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Is it possible to fix this financial mess?

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Anonymous
Not applicable

Re: Is it possible to fix this financial mess?

That's a good idea. And might I add, I think its pretty awesome of you to step up and help her like this. Hopefully she will use it as a learning experience so you don't have to do it again.
Message 11 of 17
Anonymous
Not applicable

Re: Is it possible to fix this financial mess?

Me too! She knows not to mess with me when it comes to lending money. I also told her if she runs up those cards again or any unapproved activity in her bank account unless she checks with me first, she's on her own.

She knows it's bad. I really wish cc companies would be more careful giving out high limits to young kids that don't have the income to support the credit. I make 6x what she makes and because I'm rebuilding I get 1,300 with Barclay and they give her $6,300. Just stupid. That's almost 2/3 of her annual income. Have I said how stupid!
Message 12 of 17
wa3more
Established Contributor

Re: Is it possible to fix this financial mess?

Southeast provided sound advice. Do not do ch 7 not at this age over that amount.

 

 

Message 13 of 17
Anonymous
Not applicable

Re: Is it possible to fix this financial mess?

She texted me today. Long story short, I have $2k to work with in bonus money. That is enough to get everything current and payoff the 3 smallest (I'm going to snowball it). So, praising God, I don't have to loan her money right now.

However, looking at her spending habits and what she did with the money, I want to smack her upside the head. Lots of waste, cash advances, etc. Just being 22 and stupid!

She needs to completely change her spending habits. If her CC companies don't AA her, I'm going to ask for CLD's so she can't get in this mess anytime soon (she's giving me complete control). At least the few 30/60 lates should be enough to keep the CC companies from giving her anything more for a while.......
Message 14 of 17
Anonymous
Not applicable

Re: Is it possible to fix this financial mess?


@Anonymous wrote:
She texted me today. Long story short, I have $2k to work with in bonus money. That is enough to get everything current and payoff the 3 smallest (I'm going to snowball it). So, praising God, I don't have to loan her money right now.

However, looking at her spending habits and what she did with the money, I want to smack her upside the head. Lots of waste, cash advances, etc. Just being 22 and stupid!

She needs to completely change her spending habits. If her CC companies don't AA her, I'm going to ask for CLD's so she can't get in this mess anytime soon (she's giving me complete control). At least the few 30/60 lates should be enough to keep the CC companies from giving her anything more for a while.......

Do you have power of attorney to handle her affairs or something? If you don't then I do believe she has to call her credit card companies since she is legally an adult.  I think its wonderful that you are helping her and since she is handing you everything I guess she realizes she needs help but there comes a time where she will have to learn how to manage her own finaces without you.  This is a good step in the right direction.  I wish good luck in this. 

Message 15 of 17
Anonymous
Not applicable

Re: Is it possible to fix this financial mess?

She's working on getting me what I need for each account, jemster. Part of the agreement for my help.

Its tough love with her, I'm not doing this again so if she doesn't learn the lesson this time she's on her own. One account at a time - I'm hoping for good progress and this time next year she'll be down to paying on just 3 accounts.
Message 16 of 17
Anonymous
Not applicable

Re: Is it possible to fix this financial mess?


@Anonymous wrote:

@Anonymous wrote:

@Anonymous wrote:

Warning long - don't attempt to read on your phone, lol. 

 

Need another set of eyes, working on my neices credit and it's NOT good.  I'm trying to decide if I should have her look into ch7 or have her spend years trying to pay her way out.  I'm so frustrated with her, she had all her CC's at $0 a couple of months ago.  That's another post for when I calm down!!! -No need for CH7 yet. Don't wanna rush to ruin one's 20s over debt.

 

Age:  22

 

Income:

1st Job (just went full time) = $275 wk take home-If possible find a higher paying job. Not sure what the skills of this individual are or if they are in school or not

2nd Job (part time) = $40-100 wk take home

3rd Job (part time) = $120 wk take home cash

 

Bills - Necessities:

Car Payment = $287 Sell the car and get something used and much cheaper.

