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I don't consider myself stupid when it comes to money, but I don't know a whole lot about it either. I was an engineering major, so I like things I can disassemble and reassemble. Anything with a percent sign makes me want to kill. Anyway, my wife was laid off a few weeks ago, and that has put us in a very bad position. We both have credit card debt, and we were doing OK (slowly but surely) but now I've nearly drained what little savings we had so we could make the minumum payments on our bills. I make $427 a week after taxes. My wife used to make $560 every two weeks but now she'll be getting $180 per week when her unemployment finally kicks in. So I can count on about $2400 a month. We typically spend $150 every two weeks on groceries (we have a 16 month old daughter, and diapers are expensive). I owe $14,000 on my citibank credit card, with a minimum payment of nearly $400. A good chunk of this is from the hospital bill from when our daughter was born, and various other things that went wrong in the past year (TV went out, an unexpected $1500 hospital bill, an unexpected $1200 car repair bill). Also, I made the stupid decision to charge everything to my credit card so we could try to pay off my wife's higher interest card off quicker, and that really screwed us over I think. The interest on this card is 18.99%. I owe $3000 on a chase card, most of which is interest free for over a year. I paid off $1500 of my citibank card using those interest-free checks you get in the mail. I want to pay as much as I can on this so I can cut another chunk out of my citibank card. Interest on this card is usually 12.99% but 2/3 of it is interest-free. I owe $1000 on a 'room place' credit card from when we got furniture. I only pay $50 on this card and Im not worried about it. Interest is 24.99% on $200 and nothing on $800. I owe a couple hundred on another card that I'm not worried about. Interest is 20.20%. I don't use credit cards anymore unless I absolutely have to, and lately Ive had to since we haven't had any money at all to buy groceries and such. My wife has a card with about $4000 and she uses that when we need it. I think her minimum payment is around $200. Not sure what the rate on that is. We live in an apartment where we pay $522 a month for rent and cable, and $50-$70 for electric. We don't have gas. We both have cell phones, so thats another $120 a month. Car insurance is about $150 a month for both cars. This includes our renter's insurance. My car is paid off, but the wife's car payment is $276 a month. I think we still owe about $9,000. We consolidated our credit card debt a few years ago with a $10,000 loan, and we pay $230 a month towards that. I think we owe $7000. It was nice having most of our credit cards paid off for awhile, but then we had the baby and poo poo started to go wrong and now we're worse than we were before, but with an additional loan. AT $ T internet is $30 a month. Assuming I pay a mere $100 on my chase card a month, and $10 towards the $200 something credit card, and making the minimum payment on everything, we have $12 left a month. And I haven't figured fuel for both cars in yet. Or any other expenses. I have one pair of jeans that I wear all week for work. I can't afford another. It's sad. Now my car is worth maybe $5000 so I could sell it but I wouldn't have a way to get to work. My wife's car is maybe $13,000 and we owe $9000 on it so we could sell it and get her a cheap piece of crap and no longer have a car payment, but I just don't think it'll help enough. Since we stopped using credit cards unless we absolutely have to they've been going down, but now that our income has dropped, we're in trouble. We pay about $660 a month on our credit cards and I'd love to pay more so they'll go down quicker, but we're just trying to keep our heads above the water at this point. What's our best course of action at this time? Any help would be greatly appreciated. Also, my health insurance sucks. loving $6000 deductable. Also, if we get money back on our taxes, and/or if there's another stimulus check, would it be better to put it into savings, or immediately throw it at a credit card? CornHolio fucked around with this message at 05:59 on Dec 7, 2008 |
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Dec 7, 2008 05:23
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The one thing that jumped out at me immediately was the cell phones. My husband and I just use non-sexy Tracfones, and since we almost never use them, they're about $100/year. Sometimes he has to buy more if he's been roaming, but even so, I doubt he spends $200/year at his worst. If you really need cell phones, go cheap. Other than that, I think maybe you don't need two cars. It would be a pain in the rear end to only have one, but if your wife isn't working, maybe she can either drive you to and from work while gas is cheap, or maybe you can do the shopping on the way home or something. You could put $4000 on bills, and you wouldn't have that payment anymore, so you could put that on bills too. You really should have an emergency savings account so that the next thing that goes wrong can come from cash instead of a credit card, but you're really close to the edge here. Try to put away at least a little every paycheck, even if it's just $25. It's not like you can't take it out again if you need it, but if you get in the habit of putting it aside, it's more likely to stay aside. Also, make up a list of all the bills and the interest rates and things so you can prioritize a bit. There are two schools of thought: One is to knock down the highest rates of interest first, for obvious reasons, and the other is to knock down a small card first and stop using it, reducing the number of minimum payments you have to make every month. I think if I were you, I'd do that first and really not use that card again. Then use the amount you would have paid on another card, maybe a high interest one this time, until it's gone. That way, if you have an emergency you can just make a minimum payment that month and use the cash instead of credit.
