interest on arrears

[yaright]

I live in Southern California and my case is out of Riverside. I currently and have been, paying current child support and arrears but my interest is overwhelming. I continue to get buried on interest. I pay current child support, in addition to arrears on a monthly basis, but my interest accumulated is so high that my balance continues to increase. Is there anything that I can do? Any suggestions would be greatly appreciated.What is the name of your state?

 

[Zigner]

I live in Southern California and my case is out of Riverside. I currently and have been, paying current child support and arrears but my interest is overwhelming. I continue to get buried on interest. I pay current child support, in addition to arrears on a monthly basis, but my interest accumulated is so high that my balance continues to increase. Is there anything that I can do? Any suggestions would be greatly appreciated.What is the name of your state?

You can find a second job...
You can find a better first job...
You can petition the court for a reduction (if appropriate)...

Interest is set by the state...

 

[Silverplum]

Take out a loan and pay off the arrears, or at least a good chunk of them? The interest on the loan will likely be lower than the interest on the back CS.

 

[Gracie3787]

I live in Southern California and my case is out of Riverside. I currently and have been, paying current child support and arrears but my interest is overwhelming. I continue to get buried on interest. I pay current child support, in addition to arrears on a monthly basis, but my interest accumulated is so high that my balance continues to increase. Is there anything that I can do? Any suggestions would be greatly appreciated.What is the name of your state?

I understand your frustration about the interest. Personally, I think it stinks that interest can even be added, but unfortunately that's what the law allows for.

The easiest way is to pay off the balance, but, if that's not possible at all, then talk to an attorney about the possibilty of gouing to court and asking that future interest be waived.

Is there anyone you can borrow from? Do you own a home with enough equity to borrow against? Can you get a second job or earn extra money that can be applied each month to the arrears? Is the state already intercepting your tax refunds? (if not, that can be used to pay down the balance).

 

[fairisfair]

I understand your frustration about the interest. Personally, I think it stinks that interest can even be added, but unfortunately that's what the law allows for.

The easiest way is to pay off the balance, but, if that's not possible at all, then talk to an attorney about the possibilty of gouing to court and asking that future interest be waived.

Is there anyone you can borrow from? Do you own a home with enough equity to borrow against? Can you get a second job or earn extra money that can be applied each month to the arrears? Is the state already intercepting your tax refunds? (if not, that can be used to pay down the balance).

I am interested in what your argument against interest being charged might be??

If NCP "borrowed" the money from CP, I suppose THEN it would be all right to charge interest???

 

[Gracie3787]

I am interested in what your argument against interest being charged might be??

If NCP "borrowed" the money from CP, I suppose THEN it would be all right to charge interest???

My argument isn't a legal argument since the law allows interest to be charged. My problem with it is that once a NCP begins making payments on the arrears, the interest can be very counterproductive. I understand and basically agree that a CP had to do without, but, why should a CP be rewarded and recieve sometimes double the amount as would have been recieved if paid on time. Personally, I think this is one of the reasons that so many CPs refuse to try to enforce an order, because they know that if they can do it financially for awhile without CS, they can reap huge rewards later on getting interest along with the arrears. (my hubby's ex did this, but it backfired because FL law allows for CSE to waive interest, which they did because she actually admitted that all she wanted was all the extra added).

Personally, I think interest should accrue only up to the time that a NCP begins making payments, then the future interest should be abated, until of course the NCP stops paying again, then it can accrue again. But, that is only my opinion based on what I think is fair and just.

 

[yaright]

thank you for the responses

Just wanted to thanks those who have responded to my post. I really appreciate the advice.

F. Y. I... the reason I am so frustrated is that orginally my arrears were only 12k and I have been paying that off ( I thought ) for almost 2 yrs and now my arrears balance is 22k. Last month I paid 675 for current child support and 325 for arrears. I wish I could charge the way the county of riverside does. They take my current child support amount and add it to my arrears balance and then accumulate the interest on that amount. So I pay apprx 975 a month and balance continues to go up. My ex has never once collected any monies from the county or anyone agency.

I think getting a loan to pay off the balance is the best idea.

 

[fairisfair]

My argument isn't a legal argument since the law allows interest to be charged. My problem with it is that once a NCP begins making payments on the arrears, the interest can be very counterproductive. I understand and basically agree that a CP had to do without, but, why should a CP be rewarded and recieve sometimes double the amount as would have been recieved if paid on time. Personally, I think this is one of the reasons that so many CPs refuse to try to enforce an order, because they know that if they can do it financially for awhile without CS, they can reap huge rewards later on getting interest along with the arrears. (my hubby's ex did this, but it backfired because FL law allows for CSE to waive interest, which they did because she actually admitted that all she wanted was all the extra added).

Personally, I think interest should accrue only up to the time that a NCP begins making payments, then the future interest should be abated, until of course the NCP stops paying again, then it can accrue again. But, that is only my opinion based on what I think is fair and just.

and I think that if the money was in the hands of the person it belonged to, they wouldn't be paying that penalty. THAT is what the interest is, a penalty for non payment. If the CP had the money, they would certainly have the right to invest it in an interest bearing or another type of growth investment.

