Ep. 46 - Gambling Debt Help: Dealing With Creditors and Collection Agencies
When gambling gets you into a tight corner financially, it can feel like there is no easy way out. As you remember past gambling wins, it’s tempting to believe that the best way forward is to keep gambling. But, there are other options.
In episode 46 of our podcast, Fold em: Help for Gambling Problems, hear Adrian share his story of stopping gambling and getting out of a tough cycle with payday loan companies and living pay cheque to pay cheque. Amanda Martin, a Financial Educator with the Credit Counselling Society, shares essential tips for dealing with creditors and collection agencies as well as options if your debt is unmanageable.
Tune in to episode 46 to hear:
Adrian’s story of breaking out of the cycle of gambling and debt
What creditors (banks, credit card companies) can do to collect their debt and your rights in this situation
Tips for dealing with collections agencies
Three options for dealing with unmanageable debt (self-directed, a debt management program and insolvency)
Listen now to episode 46 of Fold em by clicking on the green play button at the top of the blog.
If you prefer to tune in directly from Apple Podcasts or Google Podcasts, click on the red “Listen and Subscribe” button below.
There are other solutions to dealing with gambling debt besides more gambling
Caught in a Cycle of Gambling and Money Problems - Adrian’s Story
In this episode of Fold em, Adrian tells us his story. He had a good job, but would be broke after getting paid. Besides having to cover rent and car payments, he was paying off high interest loans from payday loan companies and credit cards. He was in a vicious cycle of living pay cheque to pay cheque and often having not enough to cover the basics because of a gambling problem. Initially he didn’t see it as big problem, but then not having enough money got too stressful and he decided to ask for help.
Adrian’s first step was to reach out to the Credit Counselling Society and was relieved to find that they had a debt management program that consolidated his debts, eliminated the interest charges and stopped the harassing phone calls. A year into that he had a little exra money and started gambling again. His thinking was, “maybe it will be different this time. I’ll manage it better.” It didn’t work out that way and he found himself once again over his head with debt. This time, he acknowledged that the gambling was a problem and reached out for help with Gambling Support BC.
Eight months later, Adrian continues to make monthly payments to the debt repayment program. His credit card is at zero, he has savings and is talking to his bank about saving for retirement. He is also gambling free!
I Have Financial Problems Because of Gambling. What Now?
Amanda Martin is a financial eductor with the Credit Counselling Society in Hamilton, Ontario. The Credit Counselling Society is a registered, non-profit service for consumers that helps with solving debt problems, managing money, and helping people to use credit responsibly.
Amanda offers these tips if you find yourself in a tough financial situation:
1. Keep Communication Open With Your Creditors
The sooner you reach out, the more options will be available to you. If you are having difficulty making a payment on a credit card, debt or bill, pick up the phone and tell them your situation. Ask for short-term assistance, such as skipping a payment, reducing interest or re-financing. If you don’t reach out, the creditor won’t know what’s going on and may assume that your intension is to not pay. This means they may charge you for a late payment or ultimately send that debt to a collection agency.
2. Know About the Right of Offset
If you have debt with a bank or credit union (e.g. through a credit card or a line of credit) and you also have an account with that institution, they have the right to take money from your account to pay off that debt that is not being paid. They don’t need to tell you in advance and they can take all of the money in your account. To prevent this, reach out to your bank or credit card company early if you are having trouble with payments to develop solutions. Another option, Amanda suggests it to move your account to a different institution until your credit card or line of credit is paid down.
3. Look Into Your Options
There are three options when you are unable to pay your bills and debt:
Self-Directed: contact the Credit Counselling Society or your banking institution and ask for a review of your financial situation. Ask about options to help you cover your bills and debt. For example, a Credit Counsellor may help you to create and stick to a budget; or your bank may work with you to refinance a mortgage or consolidate all your debts from that institution at a lower interest rate.
Debt Management Program: Credit Counselling Societies in Canada offer debt management programs in which they consolidate all of your unsecured debt and negotiate with the creditors for reduced or no interest payments. The debtor then makes an affordable monthly payment to the Credit Counselling Society which is dispersed to the creditors until it is completely paid off. The average for completion of the program is three years.
Insolvency: If you are in an overwhelming financial situation and unable to pay your debts, there are two legal options available through a Licensed Insolvency Trustee: a consumer proposal and personal bankruptcy. A consumer proposal involves the Trustee negotiating a legally binding agreement with your debtors to pay a percentage of what is owed to them or to extend the time to pay your debts or both. Personal bankruptcy involves being discharged from your debts. Insolvency trustees all provide a free consultation and will review your personal financial situation and recommend an option that best fits for you. For more information, stay tuned for episode 47 of Fold em where we get more information from an Insolvency Trustee.