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Dec 7, 2008 07:12
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CornHolio posted:Assuming I pay a mere $100 on my chase card a month, and $10 towards the $200 something credit card, and making the minimum payment on everything, we have $12 left a month. And I haven't figured fuel for both cars in yet. Or any other expenses. I have one pair of jeans that I wear all week for work. I can't afford another. It's sad. If your wife is unemployed, why do you need two cars? I don't know what public transportation is like in your area, but if your wife needs the car to go job hunting why not just have her drop you off and pick you up at work? Is it possible either you or she could car pool with someone? quote:Since we stopped using credit cards unless we absolutely have to they've been going down, but now that our income has dropped, we're in trouble. We pay about $660 a month on our credit cards and I'd love to pay more so they'll go down quicker, but we're just trying to keep our heads above the water at this point. What's our best course of action at this time? Any help would be greatly appreciated. The first step to creating any sort of financial plan is to figure out exactly how much you owe. Your OP is a little confusing so I organized your list using your figures: Net Income: $427/week employment $180/week unemployment Total (based on a 4 week month): $2,428 Debt: $14,000 Citibank - $400/mo. $3,000 Chase - 0$/mo(?) $1,000 "Room Place" CC - $50/month $??? "another card that I'm not worried about. Interest is 20.20%" - $???/month $4000 Wife CC - $200/month $7,000 Consolidated CC debt - $230/month $9,000 Car Payment - $276/month Total: at least $38,000(?) at $1,156/month Expenses: Cell Phones - $120/month Car Insurance - $150/month Internet - $30/month Groceries - $300/month Rent - $522/month Electric - $50-70/month Total: $1,172-$1,192/month Total Expenses: $2,328-2,348/month I'm sure you don't need the Internet to tell you that it's hard to balance your budget when 47% of your net income currently goes to service debt. The biggest problem I see is that you're down to essentially one paycheck but still acting like you have two (although frankly you weren't in great financial shape even when your wife was employed). The short answer is that your finances are a mess and that drastic action will soon be needed. Are you positive there is absolutely no way you and your unemployed wife could survive with only one car or is it just convenient to have two? Do you need an expensive cell phone plan? I can almost assure you the answer to both of these questions is no. If you could eliminate your car payment and cell phone bill you'd free up $396 a month (about 16% of your net income)! As for your debt, normally loan consolidation might be an option to reduce the rates of some of your credit card balances. However, you apparently tried that before and just ended up with more credit card debt once the balances were cleared. You should only consider consolidation along with other measures such as cutting up your cards and creating a budget. Your biggest problem isn't necessarily the debt, but poor spending habits that got you in debt in the first place. quote:Also, if we get money back on our taxes, and/or if there's another stimulus check, would it be better to put it into savings, or immediately throw it at a credit card? Put it into savings and build up an emergency fund if at all possible. Without savings you'll be forced to rely on expensive credit card debt to cover future emergency expenses. Also, hospital bills are emergencies but the TV going out is not.
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Dec 7, 2008 08:55
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Is our cell phone plan expensive? I don't really have anything to compare it to so I don't know. We both have separate T-mobile accounts. As for the cars, I work 30 miles away, so to have her drive me to and from work every day would be kinda dumb. She's hoping to get called back to work in January (her boss tells her thats going to happen) so I don't want to sell her car yet. Plus, how easy is using public transportation with a baby? She's been unemployed for a few weeks now so we're still trying to figure out what needs to change, Thanks for the help thus far.
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Dec 7, 2008 17:25
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I see 3 options here: 1) Get a second job (no small feat in this economy), use the income from that second job to pay down debt. 2) Stop paying your credit cards. Your credit rating will be ruined and you'll be forced to pay for everything in cash. The plus side is after a few months the cc companies will begin to fear you going in to bankruptcy and offer you deals (such as reducing principle owed, reducing interest rates, refunding "fees") 3) Bankruptcy. Your credit rating will be destroyed for 7 years. Cash will be required for everything. Most of your debt will be discharged. (see a laywer for this one)
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Dec 7, 2008 18:18
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I agree that the car loan is not the biggest problem, but its probably the thing that is easiest to fix in the short term. When your wife returns to work, do you work close enough together that you could get by with one car? Is car pooling an option for either one of you? Dropping someone off 30 miles away isn't fun, but you won't be doing it the rest of your lives. Also, is it possible that in the short to medium term you move in with either set of parents? Again, not a permanent solution, but it will be incentive to pay down the debt faster. You can talk to the credit card companies and see if in return for permanently blocking the account they will lower your interest rate and accept a weekly or a monthly payment for less than the minimum. I manage a credit card program for a credit union, and we pride ourselves on conducting business in a fair and responsible manner, and we are doing that on a regular basis now as a last ditch effort to get our money back, even if it is in dribs and drabs. I don't know if your cards issued by big national companies will do something similar, but you can ask. If they don't today, they might be more flexible if you don't pay them for 4 months. Finally if you have a child and your income is that limited, you could see if you qualify for any type of assistance. You may qualify for some types of heating assistance, health care for your daughter, or WIC. It's not like you are quitting everything and going on welfare, but I believe that it should be government's responsibility to have a safety net when people hit hard times, especially if kids are involved.
