Potential financial disaster

[hehateme000]

Well guys I messed up. Don't ever get into debt without having an emergency fund. Although I haven't lost my job, I still might be counting on one income instead of 2.

This might be too early to post but I still need to know what to do if this goes through. My fiance and I are about to split. We have 2 little boys and currently we both put our money together to pay all the bills.

The problem is that when she leaves in a day, i am going to be left over with most of the bills. We just bought a house but its in my name. All the utilities and cars are in my name too. The only things in her name are her 2 credit cards and a collection account. Oh and her tanning membership.

I was looking over my budget and there is no way I can afford all my bills with just my income. Plus I make a little more and probably won't have the kids more than her so there's an extra 250-500 a month in child support. With no savings right now I don't really know what to do. At 24, is it too early to file for bankruptcy? Should I look to sell my house?

I will post a detailed budget when I get home from work tonight. However I can copy and paste my debt right now since I just posted it in my other thread. Thanks for reading guys and once again I made another financial mistake. This is going to be a mess.

[hehateme000]

Debt Balances and interest rates: (By highest Interest rate)

WF CC: 580 - 17.49%
Cap 1 CC: 1270 - 11.9%
Car 1: 21604 - 10.99%
Car 2: 9672 - 9.49%
SL 1: 8500 - 6.8%
SL 2: 3300 - 5.6%
SL 3: 5300 - 3.8%
SL 4: 4300 - 3.4%
Court Fees: 2472 - 0%

I think she will pay for one of the car payments, and my student loans are deferred for a while since I am still in school.

[bjl584]

You think she will pay for one of the cars? I wouldn't count on it. Make her transfer the title into her name or sell it.

I also wouldn't panic just yet and consider bankruptcy. What is your income? Can you pick up a part time job?

I don't think that your debts are totally overwhelming. You just need to tackle them one at a time. Maybe sell some things. Maybe call and see if you can have interest rates and/or payments reduced or deferred for now. Pick up a part time job. Just be creative.

[hehateme000]

June/July/August
Take home Income:
Me - 2650/3325/2650
Ebay - 100/100/100

Total Income: 2750/3425/2750

June/July/August

Expenses:
$1260 - mortgage
$415 - Car 2
$400 - Gas/Food
$200- Babysitting
$130 - Car Insurance
$110 - Phone
$110 - Direct tv
$90 - Water
$60 - PGE
$60 - Comcast Internet
$40 - Credit Card 1
$40 - Credit Card 2
$20 - Old court fees

Total Base Monthly: 2935

GE Capital: 245/670/240
Lowes: 110/440/160
Walmart: 180/180/180
Probation Classes: 144/144/180
Garbage (June only): 80

[bjl584]

Direct TV can go.

Internet can be cut back to a cheaper plan. Shop around for different providers.

Your car payment is high for your income. Can you sell the car or at the least refinance it?

I'd shop around for car insurance. I know a car insurance tends to vary greatly by location, but I pay half of what you do.

Phone bill is high. If it's a smart phone, then you can cut back on data or drop the house internet altogether.

What is the probation class? How much longer does that last?

I'd look around for some 0% interest credit card offers that you can transfer those store cards to.

[Eagle]

Well guys I messed up. Don't ever get into debt without having an emergency fund. Although I haven't lost my job, I still might be counting on one income instead of 2.

This might be too early to post but I still need to know what to do if this goes through. My fiance and I are about to split. We have 2 little boys and currently we both put our money together to pay all the bills.

The problem is that when she leaves in a day, i am going to be left over with most of the bills. We just bought a house but its in my name. All the utilities and cars are in my name too. The only things in her name are her 2 credit cards and a collection account. Oh and her tanning membership.

I was looking over my budget and there is no way I can afford all my bills with just my income. Plus I make a little more and probably won't have the kids more than her so there's an extra 250-500 a month in child support. With no savings right now I don't really know what to do. At 24, is it too early to file for bankruptcy? Should I look to sell my house?

I will post a detailed budget when I get home from work tonight. However I can copy and paste my debt right now since I just posted it in my other thread. Thanks for reading guys and once again I made another financial mistake. This is going to be a mess.

Man, I'm sorry you're going through this.

I take it the conversation about cutting expenses (spending money, tanning, DirectTV, etc.) didn't go over well?

Surely this was just the first (or second or third) big fight about money (I mean you guys have 65k+ of consumer debt and need to stop the bleeding) and you can work things out?


So, unfortunately, let's consider worst case scenario and you guys do split up...

Are the kids yours legally to where you will have to pay child support (I believe they are her kids legally right)?

Which of the items on the list of your budget would go away if you split up?

What are the 2 vehicles each worth? See www.kbb.com

I agree with Brian's assessment... Cut the Direct TV, Internet, and cell phone plan. Shop for car insurance and look into a 0% offer to transfer your CC's. Some of this was already suggested in your other threads...

