Same old story

[timetosave]

Hi all. Where do I start In the past year I have realized that I really need to grow up. I have a VERY bright 11yo dd who hopes to go to college someday and I will be the one that has to pay...

My credit is the worst on the planet. When I was young I was stupid, when I was older I was stupid...seems the older I got the dumber I got until now...I'm realizing I need to make a change.

I believe my credit score as as low as it goes...I have been paying off as much as I can but doing so has made it difficult to keep up with car payments and now I'm struggling to get my student loan paid on time.

I need guidance...I've never had it before, not from parents...never. So I am reaching out to all of you.

Right now I am 3 months behind in my car payment (will be able to make one on the 24th) I am 1 month behind on my Student loan but up to date on everything else.

I sit up at night trying to figure out who I can borrow money to get me out of debt...that way I can concentrate on paying one loan...problem is my credit is so bad nobody wants to loan me the money even though I am working, making pretty good money and finally serious about getting out of this hole...

So where do I begin...what do I do...all advice is appreciated.

timetosave

Another loan is not the answer.

why dont' you post what your expenses are and your income, and I am sure we will all have suggestions.

[Broken Arrow]

Yes, the first thing to do is to take a deep breath and realize that you've taken the first and possibly the most important step: Realizing that there is a problem here, and that it's time to face up to it.

Honestly, that's half the battle already won right there.

The second is to sit down and put everything down on to paper. It may not be the most pleasant way to spend an afternoon or night, but it's quite important to see what you're working with, and therefore, what your budget should look like.

When you do, please post it and I'm sure many on here can help you with ideas on what to do next.

[timetosave]

Hi thank you all. Do I list all my debt (bad credit?) wow...I think I might get kicked off the board...but I will do so tonight and post.

timetosave

[Kris10Leigh]

Yep. If you list all your debt, I bet you will get more help than you bargained for. Also, you are in good company. There are those of us in various stages of digging ourselves out. My family is currently more than $23,000 in the hole, if that makes you feel any better.

[timetosave]

Kris...that is an entire family...my car alone is more than that...lol. Ok, I will start working on this now.

thank you

timetosave

[greedy4chips]

hey timetosave,

First and foremost is never ever miss a payment just to pay extra on another debt!!!!!!!!!!!!!!

Being late far outweighs any benefit to making extra payments anywhere else.

Debt consolodation loans in any form only change the payments and not the debt while actually increasing the total amount paid over the life of the loans due to the extra interest. So another single loan concept will only benefit you by getting you a single payment and will only save you some money on stamps and envelopes!

I can hardly wait for your list of debts and the wave of suggestions that are sure to follow.

You are in good hands with some of the helpers around here!

[Ima saver]

Timeto save, it sounds like you need a cheaper car! also, are you male or female?

[timetosave]

I can't tell you how scary it is to put my 'debt' out there in public. I can't tell you how uneasy this makes me...opening myself up to all eyes...I do, however, understand that I have not been able to do this alone so I do need help.

ok, here goes:

Outstanding principal balance: $34,453.18
Accrued interest: $119.34

Total amount outstanding: $34,572.52

I just requested a deferrment on this today

GMC owe 26,660.63

Total Past Due 987.59
Total Other 318.37
Total Due now 1,795.87


Judgement: First Niagara Bank 5,189.00 This was a computer I sold on ebay...bad check

Crossing Pointe Charged off 123.00
Fashion Bug Charged off 833.00
Monroe and Main Charged off 258.00
Newport news Charged off 1,897.00
Presidoio/CM charged off 2,345.00
Through the Country Door charged off 385.00
Capital One bank charged off 1,091.00
CBCINNOVIX charged off 840.00
Unique National Collections 48.00

I have two other judgements that total 8,000 one is a credit card the other is another computer sold on ebay with a fake check given as payment.

that is me in a nutshell

Coming in...work fulltime 993.00 bi-weekly + 531 monthly

thank you for your insight.

timetosave

[timetosave]

I'm female...does that make a difference? My car is leased

G

[Homebody]

How about your monthly budget:
Rent/house payment
utilities
food
gas
insurance
personal care
clothing
kid expenses
pets

that sort of thing??

[Ima saver]

Leasing a car is a very bad idea, even for a rich person. I don't understand the bad checks, did they give them to you or did you write bad checks??

[timetosave]

Originally Posted by Homebody

How about your monthly budget:
Rent/house payment
utilities
food
gas
insurance
personal care
clothing
kid expenses
pets

that sort of thing??

I do not pay a house payment/rent (husband takes care of that)
cell phone bill is about 83.00 month (a need not a lux)
food about 400.00
gas 200 month
no insurance payments (husband)
personal care about 50.00 mth (if that)
clothing about 100.00 mth, sometimes..for the kids (back to school now which is why I've fallen so far behind since june)
nothing on pets

timetosave

[Ima saver]

Looks like you should have about $1500 a month left over to pay on your debts, if you bring in almost $2500 and only spend $1000. Where is that money going!

If you sold a computer, and they wrote you a bad check - how do you owe for the amount of the check. I can see a fee for a bounced check but over $5,000?

[timetosave]

that's my problem...there should be no reason I am living paycheck to paycheck...I guess that is where I need to start. Right now (and for the past 3 months or so) it has been going to my 11yo dds needs - school related. We are almost finished. But I've been making this money for a year now and really have nothing to show for it. I just don't know where to start or how to stop doing what I'm doing wrong. That is why I'm here. I've seriously looked into taking a second job but with a disabled husband and an autistic 8yo there simply is no way unless I can figure something out online (working on figuring this one out) right now I need to feel more in control so I can relax and get to what I need to do...I've been looking at every loan program online for poor credit (I think having one payment a month will aid in the feeling of control) but I'm afraid of all of them...I'm already down and don't need to get kicked while I'm there.