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Dec 7, 2008 19:40
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CornHolio posted:...the wife's car payment is $276 a month. I think we still owe about $9,000. Sell it for $13,000 and buy a running beater for $5000, which leaves you with $8000 to knock out some of that 20% interest bullshit. Yeah, you still have to pay back a $9000 car loan for a car you no longer own, but the interest rate is probably much lower than any of the credit cards. Do without cellphones for a year or two. The previous generation managed to. Use a card activated cell phone for emergencies. Mine costs $25 for 60 days and I use it for more than just emergencies. Christ, I probably earn more than you and your wife combined and I've never owned a car worth more than $8000. Edit: yes I sound arrogant, but everyone has to live within their means. sirormadman fucked around with this message at 19:49 on Dec 7, 2008 |
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Dec 7, 2008 19:47
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I didn't think you could sell a car without paying off the loan. Doesn't the loaning agency have a lien on the title of the car? Or was that just my credit union being careful? I can't remember how my husband's car loan worked. OP, something's going to have to give. You need more income or fewer payouts. If your wife is really going back to work next month, then just struggle through December and hope for money for Christmas, then budget properly and get to work on putting every spare penny into savings or paying down debt as hard as you can. Read some of the other threads here about snowballing and paying down credit cards. Otherwise, you're going to have to make some adjustments in your quality of life. You just can't more than halve your income and expect to find a way to live the same life when you're that far in debt. I think your cell bill is definitely disposable. Sure, it's nicer than basic pay-as-you-go service, but you don't need it. I've had mine for three years now, and I use it so little I have over 900 minutes on it. It's cost me about $300, as opposed to $2160 at $60/month for three years. That roughly $100/month savings could be paying off a card. You're going to have to make some sacrifices here. guaranteed fucked around with this message at 20:59 on Dec 7, 2008 |
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Dec 7, 2008 20:55
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guaranteed posted:I didn't think you could sell a car without paying off the loan. Doesn't the loaning agency have a lien on the title of the car? Or was that just my credit union being careful? I can't remember how my husband's car loan worked. It can be done. Who ever is purchasing the car will need to make a certified bank check payable to the owner of the can AND the financial institution that has the lien. They can't legally take posession of the car until they get the title and register it, but the deal can be done. If you decide to do this, check with the bank and your local DMV because every state is a little bit different.
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Dec 8, 2008 00:43
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According to the 2008 guidelines you qualify for WIC, so definitely enroll in the program. You'll get a ton of free food, including milk and other dairy, and some of your child's routine medical care, like vaccinations, covered. I'm not one who thinks everyone should go and file bankruptcy once they've racked up debt like yours, but I think in your case it's at least worth thinking about.
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Dec 8, 2008 02:59
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It should be noted that while me and the wife have cell phones, we don't have a landline. So we'd need to buy a phone and get some service, probably tied in with our internet bill. Possible, but with me driving so far to work I'd really not like to lose that. My wife on the other hand, may be able to go without. We'll see. I don't know about the car thing, since my wife loves her car to death, but we'll see. Tomorrow I will call up some of the credit card companies and see if they'll be willing to work with us. We could move in with my parents if we absolutely had to (they've offered) but two people plus a baby in a tiny basement room doesn't sound very appealing. We'd need to get a storage space for our furniture and stuff.
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Dec 8, 2008 03:05
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Zeta Taskforce posted:It can be done. Who ever is purchasing the car will need to make a certified bank check payable to the owner of the can AND the financial institution that has the lien. They can't legally take posession of the car until they get the title and register it, but the deal can be done. If you decide to do this, check with the bank and your local DMV because every state is a little bit different. The OP can sell the car no problem. He cannot however sell it for 13,000 and keep all 13,000 while continuing payments. The lender won't release the title until they are paid in full. The bank gets their $9,000 then they'll cut him a check for the extra.
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Dec 8, 2008 04:22
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CornHolio posted:It should be noted that while me and the wife have cell phones, we don't have a landline. So we'd need to buy a phone and get some service, probably tied in with our internet bill. Possible, but with me driving so far to work I'd really not like to lose that. My wife on the other hand, may be able to go without. We'll see. While I don't know you personally, and I'm not trying to pass judgement, I think you're entirely too focused on trying to maintain the same quality of life. As others have noted, your pretty much lost half your income. . . half your income. Things are going to change, and not for the better. I'm sure your wife loves her car to death, and I'm sure it's going to be cramped and emasculating to move back in with the parentals, but some big sacrifices need to be made. -Knock your cellphone down to the base plan (no texting, no data, nothing, just voice). Or get one of those pay as you go phones and just stop making calls. -Get rid of the wifes car. You're $40,000 in debt, and are missing serious income. Start chipping away at that. You can get a running beater for 3500-4000. -Second job, or have the wife work at night when you're home with the kid. Speaking of which, contact the Gov and see what you are entitled to. Good luck, and think about the big picture. You're not going to live like poo poo your entire life. . . make some sacrifices, get yourself squared away, and learn from your mistakes for the future.