I Have Collection Agencies Calling Me. What Now?
If you don’t make debt payments, a collection agency may contact you to collect money you own on credit card, line of credit or loan. Some creditors have their own collections departments, some may hire a collection agency or sell the debt to one. Either way, you will likely hear about it as you start getting notices in the mail and phone calls.
Amanda notes that this can be really stressful. In dealing with collection agencies, she says that it is important to know your rights and strategies to reduce those calls.
Here are Amanda’s tips for dealing with collection agencies:
Try to Not Avoid Calls
Although it’s stressful to get a call or letter from a collection service, it will likely get more stressful if you avoid them. If you don’t respond, they have the right to reach out to your employer, friends and family to confirm your contact information. Learn about your rights in this situation (see below), confirm the details of the alledged debt to make sure it is yours, and try to work out a payment plan. Or, if you aren’t able to pay the debt, look into options for unmanageable debt (see below).
Request All Communication to be in Writing
To stop the endless phone calls, tell the collection agency both verbally and in writing that you only want them to communicate with you in writing. You will need to provide a valid address.
Know Your Rights
Collection agencies are all regulated by the provincial government. This means that there are clear limits on the hours during which they can call and the number of calls a day. These regulations also protect you against abusive language and threats from the collection agent and requires staff to have a valid license. If you are not being treated appropriately, ask for the license number of the person you are speaking to and ask to be referred to a manager. If this doesn’t help, you can contact your provincial Consumer Protection Agency.
Know About the Statute of Limitations on Debt
There is no limit on how long a collection agency or creditor can try to collect an unpaid debt. However, there is a limit on how long a creditor can take legal action to collect the debt owned to them. In British Columbia, this is two-years after the date an unsecured debt was incurred; the last payment was made; or, the last provable acknowledgement of the debt by the person who owes the money. To find out the statute of limitations in other Canadian provinces, click here. When communicating with collection agencies, use the term “alledged debt” to avoid re-setting this two-year statute of limitations.
If you would like to hear more about dealing with gambling debt from Adrian and Amanda, listen to episode 46 of Fold em. Adrian talks about what helped him to stop gambling and get his finances back on track. Amanda shares important information about dealing with creditors and collection agencies. She also talks about Credit Counselling Societies and how they can help.
To find a credit counselling society near you, check out the Canadian government’s website which has information and listings. In the United States, contact the National Foundation for Credit Counseling. If you live outside of North America, do an online search for credit counselling in your country.
Listen now by clicking on the green play button at the top of this blog or the red “Listen and Subscribe to Fold em” button below.
You can also learn more about credit counselling, consumer proposals and bankruptcy by listening to episode 1 of Fold em and reading the blog.
Check out other episodes of Fold em and be sure to subscribe so you don’t miss out when new ones are released.
Want to Connect With Support and Counselling in British Columbia?
If you live in British Columbia and would like to learn more about free, confidential support and counselling services from Gambling Support BC, click on the red “Connect with Support in BC” button below. Or, go to the Gambling Support BC website. You can also access our services through the Gambling Support Line. It is available 24/7 at 1-888-795-6111.
Gambling Support BC services are available to any British Columbia resident experiencing problems from gambling. You don’t need to stop or quit gambling or be self-excluded to access these free supports.
Our counselling and outreach services can help you figure out how to manage gambling concerns, including how to control or stop gambling. You decide what will work for you.
You can talk to an outreach support person about next steps for yourself if you aren’t wanting counselling. They can help you find self-help resources or local community resources and make a plan that meets you where you are at.
Want to Connect With Support and Counselling in the Rest of Canada and the United States?
For a list of gambling help services in Canada, visit www.gamblingguidelines.ca/getting-help
To find gambling help resources in the United States, visit the National Council on Problem Gambling
Fold em is a podcast hosted by Adrienne Cossom and her colleagues at Gambling Support BC. Whether you are looking at stopping or scaling back your own gambling or supporting a family member with a problem, this podcast will help you take back control. Hear from gamblers who have been through it and get tips from counsellors. Fold em is funded by Gambling Support BC.
To learn more about gambling concerns and how to access resources and support, go to the home page of this website, click on the red “Learn More” button below, or connect with us through Facebook.