My savings account has increased over 1000% in the last 5 days. Now isn't that an impressive number?! I have gone from a mere $0.67 to a whopping $7.00! At this rate I should be a millionaire in no time! No really though, I actually opened that new Orange savings account a few days ago and started myself off with a grand total of $7.00. It's not much, but it's a start. I also set up an automatic withdrawal from my checking account for $10.00 a week on the day I get paid. I plan on increasing that amount when I feel secure enough in my finances, but for now I'll stick with what I feel is safe. One day I'll catch up to my little sister (who we are still convinced has the first dollar she ever received).
I also finally answered those collection calls, mostly due to the inspirational text messages from my Dad telling me to "man up." The bastards were calling my parent's house too, so now I'm really curious to know what the daily totals were! For now my phone has stopped ringing, hinged on promises of payment tomorrow. I've been telling everyone they'll get their money tomorrow... Oh, and rent is due Tuesday.
I feel it's necessary to note that as I write this post on the train, a guy just walked by wearing a hat with cat ears (just another dirty-looking hipster jackass, I suppose). I think I'm going to start a new section on this blog about the crazy shit I see every week while riding the New Jersey Transit rail. And just as I finished the last sentence, I looked to my right and spotted another gem. Here's a smart-looking guy, wearing a business suit and fancy watch, with his iPod wrapped in a leather Burberry case, drinking a super-sized can of Budweiser out of a paper bag... is something wrong with this picture, or is it really just me? People from Jersey are just so classy.
I'm working on my weight-loss update right now (it involves the Devil and $3.00). In the meantime, please leave your thoughts and comments on whether or not you're enticed to hear more about my daily train adventures. ;-)
Showing posts with label debt. Show all posts
Showing posts with label debt. Show all posts
1.20.2011
1.13.2011
"Stop Callin', Stop Callin', I Don't Wanna Think Anymore!"
Business bad? Fuck you, pay me. Oh, you had a fire? Fuck you, pay me. The place got hit by lightning, huh? Fuck you, pay me. -Goodfellas, 1990
Lately I've been thinking I have tinnitus, what with all the ringing my phone has been doing. The holidays set me back a bit and I'm still recovering, but we all know the banks don't give a flying fart. Sometimes I swear Mr. Visa is an oldschool mafia boss, sending his henchmen to collect by whatever means necessary. Yesterday I received 12 phone calls, 11 the day before, and they even call on Sundays. In addition to those calls I receive daily mailings and the occasional email and text message.
I don't really understand this method of collection... Of those 12 calls, six of them came from the same number. Do they think that increasing the frequency of harassment is going to make the balance of my checking account spontaneously grow? I mean, really now. Don't they think if I had the money to pay, I would have done it by now? I like to pay my bills on time. It gives me a great sense of pride to keep all my ducks in a row and my accounts out of the red and my credit score above the national average. But for some reason the banks have this crazy idea that I'm some kind of ninja-thief who will quietly slip out of their grasps in the middle of the night if they aren't calling me at exactly 8:30am every single day. It's absurd! Now what I could understand is something like a "daily reminder." Just one phone call, sometime in the afternoon, with a friendly message reminding me that I still owe them my life and they aren't going away. I could totally accept that!
However, the sad truth is that many more people respond faster and more efficiently to death threats rather than sugar and honey. While I was working at a collection agency a few years back (yes, I worked at a bank and a collection agency--the two institutions I loathe most on this planet), I remember the wealthiest collectors were the hard-asses that knew exactly how to flick the panic switch on a debtor. The kinder, more gentle staff still made their commission too, but it really is amazing how fast someone manages to pull a few hundred bucks out of the sky when they think the Iceman is going to show up at the front door with a pickax and some duct tape. So, because I worked in a collection agency (I wasn't a collector, mind you), I have a good bit of knowledge on the tactics and strategies these people use to scare debtors. This knowledge is mostly what keeps me from shitting a brick and going into panic mode every time they ring. Here's a few things I can share with you:
(Legal Disclaimer: I cannot guarantee these principals apply in all situations. I am not a professional debt adviser. I'm simply just a person sharing what tidbits I've pick up in my lifetime, and any information you receive from anyone should be taken with a grain of salt and investigated thoroughly.)
