SavingsTalk.com

James

As I eluded to on Hondaswap, but didn't go into great detail about, is my current financial situation. It's been getting more and more grim since I bought the house.

Here, I will go into detail.

Currently my total amount of money owed is as follows.

Loans
Mortgage; 49,8xx
Car; 3,859.01
Windows; 18k
Unfinished loan from 2006; 500

Credit Cards
Capital One; 2,440
Chase; 1,100
State Farm; 2,941

Other lines of credit
Financed things; 750

Total; $79,390

Yeah nowhere near Clayton, but I can't continue this.

I've started a credit counseling thing to pay off the windows, capital one and state farm cards via negotiations through them. (THIS is why I felt so guilty about going off on getnick last month)

My tax return will be a little over 1400, and my underpaid property tax now should be around 800.

So I'll have 600 left from my tax return. 500 will pay off the unfinished loan from 06, and the extra 100 in that savings (which I can't touch until the balance is paid off) will go towards the other line of credit to pay it down.

Not to mention the 150 I'll receive after my gun is sold to Slammed.

I don't even want to go through telling you what my monthly payments are, but the mortgage has topped at 705 a month until the 1200 is paid back to Chase for the property tax underpayment. (fuck the Allen county assessor)...

July 2010 is the maturity date for the loan on my car, I've made several payments on it early, with extra money towards it, etc.

I will have the unfinished loan, the other line of credit and car paid off by 2010, and then all hell will break loose on debt pay down when the car payment is finally off my back.

Thats just where I'm at. Its really not a fun position to be in. Personally I believe I'd been extremely responsible with my credit, but I didn't know where to draw the line in USING those lines of credit and I sunk my dumbass-self into the position I'm at now, which is the position of cancelling cell phones, tv, parts of my garbage collection costs (had them take my second bin), etc. Anything to save a few bucks a month. I've even cut myself down to a half pack of cigs a day, and when I'm home I'll only smoke a half cig and save the rest for later.

Anything I mention buying will be minimal amounts of cash, like legos. A few dollars here and there extra into credit cards won't do a whole lot, so I'm not going to try, but I am pushing to be able to pull 1000 from savings one day (let alone just having it in there for a change) and talk about a CD or investment plan, all short term that I can roll around.

briansol

Living in debt is a fact of life for most of us. You mention clayton-- i WISH i only had that much debt.

I'm in debt roughly 360k if you want to list it out like that. Sure, i make more than you... but 4x as much? (360-80 is roughly 4x as much) I don't think i make 4x what you do.
If you made about 25k last year, then we're about even. if you made more than that, then on paper, you're in better shape than I am.

it's the way of life. no one buys everything in cash anymore. It's impossible. It will take you your whole life to save for a house just to live in it when you're dying. Unless someone in your family leaves you cash, it's what you deal with. You and I weren't lucky. We worked for our own.

Where you're wrong is the 'few dollars into the cards won't do a whole lot'. sure, $10 will save you $1 in interest, but it adds up... fast. $1 here, $1 there... that's how you got to where you are in the first place.

I know we've said this before, but i think you should seriously consider getting a 3rd roommate, or go back to slinging pizzas a couple nights a week. There's only so much you can cut out of your life before your life isn't worth living (figuratively, not literally...)

I work a ton to make ends meet. I got my 9-5, i got my websites, and I freelance for other people on top of all that. I work 12+ hours a day most days.

There are jobs and money out there. you just have to be willing to work to get it.

__________________
Any thoughts or opinions are that of my own. Research your buys and sales on your own. I am not a stock broker.

James

My buddy Mark is trying to find steady work, then he plans on moving in even for a short period of time. I grossed 27k for 2008, I don't make a whole lot.

I've called all the pizza places in town, and even some out north and out west... no one is hiring.

I'm happy to cut shit I don't technically need - I just need to survive with the house and car.

titan22

it takes hitting the bottom of the barrel before you realize how much stress debt is. I hit it a few years ago. I had my cars and my bike. 2 credit cards maxed out and my bank account was near nothing. i wasn't working either. i was literally up shit creek.

in my eyes, there are only a few things you should take on as debt.

1) education. if you want to make more money, go to school. often times you can get enough loans to go to school full time and still pay the bills. the government did a study and found that for every $1 they give to veterans, they pay $5 back in taxes.

2) a house. assuming house values will go up greater than the interest rate of your loan, it's a good investment and ok to take out debt.

