Serious Help!!! Financial Advice
06-02-2008, 03:58 PM
#26
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Car has to go. Buy a bicycle to replace it.
Pay off all your essential bills, then put everything else towards paying off those credit cards. chances are you're paying 20% intrest on those thousands of dollars of debt.
Once you pay off your credit cards, start taking out 100-200 a month and put aside to save for retirement.
Once you have 5K in savings and still have expendable income, you can think about getting your own place.
Pay off all your essential bills, then put everything else towards paying off those credit cards. chances are you're paying 20% intrest on those thousands of dollars of debt.
Once you pay off your credit cards, start taking out 100-200 a month and put aside to save for retirement.
Once you have 5K in savings and still have expendable income, you can think about getting your own place.
06-02-2008, 04:19 PM
#28
Rotary Powered Countryboy
I would start by putting all of your "extra" money away(going out to eat, driving around, etc etc) Then start parting out your car I would start with the simple things to put back in order first. like your coil overs. I would save the turbo for last since it is def the biggest thing on ur car see what u get from there and pay as much as possible on the high debts 9k and 8k credit because those are the ones that you are paying the most interest on (but do not forget all about your lower ones i.e. 900 dollars) Slowly work at all of them though. Take the "extra" money and split it between all the bills and same with the parted out parts. See where you are from there if it does come down to it and you must take out the tubo 1. taking it out is much easier than putting it in 2 i'm sure there is lots of ppl in your area willing to help like someone saide before and sell that and see where your are. If it still looks like youre not gaiining anything then it must be time to sell the car. I wish u the best of luck.....
06-02-2008, 04:43 PM
#29
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Dude...google "Dave Ramsey", buy the book, read it, and do what it says.
If you don't attack the debt now, one little hiccup will put you into a no win situation fast.
www.daveramsey.com
Credit is evil. If you can't pay cash, don't buy it. I follow my own advice...I just purchased my RX8 (2007 with 4k miles) with cash. I waited to make the purchase until I could do it with cash. Sure, I could of gone out earlier and financed what i did not have and I would of had the car 6 months earlier with payments. It's not the end of the world to drive a beater for a bit until you can afford what you want.
It might bite for a while, but just ponder this. If you had no CC bills, no car note, no loan payments....how much extra money would you have every paycheck?
Ok, I will get off my soapbox.
If you don't attack the debt now, one little hiccup will put you into a no win situation fast.
www.daveramsey.com
Credit is evil. If you can't pay cash, don't buy it. I follow my own advice...I just purchased my RX8 (2007 with 4k miles) with cash. I waited to make the purchase until I could do it with cash. Sure, I could of gone out earlier and financed what i did not have and I would of had the car 6 months earlier with payments. It's not the end of the world to drive a beater for a bit until you can afford what you want.
It might bite for a while, but just ponder this. If you had no CC bills, no car note, no loan payments....how much extra money would you have every paycheck?
Ok, I will get off my soapbox.
06-02-2008, 06:35 PM
#30
i bought my rx8 in cash. so what? also, he has enough money problems. he doesnt need to go buy a book. all the advice he needs is right in this thread.
credit is definitely not evil. it takes money to make money and it takes money to save money. sometimes its definitely better to cut a corner and use a credit card. you can buy something you need thats on sale when you dont have the available cash. they are also easier to just go about your daily business with. however, i use a debit card for all my daily purchases, that way i can never go into debt.
credit is definitely not evil. it takes money to make money and it takes money to save money. sometimes its definitely better to cut a corner and use a credit card. you can buy something you need thats on sale when you dont have the available cash. they are also easier to just go about your daily business with. however, i use a debit card for all my daily purchases, that way i can never go into debt.
06-02-2008, 07:01 PM
#31
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Let me get this straight. Dave Ramsey has advised people for 20+ years about getting out of debt, has a talk show on hundreds of radio stations across the nation, and has a show on fox business news, but we should trash all of that because we have all the answers on a car forum??
Go online and get the book used if you like, but it is a blueprint for living a debt free life. The first post was about asking for help. The book is a time tested, well thought out, step by step guide to just what was wanted.
Why knock good advice?
Go online and get the book used if you like, but it is a blueprint for living a debt free life. The first post was about asking for help. The book is a time tested, well thought out, step by step guide to just what was wanted.
Why knock good advice?
06-02-2008, 07:47 PM
#32
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cut up your cards and never use them again. apply for cards that have 0% on balance transfers and consolidate them into one or two cards and lower interest rates than what you have, pay them off that way.
Get rid of all your mods and put all of it towards your car payment, then refinance with your financial institution to lower your payments. This might not get you to the point where you want to be.
Stop eating out, downgrade your cellphone plan, stop paryting like crazy, whichever ones you happen to do. Try and make money on the side, spend your time working instead of spending money.
