Don’t ever borrow money

I cannot believe how many people are in debt right now. I’m trying to help them out but I don’t think I’ll be able to help out too many people all at once. They are so much in debt that I’m getting pissed off at the collectors for requesting them to pay so much right away. I don’t think it’s the collectors that I should be mad at. It’s not totally their fault that people are in debt in the first place.

On the drive to work, my brother told me that the collectors are after him again. The Ontario Student Assistant Program (OSAP) informed him that they have transferred his debt to collectors. What kind of assistant is that? That is messed up if you ask me. I would have hung up on them as soon as they told me that. These people should know the financial difficulties that students have while they’re attending school. Give them a break and stop bothering them for money. If they could afford it, they wouldn’t be asking for assistants in the first place. Using a little common sense wouldn’t hurt but then again, this is the government we’re talking about.

My brother has been making his monthly payments but they didn’t believe it was enough. They saw my brother’s monthly payment as a risk because it was taking too long to pay off his balance. If they want all their money back, they have to collect the total amount. In order to minimize the amount of money loss, they sent it to the collectors.

The way the collection agency works is that they buy debts. If someone owes $5,000 to a credit card company, the collectors will buy that from the credit card company. But they don’t buy it for $5,000. They’ll pay the credit card company something like $4,800. The two companies will talk about it and negotiate a settled amount but for sure it’s less than $5,000 or else the collector will lose money. No one is in the business to lose money.

These assholes are fucking greedy as hell. They don’t want payments from the person who’s in debt. They want all of the money and they want it now. The longer it takes you to pay them, the less profit they’ll make. That’s why they will constantly call until you agree to pay them. If you don’t pay them, they will report you to the credit bureaus and mess up your credit rating.

The credit bureau is business friendly. They will do anything to help out the businesses but will make it harder for consumers. If you wanted to know your credit rating, you will have to wait for identity to be verified, applications to be process and whenever they feel like it, they’ll send you the information. If a business wanted to know your credit rating, all they have to do is call in and they’ll have the report within seconds.

So, if your credit rating gets messed up because a business falsely reported your payment, you can kiss that loan application good bye because you’re not going to get approved. The bank institution will contact the credit bureau and see if you’re worthy of a loan. But since some company messed that up, you’re going to be denied that loan.

If you want to get your credit rating fixed, it will take forever. Even though some lame company falsely reported your payment history incorrectly, the credit bureau will make it harder on your to change your rating. They don’t care about the consumers because we’re not their main clients. It’s the businesses that are their major clients and it’s businesses that they want to please.

So in order to save my brother’s credit rating, I have to step in once again and cough out my hard earned money. Well, my money anyway. I can’t really say it was hard earned. Anyway, a bad credit rating is something that you don’t want. On this side of the world, money talks. The more of it that you have, the better you’re off. If you don’t have a lot, there isn’t much other financial companies will do for you. They will see you as a risk and will not want anything to do with you.

In my brother’s case, they don’t want to give him any slacks whatsoever. OSAP wanted their money right away so they sold his debt to the collection agency. My brother called up the collection agency to let them know that I’ll be doing some transferring of funds to make repayment plans. Unfortunately, moving around the money will take too long and they want all of the money right now.

He spoke with some guy name Rob. Rob apparently thinks money grows on trees. He fails to grasp the fact that my brother is a student and students probably make up majority of the people who are in debt. I had initially planned on getting the balance transfer cheques written out for the total amount and sent in. But Rob’s plan was to charge everything onto one credit card because it’s faster. None of my credit cards have a credit limit set that high.

In order to cover the full amount, I have to charge the credit card for a lower amount and then transfer that amount onto another credit. Once the transfer is complete, I can recharge the credit card again. All of this will take about four to six business days to get done. If I was able to get it done right away, I would but I don’t want to. There’s going to be a whole lot of money being moved around from accounts to accounts and it can get confusing.

I called up the collector but he wasn’t available at the time to take my call so I left a message. I was expecting a call back within five to ten minutes but there was nothing. He told my brother that he’ll be in the office until 9:00pm so I told him that I’ll be available for a call until 9:00pm as well. After that, I’ll be heading out to work. Just as I was heading out to Limeridge, my phone rings. It’s the collection agent guy.

Collection: Hello, this is Rob calling back regarding an account.
Me: Yes.
Rob: You left a message mentioning that you were handling you brother’s account.
Me: That’s correct. I’m trying to help him out with his repayment plan.
Rob: Okay. He called me earlier and updated me on the status of the payment. He said that you wanted to do a balance transfer?
Me: Yes. But in order to do that, I will need some time because I don’t have a credit limit that high. My highest credit card has a credit limit of $5000. What’s his full balance at the moment?
Rob: Right now, he owes $5,602.47, and you’re saying your limit is only $5000? That won’t be enough to cover all of this.
Me: Well, what I had planned on doing was getting a balance transfer from my Citibank credit card to deposit those funds into my RBC credit card. The Citibank credit card is the one with the 0% interest so I’m trying to minimize the amount he’ll have to pay back. I’ll be transfer $3,000 from that credit card and depositing it into my RBC credit card so it will reduce my current balance and increase my credit limit. Right now I have a balance of $2,000 so this $3,000 will pay for that $2,000 balance and give me a $1,000 credit on top of my $5,000 limit.
Rob: Okay, I see how it is.
Me: Yes, but in order to do that, Citibank will be transferring funds into my bank account and I’ll be moving it around from there. They said that it will take about five days for the funds to be deposited into my account. Once I get the funds, I’ll be able to write you a balance transfer cheque and we can have this account all cleared up.
Rob: Great. Can I get your name for the record? I didn’t quite catch it on the message. Now, is that Don or Donald.
Me: It’s Don Khuth. (spells out last name)
Rob: Now do you go by Don or Don Khuth.
Me: Don’s my first name and Khuth is my last name but I just go by Don.

