way2evil
Premium
join:2007-09-14
Great River, NY
 ·Verizon FIOS
| reply to gregz
Re: Knee Deep in Debt, how to relief it by self?
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. What states require that you have a cellphone and cable tv? |
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gregz
join:2009-10-01
| Between you and the other stirrer, this has nothing to do with the original topic, which ran itself out about four posts ago. If you want to stir the pot, do it somewhere else. As stated, If you do not own a car, insurance is not required. If you own a car, you HAVE to have car insurance to operate. Majority of the states require that you carry auto insurance.
As for the cellphone & CATV, there are people out there that feel that it is their needed ability to always have when in a crisis such as deep in debt. |
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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 :Between you and the other stirrer, this has nothing to do with the original topic, which ran itself out about four posts ago. If you want to stir the pot, do it somewhere else. As stated, If you do not own a car, insurance is not required. If you own a car, you HAVE to have car insurance to operate. Majority of the states require that you carry auto insurance. As for the cellphone & CATV, there are people out there that feel that it is their needed ability to always have when in a crisis such as deep in debt. you should search googlethere is 2 or 3 states were you do not need auto insurance to to operate a car 
GOOGLE IT
»lmgtfy.com/?q=%22In+what+state+c···ce%3F%22 |
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hoyleysox
join:2003-11-07
Long Beach, CA
·Cox HSI
·Time Warner Cable
| reply to marcia
Call your creditors up and see if you can negotiate a deal. You want the debt to stop growing - make the fees stop. You may be able to cut the amount owed significantly, maybe even some principal.
If you can't come to terms, stop the bleeding and declare BK.
Don't make the mistake of declaring bankruptcy after you spend all your cash.
Don't bother paying any debts that might be close to 7 years old, avoid process servers.
»www.nytimes.com/2009/05/16/your-···sel.html
»www.nytimes.com/2009/01/03/busin···nted=all
»shenwick.blogspot.com/2009/01/ny···-to.html |
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marcia
join:2009-11-04 | thanks to everyone for their HELP  |
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carp
join:2002-10-30
clubs:
·RoadRunner Cable
| reply to gregz
said by gregz :Why buy Quicken, when there are free sites that give you the same stuff, along with budge templates. I get it for the integration with my online banking. Free is not always good, or secure. |
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Mr Neutron
Hopped up on what you mopped up
Premium
join:2005-05-30
Gorham, ME
| reply to CmmTch
said by CmmTch :If you are paying your debts right now with no missed payments there is one school of thought recommending paying the smallest off first. With the money you were using on that debt now freed up, devote it toward paying off the next smallest bill. The reasoning behind working from the smallest to largest is each time a debt is paid off you can add that money to paying off the next smallest debt. That should free up more money faster to add to the payments you make to each succeeding debt. Won't this method of paying off debt cost you money if you don't factor in the interest rate you're being charged for each of these debts?
I can understand why that method would be beneficial from a psychological perspective (you can tell yourself that you're "making progress" fairly quickly). I'm just not clear on how it might work out if you view debt solely in terms of dollar amounts rather than considering the full cost to service a given debt.
--
"I thought he was a piñata."
--Winner, Worst Legal Defense Award |
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Mr Neutron
Hopped up on what you mopped up
Premium
join:2005-05-30
Gorham, ME
| reply to Maccawolf
Re: Just make sure.....
said by Maccawolf :said by marcia :only strict discipline and whole knowledge about it can take us out. Strict discipline is not necessary. A BRAIN is...... Oh, NOW you tell me! 
--
"I thought he was a piñata."
--Winner, Worst Legal Defense Award |
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QuaffAPint
A Big Thanks To The Troops
join:2001-01-10
Downingtown, PA
clubs:
| reply to marcia
Re: Knee Deep in Debt, how to relief it by self?
I used to work answering the phones at a credit card company, and when anyone would call in saying they had trouble making their payment, we simply forwarded it onto our counseling services - And we had plenty of those calls.
If you're really under a debt that you cannot get out of, it would certainly behoove you to give em a call, because, while it may hurt your credit scores, they'll generally give you much better rates to try to get it payed off.
