I need help now...I'm struggling

[Anonymous]

Did that relationship prove to be 'expensive'?  BTDT and survived.

(1) even though you are now making 100k+, cut back on everything that is non-essential (maybe one small and cheap "treat" each month - like a movie with your daughter).

(2) Invest in Quicken or Money - and start tracking where your money is going (every penny of it!)- believe me, you will be in for a shock!!!!  Do this for one month and the cutting back will seem like your own good idea.

(3) Your shelter expenses are reasonable (that depends on where you live though) - what about your food and clothing spending?  food for thought only - no specifics required

(4) You got ratejacked because of the late payments -start making phone calls to the CCC requesting an APR decrease, tell the truth (and hope you get a sympathetic ear in the CSR) if you get 'no' try again next week.  Cry if you have to.

An installment loan may be your best option - bu you will have to put all the cards away until it is paid - no further debt allowed!

And stop 'living' on your crdit cards - they get put away as of right now, they do not exist as a means to buy anything (it's cash or not at all)

Message Edited by Lady_Scarlet on 10-07-2007 02:14 AM

[Anonymous]

Pizza -

Wow...this post makes things some a lot better.  There is certainly light at the end of the tunnel.

Thanks again.

[Anonymous]

Lady_Scarlet -

I appreciate the feedback.  After taking a hard look at my expenses the past month, I'll tell you where the room for improvement is on my end - food.  I was shocked to see I spent nearly $1,200 on food at the grocery and eating out. 

I guess I justify spending so freely on food because I'm pressed for time.  Working a minimum of 10 hours a day and then spending quality time with your child takes a lot out of me.  As a result, I usually rationalize that eating out is the best option.  I don't know if I feel the same way after realizing how much it costs.

Thanks for the feedback.

[Anonymous]

 Here's what I did with kids around :  every Sunday afternoon was kitchen time (kids were required to help) - we made a pot of soup (a big pot - at least 2 meals) at least one (usually 2) casseroles, (THAT'S4 DINNERS RIGHT THERE)... the rest were prep and bag the stuff for the crock pot ( a working mom's best friend, BTW)  Realize - there were 5 kids so there was a lot of food that had to get done up.

[haulingthescoreup]

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@Anonymous wrote:

One question relating to loans though. Credit scores seem to be the most important factor lenders utilize in the determination of whether (or how much) credit will be issued to a loan applicant. A loan applicant's credit score is, in large part, tied to the % of total credit they are utilizing.

Thanks in advance for your response. By the way, how do I move this thread?

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I hate to call you "Fool", because I don't think you are at all! Another survivor of life with a few scars to show you've been in the game.

When you go in for a debt consolidation loan, they're certainly not going to be surprised that you've got high util on your cards. After all, that's why you're there, right? I haven't done one of these, but my understanding is that they are looking at your ability to repay (that's your nice new income, congrats by the way.) And if you're going to a lender who cares about your situation, they will want to see a plan for keeping this from happening again. Credit unions are great for situations like this. And remember, the moment that you get your loan and pay off your cards, your scores will soar, because guess what? now you have 6 cards with little or no balances, plus one car payment.

I know what you mean about the eating out $$$. When I went back to work and started doing more fast food and freezer to microwave meals, I wound up with a lot less money and way more pounds. I like Lady Scarlet's suggestion about meal preps. A nine-year old can actually work out a week's menus at a time (with a little help, of course.) Then you derive a shopping list from the menus, go shopping together, and cook together. There's a bunch of quality time right there! It seems like the trend in kitchen design are these giant caverns full of twin stoves, twin sinks, twin fridges and twin dishwashers, and the photos show the happy family bustling away whipping up gourmet treats. But the reality is that so many families have forgotten how to make that time for cooking and eating that the $100,000 kitchen stays gleaming and empty, except for a non-stop microwave.

Anyway, about moving the thread, a moderator needs to do that. I think if you click on the Options button, you can find something there. You might have to use the "report abuse to a moderator" if you don't see something more appropriate, but that ought to reach the right person. Although you've gotten a lot of responses already! You can't beat pizza in a typing frenzy. ;-)

[Anonymous]

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@Anonymous wrote:

Pizza -

How did you come up with the rates you used?

