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  • #16
    Originally posted by allmyloving View Post
    I think you all, misread my post. I AM not looking for an other loan. The bankruptcy was the result of me losing my job on 2006. I tried to hang on to the house but couldn't sustain it. I tried to short sell the house and had an offer which my first mortgage accepted but the second mortgage wouldn't accept the payout from my mortgage lender. The sale fell through. And the rest of the dominos fell. With the resulting default judgment. I live in Michigan and as you know, the bottom fell out of the real estate market.

    I do have an IRA.

    My question was what was the best way to use this money to improve my credit score.

    Yes, i havent't managed my money well but I was also the victim of a job loss and the real estate market. So Another Reader, I don't need another lecture from you. And I'm looking to improve my credit score NOT get another loan. Maybe you should reread my post.

    O h and BTW, you try and live on $2000/month.
    I think Another Reader gave you excellent advice.

    I know it is hard to live on 2k per month. That is why, without more information, I think you would probably be better off just keeping the money in savings. Another thought is, if you have enough to say pay one credit card in full, consider doing that.

    Comment


    • #17
      Originally posted by AnotherReader View Post
      Check out Mr. Money Mustache. He and his family seem to live quite well on $24k a year. It can be done, you just need to be very frugal.
      but she is not in MMM situation at all, he has a spouse, I would assume she contributes to household income. And do you really think that's all he makes, he's pretty popular? Also, he rides his bike everywhere, so likely not disabled

      2k a month for a single, disabled person with debt is a tough life. She may be paying for Cobra, expensive meds or expensive medical equipment, maybe lots of MD co-pays.

      I don't think it's fair to compare a disabled person suddenly forced to live on 2k a month with likely new expenses to MMM, who has created that life for himself. Didn't he flip houses and stuff? How is our poster supposed to do things like that?

      I would call about the medical bill, they are more likely to work out a payment plan with no interest

      Comment


      • #18
        Originally posted by FLA View Post
        but she is not in MMM situation at all, he has a spouse, I would assume she contributes to household income. And do you really think that's all he makes, he's pretty popular? Also, he rides his bike everywhere, so likely not disabled

        2k a month for a single, disabled person with debt is a tough life. She may be paying for Cobra, expensive meds or expensive medical equipment, maybe lots of MD co-pays.

        I don't think it's fair to compare a disabled person suddenly forced to live on 2k a month with likely new expenses to MMM, who has created that life for himself. Didn't he flip houses and stuff? How is our poster supposed to do things like that?

        I would call about the medical bill, they are more likely to work out a payment plan with no interest
        No, 24k is not how much he makes, it is how much his family spends. (Though I think they spend 28k per year).

        There is a lot of GREAT info on MMM, including how to live very frugally, which can benefit anyone who is interested.

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        • #19
          I agree, there is great advice on there

          Comment


          • #20
            First of all I want to say thank you to all who commented.

            I guess I owe you more information. I am 60 and on Social Security Disability and have been since 2008. I've made some bad decisions and some good ones. By the way, that was my second house that I had purchased.

            I have had bilateral hip replacements and osteoarthritis in my lower and in my right knee. It's doind better since I had a cortisone injection in May. It was very stiff prior to that and made walking and going up and down stairs difficulty. The problem was bursitis, the orthopedic surgeon treated it as if it was osteoarthritis. So I've had lots of physical therapy with a $35 copay.
            Fortunately, I do not have diabetes or high pressure.

            When I first went on disability, I attempted to substitute teach. Didn't work our. I couldn't handle being on my feet all that time. After my first hip surgery, I had a lot of problems with walking, I limped real bad which caused other problems.

            I've given up on working. If you're on SSD, you can only make $760/month. Anything over is considered earnings and counts towards a workable month. You can only have 9 months then they stop paying you SSD but can remain on Medicare.

            My previous work was as an engineer for GM. I, unceremoniously, lost my job with them. And as you may know, they did declare bankruptcy.

            My income from SSD hasn't always been this much. Only the last 2 years.

