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    Need help! need some advice

    well, i can no longer run from this credit card debt and need some help!!! I acquired this debt by extending a family member (mom) my credit cards to keep a business afloat. Business was so bad the last few years that she could no longer keep up with the payments and even shutdown the business after 15 years.


    the current debt on the three combined credit cards are 16k (3 years old)

    I'm at the age of 32 and only bring home 2400 a month after taxes. these are my monthly bills...
    rent: 500
    car payment: 424
    insurance: 120
    living expenses: 350
    total: 1394

    leaves me with 1006

    where do i begin? i want to desperately get out of this debt so i can move on with my life! on top of that I'm getting married this year and buying a house. my fiance is paying for the down payment on the house and the wedding I feel so worthless and stressed out all the time that I've lost a lot of hair.

    #2
    Can we get some more info? Specifically:
    When is your wedding?
    How much equity do you have in the car? What is it worth and what do you owe?
    What are the interest rates on each of the cards?
    Will your rent/mortgage payment still be 500 when you and your fiance get the house?
    Do you contribute to an IRA or 401k? If your employer offers a 401k, do they offer any match?
    Do you have any other debts or upcoming big expenses?

    The current situation is unfortunate, but it may be realistic for you to be rid of this debt in 12-18 months

    Comment


      #3
      Where is your mother in this whole mess? SHE is the one who spent this money. What plan does SHE have to repay what she borrowed from you? Although the debt is in your name, morally it is her debt.

      Your car payment should not exceed 10% of income. Yours is 18%. How much is owed and what is the car worth? How many payments remain?

      Even with the big car payment, you're doing well if you truly have $1,000/month of free cash flow. You can chip away at 16K in debt pretty quick if you throw $1,000/month at it.

      What is your fiance's situation? Any debt on her end?

      The wedding should definitely be a low-key affair if you guys are paying for it, unless she's got a bunch of money. As for buying the house, that may or may not be a good idea. It really depends on the big picture including her income, debt, and savings.
      Steve

      * Despite the high cost of living, it remains very popular.
      * Why should I pay for my daughter's education when she already knows everything?
      * There are no shortcuts to anywhere worth going.

      Comment


        #4
        Sorry to hear about the tough situation you are in. You can find a way through it tho it won't be easy.

        Have you told your fiance all of the details of your financial situation? They need to know exactly what they are getting in to BEFORE the wedding.

        Thoughts of buying a house need to be put on holdy. Not only is it not practical for you right now, it is putting unnecessary stress on you.

        What can your mother do to pay back her debt to you? Does she own a house? If so, could you move back in with her rent-free until the wedding and apply what you had been paying in rent towards the debt? I'm not normally a fan of adult offspring living with their parents, but this is a completely different situation. You wouldn't be doing it because you can't be independent, but because she OWES you.

        I too would like to know more details about the car. Any chance that you could trade it in for a less expensive one and apply any extra towards the credit card debt?
        Last edited by scfr; 02-03-2013, 06:52 AM.

        Comment


          #5
          OP, how is the debt split between the three cards, & are the credit card payments current? If not current, how far behind?

          Comment


            #6
            Originally posted by JALE View Post
            well, i can no longer run from this credit card debt and need some help!!! I acquired this debt by extending a family member (mom) my credit cards to keep a business afloat. Business was so bad the last few years that she could no longer keep up with the payments and even shutdown the business after 15 years.


            the current debt on the three combined credit cards are 16k (3 years old)

            I'm at the age of 32 and only bring home 2400 a month after taxes. these are my monthly bills...
            rent: 500
            car payment: 424
            insurance: 120
            living expenses: 350
            total: 1394

            leaves me with 1006

            where do i begin? i want to desperately get out of this debt so i can move on with my life! on top of that I'm getting married this year and buying a house. my fiance is paying for the down payment on the house and the wedding I feel so worthless and stressed out all the time that I've lost a lot of hair.
            As others have said, the car payment seems high. What kind of car is it? What is it worth? How much longer do you have to pay on it? Selling it and downgrading may make sense.

            Depending on how much money your fiance has it may make sense to wait on a house purchase until the CC's are paid off.

            Definitely agree that the wedding should be lowkey and as inexpensive as possible.
            Brian

            Comment


              #7
              does anyone have any thoughts on bankruptcy vs credit consolidation?

              Comment


                #8
                Create Budget of what you will spend money on. Write it down. Post in your home. Read it to yourself once day... "Speak it into existence." Pay the minimum on the two credit cards with the lowest interest rate. Depending on the balance on the one with the highest interest rate. Make payment plan on how you can get paid off in 6 to 12 months. or 18 months if possible. Repeat the cycle with other cards then after... Everyday put the change from that day in a Jar. Never touch it. Use that as starting point to begin saving for your wedding. Determine how much you will spend on groceries and stick to that amount. Take only that amount to the store with you. Leave the credit cards/ debits cards at home. Its humbly but if you get to register and go over that amount just say you forgot your wallet at home you only have cash so you will have to put some things back... Hope this helps.

                Comment


                  #9
                  Can you breakout your living expenses what do you mean by that?

                  As Disney Steve said your car payment is way too high-how many more payments do you have there

                  Comment


                    #10
                    Sometimes people get psyched out by their debt and jump to bankruptcy quickly without considering all their options. I would defiantly be finding ways to supplement my income. Working online is becoming easier and easier. Sights like Fiverr are very successful for those who are creative. All you have to do is copy someone successful. I made 200 in a month writing short SEO articles. A really easy thing to learn to do. All about keyword density and content quality.

                    Comment


                      #11
                      unless you're opting for a cheaper wedding, I'd postpone it. I'd definitely postpone the home buying. Your car payment is high, but your debt definitely is manageable. Like others said, debt consolidation may be the route to go to lower your interest, then get to work on the balance.

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