Credit Card Debt/Problems paying bills - Page 3

monster · 01-03-2008, 03:51 PM

Quote:

Originally Posted by bbro

I was also thinking of getting the equity on my car to help. It will only make a small dent, but it should lower the monthly payments of the big interest card and also re-finance the car loan to a lower monthly payment. I am waiting to get information from them on this.
.

How about you change the car? if the"equity" is enough to make a refi worth while, it's surely enough to buy a runaround for which you won't need to make payments. this will likely reduce your motor insurance premiums too.

Aliantha · 01-03-2008, 05:49 PM

I'm with monster. Sell the car and use whatever is left over to buy a cheap little car or maybe even a scooter? And put the rest on your debts. Then as they say, you just have to bite the bullet. Live lean for a while. 2 minute noodles are nice and cheap.

To answer one of your first questions, I've been where you are, although not $30k worth. I had about $20k CC debt which I paid off over a period of about 4 years. You can do it if you really try hard, and in the long run it'll be better for you if you don't have to go down any of those paths which will affect your credit rating.

I don't know if it's the same here as it is over there, but often time if you can't pay your debts, you can come to an arrangement with the CC company to pay out a certain percentage of the debt. If you're a good negotiator you might get it as low as 30% of the total once it's been sold to the collection agency, which happens after you tell the bank you can't pay. That will still give you a mark on your credit rating, but not a bad one.

You're only in your 20's aren't you bbro? You'll be able to recover from this.

classicman · 01-03-2008, 06:03 PM

Thats pretty much what I was thinkin too, Ali. I still say talk to a real pro and see what they can do for you. Maybe even a bankruptcy attorney!?

Griff · 01-03-2008, 07:42 PM

Lots of good advice here. The other benefit of getting a second job is that you'll have little time to spend money. Work out a bare bones budget that is doable and buckle down. Good luck!

BrianR · 01-04-2008, 07:43 AM

bbro: you haven't mentioned how much you make annually.

When I had debt problems (almost done with them now), I got a new job. Now I'm a trucker. Perhaps you should go for a better-paying job, focus on paying off your revolving debt (bad interest there) and living more within your means.

My company is always hiring...

wolf · 01-04-2008, 03:41 PM

How you deal with debt is going to depend on what you're willing to do and sacrifice to get there. The suggestion to sell the car and buy cheaper, but adequate transportation is a very good one. I wasn't willing to make this particular concession, and lived with a $300 car payment for a couple of years. I just finished paying off the car.

I would absolutely suggest that you get Dave Ramsey's book, The Total Money Makeover. I have been using his program for the last couple years, and have only 1/3 of my original debt level remaining. I haven't been as aggressive about the Debt Snowball as I should be, but IT WORKS. You pay as much as you can to the card with the lowest amount owing, and minimum to everything else. When that card is paid off, you add the amount you were paying to the minimum of the next higher card.

I shifted some of my debt around to lower rate cards as well. I did NOT open any new accounts, I just used balance transfer deals on cards I already had, and I did the math to make sure the balance transfer fees didn't exceed the amount of money I expected to save because of the lower percentage rates.

You also need to stop buying stuff on cards. Completely. (this is one of the places that I'm not so good at, but I have taken the tactic of using one of the paid-off cards and paying the full outstanding balance every month. Not perfect, but it's at least workable for me.

You need to keep a spreadsheet showing your progress, and keep it posted somewhere that you can see it every day. Know what you're working for and how much progress you're making. It starts slowly, but like the Snowball it's named after, it moves faster and faster.

The first step seems really hard ... it's save $1,000. You'll end up scrimping and crying and being annoyed with yourself, but it's easier than you think at this point.

The system is about changing habits.

bbro · 01-04-2008, 04:18 PM

Thanks for all the info wolf. I am making some progress. I have taken the first steps to getting more money in my pocket so that I can start doing those things. I like the idea of a progress sheet, too. I could put it on my freezer where my cards are going, so every time I go for it, I know why I can't.

I have applied for a couple of part-time jobs, talked to my consulting company about getting more money a month. They told me to figure out what I need to stay with this job. Now, I just have to figure out how to do that with all the taxes and stuff.

