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Divorce - floated for a while, but now drowning in debt

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    #16
    Originally posted by Weird Tolkienish Figure View Post
    First goal would be to move all your debt to the lowest interest rates possible:
    This strategy won't work in OP's case. Her credit score is trashed. She won't qualify for a 0% card.
    Brian

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      #17
      Have you explored the possibility of a short sale with the bank that holds your mortgage?

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        #18
        Originally posted by bjl584 View Post
        This strategy won't work in OP's case. Her credit score is trashed. She won't qualify for a 0% card.
        Ok, well if she can transfer to the lowest interest rate possible that will make things much easier.

        My main advice still stands: walk away from the damn house.

        The corporate world walks away all the time. No reason for you to be "moral" in this case.

        Life is short.

        Or how about a short sale? And if the bank won't work with you, walk the $%&^ away, fast.
        Last edited by Weird Tolkienish Figure; 06-19-2014, 06:34 AM.

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          #19
          Originally posted by Jenemone View Post
          Moving back to the house doesn't save me any money, and my commute goes back up to nearly 2 hrs a day. Mortgage is $365, plus ~$400 in gas is ~$765. Rent is $575 plus ~$180 in gas, so $755, and saves the wear and tear on the vehicle. It's a nice house, so I'm hoping I can rent it for rock bottom with a 1 yr lease to entice someone. It's 10 miles from the nearest tiny town, and 30 miles from where most everyone works in the bigger town.
          If you are renting near work, then why are you still spending $180/month for gas. I don't know how fuel efficient your vehicle is, but I could go 40 miles per day on that. Can you rent close enough to work so that you could ride a bike, so you can really cut back on gas?

          For the cellphone, would Ting or Republic Wireless work in your area? They have much cheaper plans.

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            #20
            I can't move in with my mother. Her sister has moved in with her. I had looked for a roommate, but after a long search and coming up without anyone I'd live with, I abandoned that idea.

            I have been at my job with the federal govt for 13 yrs, so I'm not leaving it. The bring home isn't great because I have extra taken out for taxes, health insurance, dental plan, and TSP contributions. Taxes eat a single person alive. I'll explore the idea of a part time job. The antique business helps with my taxes at the end of the year.

            No, I'd be homeless before I'd give up my dogs. I don't do anything for entertainment anymore, no kids, so they are what keeps me going some days since this big life change. Free activites revolve around them - hikes, parks, etc. The cats only cost me about $10 a mo total.

            I doubt a lower interest rate card would be an option with my current credit score and debt to income ratio. Would it even be worth me applying for one?

            The house....yuck....Yes, I've thought about a short sale, and have been contemplating calling Citi to discuss that. I was told by the agent that I had a valid reason - divorce and having to move closer to work. I'm not late on the loan. Am I wrong to think that, if it came to it, I quit paying credit cards and do all I can to keep the house current because of the affect foreclosure can have on credit? I'm trying to not worry about the house at the moment since that may work out fine (by getting a new renter quickly) and then I've wasted all of that energy worrying about something that never came to fruition.

            Family can't finance anything for me. I wish I had the rich aunt with a few thousand extra laying around, but I don't.

            Cell phone - I'm out from under my Verizon 2 yr contract as of a month ago. We don't have the low cost carriers in our area aside from whoever Verizon's is (Boost? Straight Talk?). I haven't gone to their service yet because it requires purchasing a phone outright at a cost of several hundred for a smart phone. I've looked on ebay a few times. That's still an option. I was just waiting out the contract.

            Did I miss anything?

            Comment


              #21
              It's going to be a slow road, but if you sell the antique car and pick up a part time job, I think you can definitely dig your way out of this. I'd say try to figure out the rental situation before you go the short sale route. Like you said, if you can get a renter, it can at least delay the need to sell. Maybe you can even make it until you're no longer under water on the house. I'd try to rent at the same rate you are now since it brings you an extra $100, but if that doesn't work, then just rent it for break even to get someone in there asap.

