Feel like I messed up my life…getting sent to Franchise Tax Board?

Seeking Advice
1

Hey everyone, I’m 23 and really stressed about my finances. I owe $6,000 in collections, mostly from unpaid college fees. I didn’t keep up with the payments because I got caught up with friends and dating, thinking I could just tell my parents about it later and they’d help me pay it off. But my dad passed away right after my school year ended, and I never got the chance to ask for help. After that, I felt so down and just ignored the emails from my college.

Since I didn’t pay, the debt got sent to collections, and now they won’t stop calling. I work a low-paying job and help my mom with bills, so I can’t afford to pay this off. Now I got a letter saying my name is about to be sent to the Franchise Tax Board if I don’t pay the whole amount in 30 days. I feel stuck and hopeless watching my friends move on with their lives. If anyone has advice on what I can do, please share.

2

Time to stop avoiding it! You won’t change things unless you start dealing with the collection agency directly.

3

Not sure about all of this, but here’s what I’ve read:

  1. Keep in touch with whoever’s handling your debt. Offer a payment plan based on what you actually earn.

  2. Look into bankruptcy as a possible option. It may help in situations like this.

4

Time to start adulting. Don’t ignore their calls or emails, and see if they’ll work with you on a payment plan.

5

The Franchise Tax Board will add a 25% interest tax on that $6k. If you have a job, maybe get a second part-time one too. Call them and work out a way to pay it off so it doesn’t follow you around for years.

6

Pretty common situation. A few ideas:

This forum has plenty of people sharing budgeting tips, and there are tools like YNAB that might help (they offer a free trial and lots of helpful videos). Check out discussions in budgeting forums—they often mention things that help with planning expenses.

You could also check out financial advice pages like Dave Ramsey or The Money Guy. Some focus on long-term goals that might be helpful once you get out of this mess.

7

6K isn’t too crazy—if you work hard and cut out extra spending, you can knock it out faster than you’d think.

8

Not gonna sugarcoat it… the Franchise Tax Board is way tougher than the IRS. You’ll want to pick up some extra work and focus hard on paying them off. It’s not just the $6k—you don’t want the FTB on your back for years.

9

I’m in a similar boat with nearly 10k debt, dropped out of school, and I’m just starting to earn a bit. Try working with them, and maybe ask your bank about consolidating loans. It’s rough, but you’re not alone.

10

Bankruptcy could clear it, but consider ways to start building credit back too—like small credit card purchases paid off monthly.

11

Back in ‘94, I moved with nearly $18k in debt and worked a $7.50-an-hour job. I hustled like crazy, worked extra shifts, and paid it off in under a year. If you set it as a goal and stick to it, you’ll get there!

12

First off, take a breath—it’s scary now, but you’ll handle it. Lots of folks have gone through something similar, and you’re learning as you go.

Credit card debt usually goes to collection agencies if it’s unpaid, and they buy it from the original lender for pennies on the dollar. They make money by trying to collect more than they paid, so don’t panic.

As long as you don’t give them any extra info, they have limited ways to collect. Block their calls and try focusing on ways to get your income up. It’s tough, but you’re not alone in this.