Is there a way to get out of this headache?
June 25, 2015 4:15 PM Subscribe
So basically I'm wondering what the options are for someone with loans and other debt who needs a financial manager or advisor. I have recently become employed for a new company and while things are going well in that, I want to know where I can find someone to figure out my financial situation including calling debtors to find out exact amounts owed. I find it personally very emotionally difficult to do and it would be great if I could get help in doing that.
I went to see a financial advisor who charges $200 an hour for a free consultation. I saw that he doesn't do much other than just write things down on paper. On nfcc.org, I found some (almost) free counseling and I read that they also call your creditors as well. Are they a good resource? Is there anything better in this regard for anyone living in Los Angeles? I feel that I make enough to be able to settle these issues and it would be so much more manageable if I had it all put into place.
I went to see a financial advisor who charges $200 an hour for a free consultation. I saw that he doesn't do much other than just write things down on paper. On nfcc.org, I found some (almost) free counseling and I read that they also call your creditors as well. Are they a good resource? Is there anything better in this regard for anyone living in Los Angeles? I feel that I make enough to be able to settle these issues and it would be so much more manageable if I had it all put into place.
According to the Administrative Office of the U.S. Courts:
posted by Little Dawn at 4:30 PM on June 25, 2015 [1 favorite]
One of the primary purposes of bankruptcy is to discharge certain debts to give an honest individual debtor a "fresh start."You may be able to get a free consultation with a bankruptcy attorney to help figure out your options for settling your debts and contacting all of your creditors. via MeFi Wiki.
posted by Little Dawn at 4:30 PM on June 25, 2015 [1 favorite]
I ghost wrote a book on debt.
Please, before you go to any outside sources, sit down and make a list of all of your debts, and minimum payments. If you have to, get a friend to help you while you read it off, they write it down, etc. So it doesn't seem so overwhelming.
So:
Citibank: $2,000, Minimum payment: $45 a month.
Apple: $3,000, Minimum payment: $60 a month.
In short: this is something you can do for yourself, that you don't need to pay someone else to do for you. Unless you can afford to hire an accountant to manage your finances, you will have to do it yourself.
As far as calling: again, can you have a friend do it for you? Pay them with a nice dinner?
The companies you are talking about are not really in your best interest, sorry. It's not super easy, it's hard, I know, but the best thing you can do for yourself is to sit down and list it all out (with the help of a friend, if necessary) and call each company yourself, one at a time, and negotiate the lowest payment possible.
Otherwise, hire an accountant, but be sure s/he is highly recommended.
posted by Marie Mon Dieu at 4:33 PM on June 25, 2015 [6 favorites]
Please, before you go to any outside sources, sit down and make a list of all of your debts, and minimum payments. If you have to, get a friend to help you while you read it off, they write it down, etc. So it doesn't seem so overwhelming.
So:
Citibank: $2,000, Minimum payment: $45 a month.
Apple: $3,000, Minimum payment: $60 a month.
In short: this is something you can do for yourself, that you don't need to pay someone else to do for you. Unless you can afford to hire an accountant to manage your finances, you will have to do it yourself.
As far as calling: again, can you have a friend do it for you? Pay them with a nice dinner?
The companies you are talking about are not really in your best interest, sorry. It's not super easy, it's hard, I know, but the best thing you can do for yourself is to sit down and list it all out (with the help of a friend, if necessary) and call each company yourself, one at a time, and negotiate the lowest payment possible.
Otherwise, hire an accountant, but be sure s/he is highly recommended.
posted by Marie Mon Dieu at 4:33 PM on June 25, 2015 [6 favorites]
If you pull your credit reports, they should include entries from everyone who thinks you owe them money, with the amounts. You can pull one from each of the three credit reporting agencies per year for free.
posted by Blue Jello Elf at 4:55 PM on June 25, 2015 [4 favorites]
posted by Blue Jello Elf at 4:55 PM on June 25, 2015 [4 favorites]
Piggybacking on above, setup a free Credit Karma account. They now show your credit report! You should be able to see all totals and who owns them. If you haven't already, you should be able to just sign up for their online accounts for the debtors - especially if you've already received statements in the mail.