Settling a debt also requires coming into a chunk a change to actually pay them with, and a chunk I do not have. I don't really want to settle anyhow, because it doesn't look too good on your credit report (but it looks wayyy better than a write-off! Write-offs are very bad, and you still have to pay them back). I've decided I want to do this the old-fashioned way and actually get caught up on my payments. I'm fairly positive I'll be able to catch up by the end of this month, at which point I'll need to sit down and really hash out a plan of action to get myself out of the red before I die. In the meantime, instead of dodging the Iceman, I think I'll pick up the phone and tell them to give me a couple weeks to get straight. Yea, that might be a good idea. ;-)
Lately I've been thinking I have tinnitus, what with all the ringing my phone has been doing. The holidays set me back a bit and I'm still recovering, but we all know the banks don't give a flying fart. Sometimes I swear Mr. Visa is an oldschool mafia boss, sending his henchmen to collect by whatever means necessary. Yesterday I received 12 phone calls, 11 the day before, and they even call on Sundays. In addition to those calls I receive daily mailings and the occasional email and text message.
I don't really understand this method of collection... Of those 12 calls, six of them came from the same number. Do they think that increasing the frequency of harassment is going to make the balance of my checking account spontaneously grow? I mean, really now. Don't they think if I had the money to pay, I would have done it by now? I like to pay my bills on time. It gives me a great sense of pride to keep all my ducks in a row and my accounts out of the red and my credit score above the national average. But for some reason the banks have this crazy idea that I'm some kind of ninja-thief who will quietly slip out of their grasps in the middle of the night if they aren't calling me at exactly 8:30am every single day. It's absurd! Now what I could understand is something like a "daily reminder." Just one phone call, sometime in the afternoon, with a friendly message reminding me that I still owe them my life and they aren't going away. I could totally accept that!
However, the sad truth is that many more people respond faster and more efficiently to death threats rather than sugar and honey. While I was working at a collection agency a few years back (yes, I worked at a bank and a collection agency--the two institutions I loathe most on this planet), I remember the wealthiest collectors were the hard-asses that knew exactly how to flick the panic switch on a debtor. The kinder, more gentle staff still made their commission too, but it really is amazing how fast someone manages to pull a few hundred bucks out of the sky when they think the Iceman is going to show up at the front door with a pickax and some duct tape. So, because I worked in a collection agency (I wasn't a collector, mind you), I have a good bit of knowledge on the tactics and strategies these people use to scare debtors. This knowledge is mostly what keeps me from shitting a brick and going into panic mode every time they ring. Here's a few things I can share with you:(Legal Disclaimer: I cannot guarantee these principals apply in all situations. I am not a professional debt adviser. I'm simply just a person sharing what tidbits I've pick up in my lifetime, and any information you receive from anyone should be taken with a grain of salt and investigated thoroughly.)
- Every creditor out there will take a settlement of 80%. Any balance on top of that is usually fees and interest so they don't really mind losing the gain, as long as they are recovering the loss. Click here for some really good tips how to negotiate with your creditors.
- Always low-ball your initial settlement offer. They will want you to make the initial offer (in case you had a bigger number in mind than they did), and they will always try to one-up you. So start with 50% and make it sound like you don't have a penny more to your name.
- If you can pay in one lump sum right now, many creditors will jump to accept a ludicrously small settlement (50-60%). If you're lucky, they'll take it in two payments--hey, it worked for me before! Also note that most companies won't take less than 50%, and an offer any smaller may be taken as an insult to the collector.
- Don't freak out when you get a letter from an attorney threatening a lawsuit. Many, many companies simply throw a couple of bucks at an attorney to send a letter, and only send a letter, in the hopes of scaring you into cutting off your left arm and mailing it in immediately.
- Most creditors aren't going to sue for anything less than a couple thousand dollars. If they do decide to sue, it will be after years of harassment and exhausting all other avenues. It costs a lot of money to sue people, so it's really a last resort, Hail Mary play.
- Please, please, please don't use one of those "debt consolidation" companies like AmeriDebt, FreedomDebtRelief or any of the other thousands like it. All they do is settle your balances in the exact same ways I just told you about, except they steal more of your money in the process and drag it out longer. They sure do have some convincing commercials, but please know they are are NOT out to help you. Even worse, a ton of them are truly thieves who take your money and never even pay the companies. You can "get rid of half your debt" all by yourself just by picking up the phone and calling Mr. Visa.
