need financial advice/info

TNK · Post by **TNK** » Fri Nov 03, 2006 2:48 pm

ok, so i cant make my minimum payments on my credit accts. and such. its not a big enough amount to file bankruptcy, its not worth it. i just called a number i got off the radio, and they're program sounds alrigth, but what you do is stop making payments to your credit acct. co. and make small paymetns to these guys, in a few months, when the credit co. sends your ass to collections, then this co. steps in and bargains with them to pay off the debt for less.... it takes 24, 30, or 36 months.... my payments would be around 140 a month.. which i can easily afford... but i dunno if i wanna cause that much damage to my credit rating..... ive tried to consolidate thru the local banks with an insecure loan but i cant get approved...... does anyone know of a good option that i can get rolling ASAP i missed almost all my payments for this month and im REALLY stressing.......

i knwo i brought this on myself, but im turning to you guys for info and assistance, but NO i'm NOT asking for money and i'm NOT putting my paypal address up....

MyNeonSaysHi · Post by **MyNeonSaysHi** » Fri Nov 03, 2006 2:55 pm

I have always been told, "You only buy what you can afford." Stop spending your money on your car and get a nice $2k cushion going on.

IMO, start selling stuff you do not need or use. Then you can get out of that hole and get a nice cushion going.

Good luck man.

Mr Josh Zombie · Post by **Mr Josh Zombie** » Fri Nov 03, 2006 3:03 pm

Yea, I'm with CG on this one... you should always have a cushion. Me, personally, I only ever have a $200 one to sit on, but it's still SOMETHING.

You're best bet, is to just sell, sell, sell... and try and get back on track with those payments. Try to avoid hurting your credit as much as possible.

LowNSlow · Post by **LowNSlow** » Fri Nov 03, 2006 4:36 pm

Sell your new seats.... and sell the SRT wheels. Screw putting them on the wife's car.

J8t4m · Post by **J8t4m** » Fri Nov 03, 2006 4:51 pm

I was in a very similar situation before i got married

bascially man . . . I sold some stuff i no longer used - and i made myself a kick ass budget (I budgeted down to the day) - I ate out less - I drove like a granny to save on gas money - the list goes on and on

First step - sell some stuff
Second step - Limit your spending
Third step - start managing your newly limited spending limit
Frouth Step - If thats still not enough, look into getting an interest free credit card (interest free for the first 90 days or something) and kick all your outstanding balances to it . . . then will atleast give you 90 days to pay the balance down (and will save you some money on interest) then after that 90 days - just try to get it as low as possbile

Fifth - If thats still not enough - look into a weekend job

ADD: if it makes your feel any better: I was about 6 months behind on all my stuff before i finally came to the realization that i needed to fix things . . . I went from 6000$ in debt (Seperate and aside from the two cars i had at the time) down to 2000$ in the matter of a few months

Its all very do-able

also - another VERY important thing to try :
Call all your creidt lenders and ask about settlements . . . granted - it wont look as good on your credit as a pay off - but it wont look as bad as an outstanding account

I had two of my accounts settle for 65% of the total and with only 3% interest rate . . . its DEF. worth looking into!

rOniN · Post by **rOniN** » Fri Nov 03, 2006 5:50 pm

Sell...everything you don't need...depending on how much money you need.

Once you do that, look into overtime or a second job. Anything to get an extra 200-500 dollars a month would be awesome. Once you get into the hole it's hard to get out.

Work your ass off and it will pay off. It will suck for awhile but you will get out of the hole and your credit will be fixable.

I would then suggest to get rid of all of your credit cards once you are out of debt. Only buy what you have money for.

kc2005ptgt · Post by **kc2005ptgt** » Fri Nov 03, 2006 6:36 pm

^^^ +1111111

Sell stuff you do not NEED. Sell stuff you have and want. Get rid of unnecessary stuff like phone bills and cable, and other crap. If you have to many CC bills, like 3 or 4, pay the lowest one off first and make min to the others, then work on another, and so on. Sell one of your cars. Stop paying for stuff for the wife/ex/whoever. If you are stuck in an expensive rent, get out of it, sublease, whatever. Move in with mommy and daddy, double up payments, get out from under a car loan, get low car ins, make double payments each month, start a budget on excel, dont go out to eat, stop smoking and drinking, and only buy groceries that you need.