I'm in a similar boat to you, I don't have near as much debt as you do and I have savings, but I'm also in california where everything is more expensive. But I'll sell my 8 if it keeps depleting my savings. I'm currently on a "live spartanly" campaign to cut my spending to get it to where my savings stop going down.
You may have to sell the car, with gas prices going up the way they are I doubt the 8 is helping matters at all.
You make enough money that you should be able to handle the burden, you need to figure out a way to assign it to the right places
You're learning a valuable lesson before you're forced to be completely responsible for your own welfare, I salute you for being so honest about embarrasing issues with complete strangers. I sure hope you learn from all this, debt is never a good thing.
Get rid of all your mods and put all of it towards your car payment, then refinance with your financial institution to lower your payments. This might not get you to the point where you want to be.
Stop eating out, downgrade your cellphone plan, stop paryting like crazy, whichever ones you happen to do. Try and make money on the side, spend your time working instead of spending money.
I'm in a similar boat to you, I don't have near as much debt as you do and I have savings, but I'm also in california where everything is more expensive. But I'll sell my 8 if it keeps depleting my savings. I'm currently on a "live spartanly" campaign to cut my spending to get it to where my savings stop going down.
You may have to sell the car, with gas prices going up the way they are I doubt the 8 is helping matters at all.
You make enough money that you should be able to handle the burden, you need to figure out a way to assign it to the right places
You're learning a valuable lesson before you're forced to be completely responsible for your own welfare, I salute you for being so honest about embarrasing issues with complete strangers. I sure hope you learn from all this, debt is never a good thing.
06-02-2008, 07:50 PM
#33
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1. sell the car
2. pay off the cards with the highest interest rates
3. exchange the other debt to a special deal credit card not charging any interest for a year or more for balance transfers
4. save money to pay off the zero interest account before the value on that card compounds the interest in 12 to 18 months
5. cut up your credit cards and save cash for a down payment for a house or whatever you want to buy in an interest baring account that pays you and plan for the future.
My advice as a quasi financial planner. more like investor.
Sit down and figure out the amount you will pay total if you make minimum payments on all cards for the duration of the debt. You will be sickened and make the right choice. That is for sure.
2. pay off the cards with the highest interest rates
3. exchange the other debt to a special deal credit card not charging any interest for a year or more for balance transfers
4. save money to pay off the zero interest account before the value on that card compounds the interest in 12 to 18 months
5. cut up your credit cards and save cash for a down payment for a house or whatever you want to buy in an interest baring account that pays you and plan for the future.
My advice as a quasi financial planner. more like investor.
Sit down and figure out the amount you will pay total if you make minimum payments on all cards for the duration of the debt. You will be sickened and make the right choice. That is for sure.
06-02-2008, 08:32 PM
#34
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Well.....thanks for all the advice guys. Looks like the most reasonable decision is to part with the car. As heartbreaking as this is I have to do it. I loved this car and wanted (well got haha) nothing but the best. No corners cut etc. Which obviously wasnt the best decision. So, as soon as the car gets out of the shop I will be putting it up for sale. 
Thannks again for all the great advice.
Thannks again for all the great advice.
06-02-2008, 11:13 PM
#35
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Sorry you have to give up the car, but you are making the wise decision, and you'll benefit from it greatly in the long run 
Here's how I've laid out my budget, maybe this can help Once you've recovered what you can from the car:
1 - Work out all your non-creditcard bills into a budget, and see where your money is going each month. Cut anything that isn't necessary. Run on the assumption of 4 weeks in each month.
2 - Give yourself a weekly allowance for food / entertainment / gas etc... and take this amount out of your checking account each week in cash. In my experience it's easier to stick to a living expense budget when you're actually pulling bills out of your wallet when you buy something. One thing that's nice about this is if you want to save up for something extra, you can put a little bit of this money away each week.
3 - Take the remainder of your monthly income, and put that towards credit cards. Prioritize your credit cards based on which ones have the worst interest rate. Pay the minimum on all cards except the one with the worst rate.
One additional bonus to this setup is if you get paid bi-weekly, you'll get an extra paycheck every 6 months, and every 3 months if you get paid weekly. You can use that money to either knock down some more credit card debt, or reward yourself with something nice.
The next couple years may be rough as you knock this debt down, but you'll give yourself a good foundation to build the rest of your life on, and that's well worth the effort.
Good luck mate!
edit: Oh, and be frugal with everything. Focus on keeping your living expenses as low as possible. Stay at home for as long as you can, and if you have to go, try to get into a roommate situation. Late 90s or early 2000s Honda Civic would be a good car choice as they're reliable, good on gas, and they retain their value.
Here's how I've laid out my budget, maybe this can help Once you've recovered what you can from the car:
1 - Work out all your non-creditcard bills into a budget, and see where your money is going each month. Cut anything that isn't necessary. Run on the assumption of 4 weeks in each month.
