Sorry, long, but need advice.

[LivingAlmostLarge]

Why do you pay $600/month if the cars are only $12k and $7k? How much longer do you have on them?

I'm sorry I'm wrapping my head around a $300/month payment for each car and then insurance, gas, and maintenance? Ouch.

[Alice in Chains]

Do you know about the snowball method for paying off debt? It seems you need to work this from both ends. Keep making mortgage payments, try to work a deal on the loan, pay off debts as you can, even if you can't pay the minimums. And keep a look out for extra income. I just sold 8 pieces of children's clothing on ebay and netted $50...it ALL adds up.

I'm rooting for you!

Thanks so much. We know about the snowball method, and have talked about it. I think we were so scared to look at how much it actually was, and we were so concerned about our FICO's, we just kept up as much as possible like nothing was wrong. Now? I don't care about our credit, not for short term. We both want to make good on our debts, and DO NOT want to file bankruptcy. We're just going to work on the home loan, and get a plan in place to pay off the cards. Stop the spending, cut back where we can, and any extra cash, put towards the debt. I do DJ work on the side with a friend, and that's really dried up lately with the economy being so bad. I do make extra where I can.
I appreciate the cheering section, I need it!

[Alice in Chains]

Why do you pay $600/month if the cars are only $12k and $7k? How much longer do you have on them?

I'm sorry I'm wrapping my head around a $300/month payment for each car and then insurance, gas, and maintenance? Ouch.

My payment is $344, wife's is 265. I think we've got 3 left? I'll have to double check.

[creditcardfree]

My payment is $344, wife's is 265. I think we've got 3 left? I'll have to double check.

3 years or 3 months?

I appreciate the cheering section, I need it!

Your welcome!

[zetta]

I drive an F150 that I owe about 12k on. It's probably worth about that. It's in great shape, and I do drive often for work, and entertain clients from time to time, so a beater isn't going to work.

You need to think outside the box. How many times a month do you actually entertain clients? How about this -- sell the F150 and buy a beater. When you have to entertain clients, rent a car for 1 day. Either deduct it as a business expense, or get your employer to reimburse you for the rental.

So instead of $344/mo car payment, you pay maybe $75-$150/mo car rental fees.

[swaymonae]

Is your credit "good" right now? Any chance you could get a 0% intro card and transfer balances?

[swaymonae]

I'm sorry I'm wrapping my head around a $300/month payment for each car and then insurance, gas, and maintenance? Ouch.

Psh.. I have 1 car @ $360, and one @ $550 per month. Combined insurance is $250..

What we'll pay for shiny things..

[zetta]

You guys are right, we probably do not have a good handle on what we spend.
[...]
I'm not looking for the easy way out, just what's the smartest course of action. If it means keeping current on the house and letting the cards go until we setlle them, and our credit is dinged for a few years, then that's what we'll do.

The smartest course of action cannot be determined until you have exact numbers (minimum payment, interest rate, balance) on each of your debts and get that detailed budget in place. Once you know how much you can put toward debt repayment, you can figure out the best way to go about it. Doing this analysis should be your #1 priority.

[Alice in Chains]

Is your credit "good" right now? Any chance you could get a 0% intro card and transfer balances?

Good for now, in that I pay on time. Bad that debt to income low and balances high. I probably had 10k open in credit on various cards that have all been lowered with the credit crunch. I sent 2k to a card about 3 months back, (came into some money, trying to do the right thing) and they knocked my limit down.

So, long winded answer.... no way am I gonna get a card right now, not with the way things are out there.

[Alice in Chains]

The smartest course of action cannot be determined until you have exact numbers (minimum payment, interest rate, balance) on each of your debts and get that detailed budget in place. Once you know how much you can put toward debt repayment, you can figure out the best way to go about it. Doing this analysis should be your #1 priority.

You're right, and we're going to work on that over the weekend.
I checked out dueminder too, that looks like it could be a useful tool.

[jIM_Ohio]

Why do you pay $600/month if the cars are only $12k and $7k? How much longer do you have on them?

I'm sorry I'm wrapping my head around a $300/month payment for each car and then insurance, gas, and maintenance? Ouch.

You probably don't want to hear about our $1100/month in car payments then either...

[jIM_Ohio]

Short version?

3800 for mortgage.
500 in utilities. (electricity here is nuts) That includes trash, gas, water etc.
600 daycare.
600 groceries
600 car payments
200 insurance, (that's probably low, car, mortgage)
100 term insurance for both.

This adds up to $6400/month
More than half of that is the mortgage.

What is your gross pay (monthly and annual)? What is your net take home pay (monthly and annual)? What are property taxes?

Is the day care pre or post tax? Do you claim the child care tax credit?

My suggestion- add in a 20% payment to debt. Whatever your gross pay is, send 20% of that amount to debt. Cut the expenses (cable, groceries, child care) down until you reach a budget which balances.

[creditcardfree]

This isn't a solution, but an article about Jumbo loans and why they are not included in the new housing plan.

Here's the link.

[Alice in Chains]

This adds up to $6400/month
More than half of that is the mortgage.

What is your gross pay (monthly and annual)? What is your net take home pay (monthly and annual)? What are property taxes?

Is the day care pre or post tax? Do you claim the child care tax credit?

My suggestion- add in a 20% payment to debt. Whatever your gross pay is, send 20% of that amount to debt. Cut the expenses (cable, groceries, child care) down until you reach a budget which balances.

I'm barely sure anymore with my cut in pay, I'll have to double check.
Gross pay annually for my wife is about 55k, mine about 82k. (pre cut.)
Property taxes are included in the mortgage payment.
Day care is post tax, cash. Yes, we claim the tax credit. (whoopie.)

We are going to cut the down on groceries, other expenses. Child care, not sure how we cut down there, it is what it is, and honestly, $600 a month for care, (it's my son and one other child ONLY) is a steal. People around here pay up to 1k a month and more to have their kids watched by somone responsible for 5 kids. We have a great thing going with our provider.

[Alice in Chains]

This isn't a solution, but an article about Jumbo loans and why they are not included in the new housing plan.

Here's the link.

Love the comment about 650k house not being rich by any stretch, that's for sure.

Looking back, we bought a house we shouldn't have, but we were sure coaxed into it and caught up in the frenzy like a lot of people. We had a sizable down payment and good credit, so we thought we were doing the right thing. Of course, losing out on 4 homes before we got this one sure hurt. I think our first bid was 400k, and two months later, we were out of that market, and sending letters begging owners to sell us their home. It was ridiculous. NEVER again will I be put in that spot.