My wife and I have managed to live off of absolutely nothing and do it by choice so we can have a future, and we did all of the above, and live quite well.

Anyway, first things first sit down and figure out what you have to pay every month... then put it in an excel spreadsheet and begin to break it down by dates of paychecks, and figure out where you can pay and what and when. It really is simple and you may find out that you actually have money.

Oh yeah, and second job is calling you.

HELL deliver pizzas at night!!!!

twelveday · Post by **twelveday** » Fri Nov 03, 2006 6:42 pm

maybe if you stopped buying useless crap for your car you wouldnt be in this situation

scneonchic · Post by **scneonchic** » Fri Nov 03, 2006 7:54 pm

^thats kind of harsh, but Im with some of the others. sell parts you arent using, even some you are, because frankly, your credit is more important than a car. you can always buy the same stuff again later. dont worry about tryin to fix up your neon, or your wifes...i know its tempting, its what you want...but you can do more later, if you limit yourself now.

MyNeonSaysHi · Post by **MyNeonSaysHi** » Fri Nov 03, 2006 11:58 pm

twelveday wrote:maybe if you stopped buying useless crap for your car you wouldnt be in this situation

Every thread TNK has made you flame his ass. Keep your shitty comments to yourself.

Ifixyawata · Post by **Ifixyawata** » Sat Nov 04, 2006 12:21 am

I'll be watching & studying this thread. I'm in the same boat as TNK financially, sort of. I have about $8k of CC debt. Add in my car and school loans and its close to $60k of long-term debt. Since I got a new mgr at work, (retail BS) my hours have been cut and I've had to juggle my min monthly payments and miss one CC or two every month. Lucky asshole that I am, my mother helps me with the car and if she didn't I'd be walking everywhere.

I'm looking for a new job at the moment so hopefully I can at least do min payments on the CC (ALL of them, every month) until I get a REAL job. At this point, I'm learning quickly that minumum payments go WAY up when you miss them one month.

I've been selling some stuff on eBay and I recently pawned off a new Carburetor (for my T-bird) for almost as much as I paid for it 2 years ago. I cleaned up the garage and found about 8 carbs out there and I figure I could probably rake in another $300 or so from them and some other parts out there that I'll never use. Hell! I even bought a shifter (from Grambo) and some lowering springs (from scneonchic) that I might never get around to installing that could go up onto ebay to get some qucik cash. (Not trying to make a profit, though.) Just thinking of liquidating my assets a bit. I also have an old NES sitting in the attic with about 55 games that I might put on ebay.

Also, like TNK, I post when I'm drunk, so all my posts don't make a lot of sense. I apoligize.

bige1030 · Post by **bige1030** » Sat Nov 04, 2006 2:15 am

NB: The following is not legal advice. I'm not an attorney. If you need legal advice, see an attorney.

TNK wrote:ok, so i cant make my minimum payments on my credit accts. and such.

Is it the interest that's killing you, but you'd be able to make the payments if the interest were lower? If so, consider credit counseling. Legitimate non-profit agencies can work out deals with your creditors to lower the interest on your accounts and lower your payments. Some creditors will even waive prior late fees and offer a way to get your accounts looking current on your credit report. But if you go this route, do it before it's too late. Late fees will add up. Penalty interest rates can totally render you unable to ever pay off your debts.

One good place to find reputable credit counselors is the National Foundation for Credit Counseling.