2 - Give yourself a weekly allowance for food / entertainment / gas etc... and take this amount out of your checking account each week in cash. In my experience it's easier to stick to a living expense budget when you're actually pulling bills out of your wallet when you buy something. One thing that's nice about this is if you want to save up for something extra, you can put a little bit of this money away each week.
3 - Take the remainder of your monthly income, and put that towards credit cards. Prioritize your credit cards based on which ones have the worst interest rate. Pay the minimum on all cards except the one with the worst rate.
One additional bonus to this setup is if you get paid bi-weekly, you'll get an extra paycheck every 6 months, and every 3 months if you get paid weekly. You can use that money to either knock down some more credit card debt, or reward yourself with something nice.
The next couple years may be rough as you knock this debt down, but you'll give yourself a good foundation to build the rest of your life on, and that's well worth the effort.
Good luck mate!
edit: Oh, and be frugal with everything. Focus on keeping your living expenses as low as possible. Stay at home for as long as you can, and if you have to go, try to get into a roommate situation. Late 90s or early 2000s Honda Civic would be a good car choice as they're reliable, good on gas, and they retain their value.
Last edited by Absinthe; 06-02-2008 at 11:17 PM.
06-03-2008, 11:38 PM
#36
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Ok…I could possibly be the most financially immature person here.
All because I have the “I want it now” attitude. But, I have gotten to the point where I am sick to my stomach with my debt and realize I need my own place and need to spend a whole lot more wisely. So, I guess you can say I have grown really fast this past year and realized a lot of things. But, I need some SERIOUS help with decisions and guidance with my current situation. I know there are quite a few older members here so hopefully I get some good help. I am 23, going on 24. Taking night classes to finish my degree that has about 18 months left. I really want to move out and get my own house. BUT, with the amount of debt in credit cards I have, added to my recent rx8 purchase, I know that getting a loan for a house would be impossible.
I have 6 credit cards with the amounts varying from 9,000 to lowest at like 900. The two biggest are 9 and 8K, then a 3K, then two at 2K, then the 900. None are maxed out either which is good haha in a way I guess.
I got my rx-8 back in july. The total loan after everything was said and done was for 19,900 oughly. Payments 351 per month. 6 months later, prices
I BRING home 2400 per month. With the minimum payments being spread out so much it pretty much makes it impossible to put a good chunk of my pay towards one card.
My question is, how do I deal with this? I really would like to avoid selling my 8 as I have put around 14K into it not including installation. This is what has caused most of my situation. But, is selling the 8 the only option right now to help stop snowballing my debt and to start chipping away? I know I wont be getting anywhere near what I put into it, but I know there would be SOMEONE out there willing to pay a good price.
Or, do I keep the 8, work on the cards for about a year, (I really don’t want to live at home much longer than that), and then see where I’m at?
Or, is it possible to get a personal loan for say 20K to pay for this debt and just pay like 1000 dollars a month on that?
Thanks for any advice!!!! I need it as you can tell!
All because I have the “I want it now” attitude. But, I have gotten to the point where I am sick to my stomach with my debt and realize I need my own place and need to spend a whole lot more wisely. So, I guess you can say I have grown really fast this past year and realized a lot of things. But, I need some SERIOUS help with decisions and guidance with my current situation. I know there are quite a few older members here so hopefully I get some good help. I am 23, going on 24. Taking night classes to finish my degree that has about 18 months left. I really want to move out and get my own house. BUT, with the amount of debt in credit cards I have, added to my recent rx8 purchase, I know that getting a loan for a house would be impossible. I have 6 credit cards with the amounts varying from 9,000 to lowest at like 900. The two biggest are 9 and 8K, then a 3K, then two at 2K, then the 900. None are maxed out either which is good haha in a way I guess.
I got my rx-8 back in july. The total loan after everything was said and done was for 19,900 oughly. Payments 351 per month. 6 months later, prices
I BRING home 2400 per month. With the minimum payments being spread out so much it pretty much makes it impossible to put a good chunk of my pay towards one card.
My question is, how do I deal with this? I really would like to avoid selling my 8 as I have put around 14K into it not including installation. This is what has caused most of my situation. But, is selling the 8 the only option right now to help stop snowballing my debt and to start chipping away? I know I wont be getting anywhere near what I put into it, but I know there would be SOMEONE out there willing to pay a good price.
Or, do I keep the 8, work on the cards for about a year, (I really don’t want to live at home much longer than that), and then see where I’m at?
Or, is it possible to get a personal loan for say 20K to pay for this debt and just pay like 1000 dollars a month on that?
Thanks for any advice!!!! I need it as you can tell!
