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  #1  
Old 08-29-2011, 09:13 PM
InNeedOfAdvice InNeedOfAdvice is offline
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Exclamation Debt/Financial advice please

Hi,

Thanks to everyone in advance for taking the time to review my debt issue!

Here is what i have for loans/debt:

Motorcycle loan - 5100 w/20% interest min payment per month ~175
Car loan - 4500 w/22% interest min payment per month ~225
Credit card (acct closed) - 500 w/10% interest min payment per month ~25
Credit card (acct closed) - 6000 making no payments unkown APR

Monthly expenses:

Utilities (gas/electricity/water) - ~150
Cellphone(s) - ~160
Food/non food - ~300
Cable/internet - ~35
Wifes CC- ~30
Rent - 730
Fuel - ~50
Car Insurance - ~135
Going out/extra expense - ~100

Total 2115

Monthly Gross at a solid ~2150. Im a full time employee @ 16.95 (16.95x80=1356 (1 paycheck)x2=2712 (2 checks in a month)x0.8 (amount taken out in taxes)=2169.6)

I lost my nice paying IT job in 2004 that was full time @ ~10.50 an hr, i JUST bought a house a month before i lost my job... my house forclosed because i couldnt get a 'good' job till 8 months later (couldnt make payments for 8 months)

Thought i was recovering after i got my new job (start pay 11.00) but come to find out my ex took one of my credit cards and maxed it out to 5000 and never payed anything. On top of that my young and dumbass co-signed with her dad on a 500cc motorcycle to get me around, this was in 2006 on a loan of ~8000 @ 10%. a year after that i took out a loan of 9000 @ 20% for my car (which is when i found out about the 5000 credit card). i then became stupid and decided to stop making payments on my moto for 4 months and that hit me hard...

im wondering what i should do... my 6000 credit card hasnt had any payments to it for 5+ years. i cant refinance the moto because its valued @ 2500. i cant refinance my car because of the credit thorn in my side of 6000 (valued @ 7500). I have been solid on ALL of my bills for 3 years other than the 6000 loan (havent missed a beat)

i dont want to contact the 6000 loan because i dont have money in the budget to pay them... and if they find me they could garnish my checks which will REALLY hurt me because i have an 11 month old and a wife (no income) to take care of.

i have looked into bankruptcy/debt consolidation and I personally want to stay far.... far... away from them.

any help in the right direction will help! im big into looking into all options so please dont hold back! thank you so much for reading this!
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  #2  
Old 08-30-2011, 09:19 PM
mikekjr26 mikekjr26 is offline
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Default Re: Debt/Financial advice please

Several small things you could do but they come with sacrifice. Take the "going out money" out of the equation. Drop cable and drop to one cell phone with maybe a different carrier. that should give you enough extra money per month to contact that 6000 loan and start paying it off. Always remember some of the things we pay for are luxuries, luxeries are not needed and can only be had if the finances cover it. In this case yours do not. Some adjustments in your lifestyle will need to change in order to accomodate your debt. Sorry for the bad news but it is reality. More importantly a motorcycle and cellphones and television plus going out money are things that can be taken out. especially with a wife and a baby. Sometime decisions are hard and we dont want to make them but all you need is a vehicle electricity food and water and especially do not need creditors garnishing your wages and cutting into the things you need for your wife and kids. I know no tv and one cell phone would not be cool and maybe have someone take over payments on the bike or figure something out with that. You are going to have to make sacrifices for your families finances in order to better provide for them and to ensure no dangerous financial issues in the near future. Sorry if I come across pretty straight forward but thats my opinion on what i would do in that case. Good luck hope this helps

Last edited by mikekjr26; 08-30-2011 at 09:24 PM.
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  #3  
Old 09-01-2011, 10:40 AM
littleroc littleroc is offline
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Join Date: Mar 2011
Location: Minnesota
Posts: 334
Default Re: Debt/Financial advice please

Sorry but this thread is difficult for me to read. So lay it out. How much do owe on the moto and how much do you owe on the car? Also what are they worth according to KBB?
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  #4  
Old 09-02-2011, 12:13 AM
InNeedOfAdvice InNeedOfAdvice is offline
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Default Re: Debt/Financial advice please

the bike amount left is~ 5100 with an interest of 20% and minimum payments of ~175 per month, KBB 2500.

car is ~4500 left with 20+% interest and a minimum payments of 225 per month, KBB 7500

i love the feed back mikejr26. i want to cut back but alot of things are a necessity. i need 2 cells because of multiple reasons; i need it for work, my wife needs one for being out and about and we dont have a lan line. my cable is HEAVILY discounted because that who i work for, what i pay for are some equipment fees (which are also discounted heavily). going out money is almost a need everyone needs in life.... 100 for going out is practically nothing now a days (all work and no play makes jack a dull boy)

in anyones experience what would happen if i contact the creditors with the 6000? i have a bad feeling of being 'tricked' into giving them my info and them garnishing the crap out of me. i WANT to pay off that loan but i dont want to pay more than 40 a month on it. i dont want to settle it either (like pay half of it) cause i heard that also has a negative effect on your credit, is that right?

this 6000 credit line is killing me. i cant lower the apr on my vehicles! one vehicle i have ive practically paid TRIPPLE on for something thats now worth 2500 and still has 5000 left! meanwhile the other isnt to far behind of the same scenario
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  #5  
Old 09-02-2011, 02:40 PM
littleroc littleroc is offline
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Join Date: Mar 2011
Location: Minnesota
Posts: 334
Default Re: Debt/Financial advice please

Oh my god perfect! Sell the car and the bike which by selling the car will give you $3,000 for the sale of the car and use $2500 to pay off the rest of the bike which leaves you $500. Now can you scrape up another $500 to buy a used toyota camry with like 180k miles on it or something reliable but cheap as heck? This frees up $400 a month extra which you save up $3000 in 7 months and then call up the credit card company to make an offer of 3k. I know you owe 6k, but since it's been 5 years they should make a deal if your persistent. Good luck!

p.s. You won't be driving a beater forever, but your trying to get out of debt. Once your out of debt save cash for 6 months and you can buy say a 5-8k car for cash for something reliable.

Last edited by littleroc; 09-02-2011 at 02:44 PM.
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  #6  
Old 09-03-2011, 03:10 AM
Fredy Atwater Fredy Atwater is offline
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Thumbs up Re: Debt/Financial advice please

Listen to Little Rock
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  #7  
Old 10-16-2011, 11:34 PM
Bianca_cruz Bianca_cruz is offline
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Default Re: Debt/Financial advice please

Nice advise littleroc
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