I'll keep you updated.

classicman · 01-05-2008, 01:11 AM

sounds great!

bbro · 01-08-2008, 12:48 PM

Well, some maybe good news. The increase in pay is most likely. Let me see if I can get this right. The guy (M.C)that I contact at the consulting company said that the woman (S.C) that contacts the company I work for (E.C) had already talked to my boss about an increase, but didn't give a figure. M.C said that S.C said that E.C is open to the idea of paying me more. When I told M.C the figure I need, he said that it shouldn't be a problem at all.

I also called my credit union to see about a personal loan. That way, I figure I can at least pay off one credit card and pay them back over a longer time with a lower interest rate (fingers crossed) and smaller monthly payment.

With both of these things, if they work out how I hope, I will have enough money to pay bills, hide my cards, and still be able to live.

I even have an option of carpooling with someone at work. We would drive alternate weeks to save money.

Keep your fingers crossed!

aimeecc · 01-08-2008, 01:19 PM

My sister was in the same boat a few months ago. She is slowly making her way out - but one reason is because she got a raise at work.
Try refinancing the car to a lower rate.
Also try to consolidate to one card and/or one consumer loan. One 'trick' (that is not highly recommended and can backfire) is to hop from one low interest/no interest card to the next. Many offer no interest for a year on transfers. Not having interest will lower the monthly payment, allowing more money for the 'today' expenses. But many cards that entice you with a "no interest balance transfer" will have a high interest on new purchases, after a very short period. One method is to get 2 new cards - one w/ a 0% interest rate on transfers. Only use that for the balance transfers. Then get a second card with a low interest on new purchases, so if you need it, you use that one. *** If you do this repetitively, it will lower your credit score. This is not a long term solution **** Also read the fine print... some cards offering the balance transfer at 0% will slide in that if you don't have the transfer paid off in xx time, an exorbinate interest rate will be prorated back to day 1. Ouch. Or it will be if you are late on one payment, an exorbinate interest rate kicks in...

aimeecc · 01-08-2008, 01:20 PM

Good luck!

wolf · 01-08-2008, 10:10 PM

Quote:

Originally Posted by bbro

Well, some maybe good news. The increase in pay is most likely. Let me see if I can get this right. The guy (M.C)that I contact at the consulting company said that the woman (S.C) that contacts the company I work for (E.C) had already talked to my boss about an increase, but didn't give a figure. M.C said that S.C said that E.C is open to the idea of paying me more. When I told M.C the figure I need, he said that it shouldn't be a problem at all.

Good luck with that, keep to the plan to pay off rather than to spend with the extra.

Quote:

I also called my credit union to see about a personal loan. That way, I figure I can at least pay off one credit card and pay them back over a longer time with a lower interest rate (fingers crossed) and smaller monthly payment.

If you can go with that option (several years ago I had approached my bank to try to consolidate and they wouldn't issue a loan for the amount I needed, just some miniscule amount that did me no good), ONLY do so if you are able to at least double the amount of the payment they are asking for. You'll do yourself a huge favor.

Quote:

With both of these things, if they work out how I hope, I will have enough money to pay bills, hide my cards, and still be able to live.

If you have to hide the cards, you're not learning anything. Think about this.

Quote:

I even have an option of carpooling with someone at work. We would drive alternate weeks to save money.

Only workable if your gasoline costs are very high. If you're keeping the car, you still have to insure and maintain it, even if you're not driving it as far. How old is the car, is it paid off, what are your fuel and maintenance costs?

Quote:

Keep your fingers crossed!

you betcha.

bbro · 01-11-2008, 03:15 PM

OK - update. I was denied for my personal loan because of the ratio between debt and limit. BUT I got a raise effective MONDAY!! That's right, my consulting company got be a $3.25/ hour raise!! I am so happy I could shit. I also was informed that my contract is extended through the end of June!!

Oh god, I am so lucky. I am so excited. No more worries. Now, I can just sit back and pay my bills and not worry about where the money is. Good-bye credit cards, hello cash!!

Thanks for all the crossed fingers! Now I actually will have enough money to live on without using cards. Now I can actually get my credit card balances down!!

OK - sorry I am rambling, but it's like this boulder has just been lifted from my shoulders

I kind of feel like this:

glatt · 01-11-2008, 04:32 PM

Awesome!

A word of advice: don't fall into the trap of thinking you are wealthy now. You still need to squeeze every last penny until these debts are paid. It would be horrible to get even deeper into debt because you got a raise and started spending like you are Daddy Warbucks.

xoxoxoBruce · 01-12-2008, 04:08 PM

True dat! Breathing room is great... if not mistaken for all outdoors.
You can get out from under, forever, bbro. You go girl!