Another one that I know of you can work with online is Hummingbird Credit Counseling. Although they're mainly set up to do credit counseling and debtor education bankruptcy certifications, the "before bankruptcy" link under "Bankruptcy Certifications" should take you to where you can form a debt management plan. If you go that route, call them up and ask them if they'll work with you if you're not wanting to file a bankruptcy.

The Federal Trade Commission has some advice about choosing a credit counselor.

TNK wrote:its not a big enough amount to file bankruptcy, its not worth it.

Sometimes, surprisingly enough, it's better than it seems - especially if there's absolutely *no* way you can become current given your situation and are not judgment-proof* for as long as the statute of limitations lasts from the time you completely stop paying.

Anyway, if you talk to a credit counselor, try to get them to negotiate down your principal to 60%. They've got incentive to do so under the new bankruptcy law...because if you end up filing bankruptcy, their claims can be reduced if they unreasonably refuse to negotiate with you. Here's what the Bankruptcy Code says about it:

11 USC § 502(k):
(1) The court, on the motion of the debtor and after a hearing, may reduce a claim filed under this section based in whole on an unsecured consumer debt by not more than 20 percent of the claim, if--
--->(A) the claim was filed by a creditor who unreasonably refused to negotiate a reasonable alternative repayment schedule proposed on behalf of the debtor by an approved nonprofit budget and credit counseling agency described in section 111;
--->(B) the offer of the debtor under subparagraph (A)--
------>(i) was made at least 60 days before the date of the filing of the petition; and
------>(ii) provided for payment of at least 60 percent of the amount of the debt over a period not to exceed the repayment period of the loan, or a reasonable extension thereof; and
--->(C) no part of the debt under the alternative repayment schedule is nondischargeable.

(2) The debtor shall have the burden of proving, by clear and convincing evidence, that--
--->(A) the creditor unreasonably refused to consider the debtor's proposal; and
--->(B) the proposed alternative repayment schedule was made prior to expiration of the 60-day period specified in paragraph (1)(B)(i).

There really is no benefit if you end up filing a Chapter 7 and having it discharged anyway. But if you end up filing a Chapter 13** and have to pay a portion of your claims, this will decrease the amount you have to pay by 20% if your creditors unreasonably refuse to negotiate. I think, though, that negotiation through a credit counselor like this is worth it, since the reduction of principal can help you get back on track with your payments. I don't know how big of a hit that would put on your credit report, though. A credit counselor could probably tell you...though a lot of them still are unaware of this negotiation option.

Note, though, that for this option to work, your credit counselor *must* be approved by the U.S. Trustee to do bankruptcy certifications, even if you don't end up filing for bankruptcy. Check this list on the U.S. Trustee website for the approved agencies.

TNK wrote:i just called a number i got off the radio, and they're program sounds alrigth, but what you do is stop making payments to your credit acct. co. and make small paymetns to these guys, in a few months, when the credit co. sends your ass to collections, then this co. steps in and bargains with them to pay off the debt for less.... it takes 24, 30, or 36 months.... my payments would be around 140 a month.. which i can easily afford... but i dunno if i wanna cause that much damage to my credit rating.....

That will definitely damage your credit rating. Not only that, but a lot of these debt negotiation agencies (that's what they are) are dubious...some just take your money and don't end up doing the negotiation. Check out that link I put up above from the FTC (<-- repeat) and read up about what it says under "Debt Negotiation Programs".

TNK wrote:ive tried to consolidate thru the local banks with an insecure loan but i cant get approved...... does anyone know of a good option that i can get rolling ASAP i missed almost all my payments for this month and im REALLY stressing.......

That never goes over well because if you're already in the situation you're in, you don't look good to banks. If you actually had property to secure the loan with, they'd probably talk to you. But you really shouldn't go that route. If you end up in the same situation you're already in, your property could be repossessed and sold for a way below market price. You'd be better off selling the property and paying down the debt rather than pledging it as collateral for a new debt. Plus, if you go bankrupt, unsecured debts are totally wiped out, but your collateral is still liable for your secured debts.