To speed up the process, Rob wanted to send a carrier over to my house on Monday to pick up the balance transfer cheque. I guess he’s very eager to get the money. He mentioned that if we wanted to speed things up, we can send the cheque there ourselves but that will cost us money. So I told him that it’s better if he sent a courier over to pick it up. If they want their money, they’ll have to spend their own money to come and get it.

With the addition of my brother’s debts, my credit cards are slowly getting maxed out. There’s still one more debt that I have to take care of. All of the debts combined will bring the total up to $10,000. If I wasn’t in a better financial situation than I am now, everyone of the people that I’m helping would be stressing out. Lucky for them, I am able to intervene and help them get things straightened out. For now, as long as they are able to make their monthly payments to me, everything should be good. If they don’t, I’ll be the one who will be getting calls from collectors. As soon as that happens, everyone’s in trouble.

12 replies on “Don’t ever borrow money”

  1. I think the moral of this story is that you should never borrow more than you need and to control your own spending habits. I get OSAP too, and every year (except this year) they have given me more than enough to cover my tuition which is about $6000 per year. I’m assuming that everyone that receives more than their tuition just spends it right? I’ve heard too many “OSAP will pay for that.. muahahaha!” comments and it’s just kinda like “um.. you know you have to pay that back right?”

    I mean really, after I’m done school I’m going to owe OSAP over 20 grand but the thing is that I haven’t spent every penny that they loaned me. Whatever that was left over was saved and so it seems like I’ll only be owing back 17 grand because I didn’t spend the extra $3000 they had given me. I mean… $3000 out of $20 000 doesn’t sound like a lot, but how many hours do you have to work to make $3000?

    I think people just need to manage their money better. I understand that people have other bills to pay for too and not just OSAP, but if you owe like… $20 000, why not try to save a couple bucks here and there? Instead of going out and buying 10 drinks at the club and coming home drunk, why not just only have 5 drinks? Sure, you’re not going to be drunk out of your mind, but wouldn’t you rather get yourself out of debt than to spend the money and have to work extra hours to make up however much you spent? I’m sure that would save you $20 or more… and that’s $20 less than you have to work for… (so maybe 2 hours of work). Again, $20 is not much (I know you people are thinking that!) but that’s $20 less that you have to pay back. Don’t you ever realize that when you buy stuff and you keep getting back change and you throw it in your pocket… one day you’ll take that change out of your pocket and you’ll realize that you have $10 or more sitting in your pocket that you didn’t even realize was there!

    So I guess I do agree with you on some points, Don, but not all. I mean.. the debt collectors are doing their job and I’m sure they see people struggling again and again to pay for their loans. I mean, you have sympathy because you’re actually SEEING these people struggle to pay. But these guys like Rob, they see that everyday. And I guess it’s just frustrating to them and they just want their money back. I mean, imagine if you lent out $20 000 to many different students. And some of them pay right away, but there are other stragglers and they have been putting it off for like years and years… wouldn’t you get impatient to get your money back too? I mean, the agreement is that you pay it back, but the longer you put it off, the longer they must wait for the money. And what happens if that person flees the country or something? You can kiss your $20 grand goodbye. I mean, a lot of people who take OSAP don’t flee the country, but you can’t say that people haven’t done that before. They just want their money back so that they can stop hassling you.

    Also, with that minimum payment thing that OSAP sets up for you, it takes like 10 years to pay back your whole loan. So obviously that minimum payment is not realistic. Really, do you want to still pay off your student loan when you are in your thirties and possibly married with children? I think not.

    lol.. sorry Don! This is almost as long as your blog entry >.

  2. But yeah. Bottom line: manage your money and don’t forget that you owe money to people. Sure, you may have to be cheap or stingy for a few months, but that’s better than the collectors knocking on your door and demanding your cash no?

    (That last part didn’t post up)

  3. BAH! I Had a really big posting before that one! Where did it go? Ughh… maybe it was too long? Don, do you have a limit to the amount of characters you can post? because i was very opinionated just now and i wrote something pretty much as big as your blog about how people need to manage their money better lol

  4. hehehe… your post was so long that WordPress thought it was spam… I don’t think there’s a limit. You can basically write blogs in the comment section. 😛

    But the thing is, debt collectors will hassle you over any amount, big or small. The conversation I had with Rob went smoothly because I agreed to pay promptly. If I had told him otherwise, he wouldn’t even bother to return my phone call. The way he talked to me is not the same way he was talking to Tien. He was an ass to Tien because Tien wasn’t able to pay for all of it at once. But he was all buddy buddy with me because I’m a third party who was able to pay.

    You make a good point about about OSAP lending more than needed. But as students, money is money. They don’t see the consequences of borrowing until they’re done with school. OSAP didn’t even lend me enough to cover tuition. But I remember wishing that they had and I wanted more. It’s a good thing that they didn’t because now I don’t have to worry about paying back everything because I’m done.

    If they’ve lent you more than you need, I would suggest you take the remainder and stick it in RRSP. I’ve read that a lot of people buy RRSP around this time of year to get a tax break. Just don’t overpay your taxes because that means you’ll be lending money to the government, interest free.

  5. lol.. you don’t have to read my comment if u don’t want to. there’s a scroll bar over there —>>>>>>>>>>>>>>>>>

    and i don’t think i ever said that you were spamming! >.>

  6. hahaha.. I think I was the one that said he was spamming my comment section.. hehehe.. pay no attention to Tan, he likes to complain about everything…

  7. Wanna: I only have $3.89 left in my bank account. That’s not even enough to buy a combo at McDonald’s…

    Tan: You are a complainer because you’re always bored…

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