Announcement

Collapse
No announcement yet.

Advice for a newbie

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • UpToMyEars
    replied
    I have good news on my situation.I actually had a great talk with my g/f this morning.Funny how this happened right after I posted here.Anyway,She just got paid today,so we set up a spreadsheet for her like I use to manage the bills.She flies blind so to speak when it comes to tracking her bills.It was light I saw a light go on in her head when she had the numbers right there organized for her to track.It is possible that she may be on board with the plan.
    We went through each bill together as she paid on them.I made sure to also remind her that once we are out of debt,we could build wealth quickly.Then we would be able to return to Florida where we went on our one and only vacation together.
    She seemed motivated and then told me she thinks she could put about 400 bucks into savings per month!My goal is to get 1000 bucks in emergency savings that one of you mentioned.I will remain a bit skeptical because I know how she is about money.However,this is the most serious she has ever been when we discussed money.

    Leave a comment:


  • UpToMyEars
    replied
    Originally posted by photo View Post
    First, many will disagree with me, but I think it's a huge mistake to combine finances with anyone other than a financial partner in a business or an actual spouse. Situations can get extremely messy, and you're just at the beginning of that because you have different financial goals than your girlfriend and already you're buying a car for her. Until you get married, keep those finances separate.

    Your rent looks great. If you had no debt and lived frugally, you'd be on a quick path to wealth. But, you have one rather expensive car loan with some expensive extras, like phone bills (2 people -- $170? That's outrageous) and cable.

    After separating your finances, pay off your highest interest rate first and move down. Do any of the lower rate cards have a 0% transfer rate? I frequently receive offers of transferring balances to existing cards with 0%, but I don't have any debt. But I'd take advantage of moving any balances to lower cards when you receive those offers.
    I think I agree that mixing finances is not the best idea.I hope to God it does not come back to bite me in the rear!I will seperate the finances as much as I can.

    I agree about the phone bills.Mine is around 60 bucks/month.She has a smartphone with all the data plan crap to go with it,so it gets pricey.Also,we have extras on the cable bill that we could drop.
    I really wish I could transfer the higher interest credit card balance,but I am so close to the credit limit on the other cards that I can't do that.

    Leave a comment:


  • UpToMyEars
    replied
    Originally posted by Bob B. View Post
    With the amount of debt you have together, and your current payoff rate and current interest rates, it will take you between 6 and 7 years to pay off, and you will probably spend at least $15,000 in interest during the payoff time. And, that's assuming no more debt.
    Thank you for this.The interest is a sobering number to look at!I needed to see that.Definately motivation to not accumulate any more debt!!

    Leave a comment:


  • UpToMyEars
    replied
    Originally posted by ktmarvels View Post
    First of all, I would think long and hard about the situation you are in with your girlfriend. She doesn't appear to be on the same page financially or wanting to do her part. Perhaps if you talk about your future and all the things you want (house, vacations, etc) it can help motivate her to come to the savings/paying off debt side. Otherwise, you may need to consider if you are prepared to have that battle for the rest of your life. People won't change unless they want to. You, however, CAN make a change (deciding you are going to do it for the both of you, or leaving the situation).

    That said. I think you are already on your way to paying down debt. It will take you a while, but it probably took you a while to get here too. I would continue paying the minimums on your card, but get something in savings to cover those unexpected costs ($1000 is what most people say). Then attack those CC! Paying the higest interest rate one makes the most financial sense. Also, give them a call, ask them to lower the interest rate. Some may, some may not, but een a little bit helps.

    You also have a lot of car debt. Consider selling one and buying an older, used, less expensive car. Even if you are upside down on the cars, having $5000 at 5.9% is better than having $36,000 at 5.9%. Also remember, if your name is on both cars, you own both cars. It may require some tough love for you to convince your girlfriend of this (and I might add, only do it to her car after you've done it with your car...or see if you can give her the loan).

    Good luck! It will be a hard road, but you can do it.

    Yes it has taken us quite a long time to get into this situation.I have actually thought about putting the car in her name,but how do you go about doing that?Would I do a refi and put it in her name then?
    Also,I am glad you mentioned a savings account.That is something I did not know if we should do before paying toward the debts.
    By the way,thanks for your encouragement.

    Leave a comment:


  • Bob B.
    replied
    With the amount of debt you have together, and your current payoff rate and current interest rates, it will take you between 6 and 7 years to pay off, and you will probably spend at least $15,000 in interest during the payoff time. And, that's assuming no more debt.

    Leave a comment:


  • photo
    replied
    First, many will disagree with me, but I think it's a huge mistake to combine finances with anyone other than a financial partner in a business or an actual spouse. Situations can get extremely messy, and you're just at the beginning of that because you have different financial goals than your girlfriend and already you're buying a car for her. Until you get married, keep those finances separate.