01-03-2008, 05:49 PM	#32
Aliantha trying hard to be a better person Join Date: Jan 2006 Location: Brisbane, Australia Posts: 16,493	I'm with monster. Sell the car and use whatever is left over to buy a cheap little car or maybe even a scooter? And put the rest on your debts. Then as they say, you just have to bite the bullet. Live lean for a while. 2 minute noodles are nice and cheap. To answer one of your first questions, I've been where you are, although not $30k worth. I had about $20k CC debt which I paid off over a period of about 4 years. You can do it if you really try hard, and in the long run it'll be better for you if you don't have to go down any of those paths which will affect your credit rating. I don't know if it's the same here as it is over there, but often time if you can't pay your debts, you can come to an arrangement with the CC company to pay out a certain percentage of the debt. If you're a good negotiator you might get it as low as 30% of the total once it's been sold to the collection agency, which happens after you tell the bank you can't pay. That will still give you a mark on your credit rating, but not a bad one. You're only in your 20's aren't you bbro? You'll be able to recover from this. __________________ Kind words are the music of the world. F. W. Faber

01-03-2008, 06:03 PM	#33
classicman barely disguised asshole, keeper of all that is holy. Join Date: Nov 2007 Posts: 23,401	Thats pretty much what I was thinkin too, Ali. I still say talk to a real pro and see what they can do for you. Maybe even a bankruptcy attorney!? __________________ "like strapping a pillow on a bull in a china shop" Bullitt

01-03-2008, 07:42 PM	#34
Griff still says videotape Join Date: Feb 2001 Posts: 26,813	Lots of good advice here. The other benefit of getting a second job is that you'll have little time to spend money. Work out a bare bones budget that is doable and buckle down. Good luck! __________________ If you would only recognize that life is hard, things would be so much easier for you. - Louis D. Brandeis

01-04-2008, 07:43 AM	#35
BrianR Cleverly disguised as a responsible adult Join Date: Jan 2001 Location: Dallas, TX Posts: 3,338	bbro: you haven't mentioned how much you make annually. When I had debt problems (almost done with them now), I got a new job. Now I'm a trucker. Perhaps you should go for a better-paying job, focus on paying off your revolving debt (bad interest there) and living more within your means. My company is always hiring... __________________ Never be afraid to tell the world who you are. -- Anonymous

01-04-2008, 03:41 PM	#36
wolf lobber of scimitars Join Date: Jul 2001 Location: Phila Burbs Posts: 20,774	How you deal with debt is going to depend on what you're willing to do and sacrifice to get there. The suggestion to sell the car and buy cheaper, but adequate transportation is a very good one. I wasn't willing to make this particular concession, and lived with a $300 car payment for a couple of years. I just finished paying off the car. I would absolutely suggest that you get Dave Ramsey's book, The Total Money Makeover. I have been using his program for the last couple years, and have only 1/3 of my original debt level remaining. I haven't been as aggressive about the Debt Snowball as I should be, but IT WORKS. You pay as much as you can to the card with the lowest amount owing, and minimum to everything else. When that card is paid off, you add the amount you were paying to the minimum of the next higher card. I shifted some of my debt around to lower rate cards as well. I did NOT open any new accounts, I just used balance transfer deals on cards I already had, and I did the math to make sure the balance transfer fees didn't exceed the amount of money I expected to save because of the lower percentage rates. You also need to stop buying stuff on cards. Completely. (this is one of the places that I'm not so good at, but I have taken the tactic of using one of the paid-off cards and paying the full outstanding balance every month. Not perfect, but it's at least workable for me. You need to keep a spreadsheet showing your progress, and keep it posted somewhere that you can see it every day. Know what you're working for and how much progress you're making. It starts slowly, but like the Snowball it's named after, it moves faster and faster. The first step seems really hard ... it's save $1,000. You'll end up scrimping and crying and being annoyed with yourself, but it's easier than you think at this point. The system is about changing habits. __________________ wolf eht htiw og "Conspiracies are the norm, not the exception." --G. Edward Griffin The Creature from Jekyll Island High Priestess of the Church of the Whale Penis

01-04-2008, 04:18 PM	#37
bbro Insert witty comment here Join Date: May 2004 Location: Raleigh, NC Posts: 2,182	Thanks for all the info wolf. I am making some progress. I have taken the first steps to getting more money in my pocket so that I can start doing those things. I like the idea of a progress sheet, too. I could put it on my freezer where my cards are going, so every time I go for it, I know why I can't. I have applied for a couple of part-time jobs, talked to my consulting company about getting more money a month. They told me to figure out what I need to stay with this job. Now, I just have to figure out how to do that with all the taxes and stuff. I'll keep you updated.