            So now I'll show you my

            Expenses (list core expenses)
            Rent: $615 ( 315 goes to the association fees and property taxes, the rest goes to my mom as rent)
            Groceries:
            Gas:
            Auto Loan: $135 I have a 2007 Buick Rendezvous. The car was $10,000 and I put $4000 down. I sold my 2004 Pontiac Vibe to my nephew who did not have a car)
            Auto Insurance: $160 I live in the state of Michigan, city of Flint. Michigan has the highest auto insurance rates plus my zip code is another problem.
            Utilities This month they were $190 which is high for me. It's due to using the air conditioner which is set at 72 degrees.
            Cable and internet:$107
            Cell phone $100
            Debt consolidation loan $150
            Medicare advantage plan $123
            Credit Card debt $195


            The total is $1,974 which leaves $99 for food and gas. If I didn't have the CC debt or the debt consolidation loan, I would be in a much better position. That would be $345 more each month.
            This is one of the reasons I have withdrawn from my IRA. I never had to pay the early penalty because I was disabled. As long as you withdraw less than $X then what you take out of your IRA is not taxed.

            So there is no extra money to pay on credit card debt.

            I also owe about $1500 in medical expenses.


            So fire away everybody and tell me how much I've screwed myself. Just looking at these numbers, makes me want to cry.

            Debbie

            Comment


            • #21
              In your shoes, I would cancel cable and get the cheapest internet available. Move your cell phone to an MVNO. Look at Republic Wireless, Ting, and some of the other services. I still have Verizon and with the minimum data plan, I'm under $60 a month now. Dumb phone without data is less. Raise the temperature a couple of degrees so the A/C works less. How many bedrooms is the condo? Could you take in a room mate?

              Do you have any GM pension coming? Do you qualify for food stamps? Can you get food from the local food bank or your church? All these are ways I would try to save money.

              Comment


              • #22
                could you get rid of your cell phone plan (contract?) and switch to a cell phone with a no-contract carrier, like Virgin Mobile or Boost Mobile? that could save close to $60-70 a month.

                I pay $32.80 per month with Virgin Mobile and use the iPhone.

                Comment


                • #23
                  Just glancing through that real quick - what's up with the cell phone?

                  I pay less than $13 a month and I have unlimited voice and texting. If you are not working, do you really need a Cell Phone Data plan? You're already paying a fairly hefty at home Internet bill. BTW just to mention, I read the other day that Comcast is planning on offering a $10 to $15 a month low cost Internet package for low income Seniors soon.


                  So you are in a Condo? How many bedrooms? Could you take on a roommate to split the costs?


                  I agree with the others in that what you really need to do is start getting rid of debt and making sure everything is paid on time. If you do that, your credit score will go up. As for buying your Mom's Condo, just wait and see. You are not in a place to do so right now and if she needs to apply for Public Aid to cover a nursing home, the Medicaid process will possibly require she sell the Condo before you are ready to buy.

                  Comment


                  • #24
                    Don't cry, Debbie! I am very sorry about your situation. Life happens and it is rarely fair. Could you take this "extra money" that you have and offer it to the credit card company that you owe $3500 as a settlement? Maybe tell them that they can take it or leave it?

                    I also agree that maybe should look at a less expensive phone plan. If you are under a contract there are some companies that will pay a certain amount to get you out of your contract. Just make sure that whatever company you go to has coverage in your area that is GOOD. From my experience T-Moblie can be very spotty, but who knows, they may work for you in MI.

                    I am sorry that people can be so harsh on this site. Very often there is a lack of compassion in responses. I think people forget they are dealing with real life people with problems, not just numbers. Telling someone that they are screwed doesn't unscrew them. Don't be discouraged.

                    Also, are you able to get food assistance based on your income? And possibly fuel assistance for the winter? I know it can be a lot of research/phone calls/run around to get anywhere with some of these assistance programs, but don't give up. Youre doing the best you can and I think that is admirable.

                    Comment


                    • #25
                      Your cell phone bill seems pretty high. I have cricket wireless and pay $35 a month for service. I would look into other prepaid cell carriers when your contract is up and you could easily save $55-$65 a month on your cell phone bill. You could also look into dumping cable, picking up a streaming media box like the Amazon Fire TV stick, Roku, Apple TV and getting Netflix. Netflix is $8/month and there are plenty of TV shows and movies you could watch on demand. My girlfriend and I do something similar. We have a basic cable package (29 channels) that includes high speed internet that costs $50/month and we have Netflix so altogether $58/month for limited cable, netflix, and internet. Right there with those changes you could save over $100/month.

