marcia
join:2009-11-04 | reply to CmmTch
Re: Knee Deep in Debt, how to relief it by self?
Thanx  |
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Anonymous_
Anonymous
Premium
join:2004-06-21
127.0.0.1
clubs:
 ·RoadRunner Cable
·Time Warner Cable
 ·Time Warner VOIP
1 edit | reply to gregz
said by gregz  :Snowball the debt. Put on paper smallest to largest owed (ie medical bills, credit cards, etc), then make out a sheet with income per payday. On that sheet, put down rent/mortgage, groceries, car note, electric. One way to cut is to look at cell, catv, other subscriptions, and cut the fat out. daveramsey.com has a lot of good info. he should also get dial up
9.99mo for netzero or 786k dialup for 15$ to 20$ |
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gregz
join:2009-10-01 | Or nothing at all. The public library is free. |
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disconnected
@snet.net
| reply to way2evil
Some services you can't cancel--they're mandated by law, and you have to pay for them whether you need them or not.
I have no voluntary debts--no credit cards, no mortgage, no loans. My only 'debt' is property taxes. That's my single largest expense in fact. Bigger than electricity, heating oil and gas for the car, combined. When we can eliminate THAT debt, we'll ALL be living much better. |
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Hollow
join:2009-06-12
| reply to marcia
said by marcia :but that'll hamper "credit scores" If you were a client of CCCS your credit is already "hampered". |
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twowords
@sbc.com | reply to marcia
2 words... Dave Ramsey |
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dharel1705
join:2009-06-09
Merrick, NY
| reply to marcia
From personal experience, you need to find a Debt Management Plan (DMP) rather than a Debt Consolidation Plan (DCP). There is a difference. A DCP usually requires you to take a loan to pay off your creditors. You then pay back that loan via a single monthly payment. A DMP will allow you to make one monthly payment. Then that payment is used to pay your creditors, which through the DMP will lower your interest rate. You cannot take on any additional credit while on the DMP. There is a bit more involved, but this is the basics.
My DMP plan had me scheduled to pay off my creditors in 5 years. I managed to complete the plan in under 4 and now have perfect credit. I was able to purchase a new home and obtain several credit cards with substantial credit lines. By using the DMP and living without credit while on it, I have learned how to better use the credit offered to me now. |
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gregz
join:2009-10-01 | reply to disconnected
And what services would that be? There is no services that are mandated by law. |
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carp
join:2002-10-30
clubs:
·RoadRunner Cable
4 edits | reply to marcia
The correct way to payoff your debt is to make the minimum payment on all debts except for your highest interest debt. On the highest interest debt you pay every penny you can, towards it. You cut what you can and put it on that debt each month. When it's paid off you take that money you were paying towards it and now pay it towards the new highest interest debt on top of it's minimum payment.
Simple Example:
Debts:
Credit Card A 23% Min Pay $300
Credit Card B 15% $100
Car Loan 8% $225
Mortgage 6% $1200.00
Extra money you can commit to paying down debt each month - $150 (from cutting out all except necessities)
You now pay $450.00 per month on Credit Card A. When it's paid off you start paying $550.00 on Credit Card B. After that $775 on the Car. After that, add some of the nice to haves back in but still pay extra towards the principal of your mortgage.
Go here and enter your info. It will spit out a plan for you. I change the car payment to 485 and entered the above into assuming the $150.00 extra to pay. Totally debt free including a mortgage with $145.000 left to pay off, CCS 15,000, CCB 5,000, Car 28,000, in 10 Years. No raises to income assumed and used the 15% tax bracket.
»www.bankrate.com/calculators/man···tor.aspx
I was disappointied it didn't spit the Interest Savings out. Trust me though, it's huge! And by about March of 2014, you only have the mortgage left and are paying over $1000 extra towards the principal. By the middle of 2019, you are debt free and can start putting ~$2200.00 in wise investments every month. That's 26,400 a year and 264,000 in 10. Add in the gains of the investment and you are pretty well off in 20 years.
It's often wise to get out of any 401K contributions and pay your debts down. You just have to do the math carefully. I doubt many company matches + gains are going to top the 23% on the first credit card in our example. If that would be the case, you stop contributing, get the money in your check, and pay it directly to your debts. |
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way2evil
Premium
join:2007-09-14
Great River, NY
 ·Verizon FIOS
| reply to gregz
said by gregz :And what services would that be? There is no services that are mandated by law. I think he means auto insurance. |
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Snakeoil
Taxes are Armed robbery.