For more info on credit, check out The FTC's web site on credit. You can access the articles I linked to above plus more. The "For Consumers" section is a great one.

Selling stuff is good to get you back on track if your situation is temporary. But once you run out of stuff to sell, if you haven't made a good dent in those debts, you might just be back in your same situation. Consider all this info for the long term, so you end up paying off your debts eventually, rather than being stuck in a cycle of debt.

TNK wrote:i knwo i brought this on myself

One more thing: whatever you do, do *not* beat yourself up about this! The effects of that are the one thing that you do *not* need right now! Easier said than done, I know. I've been there and done that. But the last thing you need right now is depression. I can tell you from experience that it's pretty hard to keep up your current lifestyle, let alone trying to reform yourself, when shame over your situation consumes you and ends up leading to deep depression. Plus, the therapy necessary to try to pull you out of it is an added expense.

If you end up feeling pretty bad about this to the point you want to cry, sulk, or worse - hurt yourself, talk to someone about it. Get a big hug from someone and cry over their shoulder if that's what you feel like doing! Get your energy level higher than it is now so that you'll be able to carry yourself through this - and realize you'll be a stronger man once you do!

Reply to someone else - A note on student loans***: These are not dischargeable in bankruptcy, unless you prove that repaying them causes undue hardship. That is incredibly hard to prove. There are alternative routes to discharge. If you end up being totally disabled and unable to work, you can get the loans discharged without a bankruptcy. Also, there are civil service programs and programs where you can become a school teacher that offer partial or full forgiveness of your student loan just for fulfilling your duties under those programs.

If discharge or forgiveness isn't an option, student loan creditors are the best ones to work with when it comes to repayment. If you stay in school at least half time, you don't have to pay at all, and you may be able to get more student loans if you've been making satisfactory progress toward a degree. You can get a deferment or forebearance**** for financial hardship if the lender is willing. Also, you might be able to go on an income-contingent repayment plan that can lower your payments.

Talk to your student loan creditor if you're in repayment and can't pay. Work it out now before you go into default...because that's the worst state to be in and could jeopardize your eligibility for future student aid.

---
* judgment-proof: when you have no wages that can be garnished (unemployed or you make <= 30 * minimum wage every week), no money in the bank, and no property that can have a judgment lien attached to it (usually just real property)

** Or Chapter 11 if your debts exceed the Chapter 13 debt ceiling ($307,675 noncontingent, liquidated, unsecured debts, $922,975 noncontingent, liquidated, secured debts)...though you've probably got a business or are a millionaire if you're in that situation!

*** At least federal ones or ones guaranteed by the federal government. Private student loan creditors operate under vastly different rules and are not nearly as generous as a federal student loan creditor.

**** Deferment is good because the government will pay your interest on subsidized loans. Forebearance is where you don't have to pay, but you're still charged interest, which adds to your loan balance.

bige1030 · Post by **bige1030** » Sun Nov 05, 2006 4:37 am

Damn, I killed the thread, didn't I?

How is the advice? Good? Bad? Too hard to understand?

Post by **Diablo0** » Sun Nov 05, 2006 4:49 am

While I'm sure it is very good advice my ADD prevents me from reading it since it's so long and doesn't really pertain to me Sorry

heyitsstock · Post by **heyitsstock** » Sun Nov 05, 2006 9:07 am

hey um well i dont know anything about u but what about trying to sell the skunked neon?....

