By creditor #2, I learned a new phrase today: “stabilize the account.”
When I explained what I wanted to do with the account, he said, “ok. If you pay $50 today, that will STABILIZE the account.” I asked what that meant. He said it will keep it from charging off, going into the active debt recovery pile, the “sorry, we can’t make payment arrangements because it’s too old” pile.
It must be an industry wide term, because I used it with my 5 other creditors and they fell over backward to help make arrangements when I said it.
Won’t stop the phone calls (LOL, if it did, who would call me?), and I’ll still incur late charges, but I am at least now in the 60 day out column with all creditors with a plan to get current-current within the next 6-8 weeks.
When I get ready in February to pay off the dental bill in full, they told me to call them first and ask for a waiver of late fees for past 3 months which will drop my dental bill significantly. They won’t do it now, but they will in Feb once I am “current.”
$1,000 emergency fund, then start on debt snowball and your car breaks down and you have to get another one, what do you do since you haven’t had enough time to save for a vehicle. I can’t see Dave saying to go get a loan but if you have no money to go buy another one yet then what?