I just don't have the money

[LazarusMom]

I got a letter from a third party collector stating I owe $120 withen 20 days of the date of the letter. I recieved this letter almost 20 days after they sent it. They are on the East coast, I'm on the Weat coast. Today, a few days after recieving the first letter I got another one saying I now have 20 days from this date to pay $545. I have a few questions:

1) How did the amount go up so much, so fast?
2) I don't work, I'm a stay at home mom, what happens if I can't pay?
3) What are my options?

 

[tpajet]

You need to call them and find out why the amount shot up like that. It would help in answering your question if we knew a bit more about the original debt.

Something that throws up a flag to me is that you said they sent you a letter claiming you owe this. Is this for a debt you are aware of?

Other than that, if they can prove the debt is legit, they can get a judgment against you that will have to be paid, although you can pay it in payments, and if it does come to this, you will get a summons for court. So, in that case, go to court, and explalin your side. The problem is it sounds like there are penalties being tacked on, which may or may not be legal, depending on the terms of the original debt. But the important thing is, if you go to court, the judge can at least order that you only owe the original debt, and not the penalties.