Wage Garnishment

I just received notice that my wages will be garnished for a discover card. THere was a judgment against me and I have tried to make payments. We got into the payday loan trap and struggled to get out. My wife started a new job to help get us out and thankfully we are almost there. This garnishment would screw up the progress that we have made. In a couple of months I could start to make payments to discover. I live in Iowa, what are my options?

Have you tried to contact Discover? If they are unwilling to make other arrangements, then you have no options. Waiting for payment is probably not acceptable to them ( i.e. promising payment in a few months).

Have you considered credit counseling? Many local agencies provide it (non profit ) such as the United Way. Look in your phone book yellow pages for credit counseling. Make sure the place you call is NOT a "for profit" place---only non profit. They will assist you in contacting your creditors, arranging payment through them, etc. Its worth a shot.

You really don't have a choice at this point as your employer is required comply with the assignment, but there's nothing preventing you from contacting Discover yourself and working out lower monthly payments. If by some chance Discover does agree, make certain you get a revised wage assignment ASAP. Be persistent .. and if needs be, follow up all telephone calls with letters to let them know how serious you are in repaying the bill.

You can also try and either renegotiate the payday loan (pay attention to those interest rates) or obtain another loan to pay off both balances in full. If you do this on your own (without a 3rd party intervention,) you'll save yourself not only the time factor, but additional out of pocket expenses as well. Creditors aren't bound by law to agree to any 3rd party proposals, but will usually work with you to come up with some sort of revised agreement. (FYI..There's also less chance of adverse credit being entered on your credit report if you deal directly with them.)

Just out of curiosity, do either of you have access to a credit union or 401k plan to borrow against? Or a family member willing to cosign?