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  #1  
Old 12-05-2012, 02:42 PM
krete77 krete77 is offline
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Cool In debt for over 12 years..need a change badly

Good afternoon all,

So I have been browsing through this forum for about a month now. I've been telling myself to get my financial situation straight for over the past 2-3 years, but haven't taken any steps really to do anything about it. However, getting on this forum was a first step for me, and now I am going to put my whole situation out there and see where I'm at.

I would like a non sugar coated response. Basically, kick me in the nuts if you have to and let me know exactly where I stand.

Ok, so my financial situation:

First off, I'm 29. I have been horrible with money ever since I was kid; at 17, I got my first CC with a 200$ limit and ran it up to 800$. I have continued that trend as far as credit is concerned. I joined the navy in 2003, and basically had a guarenteed paycheck for the 4 years following. I got out in 2007 with about $17k in debt, and zero savings. Since then, I have been going to school and have been back and forth with debt. I guess the good thing is that I have paid a significant amount of debt down since then, however, I still have no idea how to manage money, credit, savings, etc..

My income is $2,250 a month take home (after taxes).

Total debts:
------------
Consolidation loan: $600 (started at $5,000) (0% apr)
VISA: $955 (12%)
Bestbuy: $265 (21%)
Belden CC: $222 (22%)
AmXpressCC: $1089 (22%)
Captial1: $967 (22%)
citiMC CC: $1656 (22%)
ToTAL: $5754

Other debts:
-----------
Mass unemployment: $2100; I was found at NOT FAULT for this repayment, so I only pay this when I want to however, i

just want to have it eliminated and out of my head..it's a last priority since no interest is accumulated, and i have no monthly payment required.

Monthly payments:
----------------
Rent: $350
Cell: $75
Consol.Loan: $151
VISA: $20
CarIns: $75
BestbUy: $25
Belden CC: $55
AmXpress CC: $25
YMCA Gym: $21
Capital1 CC: $25
Citi MC CC: $20
Daycare: $200
Chldsupport: $200
Gas: $250

Total: $1,492

I play in a local poker league 2-3x/week, which costs 15-20$ for each game, so I'm burning a lot of money on this also. I don't ever spend more than this though. I spend money on food but have no idea how much.

I started my first savings this month and put 300$ away and promised myself not to touch it no matter what this month. This is the first time I have ever done this.I get paid once a month, so I pay all my bills on the first and am left with the little bit to survive on.

My immediate goals in life is to actually have a savings with money in it, be totally debt free, and to buy a condo by next march-april. is the condo idea actually achievable within 3-4 months? I don't know but it's what I need to do. I'm not living in the most ideal of situations, and I want to be able to have a place for my daughter to come sleep when she is with me, rather than staying at my parents house.

I don't want the responsibility of a house. I enjoy apartment living but am sick of paying rent for the past 10 years with nothing to show for it.

I need a swift kick in the ass as far as getting motivated to become debt free. I have a serious problem with putting things I enjoy before my priorities. I'm a full time student, in my senior year at a university majoring in Computer science, and only have 10 classes left for my degree.

Any thoughts or suggestions about what I can do to snap out my rut would be extremely helpful, and I'd be extremely grateful. Thanks for reading.

- Ryan
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  #2  
Old 12-05-2012, 04:38 PM
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DavidBibby DavidBibby is offline
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Default Re: In debt for over 12 years..need a change badly

Ryan,

I ran your numbers through my debt elimination engine. You could be debt free in 21 months without spending a dime more than you do today.

Right now your first priority is to pay off that consolidation loan. That's going to free up $151 in your budget right away. But you need to USE that $151 towards the next debt in the list.

This is the plan I believe will work for you. If you can add more money to this plan... you'll pay it off much faster and save even more interest.

Your 1st identified target is the Consolidation Loan other
Today you have a balance of $600.00 and a monthly payment of $151.00.
It will take approximately 4 months at $151.00 to pay it off.
Total in Payments: $600.00
Total Interest Paid: $0.00
Total Interest SAVED: $-0.00

Your 2nd Target is the Belden Credit Card
Today you have a balance of $222.00 and a monthly payment of $55.00.
You’ll have already made 4 payments of $55.00 when you reach this debt.
Once the previous debt is gone, your Belden balance will be $14.05 and your payment will increase to $206.00.
It will take Less than a month at $206.00 to finish it off.
Total in Payments is $232.73
Total Interest Paid: $10.73
Total Interest SAVED: $0.02

Your 3rd Target is the BestBuy Credit Card
Today you have a balance of $265.00 and a monthly payment of $25.00.
You’ll have already made 5 payments of $25.00 when you reach this debt.
Once the previous debt is gone, your BestBuy balance will be $180.47 and your payment will increase to $231.00.
It will take Less than a month at $231.00 to finish it off.
Total in Payments is $284.36
Total Interest Paid: $19.36
Total Interest SAVED: $11.31

Your 4th Target is the Capital1 Credit Card
Today you have a balance of $967.00 and a monthly payment of $25.00.
You’ll have already made 5 payments of $25.00 when you reach this debt.
Once the previous debt is gone, your Capital1 balance will be $930.58 and your payment will increase to $256.00.
It will take approximately 4 months at $256.00 to finish it off.
Total in Payments is $1,092.73
Total Interest Paid: $125.73
Total Interest SAVED: $606.60