              Agree with the comment about renting even closer to work. Not sure what your current lease situation is like, but maybe once the lease is up you should look into seeing if you can rent closer to work at the same rent costs to save on gas.

              Bottom line, you need a part time job. Your income just isn't cutting it as long as you have a car payment and CC debt.

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                #22
                I preferred to be a bit closer to work, but needed a safe neighborhood, which meant going further out. Rent is more downtown, but I'd save gas. I use more gas, but my rent is cheaper in the neighborhood I'm in. Catch 22? Rent is ridiculous where I am. That's why I'm trying to stop the financial bleeding and get my score back up. So much cheaper to buy a house of my own.

                I called Discover to see if a lower interest rate is available. Despite 18 mo of on time payments, no late payments over 2 wks, they still won't lower it. They don't even put me on hold to check. I ask, and they immediately reply. Pisses me off to no end.

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                  #23
                  Originally posted by Jenemone View Post
                  I have been at my job with the federal govt for 13 yrs, so I'm not leaving it. The bring home isn't great because I have extra taken out for taxes, health insurance, dental plan, and TSP contributions. Taxes eat a single person alive. I'll explore the idea of a part time job. The antique business helps with my taxes at the end of the year.
                  Do you get a big tax refund every april?

                  You might want to put the TSP contributions on hold while you are drowning in high interest debt.

                  Comment


                    #24
                    Originally posted by Jenemone View Post
                    That's why I'm trying to stop the financial bleeding and get my score back up. So much cheaper to buy a house of my own.
                    Maybe, but I'd be careful. Without a big down payment, owning may not be cheaper. Don't discount taxes, maintenance, and upkeep. All things that you don't need to contend with as a renter.
                    Brian

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                      #25
                      I sold a house as a short sale last year. Painful, awful experience. But, we got rid of the house. Probably your mortgage holder won't agree to a short sale until you start missing a few payments. Also, make sure your realtor is on board for the short sale. There is a lot of follow through required in their part.

                      Comment


                        #26
                        Originally posted by Jenemone View Post
                        I can't move in with my mother. Her sister has moved in with her. I had looked for a roommate, but after a long search and coming up without anyone I'd live with, I abandoned that idea.

                        I have been at my job with the federal govt for 13 yrs, so I'm not leaving it. The bring home isn't great because I have extra taken out for taxes, health insurance, dental plan, and TSP contributions. Taxes eat a single person alive. I'll explore the idea of a part time job. The antique business helps with my taxes at the end of the year.

                        No, I'd be homeless before I'd give up my dogs. I don't do anything for entertainment anymore, no kids, so they are what keeps me going some days since this big life change. Free activites revolve around them - hikes, parks, etc. The cats only cost me about $10 a mo total.

                        I doubt a lower interest rate card would be an option with my current credit score and debt to income ratio. Would it even be worth me applying for one?

                        The house....yuck....Yes, I've thought about a short sale, and have been contemplating calling Citi to discuss that. I was told by the agent that I had a valid reason - divorce and having to move closer to work. I'm not late on the loan. Am I wrong to think that, if it came to it, I quit paying credit cards and do all I can to keep the house current because of the affect foreclosure can have on credit? I'm trying to not worry about the house at the moment since that may work out fine (by getting a new renter quickly) and then I've wasted all of that energy worrying about something that never came to fruition.

                        Family can't finance anything for me. I wish I had the rich aunt with a few thousand extra laying around, but I don't.

                        Cell phone - I'm out from under my Verizon 2 yr contract as of a month ago. We don't have the low cost carriers in our area aside from whoever Verizon's is (Boost? Straight Talk?). I haven't gone to their service yet because it requires purchasing a phone outright at a cost of several hundred for a smart phone. I've looked on ebay a few times. That's still an option. I was just waiting out the contract.

                        Did I miss anything?
                        I guess then you just need a part-time job that pays well. You don't have very many options.

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