3) a car, with limitations. if you make a lot of money and get an interest rate like 2%, then it's ok. when times are tight, drive something paid for with cash.

when you get the debt down, you will feel a lot better. nothing sucks more than feeling like you are spinning your wheels. i don't want to wake up at 40 and think, "what the hell have i been doing with my life".

__________________
This post does not express the opinions of the website, it's members, or its owner. Always invest with caution and do proper research. If you have questions, consult a paid, investment professional.

James

Nick I just want to apologize again. You guys always have the best of intentions, and I ate myself up with guilt when I felt like I went off on ya'll while you're dispensing free advice. It was two days after that thread that I'd gotten a collection letter in the mail for being way over due and past due on the windows loan.

I feel like I'm at rock bottom and I've fought like hell to keep the house and the car.

titan22

hey man, i'm not too worried about it. you're a hell of a good guy. you have a great work ethic and stuff will work itself out.

the key is to not give up on it. i'm going through some stuff right now too...keep your head up, and i'll keep mine up.

__________________
This post does not express the opinions of the website, it's members, or its owner. Always invest with caution and do proper research. If you have questions, consult a paid, investment professional.

James

I woke up on time today, which is a feat unto itself, and decided to check my bank account to see if I could buy a Dr Pepper with it this morning (yeah, I'm draining it consistantly right now), BAM $1352.00.

Its apparently been 2 days since I've checked it, cause that direct deposit cleared on the 24th. I was sitting pretty.

First objective: N&W Loan; $500 to pay off a 3 year old loan and receive back my $100.15 in that savings, thus shutting down that account.

Second objective: Depositing my paycheck with that extra $100 on top of it, then proceed to call chase and figure out how much in back property taxes I owe, then I will be paying that much extra on my mortgage. (I think I still owe $800)

I'll be puting back $100 in my pocket, and $100 in Brians pocket every month instead of my $705 mortgage, it'll go back down to its $503.

Along with the mortgage going down, I'm going to ask if my exemptions had reached them yet, that should drop my taxes from $1000/6 months to around $400/6 months, hopefully this lowers my mortgage even more. I will have one loan gone.

James

Well fuck, somehow there is still 640 left on the escrow to pay back. 140 per month...

2009 SUCKS.

James

Yay! I'm getting another roommate. Everything will be split in thirds. I'm gonna be able to save some money.

titan22

good. now save up 6 months worth of expenses.

and get healthy. use the extra money to get yourself checked out.

__________________
This post does not express the opinions of the website, it's members, or its owner. Always invest with caution and do proper research. If you have questions, consult a paid, investment professional.

James

Most of my savings will get put into the house. I gotta get this house more weather proof so I'm not shoving more paycheck into heating and cooling.

briansol

save up first.

While sealing up the house is a good idea, don't break yourself again like you did on the windows to do it.

__________________
Any thoughts or opinions are that of my own. Research your buys and sales on your own. I am not a stock broker.

James

Nah windows won't ever happen again. Even the few windows I couldn't do won't get done until I have the cash to go to lowes and pay for them up front.

My first order of business is the damned front door. I should have done that first, I bet it would have actually saved me money to replace the door first.

James

I don't feel like I'm any further ahead than I was in May. I've contacted several bankruptcy attorneys, and I'll be having one wipe out all this stupid fucking debt. I can't take not being able to do ANYTHING. I literally just dumped 270 into two credit cards to get them to shutup, and this counseling company just seems worthless. They can't do anything, and really haven't but monthly follow ups. I'm too busy to be able to sit down and talk to them during the day.

I want to repay the companies, but the interest and late fees aren't money they deserve. I want to wipe it all out. Obviously I'm keeping the house and car, and keeping one credit card with its super low interest rate. (6% which is my lowest)

Whether or not its a good idea to you guys, I can't deal with this money issues anymore. I will officially be 500+ a month richer when this takes over.

It'll be time to save, if I have to start a new bank account/cd to do it, and I'll be able to go out and have fun without having to check my account on whether it'll break me from eating for the next week.

I want to live like I'm 18, because I never really did when I was.

titan22

well, if you keep the house and car, you should be able to rebuild your credit pretty quickly. you can get some money saved up and have some more cash on hand. you will feel a lot of stress lifted off, just make sure you can clear enough debt through the bankruptcy to make it worth it.

__________________
This post does not express the opinions of the website, it's members, or its owner. Always invest with caution and do proper research. If you have questions, consult a paid, investment professional.

James

I will. The car will be paid off in less than a year, and I can afford to actually put equity into the house. I will actually be using less than 50% of my income for bills when this is done.

