Open CC to pay off debt

[Anonymous]

I'm not trying to be a jerk and I hope for the best for you and your family HOWEVER....

you young folks need to STOP with what really sounds like EXCUSES...sure there will ALWAYS will challenges in life

but you can't say on one hand

'We GOT...ALL under control'

'He can pay, it'

'He/we can fix ANYTHING that may come up at the house'

No problem...yada yada yada

then on the other hand be VICTIMS

 to the neighbor/ the county ...

ex: you guys didd all that work before or after the 500 tires and mosquitoes got there?

'Oh, he accumulated the $14,000 from a $9000 military credit card that is in collections'

So again on one hand 'we got it' but he accumulated 14k in CC debt military CC or kindergarten CC any of them will

accumulate DEBT if the card holder buys stuff and does pay, period.

None of them just wind up in collections, just b/c?

"is only in collections because they required him to go to a base that is about 40 miles away to pay it in person each month,

but......his military ID was expired. 

I swear I'm not trying be a a Richard....but re-read that as a PARENT or a grandparent and THINK to yourself

Yes I'm ok with that as a reason my adult child would put themselves and my grandbabies in jeopardy...but he's 'got it'...everything is under control!

As a father, my son better not have 40 miles and an expired ID be the sole REASON he or my adult daughter have THOUSANDS of dollars in freaking collections,

big boys and girls figure this stuff out..../b/c adults HAVE TO, period.

'16 is a New Truck, so obviously researching and figuring out what to BUY isn't a problem so researching and figuring out how to pay a freaking bill HAS TO rise to the same type of effort...just being as REAL as possible, for the kid's sake!

You don't do $700/mo truck payments w/ collections and a not-so-working mate, so high CC balances AND a baby...if you 'got it'

You said the two of you have a 2 y.o. baby....so that's almost 3 years of knowing the responsibility level has changed....

Life as a whole let alone with a young babby doesn't CARE that you

"don't plan on having a wedding or anything....especially not until we get into a house for a while.

We don't make huge purchases and when we do its home related, but we are able to do so without breaking the bank.

*Again, with love and concern... I say PLEASE think this out w/o emotion....you are trying to SALE yourself on how you guys 'do things'

but HISTORY begs to differ

You guys may not make 'huge purchases' but "somebody" made a boatload of small ones to get to 14k in collections + the $4400 in debt you claim you have personally....sorry that sounds like a broken bank to me.

I'm trying to keep it light and sorta funny, so that you might see....that there are some money issues going on within your household and it's NOT all about 'they DID something TO us/him' this has to do with decision making and actions....and if they don't change, you guys will just move on to yet a 'new' problem that fell out of the sky and just so happened to hit your household.

If the money is going to be so flowing and NO PROBLEM, then moving temporary to better living space while paying this 'no problem' debt will only cost you 6 extra months isn't worth avioding tires and bugs, again it's just ONE extra move and ALL that can be tackled FOR SURE witin a 15 month grace period right?

Especially if the payment can made within a 40 mile radius, that is if that 2016 trucj can make such a trip.....and please have him look around for tires and bugs before you guys sign a mortgage

[Anonymous]

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@Anonymous wrote:
We have a place right now where we had to remodel the bathroom and kitchen from scratch. There were massive leaks and tons of mold. The rooms were just beams when we got rid of everything hazardous. We did it ourself, while I was pregnant. We also had to tear up the carpet because there was mold everywhere. The neighbor has around 500 used tires just sitting in the yard collecting water and breeding mosquitoes. The county was notified in February and said they will not be removed until next January. I live in Florida, so mosquitoes are rampant. We cannot even go outside. If I open the door for a second, a bunch come in. And we just found out the water pipe in the yard busted because a utility worker truck parked on it and broke it. So the yard floods, and the water bill is sky high. We fixed it, then it happened again. Apparently, people think my yard is a parking lot.

After I transfer the $14,000 and he pays it off we will look into getting a bigger loan. With a $155,000 loan, he can afford that easily. His debt to income will be about 900:4500. Roughly $58,000 a year. We aren't concerned with having to fix things in a new house, because he will be able to do it. He does lawn care and landscaping on weekends as a side job, owner and operater, so he will be able to maintain the lawn.

I don't plan on having a wedding or anything especially not until we get into a house for a while. We don't make huge purchases and when we do its home related, but we are able to do so without breaking the bank.

Oh, he accumulated the $14,000 from a $9000 military credit card that is in collections and also the remaining car balance. He has a new '16 truck that is $700 a month, so he is transferring the car since it's only $5000. Hmm, the military card is only in collections because they required him to go to a base that is about 40 miles away to pay it in person each month, but he could no longer have access to the base because his military ID was expired. (Active reservist after leaving the marines) It was stupid, like HOW could he pay it when they wouldn't allow him on base and they didn't allow payments by phone or mail? That is the only thing stopping him from getting a loan right now. That's $400 a month, car is $220. Transferring to my card he will pay $800 a month. He has 2 other monthly accounts he has to pay but they are super low $38-130 a month.