SlvrACR · Post by **SlvrACR** » Sun Nov 05, 2006 9:24 am

I just got a loan to pay mine off and the loan payments are cheaper a month and I only had to pay $90 more then I owed on the credit cards. Didnt hurt my credit and made it alot easier on me. I payed it off and got rid of all credit cards LOL

BlackRoseRacing · Post by **BlackRoseRacing** » Sun Nov 05, 2006 11:42 am

TNK, I agree with the others, I have been there and done that, selling performance parts off te car for bills, hell in the past I actually sold my performance cars for bills.....turbo daytona,shelby charger, volare w/V8 conversion.....
Just throw some of your stock parts back on the car, sell the items online, get your depts payed off and slowly build the car back up only when you have the extra few bucks....

scneonchic · Post by **scneonchic** » Sun Nov 05, 2006 1:18 pm

heyitsstock wrote:hey um well i dont know anything about u but what about trying to sell the skunked neon?....

good idea...whats up w/ that neon??

dblsg · Post by **dblsg** » Sun Nov 05, 2006 2:22 pm

i have a friend that might be interested in your seats

to bad he's broke too

TNK · Post by **TNK** » Sun Nov 05, 2006 7:52 pm

thanks for the advice all...

bige, when i have more time, i will be reading your post more thouroghly.

i hvae thopught abotu sellking the skunk, but i cant get much for it...... adn id kick my own ass for sellign it later on down the road.... just liek when i gave up my 1g for the skunk...

INVUJerry · Post by **INVUJerry** » Sun Nov 05, 2006 9:23 pm

Cut down on the booze! You'll save money!

TNK · Post by **TNK** » Sun Nov 05, 2006 11:41 pm

SlvrACR wrote:I just got a loan to pay mine off and the loan payments are cheaper a month and I only had to pay $90 more then I owed on the credit cards. Didnt hurt my credit and made it alot easier on me. I payed it off and got rid of all credit cards LOL

this is exactly what i want to do! where did you get your loan from?

LCPLPunk · Post by **LCPLPunk** » Mon Nov 06, 2006 10:41 am

did you uh....consider selling your soul to the devil yet in exchange for paying off your credit cards? I heard he does wonders...

TNK · Post by **TNK** » Mon Nov 06, 2006 11:34 am

no thank you. id rather go bankrupt than go to Hell.

LCPLPunk · Post by **LCPLPunk** » Mon Nov 06, 2006 1:04 pm

good point.

Just figured i'd throw it out there..

rice_eater · Post by **rice_eater** » Mon Nov 06, 2006 1:51 pm

my credit card company is really flexible with me... i've been putting all my business expenses on it (so i get the airmiles

) and i pay it off in spurts, at random times... 2000 now, 1500 a week later, and then say 4000 after a month and a half... they havent once called to bitch that i was late, they happily take they their pound of meat and go on their way

besides, the minimum payment is under 100 bux a month... you gotta be able to put that much together... dont worry about paying the interest for a few months...big deal... get your finances in order on your own... you can have your account frozen if you call the bank and explain you cant make the payment... one of my buddies racked up close to 20k in credit bills, and now just pays it off to the bank every month in small bits; its a lot better than ruining your credit

MoxHair · Post by **MoxHair** » Mon Nov 06, 2006 4:09 pm

Roll your Credit debt onto the card with the lowest interest rate. Cut up and cancel the others and then pay it off.

TNK · Post by **TNK** » Mon Nov 06, 2006 5:17 pm

well i foudn this place called federated financial and im going to try there program. they consolidate my debt into one low payment, get my interest rates down, and keep me from having late fees, missed payemtns, etc. etc. ill be paying 170 a month instead of the 400+ that i pay now. i can drop the program anytime, so if i see myself gettign scammed, ill bail. but it sounds liek a good program. so im gonna try that and hope it works. thanks everyone!

Bella Lugrossi · Post by **Bella Lugrossi** » Mon Nov 06, 2006 5:23 pm

tim and i are going through a credit place called credit advisors foundation. it works out alright. it had really helped with our finalcial mishap. when he got out of the military we were screwed. royally. but things are improving. i think this has helped our credit. and it is really easy as well. so i hope that works out for you. good luck and whatnot.

moparknighthawk · Post by **moparknighthawk** » Tue Nov 07, 2006 7:52 am

Just focus on cleaning up your financial situation. Its going to be a long road, but you will get there. I wish you the best with it. Take things one day at a time.

2GN.ORG

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