Besides, I'm tired of doing dishes. I want a dishwasher. lol

and I want the plumbing to be done. I'm cutting out two credit cards and the major loan I should have second guessed when I first signed for it.

briansol

progress is key once you get some of the debt paid down, start blocking some money off towards savings/investing. You're not getting any younger. Retirement will be here before you know it.

some statistics say, if you don't have 30k banked by the time you're 30, you're behind and won't be able to retire at 65, assuming modest average returns over the past 100 years and inflation average as well over the past 100 years.

Play some penny stocks like me and nick, retire at 30

__________________
Any thoughts or opinions are that of my own. Research your buys and sales on your own. I am not a stock broker.

James

1 pm on thursday is my free consultation. To retain them and get the ball rolling will be 25, and all the attorney and court filing fees will be around 1250 which I can pay in installments. They'll file prior to my paying them in full, which I like.

titan22

make sure you check them with the BBB and get a second opinion from another firm. good luck James.

__________________
This post does not express the opinions of the website, it's members, or its owner. Always invest with caution and do proper research. If you have questions, consult a paid, investment professional.

James

Way ahead of you. I called 10 different firms and asked all the same questions... and when I got to the office this afternoon I checked the BBB, they've had 0 complaints ever. I've watched their commercials since I was a kid.

James

I had my free consultation today, the way I have to pay was different from what they originally said, but I put my 25 down to retain them.

My court date will be 3 months after they file the bankruptcy petition, and the debts will be dissolved 7 months after they're filed.

I just did a rough sketch of my monthly bills after its all disolved. Everything in blue will be paid off by/in 2010.

Bills
Mortgage $240.00
Car $245.20
Chase $60.00 (fluctuates due to internet being paid through this card)
HHG $50.00
Insurance $77.00 (will lower when car is paid off)

Utilities
Water $16.00
Electric $40.00
Gas $12.00
Garbage $5.00

(Utilities and Mortgage are split three ways, I took their average amounts. Electric and gas are exact opposites between summer/winter)


Totals after bankruptcy: $745.20/month
Totals when Car and Credit Line is paid off: $450.00/month.

The prospect of being able to save 500-900 per month just excites me entirely too much. I will be asking a lot of questions about investments to you guys.

Basically I could pay all my monthly bills with just a little over one paycheck of four per month when I have only one credit line left.

Had I not been so stupid, I could have been in this position 5 years ago. I remember when my Escort blew the head gasket and I had 750 in the bank doing nothing, and I could pay for it easily. I cannot wait to be there again!

titan22

imho, $300/month savings is a pretty big trade for a bankruptcy on your credit. It seems like something that could be worked out with taking a second job or something.

with that extra $900/month you should look into some classes or extra certifications for work.

Good luck buddy.

__________________
This post does not express the opinions of the website, it's members, or its owner. Always invest with caution and do proper research. If you have questions, consult a paid, investment professional.

James

The bankruptcy is dissolving 25 thousand in debt, the car and credit card in blue are ones I plan on paying off myself.

My bills right now include two other credit cards (when they threaten me), and a credit counseling service. All of which add up to more than 400 a month on top of the original totals stated above. Basically my paychecks are squeezed so tight I HAVE to eat at places where I can get away with sub 3-5 dollar lunches.

I do plan on college courses, something leisurely like taking german, but in the end civil engineering keeps calling my name. But I would like to put some savings into the house to raise the equity and lower the utility costs (new front door for starters, some plumbling, flooring, etc)

Not to mention my garage door needs replaced. I'd like to put my car out of the way and hidden from sight when I don't drive it for a week.

A second job, well with Fort Waynes shit-hole economy, not even pizza places are hiring.

briansol

I too would suggest avoiding bankruptcy if at all possible. Like, until there's a public auction sign in your front yard for your house bad. give 'em $10 a month and they will shut up. pay as much as you can when you can.

eat at home... and from scratch. stop buying food on the road. pre-made dinenrs at the grocery store are a complete rip off too. for $9, you can either get a small pizza, or get enough ingrediants at the store to make 5 pizzas.

don't waste your money in college taking german unless you plan to
a) work in a german international business
or b) move to germany.
otherwise, its a waste of money in this economy. Most germans speak english any way. lol
civil engineering is a much better idea. great city/state jobs in that arena.

how's the economy outside of fort wayne? drive 45 min to another town for a couple nights a week. only costs ya $3 in gas. it's worth it for a 2nd job a couple night s a week.

__________________
Any thoughts or opinions are that of my own. Research your buys and sales on your own. I am not a stock broker.

James

I want to avoid losing the house at all costs. that is my main objective at this point. this is the last option I had. I'm done with financial problems.