Then I'd make an Excel sheet with all the totals, who owns them, etc. plus your income and expenses. Then you have some base data to go to a financial advisor with and can save money on those things. I unfortunately don't have advice on who can do this type of service. BUT if you do take it on yourself, get a fax via email account because many creditors won't send you things via email, they will only snailmail or fax, but you can setup a fax number online.
posted by Crystalinne at 6:10 PM on June 25, 2015
Then I'd make an Excel sheet with all the totals, who owns them, etc. plus your income and expenses. Then you have some base data to go to a financial advisor with and can save money on those things. I unfortunately don't have advice on who can do this type of service. BUT if you do take it on yourself, get a fax via email account because many creditors won't send you things via email, they will only snailmail or fax, but you can setup a fax number online.
posted by Crystalinne at 6:10 PM on June 25, 2015
This is what you'll need to get together for a credit counselor:
Here's the Free Credit Report available thru the FTC. You'll see everything you have currently open as consumer credit and what the balance is.
Sometimes medical bills don't show up on a credit report until the bills are turned over to a collection agency, so you should put all medical bills together and sort them by account and date.
Do you have anything pending with the IRS due to not filing or having an active dispute? That won't appear on the credit report until there is a set amount owed.
posted by readery at 6:40 PM on June 25, 2015
Here's the Free Credit Report available thru the FTC. You'll see everything you have currently open as consumer credit and what the balance is.
Sometimes medical bills don't show up on a credit report until the bills are turned over to a collection agency, so you should put all medical bills together and sort them by account and date.
Do you have anything pending with the IRS due to not filing or having an active dispute? That won't appear on the credit report until there is a set amount owed.
posted by readery at 6:40 PM on June 25, 2015
If you really want to get financial control of your life you need to do it yourself. There are various Excel templates out there (like this snowball debt calculator from a Lifehacker article). The idea is to list all the creditors, amounts, percentage rates, etc. and then prioritize based on that. Usually these sheets show a final debt-free date, which is often shocking at first, but a good wake-up call. Reward yourself for doing this (night out, fun movie, whatever) - once you see the total amounts and date (March 2047???!!!) and have a good ol' freakout it will lose some power over you and you'll have a plan (the sheet will tell you the plan). Every good financial event like a bonus, unexpected savings, etc. will slowly rein that date in and you'll feel better and better. Also consider paying off smaller items (say, a mattress loan) that are close to completion even if they aren't the highest interest - some people find that crossing a creditor off the list is a psychological boost.
I went through this twice - once during an expensive divorce and again when managing my new wife's own prior divorce/chaos-related financial issues. When we did the snowball sheet the second time there were tears, and we kept finding more debts, but we took control. Luckily we had good income at that point, but we really cut back. We were probably the only people in our income bracket to not have cable tv, but once we knew the debt level, cable and lattes and stuff just seemed DUMB. Library books = free. Now we are totally debt-free except for mortgage and we have a nice nest egg building up!
Good luck! Note that my advice assumes things aren't bad enough to declare bankruptcy. If they are, seriously consider it.
posted by freecellwizard at 6:37 AM on June 26, 2015
I went through this twice - once during an expensive divorce and again when managing my new wife's own prior divorce/chaos-related financial issues. When we did the snowball sheet the second time there were tears, and we kept finding more debts, but we took control. Luckily we had good income at that point, but we really cut back. We were probably the only people in our income bracket to not have cable tv, but once we knew the debt level, cable and lattes and stuff just seemed DUMB. Library books = free. Now we are totally debt-free except for mortgage and we have a nice nest egg building up!
Good luck! Note that my advice assumes things aren't bad enough to declare bankruptcy. If they are, seriously consider it.
posted by freecellwizard at 6:37 AM on June 26, 2015
I will suggest you gather together whatever records you can come up with, no matter how incomplete. Start some kind of file. Include listing whatever you remember off the top of your head, again no matter how hand wavy and incomplete. Just start.
This doesn't require you to call anyone. It will likely be easier emotionally because you can build this file bit by bit, as you find things and remember things.
Then read the book How to get out debt, stay out of debt and live prosperously.
I have been served notices of default by the police and had legal agreements for some of my defaulted debts. If you are honest, polite and respectful and you want to pay your debts, most of these folks will very happily work with you.
In short, I suggest you face your fears, though in small manageable increments. It might be surprisingly liberating.
Best of luck.
posted by Michele in California at 10:01 AM on June 26, 2015
This doesn't require you to call anyone. It will likely be easier emotionally because you can build this file bit by bit, as you find things and remember things.
Then read the book How to get out debt, stay out of debt and live prosperously.
I have been served notices of default by the police and had legal agreements for some of my defaulted debts. If you are honest, polite and respectful and you want to pay your debts, most of these folks will very happily work with you.
In short, I suggest you face your fears, though in small manageable increments. It might be surprisingly liberating.
Best of luck.
posted by Michele in California at 10:01 AM on June 26, 2015
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posted by antgly at 4:16 PM on June 25, 2015