Debt

[Tracy 0]

Well we are both in the US but things are not going so well. Shortly after my hubby got here I lost my job and I'm still looking for another so we are on 1 income right now. We do have Canadian debt and have every intent on paying for it however we just don't have enough money right now to pay bills in 2 countries. I've been trying to work out payments with our Canadian debts so we don't have to pay so much but today I received a demand letter from a barrister in Canada demanding payment in 7 days or they will take legal action against us. I didn't know to laugh or cry as we just don't have thousands laying around here. I've offered them a settlement with payments but I'm afraid they won't accept it. I just don't know what to do! Can they get judgements in the US for Canadian debt? Will that cause my huband to be deported? I'm a mess right now because I hate being in financial trouble but right now we are and no where to turn. Anyone have suggestions or stories?

[Tracy 0]

Well we are both in the US but things are not going so well. Shortly after my hubby got here I lost my job and I'm still looking for another so we are on 1 income right now. We do have Canadian debt and have every intent on paying for it however we just don't have enough money right now to pay bills in 2 countries. I've been trying to work out payments with our Canadian debts so we don't have to pay so much but today I received a demand letter from a barrister in Canada demanding payment in 7 days or they will take legal action against us. I didn't know to laugh or cry as we just don't have thousands laying around here. I've offered them a settlement with payments but I'm afraid they won't accept it. I just don't know what to do! Can they get judgements in the US for Canadian debt? Will that cause my huband to be deported? I'm a mess right now because I hate being in financial trouble but right now we are and no where to turn. Anyone have suggestions or stories?

[Dan J 277]

Well we are both in the US but things are not going so well. Shortly after my hubby got here I lost my job and I'm still looking for another so we are on 1 income right now. We do have Canadian debt and have every intent on paying for it however we just don't have enough money right now to pay bills in 2 countries. I've been trying to work out payments with our Canadian debts so we don't have to pay so much but today I received a demand letter from a barrister in Canada demanding payment in 7 days or they will take legal action against us. I didn't know to laugh or cry as we just don't have thousands laying around here. I've offered them a settlement with payments but I'm afraid they won't accept it. I just don't know what to do! Can they get judgements in the US for Canadian debt? Will that cause my huband to be deported? I'm a mess right now because I hate being in financial trouble but right now we are and no where to turn. Anyone have suggestions or stories?

They cant really pursue the debt now that your in the US. Legal action would only affect Canada. However if you have any plans to move back in the future it could be a problem.

[Jamie76 0]

Well we are both in the US but things are not going so well. Shortly after my hubby got here I lost my job and I'm still looking for another so we are on 1 income right now. We do have Canadian debt and have every intent on paying for it however we just don't have enough money right now to pay bills in 2 countries. I've been trying to work out payments with our Canadian debts so we don't have to pay so much but today I received a demand letter from a barrister in Canada demanding payment in 7 days or they will take legal action against us. I didn't know to laugh or cry as we just don't have thousands laying around here. I've offered them a settlement with payments but I'm afraid they won't accept it. I just don't know what to do! Can they get judgements in the US for Canadian debt? Will that cause my huband to be deported? I'm a mess right now because I hate being in financial trouble but right now we are and no where to turn. Anyone have suggestions or stories?

This is what I don't understand about debt collectors. They put a fear in people trying to make good on their debts. If you can give them a small amount, it is still better than nothing. They don't seem to understand this. Do they think by using scare tactics that money is just going to magically appear? If you don't have it, you don't have it. Sometimes things happen, like a loss of a job which you really can't help...it's these people debt collectors should be a bit more willing to deal with.

Edited July 26, 2007 by Jamie76

[Allie 5]

As long as you are willing to try and make some payments and make an arrangement for a payment plan and schedule I don't think there's much thay can do. If you make arrangements for some sort of payment then don't follow through with the agreement then they can demand their balance owing.

