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I don’t know what to do. These are the options I’m considering.


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I’m seeking advice. I don’t know what to do here. These are the options I’m considering! Current on almost all debt except medical due to loss of income last year.

 

Keep making minimum payments

Pay extra when I can

Consolidate debt into one big loan (debt consolidation with a personal loan)

File for bankruptcy

 

I’m currently working a seasonal job that will be ending soon earn around 1800 a month (work overtime as much as possible)/ Spouse on SSA around $1000 a month. Numbers below are debts. We are current on everything.

 

Student Loan (Me)

$50.00  

$2750.00

Interest: $0 for now

 

Credit Card (Me)       

$86.00  

$2916.30

Interest: $57.33

23.99% APR

 

Credit Card (Me)       

$36.00  

$1867.30

Interest: $31.24

24.99% APR

 

Personal Loan (Me)

$108.71

$1914.89

Interest: $30.05

17.99% APR

 

Credit Card (Me)

$29.00  

$404.42

Interest: $8.42

25.49% APR

 

Personal Loan (Me)

$115.91

$3834.11

Interest: $28.40

9.24% APR

 

Household Bills (My Portion)

$635.63

 

Grocery (Family of Four)

$450

 

Fuel (2 Vehicles – No Loans)

$240

 

Two Unpaid Medical (Me) (Gone 2 Collections)

$4500

 

Spouse Debt (Credit Cards)

$4000

 

Savings under $11,000. I still have no life insurance on any of us that I was thinking of using some of savings to pay for the year to cover us or just buy burial policy for each. Then we had roof damage from the last ice storm and will be using another grand to pay the deductible. If I can't pick right back upon another job after this one ends earning around the same I just don't know. Spouse keep saying no bankruptcy but I feel we already there. Please give me some advice. 

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I can't address all of your problems but I can help you with this one;

Two Unpaid Medical (Me) (Gone 2 Collections)

$4500

 

Follow the guides;

https://whychat.me/GUIDEBOOK.html

https://whychat.me/GUIDE HIPAA PROGRAM.html

Send each CRA where any medical account is reporting this;

https://whychat.me/hipaadisp.html

 

Once you have followed those steps please post in the medical forum a link to this post for further help on your medical accounts. When responding please give the dates of medical services.

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With respect to bankruptcy, from what I can see, you'd be looking for relief against about $400-$500 in minimum monthly payments.  I fully appreciate the strain that these obligations present, when you add in your everyday living expenses.  But it seems a bit drastic to seek bankruptcy protection.

 

You have to make the call, but I'd suggest eking your way with continued short-term gigs until such time you secure permanent employments.

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thanks hdporter

 

I appreciate what you are saying. Small debt that stresses the heck out of me when adding in everything else each month. Guess I can try posting in the credit forum also just to see if the interest rates can be lowered or maybe consolidate but not with our home.

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On 4/24/2021 at 10:19 AM, FurnW27568 said:

earn around 1800 a month

 

On 4/24/2021 at 10:19 AM, FurnW27568 said:

Spouse on SSA around $1000 a month

 

On 4/24/2021 at 10:19 AM, FurnW27568 said:

Household Bills (My Portion)

$635.63

 

On 4/24/2021 at 10:19 AM, FurnW27568 said:

Spouse Debt (Credit Cards)

$4000

 

What does your complete monthly picture look like if you pool all of your household income and together pay all of your monthly expenses and debt service?  

 

On 4/24/2021 at 10:19 AM, FurnW27568 said:

Spouse keep saying no bankruptcy but I feel we already there.

 

Big leap on my part, but I have to ask...  are you and your spouse aligned on financial goals?  

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17 hours ago, cv91915 said:

What does your complete monthly picture look like if you pool all of your household income and together pay all of your monthly expenses and debt service?

 

I'll never know. Tried it before and spouse always felt he was doing more. So now we have separate accounts and pay half and spouse still fear I don't pull my weight, that he's doing more, or that I don't pay bills as should, or that I'm hiding money, or that blah, blah, blah, blah although he gets to see every penny and see the half but still issue. 

 

17 hours ago, cv91915 said:

Big leap on my part, but I have to ask...  are you and your spouse aligned on financial goals?

 

I think you already have the right conclusion. I believe in having a savings plus getting rid of some debt where as spouse believes pay off all debt and have no savings to fall back on which I fear will bring us back to credit cards. I'm not so sure it is so much about debt at times with the things that are said. I sometime want to move as a family so that our teens and I can continue to have better job options but he refuses to leave. I say let’s get insurance and spouse says put him in a box. If I say let’s do the minimum for a time on our cards, before the unemployment/taxes, he somehow makes his bills seem much more than mine but I see we almost have the same amount.

 

So hence the reason I was just trying to see how to reduce my/our deb

 

$2800 income
$1146.76 household
$332.65    personal bills
$62.03    health with gov health plus 1500 yr deductible; spouse 30 or 40 a month copay with 188 yr deductible (i do the insurance but feel just paying because I don't know if or when I will meet the deductible and don't really go to doctors often)
$650    grocery & household (probably more accurate)
$218    spouse personal bills

 

This made me tired and I've probably said too much!

