Tag: debt

Zombie Debt… what is it?

Quick and simple Zombie debt is very old debt that has has passed the statute of limitation for collect it. Then, one morning you get a call about a debt that’s like  10 or 20 years old and someone is trying to collect. It is revived as soon as you admit the debt is yours. So what do you do?  Experts advise people in debt not to acknowledge the debt and if they threaten you with a lawsuit tell them to send you proof of the debt. Most likely they won’t be able to, because the statute of limitation is up.  Once you admit the debt is yours the statute starts all over again.

So, if you think you have zombie debt and fear something may be unearthed, (pun intended) it might be time for you to wise up and start thinking about money seriously and start budgeting.

I don’t care if you’re on welfare, making minimum wage or a millionaire. Start.

Zombie debt is NOT Student loans or your taxes or any secured debt. It is unsecured debt, like phone bills, credit cards and stuff like that.

Think money.

“Money
It’s a gas.
Grab that cash with both hands and make a stash”

Pink Floyd

Well no “stashing” for a lot of people these days. Why? Because most and I mean most don’t budget. A report by HuffPost in Nov of 2019 said almost 30 percent of Canadians don’t have enough money to pay the bills. Yes, I know we need to raise minimum wage, we need to give people more money, we need guaranteed income etc…

Mostly a bunch of crap. I’ll just say one thing, if everyone had higher wages and a guaranteed income of 10 thousand dollars a month, or a million dollars a year, it would make no difference, those people making a million guaranteed dollars a year would still be poor. Why? Because if your landlord knows you make a million a year he’ll raise his rent to match and the stores will raise their prices to pay for shit you buy. There will always be poor peoople. It’s just a fact of life.

That said, just because your “poor” and I mean making minimum wage, doesn’t mean you have to live like your poor or worst of all in debt over your head. That’s easy for me to say I’m rich, right? No. Here’s a brief history of my financial life. I grew up with my mom and four other siblings, we all lived in low income housing on welfare. My dad was a deadbeat who never gave my mom a dime. Oh, sure he’d give us a twenty dollar bill at Christmas and on our birthdays, but that was about it. The thing I remember most about growing up in low income housing is that we had the cleanest house and always had food in the fridge. When I would go to my friends houses, they’re parents would drink and somke, the house was a shit hole disaster and there was rarely food in the fridge. The neighbourhood kids thought we were rich. Turns out a clean house and a budgeting mom goes a long way.

I moved out at 18, making my big minimum wage of $4.10 an hour, paid my rent my phone, my cable and was left with about $20 dollars a week extra, that covered a box or two of Kraft Dinner, a couple of loves of bread and a jar of peanut butter. The rest of the money went for a pack of smokes and 12 pack of beer. That life lasted a few years, but I was lazy and kept quitting my jobs… I preferred to party and do drugs… so I did.

Make a long story short, I’m married, lost one kid to cancer, have two more and am living with Thirty thousand dollars in credit card debt, working a minimum wage job at the Sally Anne, and living with one income. My wife was raising the kids. We actually tried to get a house through Habitat for humanity and discovered we were to poor. Go figure. Yet, somehow we make things work. I could go on and on…

One day I woke up and decided to take over my financial situation, I couldn’t leave it all to my wife. We never fought about money (we didn’t have any), but we both knew we had to do something. So, here comes the budget. Within 4 years of starting a budget, we bought a house, and within 10 years we were debt free and the only thing we had to pay was our mortgage. Was it easy? No. Did we get a few lucky breaks along the way? Absolutely. But, we looked and worked for those breaks. A week after I got my mortgage, I quit my minimum wage job and got a better one, and moved with the company and starting making more and saving more. Now, we’re on our way to retirement… not rich, but we’ve got a plan, or as I like to call it a budget.

If you want to know more, comment and I’ll get to work on a budgeting series.

 

Chip Toodee