If you hold money that belongs to a bank, you most certainly pay, on the balance owed, for the total amount owed. Not just those months that you don't make a payment. Quite honestly, that makes no sense whatsoever.

 

[fairisfair]

Just wanted to thanks those who have responded to my post. I really appreciate the advice.

F. Y. I... the reason I am so frustrated is that orginally my arrears were only 12k and I have been paying that off ( I thought ) for almost 2 yrs and now my arrears balance is 22k. Last month I paid 675 for current child support and 325 for arrears. I wish I could charge the way the county of riverside does. They take my current child support amount and add it to my arrears balance and then accumulate the interest on that amount. So I pay apprx 975 a month and balance continues to go up. My ex has never once collected any monies from the county or anyone agency.

I think getting a loan to pay off the balance is the best idea.

I think getting a loan is the best idea as well. As was pointed out to you previously the interest rate on almost any type of loan is certain to be less than what you are paying now.

Since you mention the fact that your ex has never collected any type of monies from any agency, I am assuming that you are speaking of any type of welfare benefits.

If this is the case, you might certainly approach your ex regarding a lump sum arrears settlement in an amount less than you owe. Be sure that you get any agreement in writing and file it with the appropriate court. Of course, she can certainly refuse, but it is worth a try. And remember, that this does not negate your responsibility for paying current and future support in accordance with your court order.

 

[LdiJ]

I live in Southern California and my case is out of Riverside. I currently and have been, paying current child support and arrears but my interest is overwhelming. I continue to get buried on interest. I pay current child support, in addition to arrears on a monthly basis, but my interest accumulated is so high that my balance continues to increase. Is there anything that I can do? Any suggestions would be greatly appreciated.What is the name of your state?

You already got good advice about trying to get a loan to pay off the arrearages....other than that, the only way to make the arrearages go down, is to make sure that you are paying enough on a monthly basis to cover not just interest, but to also pay down the principal.

Your balance is currently increasing because the amount you pay towards arrearages is less than your interest. If you can't do a loan, then consider getting a second job and using the entire proceeds from that to pay down your arrearages.

 

[fedupinFL]

but, why should a CP be rewarded and recieve sometimes double the amount as would have been recieved if paid on time.

Because NCP's think that it's ok not to pay your support on time, or that it's ok not to pay it at all.
If the OP had paid like they were supposed to, then they wouldn't be here whining about paying interest on the original 12K.
The CP was the one trying to figure out how to make ends meet without receiving the court ordered support they deserved, now the OP can figure out how to make up for it by working a second job or taking out a loan. Do whatever you need to do to take care of your obligations.
Besides, that money is for the child, not the CP.
I think that NCP's tend to forget that when it comes to handing that money over every month. I wish they would think of it as paying their child's way in life until the child is grown and able to do that for themselves.

 

[yolandanewell]

Just my opinion....

You owe less in child support than most people purchase cars for. I find it a little curious and annoying (not toward YOU directly but just in general)... that those that owe support pay more in cable in a year than what arrearages add up to for non payment. ( well you get the idea ).

Get a second job - pay it off and get back on track. To have an original amount owed of 12 grand is a huge chunk of change that could have been easily kept under control had you had been paying all along...

Take care of that baby (or babies)

 

[CourtClerk]

As was pointed out to you previously the interest rate on almost any type of loan is certain to be less than what you are paying now.

We are making the assumption that the OP has been more responsible with his/her finances then he/she has been with his child. Meaning, we are making the assumption that the OP has good credit. Interest on judgments and support in California is 10%. I guess if he got a personal loan for the amount of the arrears and it was less than 10% interest rate, then yes, they'd be in a better position... but what if the interest rate was at 10, 12 or 15%?

Although I will say, the CP would be real nice and happy if the OP got a loan for the arrearages and finally paid his debt.

 

[fairisfair]

We are making the assumption that the OP has been more responsible with his/her finances then he/she has been with his child. Meaning, we are making the assumption that the OP has good credit. Interest on judgments and support in California is 10%. I guess if he got a personal loan for the amount of the arrears and it was less than 10% interest rate, then yes, they'd be in a better position... but what if the interest rate was at 10, 12 or 15%?

Although I will say, the CP would be real nice and happy if the OP got a loan for the arrearages and finally paid his debt.

Of course, you are right, we are all assuming that he/she is able to determine that 12% is more than 10%. LOL

Happy Turkey Day CC!!

 

[Gracie3787]

They take my current child support amount and add it to my arrears balance and then accumulate the interest on that amount.

Is the state CSE agency involved in your case? If so, you need to talk to a caseworker ASAP. They are not supposed to charge interest on the current support, which explains why your balance continues to increase. If the CSE won't stop charging interest on the current support, you'll most likely need to see an attorney.

Unfortunately, the way they are doing it, getting a loan might not even solve the problem, but be sure to ask them also what will happen if you pay the arrears off in a lump sum.