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Dec 8, 2008 04:41
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Nysven posted:The OP can sell the car no problem. He cannot however sell it for 13,000 and keep all 13,000 while continuing payments. The lender won't release the title until they are paid in full. The bank gets their $9,000 then they'll cut him a check for the extra. Exactly. What I would suggest though is if CornHolio sells the car and agrees on a price with the buyer, he get a 10 day payoff from the bank, the seller will make a check payable to the bank for the exact amount and then makes a check payable to CornHolio for the remainder. His car insurance will go down too. He can keep some of the money for an emergency fund and the rest put toward either the smallest debt a.k.a. show ball, or the debt with the highest interest rate. JohnScans posted:While I don't know you personally, and I'm not trying to pass judgement, I think you're entirely too focused on trying to maintain the same quality of life. As others have noted, your pretty much lost half your income. . . half your income. Things are going to change, and not for the better. I'm sure your wife loves her car to death, and I'm sure it's going to be cramped and emasculating to move back in with the parentals, but some big sacrifices need to be made. I couldn't agree more. You were living beyond your means even before your wife was laid off, but it might take this crisis to be a wakeup call. I just want to take a moment to say that no one, especially me, is saying you are a bad person. Being in debt and having money problems is not a referendum on your goodness as a person. It is easier for us to look down birds eye view and say cut this, do that, and by the way, what did you spend all that money on? You are the one who will have to make some tough choices, none of which are particularly good. As I mentioned earlier, I work in a loan department and I get people every day who apply for a loan, might have a true crisis and really need the money, and yet we have to decline them. Some of them take it personally. They say that if I trusted them I would give them the loan and that I think that they won't pay us back. And that is totally not the case. Some of them are lovely people, great at what they do, sometimes burnt by their own generosity, and if they could they would pay their bills.
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Dec 8, 2008 05:22
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You're doing what everyone else does -- ask for advice and then ignore what people are telling you. Maybe this isn't as common as it used to be, but I'm 42 and my parents and all my friends' parents were always telling us about how hard it was when they were just starting out. These are your hard times. No one is going to hand you a surprise debt relief check for $40K. Get rid of the cell phones, buy pay-as-you-go from Walmart, and try not to use them. Sell the car. You'll get a nice new one later when things are better. Or blame the economy and sit with your hands in your lap, waiting for a bailout. It's up to you.
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Dec 8, 2008 05:28
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guaranteed posted:You're doing what everyone else does -- ask for advice and then ignore what people are telling you. Maybe this isn't as common as it used to be, but I'm 42 and my parents and all my friends' parents were always telling us about how hard it was when they were just starting out. These are your hard times. No one is going to hand you a surprise debt relief check for $40K. Get rid of the cell phones, buy pay-as-you-go from Walmart, and try not to use them. Sell the car. You'll get a nice new one later when things are better. Or blame the economy and sit with your hands in your lap, waiting for a bailout. It's up to you. The only thing I'm ignoring are the people telling me I should go sell our car right away. Maybe we're more attached to our cars than some people, but I would move back in with my parents before I sold a car. We bought them both with the intention of driving them 'till the wheels fall off, and I know them both inside-and-out and am able to do all work on both of them myself. Selling the one for a car that has no history and that I'm unfamiliar with doesn't stand out for me as the number one option, is all. It is sound advice though, and something I will continue to consider. And it probably is the best approach, so I suppose I'll see what the second-best approach is now and weigh my options. If my wife continues to be laid off, we'll probably move in with my parents. Also, I'll force her to get another job, since right now she's just sitting idle waiting for work to call her back (actually she's fighting tooth and nail to go back, since apparently they're calling people with less seniority than her back first). What are my options with the citibank card? Would they be willing to freeze my card for reduced interest rates and a lower payment? Or do you need to pay for one of those 'security plans' they like to push so much? Are using those 'interest free' checks such a good idea to transfer chunks of the debt to another card?