Premium
join:2000-08-05
Mentor, OH
·RoadRunner Cable
| reply to marcia
Bankruptcy will hurt the scores for a short while.. but then again so will being behind on your payments. I have been told also that a chapt 7 [debt wiped out or pay some back] is looked at differently then a chapt 13 [you pay back some to all of your debt].
I have read of people having near perfect credit scores within 5 years after comming outta bankruptcy.
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I want Obama money. "wheres it comming from?" I dunno, his stash. I don't care, I just want obama money. Shows the lack of education and the greed of people. Hand outs from the government comes from your pay check and wallet. Think about it. |
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Snakeoil
Taxes are Armed robbery.
Premium
join:2000-08-05
Mentor, OH
·RoadRunner Cable
| reply to kw
No they wont. We tried dealing with Citi about 3 years ago. We told them we could only afford 300 a month.. they said they'd accept 300 every other week.
We tried a few times even spoke to the manager.. no go.
So we went and filed chapt 13. and have been enjoying not having a CC to use ever since.
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I want Obama money. "wheres it comming from?" I dunno, his stash. I don't care, I just want obama money. Shows the lack of education and the greed of people. Hand outs from the government comes from your pay check and wallet. Think about it. |
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gregz
join:2009-10-01
| reply to way2evil
That is not a service, but a necessity if owning a vehicle. It is built into your budget when you put down the 4 "walls" (Mortgage/Rent, Food, Transportation, Heat/Electric). For the OP, I can email you a good budget sheet that was done in Excel, that is in the Financial Peace Uni. book for Daveramsey.com. |
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way2evil
Premium
join:2007-09-14
Great River, NY
·Verizon FIOS
| said by gregz :That is not a service, but a necessity if owning a vehicle. It is built into your budget when you put down the 4 "walls" (Mortgage/Rent, Food, Transportation, Heat/Electric). For the OP, I can email you a good budget sheet that was done in Excel, that is in the Financial Peace Uni. book for Daveramsey.com. I thought that was what he was referencing to. What else could he be talking about that is required by the govt? |
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carp
join:2002-10-30
clubs: | reply to marcia
Buy a copy of Quicken, it will help you budget and has the same debt repayment planning among many other useful tools. |
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gregz
join:2009-10-01 | Why buy Quicken, when there are free sites that give you the same stuff, along with budge templates. |
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gregz
join:2009-10-01
| reply to way2evil
First came to mind was Cellphone & CATV. Insurance is not a service, but a requirement if you own or operate a motor vehicle. Falls under the Transportation part of the budget. Also, shopping around helps in saving on insurance, especially when companies like AmFam, etc can raise rates depending on your credit report. |
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Anonymous_
Anonymous
Premium
join:2004-06-21
127.0.0.1
clubs:
·RoadRunner Cable
·Time Warner Cable
·Time Warner VOIP
| said by gregz :First came to mind was Cellphone & CATV. Insurance is not a service, but a requirement if you own or operate a motor vehicle. Falls under the Transportation part of the budget. Also, shopping around helps in saving on insurance, especially when companies like AmFam, etc can raise rates depending on your credit report. Not a requirement in all states |
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gregz
join:2009-10-01
| said by Anonymous_ :said by gregz :First came to mind was Cellphone & CATV. Insurance is not a service, but a requirement if you own or operate a motor vehicle. Falls under the Transportation part of the budget. Also, shopping around helps in saving on insurance, especially when companies like AmFam, etc can raise rates depending on your credit report. Not a requirement in all states Hmmn, last time I checked, it a law that you have to have proof of insurance. No proof, pay the piper. |
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Anonymous_
Anonymous
Premium
join:2004-06-21
127.0.0.1
clubs:
·RoadRunner Cable
·Time Warner Cable
·Time Warner VOIP
| said by gregz :said by Anonymous_ :said by gregz :First came to mind was Cellphone & CATV. Insurance is not a service, but a requirement if you own or operate a motor vehicle. Falls under the Transportation part of the budget. Also, shopping around helps in saving on insurance, especially when companies like AmFam, etc can raise rates depending on your credit report. Not a requirement in all states Hmmn, last time I checked, it a law that you have to have proof of insurance. No proof, pay the piper. Not in all states there is a few that DO NOT require |
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