Settling a debt also requires coming into a chunk a change to actually pay them with, and a chunk I do not have. I don't really want to settle anyhow, because it doesn't look too good on your credit report (but it looks wayyy better than a write-off! Write-offs are very bad, and you still have to pay them back). I've decided I want to do this the old-fashioned way and actually get caught up on my payments. I'm fairly positive I'll be able to catch up by the end of this month, at which point I'll need to sit down and really hash out a plan of action to get myself out of the red before I die. In the meantime, instead of dodging the Iceman, I think I'll pick up the phone and tell them to give me a couple weeks to get straight. Yea, that might be a good idea. ;-)
1.12.2011
Confessions Of A Credit Card-aholic
They say money can't buy happiness, but it sure as hell buys everything else." -Mad Money, 2008
I don't even know where to start, so let's rewind back to the beginning...
I was fresh into the start of my 18th year when I promptly applied for a credit card. As I filled out the forms with the aid of my customer service friend, I could barely contain the glee sparkling in my wide eyes. Finally, I was legally able to partake in the joys of "buy now, pay later"! I made sure to clearly cross all my T's and carefully dot all my I's, and before I knew it was signing my life away to the bank I worked at. Just a few days later I was approved and received my first shiny piece of magical plastic. Since I worked for the bank, they were more than happy to extend me a modest $500 credit limit and secure the fate of my financial demise.
At first I started off slow, only handing my precious card over when it was absolutely necessary. That lasted about a week... Before I knew it, I realized I could have everything I wanted now--and girl, I am sooo the type who needs to fulfill my wishes RIGHT NOW. What could be the harm? I could just pay for this stuff when I get my paycheck, right?
When I think back, I don't think I've ever paid a full balance at the end of the month... Never. That means I've been padding the pockets of fat-cat bankers for the last seven years. In credit card debt alone, without looking up the exact figures, I owe somewhere around $10,000. That's not including student loans (approximately $30,000) and my car (about $4,000 owed to my parents).
What makes this burn a little deeper is the fact that I have absolutely no savings. I've somehow managed to keep the same $0.67 in my savings account for the last 24 (almost 25) years I've walked this earth. So currently I'm trapped in the dark pit of a $44,000 hole with no rope to grab on to and pull myself out.
Since no rope exists, I'm forced to start from scratch and weave a lifeline with the few threads I can scrape up off the ground. I need to take that $0.67 and magically turn it into a few thousand, just like I managed to take a $500 credit limit and magically turn it into a 10,000 pound weight on my shoulders.
I've always had this stigma about saving money when I owe so much to everyone else. I feel like I should be using those pennies to chip away at the block, rather than stick them in a box for my future. Well today I'm giving a big "F You" to the bankers! My new plan is to reverse this illogical way of thinking and finally start putting something away for "the future," whether that be for retirement, a home or even a wedding. I've decided the best course of action is to open an ING Orange savings account for several reasons. First off, I can have them take out a small amount of money from my checking account each week on pay day. This way I won't even notice and and can start budgeting minus the savings immediately! Second, it's online. "Out of sight, out of mind" is a philosophy I've subconsciously adopted since the beginning of my life, and in this instance it might actually work out to my benefit (it rarely has ever been a positive influence before...).
So I'm signing up for this miracle account first thing tomorrow! In regards to the pit of death... Well, I'm still figuring that one out right now and I'll get back to you another day. ;-)
I don't even know where to start, so let's rewind back to the beginning...
I was fresh into the start of my 18th year when I promptly applied for a credit card. As I filled out the forms with the aid of my customer service friend, I could barely contain the glee sparkling in my wide eyes. Finally, I was legally able to partake in the joys of "buy now, pay later"! I made sure to clearly cross all my T's and carefully dot all my I's, and before I knew it was signing my life away to the bank I worked at. Just a few days later I was approved and received my first shiny piece of magical plastic. Since I worked for the bank, they were more than happy to extend me a modest $500 credit limit and secure the fate of my financial demise.
