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Message
re: Debt Debt Debt.
Posted on 10/31/18 at 9:23 am to LSU alum wannabe
Posted on 10/31/18 at 9:23 am to LSU alum wannabe
quote:
Can someone point out the iron clad negatives of debt consolidation?
I think the negatives are exaggerated quite a lot here depending on what your interest rates are before. If you are being charged 15% interest for your debts and a consolidator will charge 8% interest for the debt then they are making 8% and you are paying less given it takes the same amount of time. They may not be as understanding as your personal banker to a missed payment though.
No one can give great advice if you don't give real numbers though. You said credit card debt. The obvious answer is to balance transfer to the 0% interest for 18 months every 18 months. It is a super easy way to save interest payments for like 1% of principal every 18 months.
The other thing a nurse can do is go to Alaska. I hear nurses can get paid $60,000 for three month shifts up there. But you have to live there for those three months.
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Posted on 10/31/18 at 9:32 am to LSU alum wannabe
quote:
We did the debt snowball and took out debt down from mid 70K to 63,000.
2 years you took it down 10% - you get that it will pick up if you keep pressure on it.
quote:
Just too slow.
They ways you are exploring and considering will make it take forever.
Is 7 or 8 years more or less time than forever for you?
Serious question.
This post was edited on 10/31/18 at 9:38 am
Posted on 10/31/18 at 9:43 am to Ace Midnight
The current debt is 63k with interest from 8.9% to 22.9% dependent on card.
They range from standard credit cards to store cards to PayPal credit (pure stupidity) and a student loan.
The claim is this 63k number can be reduced to 47k. Of course this is by the company
They range from standard credit cards to store cards to PayPal credit (pure stupidity) and a student loan.
The claim is this 63k number can be reduced to 47k. Of course this is by the company
Posted on 10/31/18 at 9:44 am to LSU alum wannabe
quote:
Overtime shifts are available but it is some soul crushing work.
With this statement you’re obviously not hungry yet.
Posted on 10/31/18 at 9:47 am to thegreatboudini
quote:
With this statement you’re obviously not hungry yet.
This may be fair.
Posted on 10/31/18 at 9:48 am to LSU alum wannabe
It sucks man, but at least you are trying to do something about it.
Back when I was 27, I just got fed up and took a different approach. I did everything humanly possible to MAKE MORE money.
In the end I ended up getting a second degree for a career change and while that took a few years, shortly after I got a 30% pay increase. It's been uphill ever since and we have had zero debt minus the mortgage for some time.
I personally would not use this service. Pain builds character and the problem that got you into debt was likely the same thought process that leads people to use these services. This is your problem and your problem to fix. Doing so will ensure that when you do fix it, it more than likely wont happen again.
Back when I was 27, I just got fed up and took a different approach. I did everything humanly possible to MAKE MORE money.
In the end I ended up getting a second degree for a career change and while that took a few years, shortly after I got a 30% pay increase. It's been uphill ever since and we have had zero debt minus the mortgage for some time.
I personally would not use this service. Pain builds character and the problem that got you into debt was likely the same thought process that leads people to use these services. This is your problem and your problem to fix. Doing so will ensure that when you do fix it, it more than likely wont happen again.
Posted on 10/31/18 at 9:49 am to Ace Midnight
You've already decreased the amount 10k that is nothing to sneeze at. Focus on your highest interest cards and keep plugging away. Pay the minimum on your lowest interest cards while you pay your highest interest card off or down as much as possible.Then on to the next card.
In the meantime. put the credit cards away. Only use debit cards or cash to help you budget. I don't think a debt settlement is the way to go as your credit will be completely shot for 7+ years.
In the meantime. put the credit cards away. Only use debit cards or cash to help you budget. I don't think a debt settlement is the way to go as your credit will be completely shot for 7+ years.
Posted on 10/31/18 at 9:50 am to hottub
I agree. Ramsey or not there has to be some serious plan.
Posted on 10/31/18 at 9:51 am to LSU alum wannabe
quote:
The current debt is 63k with interest from 8.9% to 22.9% dependent on card.
