Sally Herigstad is a certified public accountant and the author of "Help! I Can't Pay My Bills: Surviving a Financial Crisis" (St. Martin's Press, 2006). She writes "To Her Credit," a weekly reader Q&A column about issues involving women, credit and debt, for CreditCards.com.
Dear To Her Credit,
I was in an abusive relationship. I couldn't get anything
out of him, so I'm leaving my debt behind. He knows where I'm going. Can I be
traced for the debt? -- Kari
Dear Kari,
Many times, money problems and relationship problems become
so intertwined that it's hard to separate the two. That seems to be the case
here. You're running away from abuse and -- no surprise -- financial problems
are part of the problem.
You did the right
thing leaving the bad relationship. Leaving debt, however, is not so easy. If
you have debt in your name, moving doesn't get you out of it. You may not
receive your bills for a time if you don't leave a forwarding address, or if
you purposely stay with a friend or relative so you don't have your own address.
But your bills will still be there. Legally, you still owe them.
If you pretend bills don't exist for months or
years, you may think you got away with leaving them behind. Ignore those bills
for months or years, however, and they'll grow faster than weeds in your
absence. I've received letters from readers whose bills went up fivefold in a
couple of years, thanks to late fees, interest expense and, eventually, court
fees. Don't let that happen to you.
Your creditors will eventually find you, unless you
completely withdraw from society or start a new identity. (And don't even
consider doing that to dodge your debts!) How can they find you? Easily!
Here are just a few ways creditors can trace you:
Online white pages. If you sign up for a new,
listed phone number, a creditor or their agent can find you instantly.
Public records. Buying a house, for example, is a
matter of public record. Creditors used to have to go to the courthouse to find
this information. Now it's keystrokes away on county websites.
Not-so-public records. Firms such as Spokeo.com
gather information about you from various places on the Internet and provide it
to anyone who is interested. Spokeo lets you opt out, which I've done, and I
highly recommend. Other "people search" sites do not.
Facebook. Like to chat online or keep up with
your friends on social networking sites? Unless you have your privacy settings
clamped down extremely well, a creditor can search for you, find out where you
live, and check out your vacation photos. Debt collectors may even publicly shame you on Facebook in their collection efforts. (Debts or no debts, you should always
have your photo albums, Facebook wall and other personal pages set so only
friends can see them.)
Real-life humans. Creditors can and do talk to
neighbors, co-workers and relatives to try to find debtors. Many people-search
websites provide information on next-door neighbors and relatives, just to make
it easier. And don't rule out your ex spilling the beans. He has every
motivation to send creditors in your direction.
The point is not how to hide from your bills. As you can
see, that's next to impossible. You certainly can't start living the
productive, peaceful and fulfilling life you deserve and try to hide from debt
collectors at the same time. Further, unresolved debts can trash your credit score and make it more difficult for you to rent an apartment, get a job, buy a house or get credit you need.
There's only one way out of debt: Face debts, don't run from
them. If you need help facing your debts and figuring out how to deal with them,
get the right kind of help and get it fast! I recommend finding a nonprofit agency
affiliated with the National Foundation for Credit Counseling
or the Association of Independent Consumer Credit
Counseling Agencies. Or, there may be someone in your family, church or circle
of friends who can look at your situation with you.
You're the one in control of your new, independent life.
Make the most of it, and take care of your credit!
Sally Herigstad answers questions about credit every week for CreditCards.com. Herigstad is a certified public accountant, author and speaker. She also writes regularly for MSN Money, Interest.com, Bankrate.com and RedPlum.com, and has been a guest on Martha Stewart radio and other programs. You can read more about personal finance and download free budgeting worksheets at her website: www.sallyherigstad.com
To Her Credit answers a question about a debt or credit issue from a CreditCards.com reader each week.
Send your question to Sally.
Published: December 3, 2010
Three most recent To Her Credit stories:
Should one spouse take on full debt load? – A married couple with joint card debt wants to transfer the balance to a lower rate card. Should the better credit score spouse take on the burden alone? ...
Can you use dad's credit card when he's ill? – An adult child is taking care of her dying father and wonders about the legality of using his plastic to pay for bills and medical expenses ...
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