We will be using the VA loan so that helps with 0% down payment.

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It seems like you have already made up your mind. All I can say is there is a lot of good advice in this thread and I hope you really weigh your options. You may not see it but he has a lot of debt which is why he was denied a mortgage in the first place. Your solution is not a real solution to this problem. All you're doing is shifting his debt to your social security number. 

With each post, you reveal more and more of your financial picture and it's not pretty, please heed the advice in your thread. 

[Anonymous]

EDIT: I typed up everything below, and then a thought occurred to me. With the home loan, you are increasing your joint debt by nearly 1000%. If that much of an increase is such an easy thing to take on, why has your current debt level created such problems?

--original post below--

Some of the posts here may seem a little harsh, but I think they are well intended. It's true that we don't know you or all the details of your situation. You guys may be the rare unicorns that make this work. I can't really speak for everyone else here, but I know I can see a lot of myself in what you posted.

Years ago my issues were different, but in a way similar. My GF and I spent a lot of time trying to chase old debt with new, and speaking from experience, that rarely works. The thinking was "If I can just get this new thing, I can take care of that old one", or "I'm doing better financially now, so I can afford to take on that little bit more.". Eventually that "new" thing just becomes the next "old" one and I was chasing it instead.  It wasn't until I really sat down and had a hard look that I realized how insincere my approach was. Until I fixed the habits that lead to the problem in the first place, the problem would never go away. Someone could have paid off everything I owed, and eventually I would be right back where I was because the behaviors were the same.

Look at it this way, say you have a bucket with a hole in it. No matter how many times you fill it up, you are still going to end up with an empty bucket until the hole is fixed. Even if you go get a brand new bucket of water to dump in, it is still going to leak out.

Again, I don't know you, so please take this as it is intended. I really do mean well.

You say that you have this under control, but your fiancee has a car that is just now one model year old (presumably he bought it new) while holding over $8,000 in debt that is in collections. I understand needing a car, but getting a used car that is just a few model years older can substantially reduce the monthly obligation on that. After tax, tag, insurance, interest,and payments, the difference in money going out each month could easily be $300-$500. Just that alone could pay down a fair portion of his debt in very short order. That, to me, is a HUGE financial red flag. I would need a really convincing argument in order to take on someone else's debt after doing that.

I am not saying that you two can't do it, or that you won't go on to live very happy and enriching lives together. There's a chance you will, and I hope you do. Just please be careful.

[Anonymous]

He actually only has $9000 on the collections account not $14,000.. $5000 of that is the car. But anyway, there was no way to pay the remaining balance since we could not get on base after a certain date which is when his military id expired. He isn't retired. And no, if we drove 40 miles to the base to pay the bill, they just tell us we cannot get on base because he isn't active military or retired. We tried that a few times actually. And the tires were not next door when we moved in here 4 years ago or else we wouldn't have stayed here. I'm not a **bleep**ty mother. THIS is why I want to move. The county is doing nothing about this issue, so it is up to me to do something. And he was not denied a mortgage loan. He got $145,000, but he wants $155,000 to get into a better area. Neither of us have ever had late payments besides the bill that was impossible to pay. And even that one is $400 and pay it way before the due date.

The house we are in now is a piece of crap, but we are renting from his relative so rent is very cheap for the area. The reason I want to transfer the debt is because the interest rate for his collection is outrageously high, so with my 0% interest he can have it paid off before that 15 month 0% APR is over with. 

[Anonymous]

Yes, the 2016 truck is brand new. He has made payments weeks before the due date, as we do to every bill. The car that I will be taking over is about 12 years old. The new truck he uses for his business on weekends, and our family outtings. He does lawn care, so he needed a truck to pull around the big trailer he has. I am thinking the 0% on my card will help pay off the collection quicker since his interest is super high on that account. 

[Anonymous]

He wasn't denied a mortgage loan. He got $145,000

[Anonymous]

Oh and we cannot rent another place. If we used the $145,000 house loan we got, our mortgage payments would be less than what we pay for rent. If we got the $155,000 loan next year then our mortgage payments would still be less than what we pay for rent. All rentals here are around $1400-3000.

[Anonymous]

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@Anonymous wrote:

He wasn't denied a mortgage loan. He got $145,000

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I apologize. I misspoke about him being denied a mortgage. 

[Anonymous]

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@Anonymous wrote:

Oh and we cannot rent another place. If we used the $145,000 house loan we got, our mortgage payments would be less than what we pay for rent. If we got the $155,000 loan next year then our mortgage payments would still be less than what we pay for rent. All rentals here are around $1400-3000.

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As I stated before, I think you've already made up your mind. You are looking for someone to tell you it's okay. I could do that, but I believe in karma so I won't. 

Do you have a back up plan for repaying his/your debt if things don't work out with his repayment plan? If yes, what is it?