06-04-2008, 09:21 AM
#37
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Look at it this way: By biting the bullet now, it allows you the potential to own one again in the near future when your finances are inorder. If you continue to live beyond your means, bankruptcy is inevitable with would preclude you from owning another for a long time - especially now that credit has become much harder to obtain.
Clouds, silver linings, that sort of stuff.......
Clouds, silver linings, that sort of stuff.......
06-04-2008, 09:31 AM
#38
Mentalhealth is overrated
1) cut up all but one card
2) sell the car
3) staya t home
Once you have cleared up the debt, then make decisons about getting out on your own. A person your age with no assets should not have that kind of debt. You have the worst kind of debt....credit cards.
2) sell the car
3) staya t home
Once you have cleared up the debt, then make decisons about getting out on your own. A person your age with no assets should not have that kind of debt. You have the worst kind of debt....credit cards.
06-04-2008, 11:58 AM
#41
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i bought my rx8 in cash. so what? also, he has enough money problems. he doesnt need to go buy a book. all the advice he needs is right in this thread.
credit is definitely not evil. it takes money to make money and it takes money to save money. sometimes its definitely better to cut a corner and use a credit card. you can buy something you need thats on sale when you dont have the available cash. they are also easier to just go about your daily business with. however, i use a debit card for all my daily purchases, that way i can never go into debt.
credit is definitely not evil. it takes money to make money and it takes money to save money. sometimes its definitely better to cut a corner and use a credit card. you can buy something you need thats on sale when you dont have the available cash. they are also easier to just go about your daily business with. however, i use a debit card for all my daily purchases, that way i can never go into debt.
06-04-2008, 03:51 PM
#43
Seems a little extreme.... isn't it really crappy to get out from under a bankruptcy? They'll take the car back anyway right? If he parts it out and sells the car he'll probably make back a decent percentage of what he owes. Pretty young to be declaring bankruptcy.
06-04-2008, 04:08 PM
#44
1935 lbs. FTW!
20-30K is a big hole to climb out of. I can't stand it when my cc balance is over $500 but I'm very un-American when it comes to finances I guess.
06-04-2008, 06:21 PM
#47
Agree with the guy who said get a book - don't know the one he recommended but my bible for the last 5 years has been 'money secrets of the rich' by John Burley . Some great strategies in there - not only for getting out of debt quick but for staying that way and building wealth .
06-04-2008, 06:48 PM
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I work for a credit card company......
FIRST....
DO NOT entertain the idea of going to a debt settlement company they sit on your money till you have enough money to settle the cards - but by the time that happens your credit card company will probably have charged off the card anyways. - they really dont help you.
Contact each of the companies - tell them to close the cards, if any of them are above 12% int. - try to get them to come down to 12%, or lower - and also figure out how much of the min. pmt for each is going to int. and the principal - my employer the min pmt. split in half.
inquire about settlements, some companies are willing to settle the debt for a certain amt. but your credit will suffer, this is kinda a quick out, but your credit can be rebuilt.
there are companies called CCCS companies, sometimes they are useful, but you just have to try them out, you pay them and then they work with your creditors for a fixed payment plan, if the creditor wont work with you, sometimes they will work with these companies - but do your best to find a non profit CCCS company.
if you sale your car, itd be possibly easier to settle some of the lower balance ones and make larger pmts to the higher bl.
what it sounds like to me, you should try to sell your car and get loan - and never use credit cards ever again.
selling your mods could work as well if you can get some of the companies to settle for a lower amount - sometimes when it comes to credit card companies - getting someting from a customer is better than gettning nothing.
FIRST....
DO NOT entertain the idea of going to a debt settlement company they sit on your money till you have enough money to settle the cards - but by the time that happens your credit card company will probably have charged off the card anyways. - they really dont help you.
Contact each of the companies - tell them to close the cards, if any of them are above 12% int. - try to get them to come down to 12%, or lower - and also figure out how much of the min. pmt for each is going to int. and the principal - my employer the min pmt. split in half.
inquire about settlements, some companies are willing to settle the debt for a certain amt. but your credit will suffer, this is kinda a quick out, but your credit can be rebuilt.
there are companies called CCCS companies, sometimes they are useful, but you just have to try them out, you pay them and then they work with your creditors for a fixed payment plan, if the creditor wont work with you, sometimes they will work with these companies - but do your best to find a non profit CCCS company.
if you sale your car, itd be possibly easier to settle some of the lower balance ones and make larger pmts to the higher bl.
what it sounds like to me, you should try to sell your car and get loan - and never use credit cards ever again.
selling your mods could work as well if you can get some of the companies to settle for a lower amount - sometimes when it comes to credit card companies - getting someting from a customer is better than gettning nothing.
06-04-2008, 07:02 PM
#50
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that's what i was getting at. people get caught up in the moment and ignore the part that i have put in bold.