Never give your account information, social security number, etc. over the telephone for a call you didn't initiate. You just never know who is really calling you.

On Monday call Sears (using a number you have from your statement, not any phone # the caller may have given you) and find out what type of payment plan you can work out with them.

**Lorelei** · 05-27-2006, 11:57 AM

Oops! I revised my message and accidentally left off the ending. Sorry that sounded so abrupt. Good luck getting this resolved and getting your DH to understand that "bank balance" and "real balance" are two totally different things.

**christina33** · 05-27-2006, 12:08 PM

You need to call the company back and arrange a payment plan with them.. Perhaps closing the account immediating after talking to them is not a bad idea.
This may have been a scam also.. So it was best not to give out any personal information. If you call using the number on your statement or back of your credit card you can verify if indeed the call was from Sears.
If it was not.. you may want to pull your credit report just as a precaution to see if
your personal information has not been stolen etc..

That being said
1) Call company and arrange to pay whatever you can etc.
2) DH needs to understand the difference between the real balance etc.
3) Start cutting back whereever you can.
4) If you are trying to save.. setting up an ING account etc may prevent DH impulsive spending since this money is not accessible by ATM and would take a few days to recieve etc. Alternatively, unlink your ATM and debit cards from your savings accounts.
5) Talk to DH about you debt because he may think that CC limit is his money and not borrowed $$$

Originally Posted by Paquita

I need some advice. I have a Sears card that DH and I bought a washer and dryers on. I paid some on it but then we had some financial problems and I didn't pay anything for a couple of months. (I know thats bad, but I did it anyway.) Part of the problem is DH would spend money because he thought we had it. Well we did have it in the checking account but it was for paying bills. He just goes to the ATM and looks at the balance and gets happy. I tried to tell him that you can not go by that figure! Anyway now sears (citibank) has called and wants the whole balance paid now. They called this morning and said I had to pay by check over the phone right then. I told them I don't have that much in my account, they said it would not go through until Wed. or Thursday. I was so upset I just hung up on them. Bad Idea but I was too stressed to deal with it. Now what should I do? The balance is $500.23, I could pay some but not all. Plus I do not like to give my account info over the phone like that, I want to pay in person. One good thing, DH now understands that we need to be frugal.

Ann

**Paquita** · 05-27-2006, 12:49 PM

Thanks for all your encouragement! Since DH does the grocery shopping he is going to get cash for that. Debit card will be for gas, medicines, and dr. appts. We had a talk last night about why I had not paid on the card. I had tried to talk to him several times in the past about finances, he would not listen. NOW he will listen to me and we are going to do a budget. This CC and my car are our only debt. The problem is mainly that we are both only working part-time and I am in school also (no student loans, yea!).

Ann

**MOMMYDEAREST** · 05-27-2006, 01:16 PM

sending prayers your way..........i've been in your same position before & i just paid what i could & luckily they understood my situation!!! best of luck!!

**Persimmon Lace** · 05-27-2006, 03:37 PM

I think you were wise not to give any information over the phone. Call Sears and work out what you can with them!

**Lmullin** · 05-27-2006, 09:16 PM

We've ALL been there. Best of luck. You will be fine. Keep in perspective that you caused no one any injury!!! You and SO made a mistake. We ALL make mistakes. Give yourself ten minutes to fret then move forward. Wishing you the best.

**willow** · 05-28-2006, 09:08 AM

I'm so glad you and your husband talked and are working out a budget. It's so important to get things out in the open, and he needs to understand how hard you've been trying to handle the finances. As far as the Sears bill I agree with what others have been telling you to call and explain your situation and set up a payment plan. I would think they would rather have small payments than no payments at all.

Originally Posted by canadian gardener

I suggest you go to an allowance system where you two each get 10$ or something per payday for coffees and magazines and such. Once it's gone it's gone.

I think this is great advice, this way you and dh wont feel so deprived while your trying to adjust to a tighter budget.

Good luck