Terrified of Debt Collectors

Barefoot,

I am a stay-at-home mum with three kids. When my hubby and I moved to Brissie a few years ago, we had barely any money, so we got a credit card (and he also had a personal loan from a previous relationship). We could not keep up the payments, so we went on a debt agreement, but we ended up cancelling it as we could not afford that either. Long story short, we are now around $60,000 in debt. We have been ignoring calls as we cannot afford payments, and I am terrified debt collectors will come knocking soon. Help!

Jolanda

Hi Jolanda,

Your situation sounds … utterly exhausting.

Here’s the truth: feeling terrified is not conducive to making good decisions.The debt industry knows this, and they feed this feeling, because it’s the best way to get more money out of you.

That’s why debt collection companies hound you multiple times a day.

That’s why payday lenders like (Crime Converters … er, I mean Cash Converters) bombard you with text messages on short-term loans.

And that’s how someone signed you up for an expensive magic wand known as a ‘Part 9 debt agreement’.

Often these debt agreements are sold to people as a way for them to avoid bankruptcy … when the truth is that they are in fact an act of bankruptcy. In other words, you paid this mob thousands of dollars (that you didn’t have) for something that didn’t work.So what’s the answer?

It’s time to stop the terror, Jolanda, and get back in control.

Rather than ignoring the calls, it’s time to make a call:

First thing tomorrow I want you to call the National Debt Helpline on 1800 007 007.

They’ll put you in contact with someone like me — a free, independent, not-for-profit financial counsellor.

We can stop the calls from debt collectors, banks and other creditors, and negotiate a payment on your behalf.

It’s time to get you back on your feet!

Scott