Usually collection agency buy accounts and will send out those threatening letters of action. Call whom ever the accounts are with and simply explain to them you wish to make a payment relief plan.

[russ 1]

This is what I don't understand about debt collectors. They put a fear in people trying to make good on their debts. If you can give them a small amount, it is still better than nothing. They don't seem to understand this. Do they think by using scare tactics that money is just going to magically appear? If you don't have it, you don't have it. Sometimes things happen, like a loss of a job which you really can't help...it's these people debt collectors should be a bit more willing to deal with.

The longer a debt goes unpaid, the less likely it will ever be paid. In many cases, it costs more trying to collet a debt than can be recovered. Debt collectors know this, so they try to get as much as possible as quickly as possible. After 120 days, most unsecured debts are actually worth about 10 cents on the dollar.

Best strategy is probably to offer them a monthly payment plan that you can afford now, take it or leave it. If they accept, pay them. If not, their loss. If you are not planning on obtaining credit in Canada anytime soon, it hardly matters.

[misa 2]

You might want to contact a credit counselling service in Canada and explain the situation. If they can help they will contact the companies on your behalf and try and work things out. Also if any of the accounts are already at a collection agency, a credit counselling service can advise you on whether their threats are actually legally binding or not since you are actually trying to work with them.

Would any of your debt be student loans? If so, there are advocacy groups that help with that too.

Edited July 26, 2007 by misa

[Tracy 0]

No the debt is from our Credit Union for a loan and a car we had to leave behind. I'm going to send a letter with an offer of settlement and payment and hopefully they will take it. We were hoping they would give us a little more time to get on our feet before demanding money.

[TRKCKL11 0]

can you sell the car to help? I was in that same position with my car loan in canada (my only debt)

[misa 2]

No the debt is from our Credit Union for a loan and a car we had to leave behind. I'm going to send a letter with an offer of settlement and payment and hopefully they will take it. We were hoping they would give us a little more time to get on our feet before demanding money.

If you haven't done so already, try talking to the loan manager/supervisor. Whoever is the top of the chain at the loan department and explain your situation, that you're in the U.S., currently going through a bit of a financial bind. Offer to show them a budget for the next 3-6 months and how much you can pay them each month and to be updated after that time. It shows "good faith" I think especially since you're not even in the country anymore. It might help and worth a shot.

Good luck!

[SteveLaura 0]

If you haven't done so already, also look at your budget closely. Get rid of anything you can do without right now - cable, high-speed internet, etc. Look at what you can cut down - is the food bill higher than necessary? Can you get a better deal switching auto insurance? But don't be so drastic that living is no longer fun - leave yourself enough money each month that you can use for whatever you want - movies, meals out, massages, CDs, whatever. But stick to that amount.

Then look at the bills, see how much you HAVE to pay each month - rent/mortgage, electricity and the like. If you have other debts, what is the minimum you have to pay on these? Whatever is left over (and if there isn't any, do the budget again and be more brutal) is going to pay off the debt in Canada AND the debt that either a) has the largest interest payment or b ) is the smallest debt (for the psychological value) or c) just bugs you the most (maybe a loan from a friend/family). Contact the debt in Canada and offer an amount that you can afford to pay each month. Pay it religiously. When the first debt is paid off, snowball that amount towards the next debt.

Good Luck with finding a new job.

Edited July 26, 2007 by SteveLaura

[Chica Yeyé 41]

Good luck with the job hunt... when I moved to Edmonton to marry B, I had such a sh!tty time finding a good job, so I took whatever I could grab (translation: I am the best barista on Whyte Avenue, besides my "real" job he he). So go out and grab whatever you can in the meanwhile: no job is unworthy and it shows your creditors you are making the best of efforts.

The advise from previous posters is amazing - follow it! I recommend the famous book "Start Late, Finish Rich": we bought it when we found ourselves in crapppy financial times, and by now we are almost out of debt and with some savings for the big move.

Good luck and good vibes, L.

Edited July 26, 2007 by Len_and_Bren