The whole "she gets food stamps" thing is also strange. Does she live with you or with her family?

[AnotherReader]

Both cars are in your name. What are they worth? If possible, sell both of them and get a beater until the crisis passes. She can find a beater as well. Give them back to the lender if you have to, but they both must go.

See if there is any way to sell the house. Rent the cheapest place you can find instead. I can't imagine how you got financing with your income and credit, unless it was through the seller.

Sell everything you bought for the house, including the furniture. No Direct TV, cut the phone to the minimum. Your internet is high. Do you really need it?

You clearly are overextended and with your interest rates, your credit is not the best. Your expenses are greater than your income before the credit card payments. Get a second job or pick up extra shifts at your main job. Do handyman work if you have those skills. Work on increasing your e-bay sales.

You have to pay the court fees and probation costs. Sounds like a DUI. No way will you get a better rate on car insurance if you have a DUI, but the good news is you can only buy your state's minimum liability if you have a beater.

You are living way beyond your means. For you to succeed, you must stop that today. You also do not want to get in a position where the court ordered child support is based on your past lifestyle. You will be paying her far more than $500 if that happens.

[Weird Tolkienish Figure]

Well guys I messed up. Don't ever get into debt without having an emergency fund. Although I haven't lost my job, I still might be counting on one income instead of 2.

This might be too early to post but I still need to know what to do if this goes through. My fiance and I are about to split. We have 2 little boys and currently we both put our money together to pay all the bills.

The problem is that when she leaves in a day, i am going to be left over with most of the bills. We just bought a house but its in my name. All the utilities and cars are in my name too. The only things in her name are her 2 credit cards and a collection account. Oh and her tanning membership.

I was looking over my budget and there is no way I can afford all my bills with just my income. Plus I make a little more and probably won't have the kids more than her so there's an extra 250-500 a month in child support. With no savings right now I don't really know what to do. At 24, is it too early to file for bankruptcy? Should I look to sell my house?

I will post a detailed budget when I get home from work tonight. However I can copy and paste my debt right now since I just posted it in my other thread. Thanks for reading guys and once again I made another financial mistake. This is going to be a mess.

Looks to me like you will have sell one car... she will just have to live on her own.

Are your loans private or federal? If they are federal that's better.

Why do you think you should have to pay for her transportation IN ADDITION to child support? That's ridiculous.

Might want to think about downgrading the house. You won't need as much room with just one person.

Just some thoughts.

Edit: Also, your #1 goal right now should be to get your interest rats as low as possible, have you looked into tranferring your CC's to a 0%APR card? It's a great first step.

[Eagle]

You clearly are overextended and with your interest rates, your credit is not the best. Your expenses are greater than your income before the credit card payments. Get a second job or pick up extra shifts at your main job. Do handyman work if you have those skills. Work on increasing your e-bay sales.

I agree with AnotherReader, Hehateme000 you need to increase your income. Here's some good suggestions of way to make extra money while in debt: http://www.savingadvice.com/forums/w...tra-money.html

[hehateme000]

Direct TV can go.

Internet can be cut back to a cheaper plan. Shop around for different providers.

Your car payment is high for your income. Can you sell the car or at the least refinance it?

I'd shop around for car insurance. I know a car insurance tends to vary greatly by location, but I pay half of what you do.

Phone bill is high. If it's a smart phone, then you can cut back on data or drop the house internet altogether.

What is the probation class? How much longer does that last?

I'd look around for some 0% interest credit card offers that you can transfer those store cards to.

Thanks I am going to look into all of these and try to get cheaper plans. I cant sell the car because im under water on it.

also my car insurance is for 3 cars, i have a beater honda that is insured as well. probation lasts till december. I just applied for the Chase Slate card and they said they would let me know within 10 days if I was approved or not.

[hehateme000]

Man, I'm sorry you're going through this.

I take it the conversation about cutting expenses (spending money, tanning, DirectTV, etc.) didn't go over well?

Surely this was just the first (or second or third) big fight about money (I mean you guys have 65k+ of consumer debt and need to stop the bleeding) and you can work things out?

Eh, lets assume the worst lol

So, unfortunately, let's consider worst case scenario and you guys do split up...

Are the kids yours legally to where you will have to pay child support (I believe they are her kids legally right)?
Yes they are mine legally. I would definitely pay child support.

Which of the items on the list of your budget would go away if you split up?
I put the bills up a couple posts above and took away all of hers and the ones we split i cut those in half already.

What are the 2 vehicles each worth? See www.kbb.com
Vehicle 1 is worth about 5000 but I owe 9600. Second vehicle is worth about 18000 but i owe 21k, but that is my commuter.