22.9% is absurd. Pay that off first and pay minimums on everything else.
quote:
The claim is this 63k number can be reduced to 47k. Of course this is by the company
This board has provided you a lot of pros and cons on using debt consolidators. You own your finances and are going to deal with the consequences in whatever pathway you choose.
Based on your posts, you aren't as serious about cutting this debt as you may think you are. If you want to be debt free, then bust your arse and work over time as much as possible. "Soul crushing" work is the definition of excuse.
Posted on 10/31/18 at 10:01 am to LSU alum wannabe
It is 7 years of very poor credit if if you consolidate the debt.
It is also by your account 7 years to complete and pay off all the debt. There is also a good chance you adjust your habits and can pay this off sooner and build better credit.
I think it’s a better choice to buckle down, change spending habits, and focus on paying off the debt.
I had a friend in Houston that was in a similar boat, just out of control with credit cards, school loans, and spending habits. He followed the Dave Ramsey debt snowball and it works.
It is also by your account 7 years to complete and pay off all the debt. There is also a good chance you adjust your habits and can pay this off sooner and build better credit.
I think it’s a better choice to buckle down, change spending habits, and focus on paying off the debt.
I had a friend in Houston that was in a similar boat, just out of control with credit cards, school loans, and spending habits. He followed the Dave Ramsey debt snowball and it works.
Posted on 10/31/18 at 10:08 am to LSU alum wannabe
You guys really need to go to a debt/ financial class first. That’s like $200 for a 6 month class.
Then explore your options like debt settlement and consolidation. With that much high interest consumer debt it may make sense.
You just need to realize it’s not free, and it’s not making anything easier. It may actually make it take longer and cost you more, but easier every month until you get there.
You can’t do that though until you stop your bad spending habits. If that doesn’t stop, you are just going to be in the same place again.
Then explore your options like debt settlement and consolidation. With that much high interest consumer debt it may make sense.
You just need to realize it’s not free, and it’s not making anything easier. It may actually make it take longer and cost you more, but easier every month until you get there.
You can’t do that though until you stop your bad spending habits. If that doesn’t stop, you are just going to be in the same place again.
This post was edited on 10/31/18 at 10:09 am
Posted on 10/31/18 at 11:33 am to LSU alum wannabe
quote:
quote:
With this statement you’re obviously not hungry yet.
This may be fair.
Seriously...you spent the money, stop looking for a magic way to make the debt go away. Take a short term gig as a traveling nurse--then have your wife do the same for a short period.
Sell the cars and buy cheaper ones--fuel-efficient cheaper ones. Use the cash to pay off that 22.9% interest card. Hustle, hustle, hustle....that's what you're not doing now.
Referring to work as "soul-crushing" is a mental attitude: you may work lots of hours, but you're not being shot at, sleeping in a tent in Syria, or picking fruit for minimum wage.
You want life to be easy & comfortable....but you need to square away this debt, ASAP, or you are no moral example to your 8 year old son. Do you want him to become a deadbeat debtor, or do you want to learn about finances, decision-making, delayed gratification, and hard work? YOU are his primary moral example: if the thought of being a good model for him is not sufficient motivation, then dig deeper.
Many ppl on this board have done dumb things and ended up in debt, and we know that busting butt is the only way out. Sell the crap you don't need, cut your household budget to the bone (eat cheaper food, stop dining out, cut all non-essentials like gym membership, expensive cell plan, cable/internet, etc etc.)
Negotiating down the debt is not in your best interest. Being as frugal as possible and generating as much income as possible is the best path.
Good luck, and keep thinking about that 8 year old who needs you to be the moral compass in his life.
Posted on 10/31/18 at 11:39 am to tigerfoot
quote:
it would be easy to have one vehicle. Hell as a nurse he could take public transport.
Yea easy if it was just him. He has a kid and his wife works. And unless he’s living in a big city, it’s not exactly feasible to have one vehicle. The better advice would be for him to sell a vehicle and buy a beater.