    Your rent looks great. If you had no debt and lived frugally, you'd be on a quick path to wealth. But, you have one rather expensive car loan with some expensive extras, like phone bills (2 people -- $170? That's outrageous) and cable.

    After separating your finances, pay off your highest interest rate first and move down. Do any of the lower rate cards have a 0% transfer rate? I frequently receive offers of transferring balances to existing cards with 0%, but I don't have any debt. But I'd take advantage of moving any balances to lower cards when you receive those offers.

    Leave a comment:


  • ktmarvels
    replied
    First of all, I would think long and hard about the situation you are in with your girlfriend. She doesn't appear to be on the same page financially or wanting to do her part. Perhaps if you talk about your future and all the things you want (house, vacations, etc) it can help motivate her to come to the savings/paying off debt side. Otherwise, you may need to consider if you are prepared to have that battle for the rest of your life. People won't change unless they want to. You, however, CAN make a change (deciding you are going to do it for the both of you, or leaving the situation).

    That said. I think you are already on your way to paying down debt. It will take you a while, but it probably took you a while to get here too. I would continue paying the minimums on your card, but get something in savings to cover those unexpected costs ($1000 is what most people say). Then attack those CC! Paying the higest interest rate one makes the most financial sense. Also, give them a call, ask them to lower the interest rate. Some may, some may not, but een a little bit helps.

    You also have a lot of car debt. Consider selling one and buying an older, used, less expensive car. Even if you are upside down on the cars, having $5000 at 5.9% is better than having $36,000 at 5.9%. Also remember, if your name is on both cars, you own both cars. It may require some tough love for you to convince your girlfriend of this (and I might add, only do it to her car after you've done it with your car...or see if you can give her the loan).

    Good luck! It will be a hard road, but you can do it.

    Leave a comment:


  • UpToMyEars
    started a topic Advice for a newbie

    Advice for a newbie

    Hi,
    I am new to this site.I have been reading posts and have begun to evaluate my finances more seriously.
    I am 29 yrs old,soon to be 30.As I approach my 30th bday,I have found myself wanting to move ahead and become debt free.I would appreciate some advice from you all.Please give me your input.I apologize in advance for making such a long post.

    Income
    Mine: around 2,700 monthly
    Hers: between 2,500-2,800 monthly


    Debt:
    Cars: 13,000 and 23,000 @ 5.9% APR
    BOA CC: 4,300 @ 22.9%
    Citi CC: 1,200 @ 19.9%
    Carecredit CC: 2,560 @ 13.9%
    Personal loan: 7,200 @ 13.74%
    Fifth Third CC: 7,050 @ 10.9%
    HH Gregg CC: 1,500 @ 0%
    Health One CC: 1,840 @ 9.24%
    Student loan: 7,000 @ approx 3%

    Monthly bills:
    Rent: 625
    Electric: 130
    Cable: 130
    Phones: 170
    Loan payment: 208
    Car payments: 660
    Car insurance: 225
    Student loans: 300?
    Credit cards: 550
    Groceries: 300
    Doctor bills: 100
    Medicine: 100
    Gas: 120?

    Honestly,I am not even sure how much my g/f pays for her student loans,gas or medicine per month so that amount may be off.She also has several bills in collections on which she has not made any payments.
    I sometimes become very discouraged because I don't think she has the same commitment to getting out of debt that I do.She is absolutely horrible with managing her money so,her monthly contribution to the bills is not what it should be.I have talked with her repeatedly about getting our finances in order so we won't have to struggle forever,but it's like she does not really care.
    We were looking to buy a house a couple of months ago,but her credit was too low and so the house would have been in my name.Both cars are in my name already so I was afraid to do that.It was probably a blessing that we were not able to get the house.
    I am currently using a mixture of methods to pay off my debt.I am primarily using the snowball method,but have thrown a bit of extra money toward my medical bills.I am focusing on the Bank of America card as it has the highest interest rate.I have made some decent progress on paying down that balance from 5,300 in July to 4,300 today! I have also been able to pay off a couple of minor medical bills this month too.We basically have nothing in savings and were thinking of putting a little toward that and the most of any extra money toward the debt.Does my plan sound ok?Any advice on how to fix debt when your spouse/SO may not be on board with the plan?
    One major thing I started doing was packing my breakfast and lunch for work.I realized I was spending from 7-10 bucks every time I worked!I can already tell a difference just from that one change.
    Last edited by UpToMyEars; 09-21-2011, 11:19 PM.
Working...
X