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    Need To Push Through

    So I recently quit my old job and started a new one. I felt good about my decision, but I just got my first paycheck and the results are a little lackluster.

    I sell car insurance and most of what I get is commission. The good thing about insurance is that most people (85%) are going to renew so down the road you can make a lot of money. The bad thing is that it's tough to get started and the first month I only made $1,351.85.

    To top it off, I am buying leads so that I can make the sales. It costs me about $55 to make a sale and my share is about 6.63% commission. My average policy is $624 so each policy gives me $41.37 and I'm spending $55 to get it.

    My solution has been two-fold: Uber, to get me through the week, and debt. Uber pays about $9 an hour here plus mileage. I made $600 gross from Uber last week, but obviously I had to do gas and other expenses. Buying leads, lunch, gas, etc., my credit card debt is greater than $600 on the card I'm churning for leads and Uber. The rest of my cards are at 0 percent, but my credit score is slipping as well.

    The good news is that I have $4,500 in the bank. I have five 0% interest credit cards, but two of them are switching to interest in November, and a third is switching in February. I had planned to simply get a new 0 percent introductory rate but now that my score has slipped about 40 points, I'm no longer in that plush range.

    This month is going better -- I've sold $10k to date, so I hope to sell $18-20k by month end. At the 6.63% rate that's at least $1,194 + my base $1,000 to bring me up to $2,194. But what I really need to do is to make it to January so that the $18k premiums all renew.

    Maybe I should get a night job delivering pizza. Maybe I should use my cash to pay down debt so I can get a new 0 percent interest rate card. Maybe I should prepare a proposal and look for a business loan. I'm not sure.

    At any rate, I'm about $8,720 in credit card debt and $12,957 in car debt.

    Any thoughts?

    #2
    Sell your car if you owe that much

    Comment


      #3
      Can you post your budget?
      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
        Seems like you're decent at selling. If you can do sales, then you can do sales anywhere for anything. Maybe go sell something that you don't have to wait for good commission. Or something that you don't have to pay a fee to sell.
        Brian

        Comment


          #5
          Originally posted by disneysteve View Post
          Can you post your budget?
          Rent $350.00
          Car Payment $227.93
          Insurance $68.09
          T-Mobile $75.00
          Food - Charge It!
          Gas - Charge It!
          Wells Fargo $192.96 Owing $578.88 Limit $2000 APR: 0% until November
          HSBC $155.60 Owing $466.81 Limit $1000 APR: 0% until November
          Barclaycard $138.00 Owing $2,062.62 Limit $4,600 APR: 0% until February
          Commerce Bank $180 Owing $5,028.33 Limit $6,000 APR: 0% until June 2019
          Discover $35 Owing $612.57 Limit $1,000 APR: 0% until October 2019
          MACU $100 Owing $100 Limit $15,000 APR: 15.99%
          SSFCU $0 Owing $0 Limit $2000 APR: 17.99%
          UCCU $655.60 Owing $655.60 Limit $2,500 APR:8.25%

          Assets:
          SSFCU: $4,515.66 (Primary Account)
          MACU: $504.58 (Set aside for Car Payment)
          UCCU: $719.96 (Uber Pay)

          Comment


            #6
            Originally posted by Dumoti View Post
            Food - Charge It!
            Gas - Charge It!
            That doesn't answer the question.

            How much do you spend on those things? How you pay is irrelevant.
            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


              #7
              Originally posted by disneysteve View Post
              That doesn't answer the question.

              How much do you spend on those things? How you pay is irrelevant.
              I don't really know. But let's assume that for food I pay $4.84 for breakfast, $7 for lunch, and maybe $5.30 for dinner. So that would be $17.14 a day? $514 a month?

              Gas is about $30 a tank and I don't really know how much I spend because it's related to my work as an Uber driver. I would guess that I gas up every day. So that would be about $210 a week? With Uber I am grossing about $630 a week so that would be a $420 gain, less $120 on food a week for $300 gain and I am buying about $60 worth of leads a day, 5-days a week, so $0 gain.

              As I said, Uber gets me through the week.

              Month to date I have sold 11,167.11 in 18 days so theoretically I should sell $19,232.25 this month @ 6.63% will be $1,275.10 + $1,000 base that's $2,275.10 that I'll get on August 15.

              I went to the Bank of America website today and it says that I'm supposedly preapproved for a credit card with them. But what if the balance is only $1,000? I think I should just tough it out a few more months until more inquiries fall off my credit.

              Comment


                #8
                Originally posted by Dumoti View Post
                I went to the Bank of America website today and it says that I'm supposedly preapproved for a credit card with them. But what if the balance is only $1,000? I think I should just tough it out a few more months until more inquiries fall off my credit.
                I don't think applying for another credit card is going to help you.
                Brian

                Comment


                  #9
                  Try to get the current credit card companies to increase your limits. Your credit score is dropping because your limits are very low, so any sort of charge is going to throw your utilization ratio out of whack.

                  Comment


                    #10
                    I dunno about that. My credit profile shows $8,720 owed on $44,000. That's under 20 percent. I think the problem is too many accounts opened in the last 12 months and too many inquiries.

                    I opened HSBC, Barclaycard, Wells Fargo, and SSFCU in November 2017. Maybe in December my score will tick up. The inquiries will be 12+ months old and the accounts as well.

                    Everything is paid as agreed. No lates.

                    Comment


                      #11
                      Originally posted by Dumoti View Post
                      I dunno about that. My credit profile shows $8,720 owed on $44,000. That's under 20 percent. I think the problem is too many accounts opened in the last 12 months and too many inquiries.

                      I opened HSBC, Barclaycard, Wells Fargo, and SSFCU in November 2017. Maybe in December my score will tick up. The inquiries will be 12+ months old and the accounts as well.

                      Everything is paid as agreed. No lates.
                      Stop focusing on your score and focus on getting out of debt.
                      No one ever built wealth by fixating on their credit score.

                      Instead of playing musical chairs with the credit card companies I would put my energy toward paying all the cards off and not carrying balances anymore.
                      Brian

                      Comment


                        #12
                        Thanks for all the advice, but I had a breakthrough. Yesterday, I got an offer in the mail for a $40,000 loan. Plus, I have until August 31 to decide whether I want to go for it.

                        So I can use my savings to pay down some debt and improve my credit score. Then I can get the loan and use it to advance my insurance career.

                        Comment


                          #13
                          Originally posted by Dumoti View Post
                          Thanks for all the advice, but I had a breakthrough. Yesterday, I got an offer in the mail for a $40,000 loan.
                          You can't borrow your way out of debt.

                          The last thing you need in your life is a new 40K loan.

                          Until you focus on paying debt instead of acquiring debt your situation will just continue to worsen.
                          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


                            #14
                            Definitely the salesman mindset...

                            Comment


                              #15
                              That's a TERRIBLE idea! Stop getting loans/credit cards and just get that debt paid off. Make more or get another job. You can't keep robbing Peter to pay Paul, that crap is going to catch up with you one day. Figure out a way to pay it off and stick with it!

                              If you pay $500/mo for just one person on food that is too much! Stop eating out. Go to the grocery store buy yourself some bread, milk and eggs and make breakfast! Get a pound of lunch meat and pack your lunch. You should be able to get your food budget down and save a few bucks that way.

                              Don't take out a 40k loan!

                              Comment

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