--
{Send Secure Notes Free and Easily} :: whisperBot.com |
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CmmTch
join:2002-08-10
High Ridge, MO
| reply to Mr Neutron
said by Mr Neutron :said by CmmTch :If you are paying your debts right now with no missed payments there is one school of thought recommending paying the smallest off first. With the money you were using on that debt now freed up, devote it toward paying off the next smallest bill. The reasoning behind working from the smallest to largest is each time a debt is paid off you can add that money to paying off the next smallest debt. That should free up more money faster to add to the payments you make to each succeeding debt. Won't this method of paying off debt cost you money if you don't factor in the interest rate you're being charged for each of these debts? I can understand why that method would be beneficial from a psychological perspective (you can tell yourself that you're "making progress" fairly quickly). I'm just not clear on how it might work out if you view debt solely in terms of dollar amounts rather than considering the full cost to service a given debt. It would certainly be less effective if all your debts are near to the same amount for each one. That may not be the case for marcia, and probably isn't the case most of the time. As the first one is paid off all the money that was going to that one is added to the payment on the next one, that one will be paid off much quicker due to the additional moneys being used. Paying it off quicker will save on the debt service.
I haven't crunched numbers, but the savings in interest by paying off the highest interest debts first may not be that significant when the overall debt service is considered. You need to free up some cash to keep increasing your payments. If you can't increase the amounts you're paying, then the quickest way to free up more cash is to pay the smallest one off first.
There is some psychological benefit too when you see some progress from your efforts, that alone may be enough to cause you to keep doing it.
This is one way, and like many others it will work only if you're able to stick with your plan. |
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Mr Neutron
Hopped up on what you mopped up
Premium
join:2005-05-30
Gorham, ME
| said by CmmTch :I haven't crunched numbers, but the savings in interest by paying off the highest interest debts first may not be that significant when the overall debt service is considered. You need to free up some cash to keep increasing your payments. If you can't increase the amounts you're paying, then the quickest way to free up more cash is to pay the smallest one off first. There is some psychological benefit too when you see some progress from your efforts, that alone may be enough to cause you to keep doing it. I agree that psychology plays an important part in all this. At the same time, I can only hope that someone serious about climbing out of debt is going to sit down with a calculator and crunch the numbers for themselves.
This is a pretty decent write-up on a couple of different approaches to this:
»www.fivecentnickel.com/2005/05/0···at-math/
One of the comments at the end of the piece caught my eye, and it goes a long way toward explaining why DR takes the position that he does:
[quoting DR]
“We are more concerned with modifying behavior than correct mathematics,” he writes. “Being a certified nerd, I always used to start with making the math work. I have learned that the math does need to work, but sometimes motivation is more important than math. This is one of those times.”
Interesting stuff.
--
"I thought he was a piñata."
--Winner, Worst Legal Defense Award |
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CmmTch
join:2002-08-10
High Ridge, MO
1 edit | Interesting read Mr Neutron , a breakdown of the numbers for 3 hypothetical debts, it's clear there's not significant difference in the total payoff dollars.
The major difference is, which method will work best for the op, marcia to reach her goal(s)? Many of the comments at the Dave Ramsey link seem to agree that the psychological lift from seeing some progress can be essential to sticking with whatever you're using.
edit: spelling |
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patcat88
join:2002-04-05
Jamaica, NY
| reply to gregz
said by gregz :When you are in crisis, credit scores are the least of worries. Problem is, people use credit scores like a status symbol. People use them like a bank account to drawn down. |
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patcat88
join:2002-04-05
Jamaica, NY
| reply to disconnected
said by disconnected :
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 use less than $25 of natural gas a month, but they force everyone to pay for atleast $25 of natural gas a month. I've heard there are utilities with much worse minimum usage charges.
Consider quiting your job and going on welfare/public housing. |
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Tamara Holme
join:2009-11-11
Kennewick, WA
1 edit | reply to marcia
Dear Marcia,
1) You need to go to your local California Department of Social Services to determine what programs you qualify for. I know you are eligible for food stamps, medi-cal, low cost housing and relief from utility bill costs. I do not know even half of the programs for which you may be eligible.
2) Let the bastard's sue you! So what? There is no debtor's prison. Any attempts to attach wages can be defeated by your filing a claim of exemption. True, you could wipe out all your unsecured debts, except possibly student loans, through a U.S. Chapter 7 bankruptcy. But this is a dramatic action to which you are eligible to do only every seven years and your debt amount, while overwhelming to you, does not justify using your bankruptcy rights at this time. I discourage considering bankruptcy unless you owe over $100,000 in unsecured debt and your debt is greater than three times your annual earnings.