Car Insurance = $200 See if 22 year old can be added to your policy. My car insurance is in my wife's name. Saves me like $60/month

Cell Phone = $80 (moms been paying) Prepaid phone may be an option

Food and Gas = $60  - wk at least for gas (why she bought a truck I'll never understand), food - she has to buy all of her own-Buy cheaper more fuel efficient vehicle. Of course easier said than done, I know.

 

CC Debt:  $15,569 Possible debt consolidation

Medical Collections:  $2,371 PFD if possible, maybe a payment plan can be an option, best case have it removed

 

Thoughts:

1. Thoughts on stopping the current bleeding if she doens't go the ch7 route?  Her current scores are 544, 537 and 543.  At this point, only 4 of her accounts have a 30-day late (just this month).  I could loan her the money on the 15th for a temporary bandaid to bring all of her accounts current.  The problem is all these minimum payments she can't afford them individually.

2.  Based on the above calculation, it's looking like she can afford total payments of $600 - $700 per month. 

3.  Eliminate 2 of the medical collections - she was a minor.  Look at charity care for the other two ($1,600 is the big one, the others are 200-300)

 

She's thinking a ch7, but doesn't even have the money to pay an attorney.   What looks like the best course of action?

 

 


CH7 should be a last ditch effort. Credit is rough, but i"ve been in a similar place. Had to sell my car for rent and live off student loans for almost a year. Scores were in the high 400s/low 500s back in 2008. CC debt ended up getting charged off from 1 acct, had 1 other that had several lates. Long road back but pretty much all negatives are gone except for a few lates from 2009. Got out of debt by getting full time job while still being a full time student. To get out of debt, you have to seriously want to get out of debt.


Ok, I'm in rebuilding because I don't want her to file.  Trying to avoid at all costs.

 

1.  Higher paying job - she's trying but lets assume that's a no go for now.  She keeps putting off school in order to work

2.  Car is on a lease.  So no go on selling it.  She got out of her first lease against my advice and I'm sure she rolled in negative equity with a sleazy salesman

3.  She's on her grandma's insurance but she has to have all the junk the lease company requires.  Can't add to mine, different states.

4.  Can't do pp phone - she's locked into a contract with Sprint on her moms plan

5.  Vehicle, it is what it is, can't fix the stupid she did on this one for almost 3 years (why doesn't my family listen to me the FIRST time)

6.  She tried debt consolidation was told a no-go from multiple lenders.  Not sure who would take a chance with her credit mess?!?

7.  Medical, I'm having her call and leave a message today - verify that those are not from when she was a minor and looking into charity care.  Told her to ask if they will temporarily pull back from the CA while they validate and she explores the charity option.  Told her to keep reminding them she's only 22 and has no money, lol.

 

I'm working on a spreadsheet of who she owes, how much and payment required to bring accounts current.  Her only chance at a debt consolidation might be through me.  I have an empty Venture1 sitting with 3% BT fee and 0% interest until July 2016 - it's a SD card now.  I have the money to pay off the remaining balance by July so she'd owe me.  Problem is, the limit is only 10K - I don't want to max out multiple cards.  She's mailing me all of her CC cards, debit card and I'm freezing all her CR's so she can't apply for new credit - If I loan her the money, she will have to direct deposit ALL of her checks into my account and I will pay the bills.  She can keep the $120/week cash she gets for expenses (gas, food, etc.).  I don't think she'd default on me, she knows better than to burn that bridge.......

 

I really want to help, but not sure I want a card that large at 100% utilization.................

 


Do a search on Why Chat's HIPPA program for the medicals. It will give you step-by-step instruction for her situation and will help with verification, paying OC, and having it removed from CRAs vs being updated as 'Paid'. Best wishes Smiley Happy

Message 17 of 17
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