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13 hours ago, FurnW27568 said:

 

I'll never know. Tried it before and spouse always felt he was doing more. So now we have separate accounts and pay half and spouse still fear I don't pull my weight, that he's doing more, or that I don't pay bills as should, or that I'm hiding money, or that blah, blah, blah, blah although he gets to see every penny and see the half but still issue. 

 

 

I think you already have the right conclusion. I believe in having a savings plus getting rid of some debt where as spouse believes pay off all debt and have no savings to fall back on which I fear will bring us back to credit cards. I'm not so sure it is so much about debt at times with the things that are said. I sometime want to move as a family so that our teens and I can continue to have better job options but he refuses to leave. I say let’s get insurance and spouse says put him in a box. If I say let’s do the minimum for a time on our cards, before the unemployment/taxes, he somehow makes his bills seem much more than mine but I see we almost have the same amount.

 

So hence the reason I was just trying to see how to reduce my/our deb

 

$2800 income
$1146.76 household
$332.65    personal bills
$62.03    health with gov health plus 1500 yr deductible; spouse 30 or 40 a month copay with 188 yr deductible (i do the insurance but feel just paying because I don't know if or when I will meet the deductible and don't really go to doctors often)
$650    grocery & household (probably more accurate)
$218    spouse personal bills

 

This made me tired and I've probably said too much!

 

Having been previously entangled with someone who had opposite views on financial matters I can certainly sympathize.  And unfortunately if the differences are fundamental, change is unlikely, so you can accept, adapt or leave.  All three suck, but in different ways.  :(

 

So I know how stressful this can be.  I opted to leave, and while I expected to feel grief and to suffer a period of mourning, what I actually encountered was almost immediate relief.  And it was profound and long-lasting, and it helped me make better choices later.  No regrets.  Obviously, YMMV:) 

 

On 4/24/2021 at 10:19 AM, FurnW27568 said:

Spouse keep saying no bankruptcy but I feel we already there. Please give me some advice. 

 

I agree with @hdporter that this is premature to consider, and I also agree that calling and asking for APR reductions make 100% sense.  Some may be willing to help, some may not, but you won't know until you ask.  

 

In the interim, exploring a debt consolidation loan would also likely get you into a lower interest rate, although note that depending on the term and how much you borrow, your monthly payment might actually go UP (due to the fixed term replacing the revolving nature of credit cards).  And you really have to have discipline (and ability) to not put future expenses back on the credit cards.

 

I'm sure you've already taken a look your household/personal bills for ways to conserve, but just in case this yields any new ideas, here are some other things to consider:

 

- Cancel cable

- Cancel streaming subscriptions

- Downgrade your home internet speed

- Raise your auto deductible just a bit past your comfort zone (yes, this has risk)

- Move your mobile phone service to an MVNO

- If you normally get a tax refund, have less withheld to even out your income over the year (obviously a challenge with current employment uncertainty, but think about this when you're in a more stable place)

- Can you rent out a room?  

- Can you get by with one less car?

- You mentioned teenagers.  Are they old enough to work (even babysitting) to help defray some of their luxuries, like data plans, mobile phone service, etc.?   

 

These are short-term tactics. 

 

You have awareness of your long-term personal challenge, and I hope you can find a way to manage that... Putting together a longer-term plan with your spouse is the ideal long-term ticket, but no one here can say if that's feasible. 

 

When we got married we opened a household checking account, plus we each kept personal accounts.  The personal accounts each get $X per month for completely discretionary purchases, and the rest goes to savings and household bills. 

 

Over time, we've found that we aren't using our personal accounts at all, because we've come to agree on what's reasonable to spend -- without ever really discussing it.

 

I sort of meandered with this response, but I hope there's something in there that helps.  

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I don't stress on whether change will ever take place anymore. I just try to do what I think is best, try to make sure there is always a small amount of savings, and try to keep my credit/debt matters where hopefully I can take care of myself if this goes sideways for the last time. Was almost out five years ago but one of the children struggled with that but they are older now and see more. I do what I can to keep my sanity. My income would need to increase even more and my debt reduced even more to afford being on my own completely which I’m always trying to figure out whether I/he stay or go. Yes, highly stressful but in the end it's me!

 

I’ve taken bankruptcy off the table. I called every creditor yesterday (Capital One, Discover, & Synchrony Bank) for APR reductions and got nowhere lol. I will do more research on the forum to see how others got it done.

 

I have to research, moving my cell phone service to a MVNO, after work

 

Don’t think that is possible for us to be on the same page. I also trying to talk about financial concerns like POA/health care directive and unfortunately may have to have it set for a dear friend or dear daughter to carry out if my health ever fails. More feelings will be hurt but spouse cause me concern and I know people say they just say things at the heat of the moment.