My local banks have all said no, my bad credit does not allow me to get credit...I could just wait it out...that is the loser in me talking...I really want to get this under control

thanks

[Homebody]

Yes where is it going?? That's the big question.

Start by writing down everything you spend, EVERYTHING! Even that drive through cup of coffee or newspaper. Lunch money for the kids, everything.

Of course not spending on the cup or coffee or newspaper is even better! Think about every purchase. Can you do without this, make it at home, substitute something cheaper?

Our OD going to college is what got me going, but she was a junior in high school when it hit me, so you are ahead of where I was right there! We made it through, partly by me working very long hours, her doing her first two years at the local JC which is very cheap in California and then working when she went away to Sac State enough to pay for her rent.

So don't panic, just work on it. Maybe start by going through your checkbook and seeing where you spent. Start learning to say "do you want to go to college or do you want this _____ (fill in the blank)" when the kids as for something.

Also did you make provisions for college expenses in your divorce agreement? Even if you didn't, perhaps your ex will pitch in and of course, there are scholarships, loans and kids working too!

Some people think parents should not pay for college at all, but everyone's values on this issue are different and I respect your decision/concern about college for your children. DH and I decided when we first had kids that we would help them get through since we didn't go to college and felt it was too overwhelming with trying to support ourselves and go to school. That was our decision and I am completely happy with it.

[timetosave]

Originally Posted by taking charge

If you sold a computer, and they wrote you a bad check - how do you owe for the amount of the check. I can see a fee for a bounced check but over $5,000?

That's what I thought, when someone writes you a bad check the bank will come after you because they have a relationship with you, know where you are and will not waste their time and money looking for someone who will more than likely be impossible to find...both checks were dummies (I learned quite a bit two summers ago, both came in at the same time) I've already paid back a bad mo I received (needless to say I don't sell this stuff online anymore)

Did you spend the money from the check, is that why? If I deposit a bad check, the money just does not show up in my account, and I may have to pay a fee for that bad check bouncing, say $15.00. Since the check did not show up in my account - I did not spend it.

Did you spend it?

[greedy4chips]

Originally Posted by timetosave

I can't tell you how scary it is to put my 'debt' out there in public. I can't tell you how uneasy this makes me...opening myself up to all eyes...I do, however, understand that I have not been able to do this alone so I do need help.

Good for you! We don't know you personally so we won't know you if we see you on the street. I am proud of you for listing your debts.

Originally Posted by timetosave

Outstanding principal balance: $34,453.18
Accrued interest: $119.34

Total amount outstanding: $34,572.52

Alot, but workable!

Originally Posted by timetosave

I just requested a deferrment on this today

GMC owe 26,660.63

Is this a vehicle? If yes you need to sell it! You cannot afford it and even if you are upside down you must sell it and get a solid junker for a year.

Originally Posted by timetosave

Total Past Due 987.59
Total Other 318.37
Total Due now 1,795.87

Get current anyway you can! Then negotiate with each one on a way to reduce your burden. You are not asking for a reduction of your debt just a payment plan to help you make your budget work. Tell them they will get their money but you need a little time and a payment plan.

Originally Posted by timetosave

Judgement: First Niagara Bank 5,189.00 This was a computer I sold on ebay...bad check

Another Ebay horror story...sorry you were the victim!

Originally Posted by timetosave

Crossing Pointe Charged off 123.00
Fashion Bug Charged off 833.00
Monroe and Main Charged off 258.00
Newport news Charged off 1,897.00
Presidoio/CM charged off 2,345.00
Through the Country Door charged off 385.00
Capital One bank charged off 1,091.00
CBCINNOVIX charged off 840.00
Unique National Collections 48.00

The charge offs have to be reported on your income taxes as income I believe.

Originally Posted by timetosave

Coming in...work fulltime 993.00 bi-weekly + 531 monthly

What do you have left after current living expenses like home, food, and utilities. You have to live first.



My plan of attack would be to definitely sell the vehicle and get a personal loan for the difference if upside down. That is going to be awfully tough with your history, but $26k+ verhicle is gonna get repo'd if you don't do something fast.

The bank will work with you if you sit down with them and show them your budget. I have known people who actually did this! Ask them if you can pay them $50 a month and you will meet with them every 3 months to show them your progress and rework your payment plan to suit your needs. They will do it because otherwise they may never collect the $5800.

But honestly without the vehicle you are much better off than you seem to think.

I am not sure if you own or rent a home, but you could babysit or do in home daycare to make extra money. Our friend did it 24 hrs a day when she divorced her abusive ex and had a paid for home and money in the bank within 8 years...just a 2 bedroom very modest home.

Point is at $2-$3 an hr per kid you can make an extra $100 per week while the kids sleep if you do 3rd shift daycare. My current daycare lady does it on first shift only, so she can be with her 2 kids in the evening and still does fairly well. I pay her $3 an hr for 1 kid during my school hrs and she is very flexible on the schedule.

Friends or family may be able to help you get a reliable vehicle at a good price if you can find one who is looking to move up. Don't ask for a loan since it may ruin the friendship. Just ask if they know someone who is selling a good car. Try traveling salespeople since they put massive miles on very new vehicles and it tends to be easy miles. We purchases a 1 1/2 yr old Grand Prix with 83K on it for $6000 and it now has 125k and barely any repairs 5 yrs later...knock on wood. I wouldn't sell it for less than $3k because I know how good it is and we have owned it free and clear for 4+ years.

Well there is my 2 cents.

Hope this helps some!

PS Listen to Dave Ramsey live show here http://www.daveramsey.com/radio/home/
He also has archives of his radio show on his site here http://www.daveramsey.com/radio/home...ShowArc hives

He will give you some extra inspiration that you can work your way through this debt!