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Dec 8, 2008 15:44
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CornHolio posted:The only thing I'm ignoring are the people telling me I should go sell our car right away. Maybe we're more attached to our cars than some people, but I would move back in with my parents before I sold a car. We bought them both with the intention of driving them 'till the wheels fall off, and I know them both inside-and-out and am able to do all work on both of them myself. Selling the one for a car that has no history and that I'm unfamiliar with doesn't stand out for me as the number one option, is all. We are the wrong people to ask about what Citibank will and will not do, but what you are requesting is reasonable. Just explain how your wife lost her job and it will be impossible for you to continue to make the existing payments. As far as the zero percent balance transfer offers go, read all the fine print before you do anything. I don’t like them because credit card companies are like snakes and you should be really careful when they start giving out apples, but it could buy you time. Usually they have a 3%-5% convenience fee, which based on the interest rates you are paying and how long it will realistically pay the other card, you could probably justify. However some of the zero percent offers require you to use the card either a minimum number of times or a minimum dollar amount to maintain the 0%, and the purchases are not zero percent. And when you make payments it gets applied to the 0% first, which means that every month your effective interest rate goes up and you don’t actually get to pay off any of the balance that accrues interest until you have paid all of the zero. Also check the fees and default rates and what triggers a default. If they have a universal default clause, it pretty much gives them the green light to raise your interest rate for any reason, even if you never missed a payment on the 0% card.
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Dec 8, 2008 16:17
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Zeta Taskforce posted:We are the wrong people to ask about what Citibank will and will not do, but what you are requesting is reasonable. Just explain how your wife lost her job and it will be impossible for you to continue to make the existing payments. There was a convenience fee that I paid, I think it was $75. I don't think there was anything else in the fine print. I don't use that card otherwise (though I did have a small balance on it before) so my payments might be going to the 0% portion instead of the portion with interest, I don't know. I will have to look into that.
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Dec 8, 2008 18:05
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I think the writing's on the wall. You live above your means, and can't possibly sustain it without getting into further debt. Also, you make $427 after taxes as an engineer? Maybe you should consider getting a new job, I made more than double that right out of college with no experience.
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Dec 8, 2008 20:00
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Some Alf DVDs posted:Also, you make $427 after taxes as an engineer? Maybe you should consider getting a new job, I made more than double that right out of college with no experience. My 401k is in there as well, and health insurance for my family, but yeah its a bit low. I got my citibank interest rate dropped from 18.99 to 12.99 today  its a start.
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Dec 8, 2008 20:14
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CornHolio posted:The only thing I'm ignoring are the people telling me I should go sell our car right away. Maybe we're more attached to our cars than some people, but I would move back in with my parents before I sold a car. We bought them both with the intention of driving them 'till the wheels fall off, and I know them both inside-and-out and am able to do all work on both of them myself. Selling the one for a car that has no history and that I'm unfamiliar with doesn't stand out for me as the number one option, is all. Another expense you should consider is daycare. You haven't mentioned who took care of your daughter while your wife worked, but if it was your family and they are like mine, they'll only tolerate it for so long, especially when you're getting close to the terrible twos. Something to seriously consider: Does your wife's salary cover her car payment, insurance, gas, and daycare? If not, maybe she can try to find a work from home gig.
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Dec 12, 2008 16:45
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monkey no. 142857 posted:But, kudos for saving money by doing the repairs yourself. Doesn't sound like he's saving a lot of money by doing his own $66 oil changes every 2 months on his car alone (1997 BMW 3-series), not to mention whatever his wife's car needs, plus ~$3000 in repairs over the last year for the BMW (apparently there are some things he can't fix himself). I love my RX-8 too man, but if my wife lost her job I'd sell it in a heartbeat and go back to the Geo Metro if that's what it took to make ends meet. But it's up to you to decide where you'll cut expenses. If you won't sell the cars and insist on using only the finest motor oils, then you can try to: find cheaper housing, reduce grocery expenses, move closer to work so you don't spend as much on gas, set the thermostat down a few degrees, get a cheaper family plan for the cell phones instead of two expensive individual plans (yes $120/month is ridiculous). And of course, do anything that will bring in extra income, whether it's getting a second job, making your wife go out there and find a full- or part-time job (because her previous job may not come back), or hawk stuff on SA-Mart, eBay or Craigslist. Reading the thread titled Easy Things YOU Can Do to Save Money might help too. Endor fucked around with this message at 19:16 on Dec 12, 2008 |
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Dec 12, 2008 19:14
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For a phone line, you could always get yourself an unlimited Skype plan and do away with both of your phones. For mobile emergencies, you can buy a couple of prepaid phones (or even use the SIM in your existing phone, if it's unlocked) and recharge them when you need it. Skype is ridiculously cheap for an unlimited plan, which I believe they'll let you use up to 10,000 minutes (?) a month (I'd check, but their website is down). Swallow your pride and just get rid of the car, though. That should be the absolute last thing you keep around in this situation, as it just depreciates anyway. Think of how much faster you can pay off your debts if you don't have to pay for the vehicle and the associated comprehensive insurance every month. Believe me, I've had to make some really tough decisions recently but as a result I'm happier now that I don't have as much of an overwhelming burden from debt hovering over my head.