At first I started off slow, only handing my precious card over when it was absolutely necessary. That lasted about a week... Before I knew it, I realized I could have everything I wanted now--and girl, I am sooo the type who needs to fulfill my wishes RIGHT NOW. What could be the harm? I could just pay for this stuff when I get my paycheck, right?When I think back, I don't think I've ever paid a full balance at the end of the month... Never. That means I've been padding the pockets of fat-cat bankers for the last seven years. In credit card debt alone, without looking up the exact figures, I owe somewhere around $10,000. That's not including student loans (approximately $30,000) and my car (about $4,000 owed to my parents).
What makes this burn a little deeper is the fact that I have absolutely no savings. I've somehow managed to keep the same $0.67 in my savings account for the last 24 (almost 25) years I've walked this earth. So currently I'm trapped in the dark pit of a $44,000 hole with no rope to grab on to and pull myself out.
Since no rope exists, I'm forced to start from scratch and weave a lifeline with the few threads I can scrape up off the ground. I need to take that $0.67 and magically turn it into a few thousand, just like I managed to take a $500 credit limit and magically turn it into a 10,000 pound weight on my shoulders.
I've always had this stigma about saving money when I owe so much to everyone else. I feel like I should be using those pennies to chip away at the block, rather than stick them in a box for my future. Well today I'm giving a big "F You" to the bankers! My new plan is to reverse this illogical way of thinking and finally start putting something away for "the future," whether that be for retirement, a home or even a wedding. I've decided the best course of action is to open an ING Orange savings account for several reasons. First off, I can have them take out a small amount of money from my checking account each week on pay day. This way I won't even notice and and can start budgeting minus the savings immediately! Second, it's online. "Out of sight, out of mind" is a philosophy I've subconsciously adopted since the beginning of my life, and in this instance it might actually work out to my benefit (it rarely has ever been a positive influence before...).
So I'm signing up for this miracle account first thing tomorrow! In regards to the pit of death... Well, I'm still figuring that one out right now and I'll get back to you another day. ;-)
1.10.2011
Back At Square One
So I suppose the proper way to start a blog is with an explanation of why the hell I'm here and what I plan on doing about it. For the attention-deficit crowd, here's the short story: I've been out of college for over a year without nearly as much career advancement as a 25-year-old would hope for, I'm waste deep in debt with NO savings, I haven't been taking very good care of myself, and I'm using the promising year of 2011 to change all of that (Sound familiar!? That's because it's the story of nearly every damn college grad in the last 5 years). For those of you looking for the long story (or at least trying to further relate yourselves to my troubles), please read on.
From the above laundry list of "areas in need of improvement" I gather three major topics: Success, Wealth & Health. Some of you may notice one tragically important thing missing... Love. Well I'm happy to report that's the one section of life that I have under control!
My plan is to tackle each of these areas step by step, little by little. Each week I'm going to declare a goal in each of the 3 areas and fulfill it to the best of my abilities. I've never been one to fail at any project thrown my way, so I'm going to take a lesson from myself and stop failing so hard at life. By blogging about my endeavors I'm hoping it'll be the kick in the ass I need, the pressure that pushes me to succeed. I can't just tell the world I'm going to do something and then leave them hanging! I don't want to call it an "obligation" because that has a nasty negative connotation to it, and I want this to be a positive experience that will force me to grow into the individual I know I can be --strong, confident and successful.
I'll provide more background story (and those fun little anecdotes) as we move along, but for now I have to get to sleep! Goodnight ;-)
- Posted in bed from my iPhone (so please forgive any terrible spelling/grammar errors)
From the above laundry list of "areas in need of improvement" I gather three major topics: Success, Wealth & Health. Some of you may notice one tragically important thing missing... Love. Well I'm happy to report that's the one section of life that I have under control!
My plan is to tackle each of these areas step by step, little by little. Each week I'm going to declare a goal in each of the 3 areas and fulfill it to the best of my abilities. I've never been one to fail at any project thrown my way, so I'm going to take a lesson from myself and stop failing so hard at life. By blogging about my endeavors I'm hoping it'll be the kick in the ass I need, the pressure that pushes me to succeed. I can't just tell the world I'm going to do something and then leave them hanging! I don't want to call it an "obligation" because that has a nasty negative connotation to it, and I want this to be a positive experience that will force me to grow into the individual I know I can be --strong, confident and successful.
I'll provide more background story (and those fun little anecdotes) as we move along, but for now I have to get to sleep! Goodnight ;-)
- Posted in bed from my iPhone (so please forgive any terrible spelling/grammar errors)
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