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I've been shopping for loans recently. You caught me at a good time. I found that the different between banks is huge. Some will charge 21.9% and others 7.9%. You have to really really shop this rate out. I would be really surprised to see you approved on a personal loan with recent lates and being almost maxed out but I'd try this first because its good for score. If denied for personal then a consolidation loan would be the way to go. They are exactly the same loan except they are titled different. Lenders know if it is titled Consolidation you once had problems. I believe consolidation might be Consumer Finance title, but I never took one out to know. The difference between Consolidation and Personal is who gets the money. Personal loans the money goes to you. You can spend it on a vacation or pay debt. Consolidation loans go strait to the creditors that hold debt. You're not able to spend the money so lenders know you won't double your debt. Well that's the idea anyway.

Work hard to shop these rates. It could be the difference in $5,000 in interest. I call about 50 lenders before I except a rate. Takes me about 6 hours total to call all of them. Hello, what is your rate for this type of loan, how about this loan, thank you, next. They will give you a range mostly. x% - x%. Under personal you probably fall at the high % side. For consolidation you probably fall at the lowest % side.

And the rates change from time to time. The only disadvantage you have is no home. So you can't do a HELOC or loan against your house at 6.9%. But I think you will do much better talking to the banks. Remember the bankers might know less about these loans than you do. Their not the underwriters. If you find a bank with an underwriter that will talk to you. Listen carefully. They know their stuff. Managers are not underwriters.

Then a consolidation loan. The banks do both. They don't expect too much debt for personal loans, but expect you nearly maxed out for consolidation loans.

Message Edited by ilovepizza on 10-07-2007 08:26 AM

[Anonymous]

As for food. EXPENSIVE. I found I could save money and eat better quality by cooking 1 day a week. Sunday! I bought a large freezer chest $300 to keep in the garage. I make my meals and freeze each one in ready to eat small zip lock bags pre-cooked. Frozen minutes after cooked to keep them fresh. 2-5 minuted in the microwave and I have an entire meal on the go. Frozen so I can even take them out of the road. Portable cooker warms them up if I am out. Well I do it because I prefer my own cooking, but the money saved is HUGE when cooking in volumes. I cook more than I need so I have a selection to choose from each day.

You will need to change spending patterns to explain growing debt. This is not much debt for your income. It is a lot but seriously, people do much more than this all the time and pay it off just fine.

Lets say you earned $50k a year living by your self. $42k roughly after taxes.
$3,500 a month take home.
Rent $700,
Health insur $300,
car payment $350 (small car),
car insur and gas $300
Utilities, phone, ect $350,
Food, $500 (included food stores and cleaning stuff for house, ect.)
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This still should leave you with about $1,000 / month left over. In this case you could afford to pay back a debt of $43,000 with an installment over 5 years with a $50k salery. This income could not afford a higher car payment.

Now I know it's a completely different story when you are taking care of someone else and children. This was not meant for your situation just for an example. The cost of living goes up right away. I just wanted to show you it can be done. You have to watch money very closely. You are making about twice this amount. Suze has a lot of great info on how to cut expenses on her site. I would start there. You might find out after cleaning up spending you have enough to pay off debt and have extra spending money.

The BIGGEST THINGS are the SMALL THINGS. They add up so fast. $10 here, $20 there, $2,000 later when the bills come in. As good with finances that I am, I still can't explain how I rack up bills with these little items. I have just excepted a certain amount of my purchases to be a monthly expense for these little things. But I never impulse buy. Saying ehh it's only $20 is what gets everyone in trouble because they do it over and over and it adds up. I can't see it when I'm shopping but I know they will add up. So I stop my self before I buy stuff. I have a separate bank account set aside for fun stuff. I spend it until it is empty each month and no more. Kind of like my personal allowance. This is separate from savings and bill monies. This is my secret to staying out of trouble. And that account uses a debit card. lol. It might take 2-4 weeks but after that your situation should be fine.

Message Edited by ilovepizza on 10-07-2007 08:30 AM

[Anonymous]

The main focus should be spending less rather than paying it back. A simple installment should take care of past debt so it really is not a problem. Just think of the consolidation installment as a car payment. Going forward should be the focus.

[Anonymous]

Awesome advise in this thread PIZZA

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@Anonymous wrote:
The main focus should be spending less rather than paying it back. A simple installment should take care of past debt so it really is not a problem. Just think of the consolidation installment as a car payment. Going forward should be the focus.

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[Anonymous]

no no no!!!! you will pay for chapter 7 for 10 years.  try to call and work with your creditors.  they can be very helpful once you explain things.