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Dec 12, 2008 21:48
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#1. Get yourself on a Debt Management Plan. Now. Call up your local CCCS chapter and enroll today. Don't wait another second. Your interest rates will be halved (or maybe more), and everything will be bundled up into one easy payment every month. I've been on a DMP for a year now and it is the best financial decision I've ever made. The only downside is you won't be able to open any new loans/credit cards (except auto loans) while you're still on a DMP. This is a good thing, usually, but if your near-term financial situation sucks then you might have to buckle down even harder. #2. Sell your wife's car, and try carpooling, biking or ZipCar (if you have it or a similar service in your area). This will have an immediate impact of ~$500 a month in payments, insurance, gas and repairs. #3. Ask for a raise at work. Mention your daughter. You're making way too little for an engineering grad (assuming you graduated). Push very hard- they're not going to fire you for asking for a raise. #4. Get a side job or try to work overtime at your day job. I'd recommend waiting tables- you can do it on just Fridays and Saturdays and pick up $200-$250 a week extra.
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Dec 12, 2008 23:57
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Endor posted:Doesn't sound like he's saving a lot of money by doing his own $66 oil changes every 2 months on his car alone (1997 BMW 3-series), not to mention whatever his wife's car needs, plus ~$3000 in repairs over the last year for the BMW (apparently there are some things he can't fix himself). I love my RX-8 too man, but if my wife lost her job I'd sell it in a heartbeat and go back to the Geo Metro if that's what it took to make ends meet. Can't wait to find out what the wife drives to and from the food bank.
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Dec 13, 2008 02:59
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monkey no. 142857 posted:Well gently caress me sideways. That is not the car to be driving if you have zero disposable income. You've got some, um, interesting priorities, Mr. "Diapers are expensive." Ahh that's kind of sad, he's going to sacrifice his daughter's happiness for his car. 
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Dec 13, 2008 08:13
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CornHolio posted:Is our cell phone plan expensive? I don't really have anything to compare it to so I don't know. We both have separate T-mobile accounts. Yes. a regular family plan for 2 people with free nights and weekends, and 700 minutes or so of anytime minutes should not cost more than $70/month. But anyway, you shouldn't be even paying that much. Get two prepaid phones from T-mobile (for like $30 each), and pay 10 cents per minute (pay as you go). And just use your cell phones for emergencies. And if you really must have a landline, get something ghetto like Magicjack (plug into your USB port). Also, I hope you're not contributing more than you need to get the match in your 401k. I don't know where you live, but you might want to look into public transportation. My wife and I both work, but we get by with one car. We get by with car pooling and public transportation, and when the weather is nice enough for biking, our car just sits in the garage.
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Dec 13, 2008 08:42
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Cornholio, I know you're a cool AI guy, I post there myself and am a car nut. I was faced with a very similar thing myself. I have over $20k in combined debt, but it used to be over $36k. I had a brand new MINI cooper that I loved to death ($420/mo, 72 mos) and a 1976 Porsche 914 AX/DE machine with a decent 2.0L with dual weber 40 IDF's and a mallory unilite ignition system. I had the option of A: keep the cars and eventually get my debt to manageable levels , or B: sell both cars, get a beater and pay that poo poo down fast. I chose option B. I cried bitter tears when I sold the MINI back to the dealer. I love that car and it was one of the hardest things I've ever had to do, especially since the day previous I sold my 914, a car I also loved/hated dearly.I bought an inexpensive 'beater' from a reputable car lot the next day after selling the MINI. It's a car that's very reliable and that I can live with. I bought it cash and after a couple initial hiccups(leaking valve cover, bad radiator) it's been solid. I still miss my old cars, but paying my debt down and extra $420 a month is a HUGE thing for me. See, I just recently got married, and both my wife and I carry some serious CC debt. We want to buy a home because apt. living just sucks. We want to be ready and make the right decisions, and save a down payment. A problem I see is that you are not willing to sacrifice your hobby for your child's welfare. having a car note every month when you cannot make ends meet (read: having to charge food on a credit card because you don't have the cash on hand) while considering govt. assistance?! Please take it from another car guy that your family is far more important than keeping an inflated standard of living. It will suck for a while, having a car that you aren't in love with, but it'll suck worse when you get the car you love repossessed.
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Dec 13, 2008 15:57
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Jesus, my wife just got laid off, and you guys are acting like I need to sell both cars immediately  I know people have the best intentions, but believe it or not I'm not going to go out immediately and follow every bit of advice given in this thread. The rational answers in this thread helped me out immensely. I took the advice I wanted to take, and we're doing a lot better than we were. And believe it or not, we didn't have to sell either car.
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Dec 15, 2008 15:39
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CornHolio posted:Jesus, my wife just got laid off, and you guys are acting like I need to sell both cars immediately What was the advice you decided to take?