01-05-2008, 01:11 AM	#38
classicman barely disguised asshole, keeper of all that is holy. Join Date: Nov 2007 Posts: 23,401	sounds great! __________________ "like strapping a pillow on a bull in a china shop" Bullitt

01-08-2008, 12:48 PM	#39
bbro Insert witty comment here Join Date: May 2004 Location: Raleigh, NC Posts: 2,182	Well, some maybe good news. The increase in pay is most likely. Let me see if I can get this right. The guy (M.C)that I contact at the consulting company said that the woman (S.C) that contacts the company I work for (E.C) had already talked to my boss about an increase, but didn't give a figure. M.C said that S.C said that E.C is open to the idea of paying me more. When I told M.C the figure I need, he said that it shouldn't be a problem at all. I also called my credit union to see about a personal loan. That way, I figure I can at least pay off one credit card and pay them back over a longer time with a lower interest rate (fingers crossed) and smaller monthly payment. With both of these things, if they work out how I hope, I will have enough money to pay bills, hide my cards, and still be able to live. I even have an option of carpooling with someone at work. We would drive alternate weeks to save money. Keep your fingers crossed!

01-08-2008, 01:19 PM	#40
aimeecc Super Intendent Join Date: Jan 2008 Location: Arlington, VA Posts: 249	My sister was in the same boat a few months ago. She is slowly making her way out - but one reason is because she got a raise at work. Try refinancing the car to a lower rate. Also try to consolidate to one card and/or one consumer loan. One 'trick' (that is not highly recommended and can backfire) is to hop from one low interest/no interest card to the next. Many offer no interest for a year on transfers. Not having interest will lower the monthly payment, allowing more money for the 'today' expenses. But many cards that entice you with a "no interest balance transfer" will have a high interest on new purchases, after a very short period. One method is to get 2 new cards - one w/ a 0% interest rate on transfers. Only use that for the balance transfers. Then get a second card with a low interest on new purchases, so if you need it, you use that one. * If you do this repetitively, it will lower your credit score. This is not a long term solution ** Also read the fine print... some cards offering the balance transfer at 0% will slide in that if you don't have the transfer paid off in xx time, an exorbinate interest rate will be prorated back to day 1. Ouch. Or it will be if you are late on one payment, an exorbinate interest rate kicks in...

01-08-2008, 01:20 PM	#41
aimeecc Super Intendent Join Date: Jan 2008 Location: Arlington, VA Posts: 249	Good luck!

01-11-2008, 03:15 PM	#43
bbro Insert witty comment here Join Date: May 2004 Location: Raleigh, NC Posts: 2,182	OK - update. I was denied for my personal loan because of the ratio between debt and limit. BUT I got a raise effective MONDAY!! That's right, my consulting company got be a $3.25/ hour raise!! I am so happy I could shit. I also was informed that my contract is extended through the end of June!! Oh god, I am so lucky. I am so excited. No more worries. Now, I can just sit back and pay my bills and not worry about where the money is. Good-bye credit cards, hello cash!! Thanks for all the crossed fingers! Now I actually will have enough money to live on without using cards. Now I can actually get my credit card balances down!! OK - sorry I am rambling, but it's like this boulder has just been lifted from my shoulders I kind of feel like this:

01-11-2008, 04:32 PM	#44
glatt ™ Join Date: Jul 2003 Location: Arlington, VA Posts: 27,717	Awesome! A word of advice: don't fall into the trap of thinking you are wealthy now. You still need to squeeze every last penny until these debts are paid. It would be horrible to get even deeper into debt because you got a raise and started spending like you are Daddy Warbucks.

01-12-2008, 04:08 PM	#45
xoxoxoBruce The future is unwritten Join Date: Oct 2002 Posts: 71,105	True dat! Breathing room is great... if not mistaken for all outdoors. You can get out from under, forever, bbro. You go girl! __________________ The descent of man ~ Nixon, Friedman, Reagan, Trump.

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