                      What is the mileage on the Buick and how much more do you owe on it? I'm seeing a used 2005 Buick Rendezvous going for nearly $7000 on Edmunds and this one has 140K miles on it. How much are you driving? Do you absolutely need an SUV? If you only owe like $4-$5K on the loan and you were able to sell your Buick for nearly the same as you paid for it you could satisfy the remainder of your car loan and have $5-$6K left over to pay cash for another used car. That is plenty of money to get something reliable that is not a junker and you would not have a car payment saving you an additional $135/month.

                      Comment


                      • #26
                        Originally posted by allmyloving View Post
                        This is one of the reasons I have withdrawn from my IRA. I never had to pay the early penalty because I was disabled. As long as you withdraw less than $X then what you take out of your IRA is not taxed.
                        Does this mean you are currently taking annual withdrawals from your IRA? How much are they?

                        About how much is in your IRA?

                        Comment


                        • #27
                          Sorry I've been away awhile. My nephew is visiting from Washington. I live in Michigan. Michigan has the highest car inurance3 rates. I did my math wrong. I added the credit card bill twice. So now I have $275 for gas and groceries which is much more manageable.

                          I just renewed my cell phone contract with AT&T. It was $65 but I got a new iPhone. Yes, I am keeping my iPhone. I am going to look into downgrading the number of stations to get a cheaper rate. Does anyone know if The Walking Dead is ON Demand. That and American Idol and the Voice are really the only shows I watch.

                          My sister has Metro PCS and has had all kinds of trouble with her phone and reception.

                          I am, essentially, my mother's caregiver, take her to doctor's appointments, make phone calls, etc.
                          So of the $615 I pay her each month, my BIL will take $300 of that and pay off my medical bills($1500).

                          I'll just keep CC payments on time, which I do anyway and not use the cards. I have given my CC to my sister to lock in her safe. And have deleted them from my phone and my iPad. So I cant use them to buy online.

                          I have withdrawn from my IRA. I won't be for the rest of the year though.

                          Comment


                          • #28
                            Originally posted by allmyloving View Post
                            Does anyone know if The Walking Dead is ON Demand. That and American Idol and the Voice are really the only shows I watch.
                            I don't watch American Idol or the Voice, but I believe they are broadcast over the air. How is the antenna reception in your area? I've been buying the walking dead episodes on Amazon. Cheaper than having a TV subscription.

                            Comment


                            • #29
                              I buy The Walking Dead on Google Play. About $17 for a season, and you can watch it as often as you like. The first season of Fear The Walking Dead is $10.99, even though it is only 6 episodes.

                              If I were more patient, I could just wait since it does hit Netflix.

                              Comment


                              • #30
                                Originally posted by allmyloving View Post
                                Sorry I've been away awhile. My nephew is visiting from Washington. I live in Michigan. Michigan has the highest car inurance3 rates. I did my math wrong. I added the credit card bill twice. So now I have $275 for gas and groceries which is much more manageable.

                                I just renewed my cell phone contract with AT&T. It was $65 but I got a new iPhone. Yes, I am keeping my iPhone. I am going to look into downgrading the number of stations to get a cheaper rate. Does anyone know if The Walking Dead is ON Demand. That and American Idol and the Voice are really the only shows I watch.

                                My sister has Metro PCS and has had all kinds of trouble with her phone and reception.

                                I am, essentially, my mother's caregiver, take her to doctor's appointments, make phone calls, etc.
                                So of the $615 I pay her each month, my BIL will take $300 of that and pay off my medical bills($1500).

                                I'll just keep CC payments on time, which I do anyway and not use the cards. I have given my CC to my sister to lock in her safe. And have deleted them from my phone and my iPad. So I cant use them to buy online.

                                I have withdrawn from my IRA. I won't be for the rest of the year though
                                .
                                I asked because I am just thinking of possibilities. Your mother's condo can be purchased for 42k. You have bad credit so a mortgage will be hard to obtain, but maybe your IRA can cover it. And here's another thought, you can buy a house with a reverse mortgage now. You would need to be at least 62. You would need to put about half down, but no more payments ever. When you die or leave the home, it must be sold and the reverse mortgage paid. Credit score does not matter with a reverse mortgage.
                                ;

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