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Dec 15, 2008 15:46
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Zeta Taskforce posted:What was the advice you decided to take? Got all my credit card rates lowered, as well as the wife's credit card rates lowered. Prioritized said credit cards. Now that the wife's unemployment is coming in, we can pay everything alright, and the cards will get paid off faster. I was freaking out a bit before because I wasn't sure if she'd have any money coming in. And once she gets a new job (which she is now actively looking for) we'll be alright. Granted, we could do better and pay off our debt quicker (and that would probably be the best approach to take) but I'm content with what we've done and where we will be.
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Dec 15, 2008 16:07
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CornHolio posted:Got all my credit card rates lowered, as well as the wife's credit card rates lowered. With all due respect, you are simply the latest guy to come in to this subforum and tell us how you’re in trouble financially and ask what you should do. We tend to give the same advice which you can boil down to that you are living beyond your means, and you need to either cut expenses, increase your income, or both. Then we give specific ideas about how to do this. Nine times out of 10, the poster then decides that the medicine is too bitter and they don’t want to take it. At this point you have made a couple calls to your credit card companies and they threw you a little bit of a bone. That’s a start. But what sacrifices are you going to make? What sacrifices have you already made? Do you really think that paying 12% instead of 18% is enough? Are you going to cut your cell phone plan? Apply for WIC? Move in with your parents temporarily? God forbid sell or trade down one of the cars that deserve only the finest motor oil? It seems like your have a hope based strategy; everything is predicated on hoping your wife finds a job. I’m not going to tell you to sell the car because you won’t. You can do anything you want. But I can promise you that you are not going to get any sympathy here when you are complaining about your finances in one thread and then pimping your ride in the next.  quote:My '97 BMW 328i with my wife's '03 Mini Cooper in the background. Both are 5-speeds. Zeta Taskforce fucked around with this message at 17:05 on Dec 15, 2008 |
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Dec 15, 2008 16:52
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Zeta Taskforce posted:With all due respect, you are simply the latest guy to come in to this subforum and tell us how you’re in trouble financially and ask what you should do. We tend to give the same advice which you can boil down to that you are living beyond your means, and you need to either cut expenses, increase your income, or both. Then we give specific ideas about how to do this. Nine times out of 10, the poster then decides that the medicine is too bitter and they don’t want to take it. I fail to see how the car I drive has anything to do with this. It's a BMW, yes, but it is going on 12 years and I didn't exactly pay a premium for it. Any car can have the cooling system poo poo the bed or other mechanical problems. Sure I could sell it for a $2000 beater but it could have similar, if not more expensive, problems. And then I wouldn't be able to fix anything because I wouldn't know the car for poo poo. The Mini is a bit extravagant I admit but I don't think a 12-year-old old BMW is. Maintenance is more expensive than on a Civic or something, but I don't believe it to be unnecessarily so. Although yeah, I am a bit anal about maintenance. But I suspect I'd be that way about any car I own. I'm sure some other internet detectives could find some other things I've bought in my life that might have been expensive. Does this mean I have to sell them too? I mean let's be honest, I'm not going to sell both cars the day my wife is laid off. Yes its an option and I realize that, but don't demonize me if I don't immediately start making the rashest of decisions. And this thread's been around for barely a week, any changes I have made because of this thread aren't going to be apparent yet. Also, just because the forum gives advice doesn't mean I need to take it. Yes I am making changes (have been for a few months actually, I'm hoping to see some payoff soon. I haven't charged hardly anything to a credit card in months) and I have taken advice in this thread. We will look at our cell phone coverage and I wil keep it in the back of my mind that if things become dire, I can sell the Mini. But I'm not going to make every change requested in the thread and I will not let the internet completely dictate my finances. My wife told me today she will go back to work on Jan 5th. This is good news and I hope its true. If it is not, and she cannot find another job, then I will have to re-evaluate things. In short, I'm not asking for sympathy, just suggestions. I have taken some suggestions from this thread, though not all. If the internet has a problem with me not taking all of its advice, so be it. CornHolio fucked around with this message at 18:06 on Dec 15, 2008 |
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Dec 15, 2008 17:04
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I hope for your sake that MINI still has a warranty, because if it's like mine it'll poo poo the bed in some expensive way. Mine had a defective cat from the factory and would throw engine codes intermittently. It was under warranty, but to get that fixed would have cost well over $2000. The advice we are giving you is there to help you be nimble when life decides to pay you another visit, in the form of...whatever. Also fixing a civic is a drat sight cheaper than fixing either one of your BMW's. The wife and I both drive very cheap cars: '99 civic hatch auto and a '02 protege auto. The most that's gone wrong with hers is a leaky coolant fitting on the block ($10 for some sealant) and a broken motor mount ($90) That little thing's at 150,000 and still going strong. I'm just saying that austerity measures suck, but at least you'll have something reliable. But hey, I'm just some rear end in a top hat on the internet that dared to care about someone asking for help. Another thing of note: you already did debt consolidation and then ran the cards back up? That's kinda not the point. You are living beyond your means, no two ways about it. have you thought about cloth diapers? my parents used them when I was a baby because they couldn't afford a car and had to borrow a shopping cart to get the groceries home. Huggies were very expensive by comparison. Is that still an option these days?