Your 5th Target is the AmXpress Credit Card
Today you have a balance of $1,089.00 and a monthly payment of $25.00.
You’ll have already made 9 payments of $25.00 when you reach this debt.
Once the previous debt is gone, your AmXpress balance will be $1,042.37 and your payment will increase to $281.00.
It will take approximately 4 months at $281.00 to finish it off.
Total in Payments is $1,305.18
Total Interest Paid: $216.18
Total Interest SAVED: $899.97

Your 6th Target is the VISA Credit Card
Today you have a balance of $955.00 and a monthly payment of $20.00.
You’ll have already made 13 payments of $20.00 when you reach this debt.
Once the previous debt is gone, your VISA balance will be $816.49 and your payment will increase to $301.00.
It will take approximately 3 months at $301.00 to finish it off.
Total in Payments is $1,082.08
Total Interest Paid: $127.08
Total Interest SAVED: $222.66

Your 7th Target is the citiMC Credit Card
Today you have a balance of $1,656.00 and a monthly payment of $31.00.
You’ll have already made 16 payments of $31.00 when you reach this debt.
Once the previous debt is gone, your citiMC balance will be $1,644.84 and your payment will increase to $332.00.
It will take approximately 6 months at $332.00 to finish it off.
Total in Payments is $2,213.60
Total Interest Paid: $557.60
Total Interest SAVED: $4,407.55

SUMMARY

Total Plan Time: 21 months.
Total of all Payments: $6,810.68.
Less Principal: -$5,754.00.
Total Interest Paid: $1,056.68.
Total Interest SAVED: $6,148.12.
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Old 12-06-2012, 05:08 PM
Fredy Atwater Fredy Atwater is offline
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Default Re: In debt for over 12 years..need a change badly

Hi krete77 :

Welcome to our forum. Follow David's advise. And be aware we get into credit card debt when we go out without knowing how much we are going to spend. So its a good idea if you also follow the steps below .

OK

Lets start

1- Buy yourself a Monthly Bookkeeping notebook you really love and use one page only to record all your income and your list of expenses.That book should last you at least 4 years. Do this stuff every month of your life.
2- Don't use checks , instead schedule all your payments through your pay bill bank service.
3- Pay for all your expenses in cash and keep only one credit card for use when you exceed your budget which shouldn't be so often. Don't use your debit card at all in that way you will avoid any chance of creating an overdraft fee.

This next part is the most important one.

4- Calculate how much you spend per day, then multiply that figure by 7 days of the week, then multiply your weekly expense by 5 weeks of the month.
5- You will notice that only 4 times of the year the fifth week of the month has 7 days but in the remaining 8 months the fifth week doesn't have 7 days.
6- In the months that the fifth week doesn't have 7 days you are going to add the days of the first week of the next month in order for the fifth week to have 7 days and you will save one week of money.
8- Save money monthly. Make it a goal to have at least $1000 in cash . Take a year to do it. Try to keep that balance. That money will back you up when your'e short of money.
9-Eat more often at home and be more time at home. The more we go out the more we spend.
10- I give my wife $140 monthly for her personal expenses. I don't pay myself.

You don't need to write down your expenses to the penny in your accounting notebook.

Just make a thorough list of all your expenses and pay them automatically.
Budget your day,week and month and stay within that budget. No need to document that to the penny. Just document the weeks and the amount.

You are going to withdraw money one week at the time.

At the end of the day set aside all your coins and let them accumulate.

With time you'll love doing this stuff. I love it.

Did you find my suggestions helpful ?

If you still have any questions after you put to practice my technique please let me know. I'd be more than happy to help you.

I don't pay any attention to my monthly statement because I do all the work on the first days of the month that I have all my payments scheduled by going online.

Welcome to our forum Ryan

If you have any more questions I will try to answer them. Listen to David first.

Fredy Atwater
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  #4  
Old 12-08-2012, 02:18 PM
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thesimplemoneyblog thesimplemoneyblog is offline
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Default Re: In debt for over 12 years..need a change badly

Great summary, DavidBibby!
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  #5  
Old 12-10-2012, 04:30 PM
Fredy Atwater Fredy Atwater is offline
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Default Re: In debt for over 12 years..need a change badly

Ryan where are you ?
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  #6  
Old 12-10-2012, 11:32 PM
krete77 krete77 is offline
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Default Re: In debt for over 12 years..need a change badly

Quote:
Originally Posted by Fredy Atwater View Post
Ryan where are you ?
I'm right here Freddo.
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  #7  
Old 12-11-2012, 05:33 AM
Fredy Atwater Fredy Atwater is offline
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Default Re: In debt for over 12 years..need a change badly

We are trying to help you Ryan.
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Old 12-11-2012, 05:48 AM
Fredy Atwater Fredy Atwater is offline
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Default Re: In debt for over 12 years..need a change badly

Thank you for coming soldier Ryan.
Thank you for calling me Freddo. Yes, I am Alfredo.
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Old 12-11-2012, 08:44 AM
krete77 krete77 is offline
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Default Re: In debt for over 12 years..need a change badly

I will reply when I get a chance to put it all together. Thanks.
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Old 12-11-2012, 04:10 PM
Fredy Atwater Fredy Atwater is offline
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Default Re: In debt for over 12 years..need a change badly

Thank You soldier Ryan.
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  #11  
Old 12-13-2019, 05:09 AM
SunnyMay SunnyMay is offline
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Default Re: In debt for over 12 years..need a change badly

I can't even imagine what is able to save you now. Miracle, maybe... So, you can try to play joker123 and win there money. As far as I know there pretty high chances of winning a good amount of money. It can help you to improve your financial state or you'll fail.
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