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Hi! My name is Sarah and I write over at The Third Degree, but normally not too much about finances. In the past year and a half, I’ve been forced to learn to budget and be responsible about my money but I’ve kept most of my struggles to myself. I’ve got a story for you though.
I remember the sinking feeling when got my first collections voice mail. Then after the third or fourth agency would call, I’d call myself and after hearing the first few words of the voice mail I’d delete them. For three months I let myself believe that they’d give up. They didn’t, and it took two words from a woman named Victoria to change my mind: “legal action.”
I remember the way my heart sped, my blood raced, and my stomach leapt into my throat before I returned her phone call. I listened to her tell me that my credit card had been turned over to her collection agency and that once I was 90 days past due with the agency they could begin legal action to get their money.
I remember crying on the phone with her as I explained my situation. “My ex-husband left me with four credits cards fully maxed out. He won’t help me pay for any of them. I am a full-time student who is only working part time. I can’t pay you back.” I asked her what my options were. “Either you’ll pay it off fully in monthly payments or you’ll pay half today and be done with us.” The latter wasn’t an option, and honestly, I didn’t think that the former was either, but I agreed to pay $200 each month for the next three months. I had no idea where that $200 was going to come from, but it was the only option.
Within days, three other collection agencies began calling me. (I’ve since come to the conclusion that they are actually interconnected to know when you’ve made one “deal.”) The other agencies began using those two scary words, and I told them my sob story. They didn’t really care. In the end, I had promised over $800 to four different agencies.
The next week I found a second part-time job; a week after that, I found a third part time job. This meant that I was a full-time student working three part-time jobs; I didn’t know what I was getting myself into. The payments began coming out in October 2007, and my three jobs, along with financial aid (my parents were also still paying my rent) were just barely enough to cover the over $800 in monthly payments I was making to collection agencies.
As life progressed, I kept working my tail off at three different jobs (and going to school, pulling straight A’s) until June 2008. It was then I got a call from Victoria congratulating me on being done with her agency. I hung up the phone and celebrated. I think I used the $200 payment for the next month to get my hair done, too; the first “splurge” in almost a year.
Since October 2007 I have paid more than $9500 to four separate collection agencies. I am proud to say I’ve never missed a payment. I’m also incredibly proud to announce that after my January payments go through; I will have one single card left to pay back through agencies. It’s taken a long time to come to terms with my past financial mistakes, but being responsible for them has helped. If you’re struggling with collection agencies calling you, I encourage you to answer their call. See if you can work something out, and maybe in 16 months, your financial life will have changed like mine has.
