drowning in debt Was tempted to steal toilet paper.Looking for advice

[Anonymous]

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@yfan wrote:

First, stop paying taekwondo. I don't care if it's under contract. Cut out Netflix, even if it is just $9 a month. You said you mostly work from home. So could you do without a car? Since you noted no car payment, I assume you own your vehicle outright. If you could sell it you would get some money and save on car insurance etc after accounting for other transit costs.

You should also know that if you closed your cards tomorrow and stopped paying on them, they'd all go to collection but would drop off your report in 7 years. That's longer than it would take you to get out of bankruptcy.

Not necessarily recommending this, but I don't see how bk is a better option. If you can get a HELOC though that might be best.

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I agree with the taekwondo, get rid of it. Keep your Netflix and keep your car. You can't be stranded.

[driftless]

You should be aware that martial arts firms can be tenatious in going through collections, lawsuits, etc., to enforce contracts.  At least in my clients' experiences, YMMV.  I would not simply walk away from the contract.  

[Anonymous]

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@Anonymous wrote:

Is your monthly take home $1600-$2000 or that is per check? 

You say you have a mortgage, so this means you are a home owner? I think your best bet would be to get a home equity loan. You are $15,000 in debt so that would be all you need. It will increase your mortgage payment but overall your monthly output of payments would lower. 

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No offense but that is terrible advice.  Credit card debt is unsecured.  He can declare bankruptcy and shed the debt.  If he ties the debt to his house he could lose his house if he is unable to pay it.  

[Anonymous]

I would recommend bankruptcy. You could get out of the 510 in credit card payments  and 145 Twakendo and that would give you 655 dollars  more a month so you wouldn't have to eat ramen noodles and pbj everyday.  The snowball effect isn't going to help you with your current income and debts.   Also I would never get into any contracts anymore. 

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Is your monthly take home $1600-$2000 or that is per check? 

You say you have a mortgage, so this means you are a home owner? I think your best bet would be to get a home equity loan. You are $15,000 in debt so that would be all you need. It will increase your mortgage payment but overall your monthly output of payments would lower. 

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No offense but that is terrible advice.  Credit card debt is unsecured.  He can declare bankruptcy and shed the debt.  If he ties the debt to his house he could lose his house if he is unable to pay it.  

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No offense taken although I think calling my well-intentioned advice "terrible" is a bit harsh. The reason I mentioned home equity is that she could have used it to consolidate all debt. Yes, her mortgage payments would have gone up by a few hundred (if that-$15K would be the needed loan) but her unsecured, minimum credit card payments would disappear. She stated that she was (barely) paying the $500 minimum payments, so why not pay $250 more to the mortgage company and pocket (hopefully save) the rest? It would be a hard lesson to learn having to use equity to repay her debt, but she probably wouldn't spend unwisely again ((I am assuming overspending what the cause of the debt (Amazon, Target, Walmart and furniture card); however, OP has not stated what caused it)). 

You are entitled to your opinion. I am of the opinion that if there is a way to pay off debt that one has incurred (for non medical reasons) that person should do their best to make things square. I am sure I will get flamed for saying that as so many here have filed bky in their lives. I am not judging anybody who has made that difficult decision; my mother, a few aunts, friends and a sibling have all filed-and none of them for medical reasons-it was all for overspending. Seeing what they went through is why I am so cheap, cautious and guard my credit (my reputation) so closely. 

My advise also included a consolidation (personal loan) and even bankruptcy as you may have noticed. Obviously OP has not returned or at least has not responded, so all of this advise is likely falling on deaf ears (or is it blind eyes since its online?). 

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

Is your monthly take home $1600-$2000 or that is per check? 

You say you have a mortgage, so this means you are a home owner? I think your best bet would be to get a home equity loan. You are $15,000 in debt so that would be all you need. It will increase your mortgage payment but overall your monthly output of payments would lower. 

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No offense but that is terrible advice.  Credit card debt is unsecured.  He can declare bankruptcy and shed the debt.  If he ties the debt to his house he could lose his house if he is unable to pay it.  

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No offense taken although I think calling my well-intentioned advice "terrible" is a bit harsh. The reason I mentioned home equity is that she could have used it to consolidate all debt. Yes, her mortgage payments would have gone up by a few hundred (if that-$15K would be the needed loan) but her unsecured, minimum credit card payments would disappear. She stated that she was (barely) paying the $500 minimum payments, so why not pay $250 more to the mortgage company and pocket (hopefully save) the rest? It would be a hard lesson to learn having to use equity to repay her debt, but she probably wouldn't spend unwisely again ((I am assuming overspending what the cause of the debt (Amazon, Target, Walmart and furniture card); however, OP has not stated what caused it)). 

You are entitled to your opinion. I am of the opinion that if there is a way to pay off debt that one has incurred (for non medical reasons) that person should do their best to make things square. I am sure I will get flamed for saying that as so many here have filed bky in their lives. I am not judging anybody who has made that difficult decision; my mother, a few aunts, friends and a sibling have all filed-and none of them for medical reasons-it was all for overspending. Seeing what they went through is why I am so cheap, cautious and guard my credit (my reputation) so closely. 

My advise also included a consolidation (personal loan) and even bankruptcy as you may have noticed. Obviously OP has not returned or at least has not responded, so all of this advise is likely falling on deaf ears (or is it blind eyes since its online?). 

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Yeah it makes sense to try to pay off your debt when you can.  But this person has 150 dollars for food a month and no money for clothing etc.  Unless they get a significantly better paying job there is no way that they can pay off their debt.   I see no way out for them but to declare bankruptcy.  Add up the persons montly expenses and subtract that from their income.  Even if they lowered their debt by 250 they aren't going to make it out from the debt.  All that will happen is they will lose their house down the road.  What if their car needs repairs?  What if a medical expense comes up? 

You can't change the past.  The only thing you can do is try to not make the same mistakes twice.   

[Anonymous]

Better to take your lumps credit wise than to go to jail for stealing.

I was watching a show on tv where the people had went totally green.  They never used toilet paper.  They would take their clothes off while doing as number 2.

They would then jump in the shower and wash themselves.  That's better than stealing.

I also don't think a judge would treat you with any sympathy.

[Gregory1776]

I have already read Dave Ramsey books NOT being in serious debt like this, but you being in this kind of debt, I highly encourage you read his books, and or talk to one of his advisors. you can get out of this without filing bankruptcy!

[driftless]

Please don't listen to those who suggest bankruptcy.  You are making on time payments, albeit hard payments.  Just look at the rebuild section to see how painful a bankruptcy is.  Even a couple of late payments does not compare to the damage that a bankruptcy does to your credit report.  Please just carry on.

[Anonymous]

Looks like you still have some room with the local furniture store Synchrony, I say go to town with it and worry about the rest next week.