Cleaning up Credit: Collections and PFD advice.

[MarineVietVet]

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@Anonymous wrote:

MarineVietVet - I fully agree.  After I made the original post, I was distracted by a lengthy phone call.  After the conversation ended, I attempted to edit the post by breaking it into paragraphs, but I couldn't get the system to do it.  My apologies.

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No need to apologize but I wish some of the long time posters here had the courage and maturity to admit they are not infallible and don't have all the answers.

[Anonymous]

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marinevietvet wrote:  I wish some of the long time posters here had the courage and maturity to admit they are not infallible and don't have all the answers.

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+1 gazillion million trillion

[Anonymous]

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@Anonymous wrote:
Others have provided solid advice about approaches to clean up the derogs. I'd like to offer advice about your pending new vehicle aspirations. Obviously there are a lot of variable that affects whether one can or cannot afford a new vehicle. Ultimately, the buyer will be the final judge. In the meantime, I recommend you to begin formulating methods to track and compare cost of ownership. An Excel spreadsheet is a great way to do it. Cost of ownership involves depreciation, various taxes & fees (sales & use taxes, excise tax, registration, license plates, etc), loan costs, insurance, fuel expenses, vehicle routine maintenance, unanticipated repairs, emissions testing/certification, vehicle enhancements (audio system, roof rack, moonroof, deflectors, masks, sun shades/vent visors, etc). Look at near term residual or resale value. This is especially insightful if you play devil's advocate where later down the road you financially get in a pickle and may need to sell it. Will the vehicle be worth more or less than the outstanding loan balance? Give yourself an easy, or easier way out if the worst would happen rather than risk a newer ding on your credit reports. Obviously there are a lot of things to look at. Your low FICO scores that will likely subject you to high financing rates and insurance premiums. As such, I would take a very hard look at these two items before emotionally wrapping yourself up into making the new vehicle purchase. There is an auto loan calculator available on bankrate.com, or you can easily create an amortization chart in Excel with just a few clicks if you're using the 2003 or 2007 editions. Analyze the cost of the loan by calendar year and rolling 12 month intervals from date of origin. Perhaps there are tax deduction strategies that could be helpful to you. (I'm not a financial adviser, tax attorney or CPA, so consult the proper professionals.) What I am trying to convey is to think outside the box and thing big about the implications of making the purchase. Sometimes less is more, and short term sacrifices evolve into better discipline and really nice longer term benefits. I would take a similar approach in analyzing insurance premiums. Insurance agents can give you quotes without pulling your credit report. Simply be honest with them about your past credit problems and low FICO scores. Withhold your SS# or don't give them permission to pull a credit report. Doing so could end up hurting you, especially when obtaining quotes from multiple insurance agents. A suggestion I will pass along that may benefit you is to find out how are the most experienced insurance companies licensed to do business in your state. Generally speaking, insurance companies with a diverse amount of underwriting experience in your state will have lower rates -- even for those with not-so-good credit. In the end, these sorts of analyses will produce tangible and comparative data that you can hold, feel, smell, etc. The devil is in the details. Use it to your financial advantage to ascertain if this is a wise purchase for where you're at in life today. You are likely to save yourself several hundreds, if not thousands of dollars over the long term if you patiently wait for your FICO scores to modestly improve given a few points in interest rates can make a big difference. Ultimately, you don't want to bite off more than you can chew and struggle to pay for and maintain the vehicle then end up with a newer ding on your credit report. Arm yourself so you can make a highly informed decision. Be prudent, remain disciplined, and stay positive. Things will change for the better. Best wishes.

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Hey forty5ford:

Do you have any recommended source of average or expected cost of repair for various vehicles?  That would be awesome information.  I just opened a vein at my local service station to get my car running again and I believe it's time to say Auf Wiedersehen.

And can you give a clue as to how to create an amortization chart in Excel?  I'm a fair hand with Excel and I don't think I know how to do that.

Thanks!

[Anonymous]

In terms of cost of ownership, I find Edmunds.com to be informative and thought-provoking. Methodically examine the particulars of your vehicle, your driving habits and your geographic location.

Example: Maintenance costs for 2010 Dodge Ram truck for someone living / working on the plains of Kansas will likely differ from someone who owns the same vehicle in mountainous terrain.  Your driving style can also have a significant impacts on ownership costs.

Usually every two years, I re-evaluate insurance coverage. Are there cost advantages or economy's of scale I can utilize to my financial benefit? Are other carriers more competitively priced now than they were 2 years ago?   And developing rapport with an honest, knowledgeable and reliable independent mechanic can pay big dividends.

As for creating an amortization table in Excel. It's simple.

1. Either open a new Excel workbook or from an existing workbook, click on one of the tabs / sheets (Sheet1, Sheet2, Sheet3, etc.) at the bottom of the workbook.

2. With your mouse hovering over Sheet1, Sheet2, Sheet3, etc, right click then select 'insert' from the small dialogue box that appears. A new & bigger window titled 'Insert' will appear.

3. Click on the 'Spreadsheet Solutions' tab.

4. Click on 'Loan Amortization'.

5. Excel will automatically create an amortization chart for you. Simply type in the pertinent info in the dialogue boxes. Excel will instantly calculate then create the payment chart for you.

Have fun.

[Anonymous]

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@Anonymous wrote:

In terms of cost of ownership, I find Edmunds.com to be informative and thought-provoking. Methodically examine the particulars of your vehicle, your driving habits and your geographic location.

Example: Maintenance costs for 2010 Dodge Ram truck for someone living / working on the plains of Kansas will likely differ from someone who owns the same vehicle in mountainous terrain.  Your driving style can also have a significant impacts on ownership costs.

Usually every two years, I re-evaluate insurance coverage. Are there cost advantages or economy's of scale I can utilize to my financial benefit? Are other carriers more competitively priced now than they were 2 years ago?   And developing rapport with an honest, knowledgeable and reliable independent mechanic can pay big dividends.

As for creating an amortization table in Excel. It's simple.

1. Either open a new Excel workbook or from an existing workbook, click on one of the tabs / sheets (Sheet1, Sheet2, Sheet3, etc.) at the bottom of the workbook.

2. With your mouse hovering over Sheet1, Sheet2, Sheet3, etc, right click then select 'insert' from the small dialogue box that appears. A new & bigger window titled 'Insert' will appear.

3. Click on the 'Spreadsheet Solutions' tab.

4. Click on 'Loan Amortization'.

5. Excel will automatically create an amortization chart for you. Simply type in the pertinent info in the dialogue boxes. Excel will instantly calculate then create the payment chart for you.

Have fun.

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If "rapport" means "suck every drop of blood out of my wallet until it is a dried up and shriveled husk", then, check, I got that one covered.  As far as honest, reliable, and knowledgeable, I figure 1 or 2 out of 3 aint bad.

That was awesome.   I really like how you can enter extra payments.  Thanks!