Announcement

Collapse
No announcement yet.

Help - Expenses much higher than Income

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

    #16
    Regarding the possibility of selling the house, what do you think you would net if you sold it, after the mortgage is paid off and paying sales-related costs (fix-up before putting it on the market, repairing whatever the inspection finds that needs to be fixed, paying realtor's commission, and paying sales tax where applicable)?
    What would it cost you to rent a basic, absolutely-no-frills one or two bedroom apartment? (I don't know how many children you have or their ages, so don't know if you could get by with one bedroom or if you would need two.)

    Regarding the cars, I agree about going to just one car shared between the two of you. Not only will you eliminate a car payment, you'll also reduce your car insurance cost, not to mention licensing fees, repair & upkeep costs, and possibly gasoline.
    Last edited by scfr; 08-07-2018, 06:54 AM.

    Comment


      #17
      good luck. you're going to need to go on a "kork diet" for the next couple years. It's only once you're able to get some of that debt under control, will you be able to loosen up again.

      If $1k is your minimum credit card payment, I really hate to see what the balances you're carrying is like.

      Comment


        #18
        Originally posted by ~bs View Post
        If $1k is your minimum credit card payment, I really hate to see what the balances you're carrying is like.
        He listed the balances. They come to $41,000 on the credit cards. Then there's all the other debts.
        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


          #19
          Bill1515 - sounds like you're in a tough situation.

          That said, good for you for coming forward to get some help. Upgrading who you hang out with is usually a great idea if you want to improve your skills, change your perspective and adjust your psychology.

          So, welcome to the forums and I hope we'll see more of you.
          james.c.hendrickson@gmail.com
          202.468.6043

          Comment


            #20
            Thank you again to everyone for all their comments and support. Things are getting better.....lots of immediate changes...but I'm lost on what to do next.

            I will not have enough come October and don't know which to stop paying. 1-2 or 3 of these bills will unfortunately not be able to get paid. My question is which of the credit cards or loans do I not pay???? or is it better to take the a couple debts below and pay half of the monthly payment?

            BTW...I get my bonus in April 2019. Will be $19k cash (worst case).

            do I explain to these 1 or 2 loan companies (possibly more) that I will be able to make it back up in April 2019? or do i stop paying for the next 4-5 months and then try to negotiate for .50 on the dollar come April??

            Credit Cards –$1,030 month………..$150mo w $7k bal, $55mo w $2k bal, $27mo w $1k bal, $35mo w $3k bal, $40mo w $4k bal, $25mo w $1k bal, $47mo w $1k bal, $67mo w $2k bal, $25mo w $1k bal, $25mo w $1k bal, $45mo w $1k bal, $80mo w $4k bal, $25mo w $1k bal, $80mo w $2k bal, $102 w $4k bal, $110mo w $4k bal, $90mo w $2k bal.

            Loans - $470mo for $10k bal; $591mo for $14k bal; $270mo for $3k bal; $650mo @$21K balance in dad’s name but my debt;

            Comment


              #21
              Originally posted by Bill1515 View Post
              I will not have enough come October and don't know which to stop paying.
              How do you know on August 9 that you won't have enough to pay bills two months from now?

              You earned $400 in 3 days driving for Uber. Keep that up and I don't see why you would be short. Did you look at the breakdown I posted above. By my calculations, you're only about $800/month short at worst. Turn that Uber app on every free minute you've got and you can wipe that out. And if you wife can pick up some sort of 2nd income in her free time you'll be even better off.

              Stop trying to figure out what you aren't going to pay and start figuring out how you are going to pay everything.
              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


                #22
                BTW...I get my bonus in April 2019. Will be $19k cash (worst case).
                April is still many months away. Is that really the Worst case .. a lot could happen before then.
                I have seen companies have changed formulas on how to determine bonus or even eliminated bonus plans etc. that seems like worst case to me.
                I realize it sucks to go super frugal to climb out of debt and MOST people look for some sort of quick fix but honestly slow and steady is the best way to keep this from happening again. A quick fix will just tell you don't worry about it just CHARGE away with the cards.
                What did you do with your bonus last year?
                Did you create all the debt you list since then?

                Comment


                  #23
                  Bonus - I did not get one last year because this is a new job. I got into this whole because I was out of work for 6 months. Things are better but I am not going to make it out on top. I'm going to have to stop paying on a bill or two. Question I have is which do I stop paying on? or do I look into a debt management plan? I read they can lower my interest rates which are killing me but i need to lower those monthly payments in order to get anywhere.

                  Comment


                    #24
                    Originally posted by Bill1515 View Post
                    Question I have is which do I stop paying on?
                    At the beginning of August, you made $400 in 3 days with Uber. How much have you made since then?

                    Stop trying to figure out what payments to stop and start focusing on how to earn enough to pay everything.

                    How many hours per week are you working typically?
                    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


                      #25
                      just make all minimum payments and see what happens.
                      LivingAlmostLarge Blog

                      Comment


                        #26
                        This goes without saying, but to reach a comfortable spot financially, you'll need to do two things: spend less and earn more. (I know, easier said than done.) To spend less, create a budget and see where you can cut expenses (buy generic brands, cancel unused subscriptions, etc.). Stop using credit cards if possible--this will help you limit your spending to the amount of cash you have on hand. To earn more, pick up extra shifts or a side hustle. It could also be a good idea to sell both cars and replace them with more affordable options. It's probably not going to be fun, but neither is being deep in debt.

                        Comment


                          #27
                          Excellent job on listing all of the details. It looks like you've already made great progress.

                          I think private school is out for the time being. $900 a month is huge.

                          The mortgage isn't too high. You might consider refinancing if you can get a better interest rate, at least 1% or more lower.

                          The cable and internet is nice. But you might consider cutting these for the next 12 months.

                          Credit cards need to be a thing of the past for you. I like the idea of using them like a tool, the same way I like having an occasional beer, but when it comes to you and credit cards, you're an alcoholic.

                          Others have mentioned Dave Ramsey, and his approach would help you greatly. His steps are #1 save $1,000 emergency fund, #2 pay minimums on all credit cards except the smallest, and pay it off. For you I think the order of attack is:

                          $25mo @ $1k
                          $25mo @ $1k
                          $25mo @ $1k
                          $25mo @ $1k
                          $27mo @ $1k
                          $45mo @ $1k
                          $47mo @ $1k
                          $55mo @ $2k
                          $67mo @ $2k
                          $80mo @ $2k
                          $90mo @ $2k
                          $35mo @ $3k
                          $40mo @ $4k
                          $80mo @ $4k
                          $102 @ $4k
                          $110mo @ $4k
                          $150mo @ $7k

                          Luckily your balances aren't that high, it's just you have so many of them. Personally I'd make it a goal to pay one off a month, at least for the next 6 months. You said school was #1, but that expense by itself can nearly cover a card a month.

                          I don't like sale a car you're upside down on, but if you owe $31k, and you sale it for $24k, and buy a car for $5k, you have instantly removed $19k in debt. The payment on a $12k loan ($5k for a used car and $7k for the old one) is I don't know, $200 / month?

                          A lot of this sucks in the short term, but think about 3 to 5 years out, how much better things will be for you.

                          Comment

                          Working...
                          X