 

I appreciate highly all the meandering that you did and found your post very helpful and encouraging.

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@FurnW27568 There are credit cards out there that have 0% introductory interest rates for balance transfers for 9, 12, 18, 21 months.

 

You might consider trying to open one of these and move at least some of your highest-interest balances for a while.  This is also a short-term tactic, but at least it would stop the interest from accumulating, resulting in a smaller hole to dig out of.  :) 

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On 4/30/2021 at 1:20 AM, cv91915 said:

In the interim, exploring a debt consolidation loan would also likely get you into a lower interest rate, although note that depending on the term and how much you borrow, your monthly payment might actually go UP (due to the fixed term replacing the revolving nature of credit cards).  And you really have to have discipline (and ability) to not put future expenses back on the credit cards.

 

Guessing this will be taken off the table as well and see if I can put extra on some cards as allowed.

 

On 5/2/2021 at 9:21 AM, cv91915 said:

You might consider trying to open one of these and move at least some of your highest-interest balances for a while.  This is also a short-term tactic, but at least it would stop the interest from accumulating, resulting in a smaller hole to dig out of.

 

Don't know what happen to my response. Maybe my submit reply did not go through.

 

I took this part of the advice and applied to the following.

 

Capital One - said not qualified for any new offers and denied lowering the rate on the one I have

Discover - said I pre-qualified for the discover it. I didn't continue because I already have that card and unsure if the rate would be different

American Express - pre-qualified me but only for $1000

Bank of America - qualified me for $3000 and I hope they will transfer my Capital 1 balance (but it's right at $2900)

Wells Fargo - said you had to have offers coming through mail

Chase It - said I could not apply because I had opted out of offers

Citi - at this time you can't check for pre-qualified offers online

 

So since I did not qualify for enough with BOA or AE to transfer Capital One and Discover, I'm hoping BOA will transfer my Capital 1 ($2797.33)

 

Just want to thank you all again for taking time to help me make some decisions!!!

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Posted (edited)
3 hours ago, FurnW27568 said:

 

Guessing this will be taken off the table as well and see if I can put extra on some cards as allowed.

 

 

Don't know what happen to my response. Maybe my submit reply did not go through.

 

I took this part of the advice and applied to the following.

 

Capital One - said not qualified for any new offers and denied lowering the rate on the one I have

Discover - said I pre-qualified for the discover it. I didn't continue because I already have that card and unsure if the rate would be different

American Express - pre-qualified me but only for $1000

Bank of America - qualified me for $3000 and I hope they will transfer my Capital 1 balance (but it's right at $2900)

Wells Fargo - said you had to have offers coming through mail

Chase It - said I could not apply because I had opted out of offers

Citi - at this time you can't check for pre-qualified offers online

 

So since I did not qualify for enough with BOA or AE to transfer Capital One and Discover, I'm hoping BOA will transfer my Capital 1 ($2797.33)

 

Just want to thank you all again for taking time to help me make some decisions!!!

 

Do you know what your current FICO scores are?

 

Note that just because there aren't any prequalified offers, that doesn't mean you wouldn't be approved for a card. 

 

I have effectively zero debt and 840-850 FICO 8s, and I rarely have preapproved offers (and I can't remember the last time I was declined for a card).  Our profiles are different, but the point remains that no preapprovals does NOT mean you won't be approved if you just applied for the card.

 

When you transfer the 2,9xx balance over to a card with a 3k limit your scores will take a noticeable hit (the card will be maxed out).  This isn't a big deal until you go to apply for other credit.

 

Between now and when the new card with that 2,9xx transferred balance starts reporting, assuming decent credit scores, I would recommend applying for another balance transfer card or two for more capacity.

 

Don't worry about inquiries, if that's a concern.  :) 

Edited by cv91915
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My score never seems to leave 680 regardless! These are my current cards

 

Capital One

Credit Line: $3,500.00

Balance: $2797.33

Available: $702.67

 

 

Discover

Credit Line: $7,100

Balance: $1740.30

Available: $5,360

 

 

Belk Rewards:

Credit Line: $1200

Balance: $24.82

Available: $1175.00

 

 

Belk MasterCard

Credit Line: $2900

Balance: $368.00

Available: $2532.00

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Posted (edited)
4 hours ago, FurnW27568 said:

My score never seems to leave 680 regardless! These are my current cards

 

Capital One

Credit Line: $3,500.00

Balance: $2797.33

Available: $702.67

 

You would be much better positioned to open a new card and get a better limit if this wasn't reporting at 80% utilization (even under 50 would probably help some, but under 30 and under 10 would be much better).

 

Even though it's not an enormous balance in real dollars, it is large relative to the credit limit.  This is a considerable obstacle for approvals and limits right now.

 

EDIT:  When is the last time you asked for a credit limit increase on this account?  Capital One will consider a request every six months, and making a large-ish payment isn't the only way to manage utilization.  :) 

 

Edited by cv91915
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