Write a letter to our creditors telling them you will not be repaying your debts until after you have a good paying job an a reasonable cushion of money. Invite them to sue you and agree to accept service of process so they need not retain annoying bothersome collection agencies. |
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tcope
Premium
join:2003-05-07
Sandy, UT
·Comcast
| reply to marcia
I think its funny and sad that some people place themsevles so far above everyone else that they think the debtor always made bad choices. If a person can only make $25k a year, that barely pays for what is needed in life. Should they go month to month, year to year without _any_ luxuries? It's easy to say yes when you are making a lot more money and have a few bucks left over at the end of the month. But don't think you have all the answers just because you've been more fortunate. It only shows that you _don't_ understand the problem.
While I've not been in the OP's situation where unexpected medical bills arose, I've been without health insurance for a great many years simply because I could not afford it. I did own a $65k house with a mortgage payment of $700/month at the time. Could I have sold the home and rented for less? Sure. Then I could have afforded health insurance. I kept the house for 12 years and sold it for $220k. I got lucky. Now, did I make the right decision? Or did I get lucky that I did not have a major illness which derailed my financial situation?
As mentioned, some people are not as fortunate as others. Perhaps some bad decisions were made but I'm sure everyone reading this form has made bad decisions. So before you get all high and might... look around and count your blessings. Just don't impose your morality onto others.
OP, I'll offer some advise that others have not mentioned. Keep your head up and don't let your situation get the best of you. In this way you will be better equipped to deal with the situation. You probably need to make some tough decisions and cut back on your expenses but this does not mean you have to give up all the pleasures in life. Many things can be had for free. Take some time out of each day to do something enjoyable. |
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Mr Neutron
Hopped up on what you mopped up
Premium
join:2005-05-30
Gorham, ME
1 edit | said by tcope :As mentioned, some people are not as fortunate as others. Perhaps some bad decisions were made but I'm sure everyone reading this form has made bad decisions. That's very likely true. However, I remain convinced that being able to pass on the costs of your own poor decision-making onto other people is not a good idea. You might feel differently, and please believe me when I tell you I have a long list of my mistakes standing by for you to start subsidizing. 
said by tcope :So before you get all high and might... look around and count your blessings. Just don't impose your morality onto others. Anyone who shows a willingness to accept responsibility for (and pick up the tab for) their own mistakes (like the OP is doing) has my blessing, sir: it's not an easy thing to do, and it's certainly not a popular thing to do right now.
As long as I am not asked to subsidize anyone else's choices, (be they good, bad, or otherwise) I can assure you that any chances I might have to attempt to impose my morality (such as it is) on them are going to be few and far between. |
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tcope
Premium
join:2003-05-07
Sandy, UT
·Comcast
| Understood and I think you know this but I just wanted to be clear... my statement was not aimed at anyone person(s)... it was a general statement that all should consider.
Passing the buck onto someone else seems to be a hot topic tight now... as if this is something new and not been done over the past 200 years . Even _if_ the OP were able to do this, and as mentioned the OP appears to be willing to address the problem themselves, the OP would not be the one to blame. If you want, blame it on our current administration or better yet, blame it on our form of government (as we all accept who is in power). Funny how we tell the OP he/she should accept responsibility themselves yet so many people want to blame others for our national state of affairs.  |
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way2evil
Premium
join:2007-09-14
Great River, NY
·Verizon FIOS
| reply to tcope
said by tcope :I think its funny and sad that some people place themsevles so far above everyone else that they think the debtor always made bad choices. If a person can only make $25k a year, that barely pays for what is needed in life. Should they go month to month, year to year without _any_ luxuries? It's easy to say yes when you are making a lot more money and have a few bucks left over at the end of the month. But don't think you have all the answers just because you've been more fortunate. It only shows that you _don't_ understand the problem. It does not show anyone doesn't understand the problem. I understand the problem just fine. You want luxuries? Go earn them. Don't charge them to your credit card and never attempt to pay them off. If you are paying off the debt its different, but many people just charge them and let the bank take the hit because they want a new plasma TV or whatever. Not right, at all..... |
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disconnected
@snet.net
| reply to gregz
said by gregz :And what services would that be? There is no services that are mandated by law. Public schools, roads, police, fire, burocracy slush funds, etc. |
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