Credit Debt

[cicy33]

Re: Credit Debt

Is there anyway you can refinance the car through your bank?

[BAGAGT1]

Re: Credit Debt

The reason the car loan was 9.9 is that I had carry over from my other vehicle, and I was trying to finance more than it was worth. I had a delinquent account four years ago(don't get me started on that one!) which has hurt me, but the last I knew my score was like 660 or so.

The reason you got a 9.9% interest rate is because your credit score is 660. 660 is not a good credit score and to a lender indicates an increased risk of default (660 is not a high risk loan, but it won't get you the preferred rate of a credit score of 720 or higher).

I can see a cycle occuring here, and I hope you do too. You bought another car when you hadn't finished paying off the first. I'm seeing a lot of folks playing this game and it is dangerous.

[BAGAGT1]

Re: Credit Debt

Okay, so I just did a blue book value on my jeep. It came up under 11K. The payoff is like 16. The value dropped terribly in the last few months. I would be willing to get a better mileage, cheaper vehicle, but I am going to be eating 6K on the difference! How am I going to do that? this sucks!!!!

Driving 95 miles a day, you don't need a Jeep. You need a slightly used Toyota Corolla or a Honda Civic, you need a car that has a reputation for extreme reliability and low ownership costs, then you maintain and run that car for 10 years, until the doors are about to fall off because of all the rust, at which time you buy another used car with the same penchant for reliability.

For now continue to drive the Jeep, I don't like the fact that you are wasting so much money on a quickly depreciating asset, but since you don't have any savings your kind of stuck with it for now, but please don't buy another vehicle, until this one is paid off.

[BAGAGT1]

Re: Credit Debt

I'm kind of guestimating what your take home pay is like, but based on your budget, iit seems that you should have enough money left over every month to pay these loans of rather quickly

Take Home Pay $2600 (guestimate, please correct me if I'm wrong)
Car payment - 370
Loan - 390
Cellular - 85
Rent/Utilities - 700
Car insurance - 90
EZPass/Gas - 400
Food - 200

Balance + $365.

You are actually not in Dire Straits yet, you have a nice sum leftover every month, not including the roughly $500 a month you make as a musician. First thing you need to do is save an emergency fund, if you don't already have one of at least $1000. Secondly, as others have mentioned get rid of the Cellular plan if you are not on a contract, and get a pay as you go phone. Then apply the $450 (365 + 85) a month plus whatever you make as a musician to the consolidated loan amount. If you do move in with your friend (don't add yourself to the mortgage, just rent for now). You should be able to add even more to the balance of this loan. You could be done with that loan in 1.5 years easy. Simple math dictates that you only have to make 22 $1000 payments to get out of this hole right?

Then you can attack the car payment as well.

[channah]

Re: Credit Debt

Take home pay is a little less than that. I can't put that much into it because I have a 10 month salary, so I need to save for the summer. The musician thing goes in spurts. I have access to my pension in 7 months to take loans from, and be payed back at 4%. Should I consider this? I wish I never got to this point!!!!! Please don't tell me that I am screwed!!! Any advice/budgeting places on line that I could check out?

[sweeps]

Re: Credit Debt

Borrowing from your retirement assets should be one of your last resorts. But I wouldn't say it's off the table considering the 15% loan you're paying back.

A few people hit the nail on the head when they said that you need to make long-term changes to your spending habits. There really is no quick fix to these things. You can shift around your debt for a while, but if you keep spending beyond your means, it's just going to get worse.

[sweeps]

Re: Credit Debt

A few other considerations:
- Do you have a tax refund coming? You could apply that toward your 15% loan.
- Can you ask for "sensible" gifts for Christmas or your birthday? If not money, then maybe a gift card for necessities.
- Are there any family members or friends that can offer you a short-term loan?
- Do you have any savings bonds, loose change, or other sources of money lying around that can be put to use? Or items (clothes, knick-knacks, etc.) that could be sold at a garage sold or on eBay?

[BAGAGT1]

Re: Credit Debt

Take home pay is a little less than that. I can't put that much into it because I have a 10 month salary, so I need to save for the summer. The musician thing goes in spurts. I have access to my pension in 7 months to take loans from, and be payed back at 4%. Should I consider this? I wish I never got to this point!!!!! Please don't tell me that I am screwed!!! Any advice/budgeting places on line that I could check out?

Could you help me understand your salary a bit more. I based my numbers on $47000 a year (divided by 12) using no deductions and Illinois taxes. I guess I don't understand how your monthly take home pay can be less, if you are paid 47K on a 10 month year?

Are you contributing to a 403b plan? If so, you could postpone contibuting to the 403b until the loans are paid off. If the muscian thing isn't regular, you should look into a part-time job.

Would it be too much for you to post how much your net pay is for each pay period, and how many pay periods in a year. Thanks.

[channah]

Re: Credit Debt

I have 403B, but only 25 per check before taxes. Also, I have a pension loan that is 130 every check until the end of april, so that will free up more then. I have 23 pay periods over ten months. My take home for the first check of the month in 1186 (less because of teacher union dues) and 1270 the second check. Next year I get a 3K raise and my pension loan will be paid off.