I agree with Brian's assessment... Cut the Direct TV, Internet, and cell phone plan. Shop for car insurance and look into a 0% offer to transfer your CC's. Some of this was already suggested in your other threads...
Yea I applied for the Chase Slate card. Transfer a bunch of those cards onto that one card but I have to wait and see if I get approved. I am going to start contacting all the places like internet, phone, direct tv and either cancel them or get a better deal.

The whole "she gets food stamps" thing is also strange. Does she live with you or with her family?
No she lives with me but says she doesnt. I didnt want to say anything that could get me in trouble but now that I think of it it is not me doing anything wrong its her lol

see above

[hehateme000]

Both cars are in your name. What are they worth? If possible, sell both of them and get a beater until the crisis passes. She can find a beater as well. Give them back to the lender if you have to, but they both must go.
So do I give one to her since she needs a car, and she could just make the payments or pay me and I would still make the payment? I am under water on both of them.

See if there is any way to sell the house. Rent the cheapest place you can find instead. I can't imagine how you got financing with your income and credit, unless it was through the seller.
My credit score was 705 and I did FHA loan, I was approved for 180k. Bought house for 167k. I am talking to a buddy at work about geting a place with him closer to my work (I commute 160 miles a day as of right now)

Sell everything you bought for the house, including the furniture. No Direct TV, cut the phone to the minimum. Your internet is high. Do you really need it?
I dont need internet but I could just use the data on my phone. I just need my computer for my budget. I will start to look at everything I can sell.

You clearly are overextended and with your interest rates, your credit is not the best. Your expenses are greater than your income before the credit card payments. Get a second job or pick up extra shifts at your main job. Do handyman work if you have those skills. Work on increasing your e-bay sales.
I will continue to work for some other income. I make music so maybe I can start making beats and putting them on soundcloud

You have to pay the court fees and probation costs. Sounds like a DUI. No way will you get a better rate on car insurance if you have a DUI, but the good news is you can only buy your state's minimum liability if you have a beater.
Not a DUI, it was a BS misdemeanor for domestic violence. 1 year batterers treatment program and 3 years probation but I pay for the classes which will be over in December.

You are living way beyond your means. For you to succeed, you must stop that today. You also do not want to get in a position where the court ordered child support is based on your past lifestyle. You will be paying her far more than $500 if that happens.

Thans for replying, see above

[hehateme000]

Looks to me like you will have sell one car... she will just have to live on her own.

Are your loans private or federal? If they are federal that's better.
They are federal. Deferred for a long time

Why do you think you should have to pay for her transportation IN ADDITION to child support? That's ridiculous.
I dont feel I have to pay for her transportation, but if she kept the car, she would just pay me the car payment and half the insurance. If she doesnt want to do that I would have to sell the car and take the loss and still have a loan, so I dont know if that is the best option either.

Might want to think about downgrading the house. You won't need as much room with just one person.
Yea I am definitely waiting to see if she is really moving out this week and if so then yes I am going to sell he house. I hope I can get some money or break even because we only put 3.5% down.

Just some thoughts.

Edit: Also, your #1 goal right now should be to get your interest rats as low as possible, have you looked into tranferring your CC's to a 0%APR card? It's a great first step.

I said it above but I just applied for the Chase Slate card which has 15 months 0% APR for balance transfers. It only let me choose 3 cards but I chose the 3 with the highest interest and balances.

see above

[LivingAlmostLarge]

Sell both cars and drive the beater. Better off with being $10k underwater from cars you sold then being $29k in debt from two cars.

And yes you are drowning in debt. You've always only looked at "making" your monthly "nut". Never at the big picture that you've been digging the hole deeper and deeper. Just because you can afford the monthly payments doesn't mean you can afford it.

If all you look at is the monthly payments, then you can't afford it. Live by that motto.

[AnotherReader]

I don't think you understand how much trouble you are in. You cannot afford the payments that are on your plate with just one income. If she moves out, you will need to sell or turn in a lot of what you own. Even if she stays and contributes, you are still in way over your head.

You need to sell both newer cars and see if you can negotiate a note for the difference on each. You cannot afford those cars. Your commute is insane. Downsize and rent close to your job. The financial and commute stress is contributing to your frustration and anger over the situation.

If she does move out, she needs to find a beater car. She will not pay you for the current car because she won't be able to afford it on top of the rent, utilities and food for her and the kids. It's in your name, so it's your decision, not hers. Don't put yourself in an even worse position by keeping this car.

No matter what happens, the house that is 80 miles from work has to go. Rent a cheap 2 bedroom apartment near work. Either she moves with you and the kids go in the second bedroom, or you get a room mate.

What will you do if you don't get the Slate? Something has to give. The numbers just don't add up. It's in your interest and your kids' interest that you learn the lessons of overspending now and give all of you a better future.