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Dec 15, 2008 17:50
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PurpleFender posted:have you thought about cloth diapers? my parents used them when I was a baby because they couldn't afford a car and had to borrow a shopping cart to get the groceries home. Huggies were very expensive by comparison. Is that still an option these days? Yes, they are. Disposables are still far more popular because of the convenience factor, but I believe there's a recent increase in the use of cloth for a few reasons: cheaper, more "natural", potentially faster potty-training, and environmentally friendly. The downsides are: eww poop, laundry time, hauling dirty diapers around, and potentially more leaks. Shitloads of discussions on google, of course.
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Dec 15, 2008 18:11
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PurpleFender posted:I hope for your sake that MINI still has a warranty, because if it's like mine it'll poo poo the bed in some expensive way. Mine had a defective cat from the factory and would throw engine codes intermittently. It was under warranty, but to get that fixed would have cost well over $2000. The Mini is out of warranty, and yes that does frighten me. I did have a number of things fixed under warranty while we had the warranty, and it hasn't given us any problems since except for a bad amp (got a used one to replace it for cheap) so I'm really crossing my fingers. Maintenance on a BMW isn't terrible if you can do the work yourself. I like the massive online support my car has, and for the most part I've saved thousands by doing maintenance and repairs myself. And really the only things to break since I've had it were the cooling system (argh) and the belt tensioner. A Honda or something would be ideal (I'm usually the first to recommend them) and that was why my previous car was a Nissan (I needed something to be reliable) and if something did happen I would probably get something similar for the time being. Concerning the debt consolidation: yeah this is what really killed us. We had debt, we consolidated and were fine until we were hit with a $6000 hospital bill. In hindsight, I wish we had set up a payment plan with the hospital. I didn't know we could. They never said anything. I had to put it on my credit card. Then there was another $1500 hospital bill, and then my stupid idea to charge everything to my card while we pay off the wife's credit card, which in hindsight was a terrible idea... which gets us to where we are. But like I said, I'm reversing the debt, and it may take some time but it's happening. One thing I found out, and another thing that would prevent us from getting a house right now, is my wife's name is still on the house her and her sister bought back in '02. My wife and I since got married, and moved into an apartment, and her mom and stepdad moved in. Well, they're not working much, and my sister-in-law is struggling to make house payments. On the house my wife still has her name on. We've been on her case about refinancing so my wife can get her name off the house, because if she doesn't and she can't pay on it, my wife's credit could be hosed. Endor posted:Yes, they are. Disposables are still far more popular because of the convenience factor, but I believe there's a recent increase in the use of cloth for a few reasons: cheaper, more "natural", potentially faster potty-training, and environmentally friendly. The downsides are: eww poop, laundry time, hauling dirty diapers around, and potentially more leaks. Shitloads of discussions on google, of course. Interesting. Will consider. Though we haul our laundry to do it at my mom's house so we don't have to pay laundry... that might get a bit nasty, though I will still consider it. CornHolio fucked around with this message at 18:15 on Dec 15, 2008 |
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Dec 15, 2008 18:13
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CornHolio posted:Interesting. Will consider. Though we haul our laundry to do it at my mom's house so we don't have to pay laundry... that might get a bit nasty, though I will still consider it. you could always to a preliminary wash of each one in the sink with some dish soap and 'rubbing the poo poo stain on itself until it breaks loose'. Granted, it's not the most appealing thing to think about, but having a kitten with diarrhea is worse for wiping putrid poo poo off a linoleum floor with wads of toilet paper. It's things like THAT, plus our hatred of children that made my wife and I decide never to have children. Then hang dry the cloth a bit over the shower rod. Being poor gives you loads of chances for ingenuity
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Dec 15, 2008 19:09
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the question still is: are your expenses greater than the income coming in?
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Dec 15, 2008 19:13
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Mulletstation posted:the question still is: Nope. We're going to fine tune things (like I said, we need to look at our phones) but we have a bit of extra money now. And I'm hoping to increase that in case something 'bad' happens. Worst case scenario though, we move in with my parents. Not appealing, but it would get us on our feet in a hurry. Like, an extra $700 a month hurry. We'll be OK though.
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Dec 15, 2008 19:29
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PurpleFender posted:you could always to a preliminary wash of each one in the sink with some dish soap and 'rubbing the poo poo stain on itself until it breaks loose'. Granted, it's not the most appealing thing to think about, but having a kitten with diarrhea is worse for wiping putrid poo poo off a linoleum floor with wads of toilet paper. It's things like THAT, plus our hatred of children that made my wife and I decide never to have children. I wish that kitten poo poo line was my custom title. That line is best-of Purple material right there
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Dec 15, 2008 19:59
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