Posted on 10/31/18 at 11:54 am to 13SaintTiger
quote:
Yea easy if it was just him. He has a kid and his wife works. And unless he’s living in a big city, it’s not exactly feasible to have one vehicle. The better advice would be for him to sell a vehicle and buy a beater.
Selling a vehicle seems like rash advice and there are taxes and costs associated with the transaction.
Personally, there are other places I would look before selling a car(s) that is already paid off. If he drives a truck worth $50K, then I can track this argument. If he is driving a 2014 Civic, then there are likely better options.
Posted on 10/31/18 at 11:55 am to lynxcat
So what kind of vehicles do they own?
Posted on 10/31/18 at 11:56 am to lynxcat
quote:
Selling a vehicle seems like rash advice and there are taxes and costs associated with the transaction.
Personally, there are other places I would look before selling a car(s) that is already paid off. If he drives a truck worth $50K, then I can track this argument. If he is driving a 2014 Civic, then there are likely better options.
Based on the OP's admission of not wanting to control spending/lifestyle habits, do you really think they are already driving an economy car?
Posted on 10/31/18 at 12:44 pm to 13SaintTiger
quote:
it would be easy to have one vehicle. Hell as a nurse he could take public transport.
Yea easy if it was just him. He has a kid and his wife works. And unless he’s living in a big city, it’s not exactly feasible to have one vehicle. The better advice would be for him to sell a vehicle and buy a beater.
That plus Houston has one of the worst public transport systems out of all the major metropolitans
Posted on 10/31/18 at 12:45 pm to ZULU
quote:
So what kind of vehicles do they own?
I understand cars are a dave Ramsey thing. If we had 2 Land Rovers I’d get it.
To answer the question I have a Ford F-150 pos. Trade in is about 6000
I have an Acura TL that’s paid for. She’s getting old too.
There isn’t a 3rd vehicle. No boats.
Posted on 10/31/18 at 12:56 pm to LSU alum wannabe
quote:
If we had 2 Land Rovers I’d get it.
I think we're all dancing around the subject.
We're going to need some broad ideas of net income and spending - the raw inputs of a budget to see just how close to insolvency you are.
If you're truly insolvent, I wouldn't even futz around with this debt consolidation service - I would just go bankruptcy (unless a significant portion of this is non-dischargeable like student loan debt, etc.).
If you're not insolvent, then this is just a matter of math - devote X more dollars to get you on the glide path to paying things off. The interest savings alone will boost your snowball if your strategy is sound. Dave normally says don't care about the interest rate and just pay the balances from the smallest to the largest.
I tend to agree with that from a philosophy standpoint, but if you have an exception (a larger balance up at 22% or something, with 3 or smaller ones say in the single digits), then it might be worth pursuing.
But, if you're insolvent - you're insolvent and that is part of the reason for your frustration. If you're not insolvent, then there is a mathematical solution here. It may require some more belt tightening, but it's there.
If you can't/won't tighten the belt further, then all the shifting around of debt in the world won't help you and in 5 or 6 years (or sooner), you'll be right back where you were before the consolidation (or worse).
That's just "I love you too much to lie to you, baw" talk. :nohomo: (NTTAWWT)
Posted on 10/31/18 at 1:34 pm to Ace Midnight
Yep. Lay it all out right here and I bet you anything these folks will tell you what you need to hear.
What is your monthly household income?
What are your specific expenses?
How much do you owe on your house and how much is it worth? Just because you think a rental would be more expensive than what your mortgage is now doesn't mean it might not still be one of the better options....depends on how much equity...and you don't rent something as nice as where you live now, you rent the cheapest viable option you can find. You would definitely survive just fine in a 2bed 1bath for a while.
What is your monthly household income?
What are your specific expenses?
How much do you owe on your house and how much is it worth? Just because you think a rental would be more expensive than what your mortgage is now doesn't mean it might not still be one of the better options....depends on how much equity...and you don't rent something as nice as where you live now, you rent the cheapest viable option you can find. You would definitely survive just fine in a 2bed 1bath for a while.
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