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I just cut up all of my credit cards---


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14 replies to this topic

#1 bafflingsteveo

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Posted 22 January 2017 - 09:06 PM

Well, except 1. Emergencies right?

 

I'm sitting at about 16k in debt right now. 13k in credit cards and 3k from a Lending Club loan. Well, I have 19k out on my truck as well, but I'm stuck with that for now. I'm at a crossroads and I would appreciate any kind of advice you guys could give me. 

 

I feel like I am drowning in CC payments right now, sitting at about $700 including the Lending Club loan. So I am looking at another loan to cover everything -- I do have $4800 coming in on Tuesday and another 3k~ from taxes in February. 

 

I am thinking about throwing 3k down on that LC loan, which frees up about $300 a month. That leaves me with $1800 in cash and 3k~ coming from taxes. Do I throw the rest of that onto the credit cards and then roll the remainder up in another loan so I have one payment? Or do I keep the cash in my savings?

 

Another thing that I have to think about is my daughter who's due in April, and then my wife is taking 6 months off of work. She does have some savings and vacation time saved up to cover her bills, but I have to consider covering around $800 a month in her bills. 

 

I say that I am drowning, but I did just start another job that is $4 an hour more than I was making before, with ample overtime available in the Spring and Summer. She will be off starting in April just when the "season" starts and my overtime will start ramping up. I am not really worried about bills at that point but I want to get this all settled and in a routine before that time comes. I also have a motorcycle that I can liquidate for about $2000. 

 

Any advice? Am I on the right track? 

 

I don't have any late payments right now. No collections. I'm not in a terrible spot, but I am sitting at 655 FICO. I would like to get that above 700 ASAP. I'd like to buy a house in the future. 

 

I guess I am really asking on advice for a loan that would help me do what I need to do. What do you recommend?


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#2 Sandscrit

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Posted 23 January 2017 - 12:37 AM

Hi, Look at your needs verses your wants and cut out everything that is not essential.

Talk to your wife to see what she can do to help you get through these tough times so you can set up a budget.

Write everything down you spend money on and find out ways to save on basic necessities.

Remember you got your self into this situation and now you have to get out of it.

Can you sell anything to make money?

You are not going to get a better score until your debt is cleaned up and you are probably over extended for credit.

It would be a good idea to quit using any credit.

 

The credit experts will show up shortly with more information.

In the meantime,take a look at the newbies credit section


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#3 JeffeVerde

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Posted 23 January 2017 - 06:25 AM

List each of your accounts, with the balance, interest rate, and monthly minimum.  If you don't have AT LEAST 6-months living expenses in savings, I'd be cautious of putting all of your cash into debt pay-down - especially with a baby on the way.


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#4 TheVig

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Posted 23 January 2017 - 09:30 AM

Very good advice.

A written budget for sure. Every dollar coming and going needs a name assigned to it.

Once you do that AND stick to it, you will be able to cut out non essential spending. Cable TV, Starbucks, no eating out, better purchasing decisions at the grocery store.

Emotionally it's a painful process, but it can be done. Many of us have been in your shoes, and we've all heard the reasoning and excuses one can come up with for being in a financial mess.
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#5 IndyPoolPlayer

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Posted 23 January 2017 - 07:42 PM

With the daughter that's due soon - is there a father that will contribute to this child's care whether its voluntarily or involuntarily through court order child support payments?


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#6 IndyPoolPlayer

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Posted 23 January 2017 - 07:44 PM

Another thing that I have to think about is my daughter who's due in April, and then my wife is taking 6 months off of work.

 

Is your wife or the daughter the one getting ready to have the baby? I'm reading this as your daughter is about to have a baby and your wife is taking off work to help take care of it?


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#7 bafflingsteveo

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Posted 23 January 2017 - 08:54 PM

I have cut out all non-essentials already. We don't have cable, don't eat out, and only buy what we need from the grocery store. I may be over-exaggerating the "drowning" that I'm feeling. I am just feeling like I'm never going to get anywhere paying the minimum payments.

 

I talked to a local credit union today about a debt consolidation loan. The underwriter will be in contact with me in the next few days. 

 

I did my research and this loan is not a loan that negotiates with my creditors for a smaller payoff, and it also does not require me to close my accounts upon pay-off. 

 

It is my wife that is expecting, not my daughter. Sorry for confusing you. :) 

 

I do understand that I got myself into this situation, and I expect to get myself out of it eventually. Were you telling me to make a sheet with all the creditors, interest rates, and minimum payments to show you guys, or just for my personal records?


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#8 IndyPoolPlayer

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Posted 23 January 2017 - 09:41 PM

I have cut out all non-essentials already. We don't have cable, don't eat out, and only buy what we need from the grocery store. I may be over-exaggerating the "drowning" that I'm feeling. I am just feeling like I'm never going to get anywhere paying the minimum payments. Minimum payments just cover the monthly interest and a little bit of principal. To get ahead you'll have to go well above minimum payment.

 

I talked to a local credit union today about a debt consolidation loan. The underwriter will be in contact with me in the next few days. Fingers crossed, but don't get your hopes up either.

 

I did my research and this loan is not a loan that negotiates with my creditors for a smaller payoff, and it also does not require me to close my accounts upon pay-off. - That's not a loan. That's a debt management plan. Most of which are rather scammy in nature. Avoid DMPs if you can. When these plans "negotiate" lower payments its because you're already charged off

 

It is my wife that is expecting, not my daughter. Sorry for confusing you. :) - That's why I asked.

 

I do understand that I got myself into this situation, and I expect to get myself out of it eventually. Were you telling me to make a sheet with all the creditors, interest rates, and minimum payments to show you guys, or just for my personal records?

 

I can't believe I'm typing this but you could be one of the few that would benefit from the DR (Dave Ramsey) philosophy. Don't buy his books and other snake oil but just adopt an all cash attitude until you get this under control - Start a debt snowball by paying off something, apply that payment to something else. Philosophies here differ on debt snowballs - One valid method is paying down highest APR first then the next highest APR, and so on. Others (including myself) believe in paying off the lowest balance first to get that psychological victory over a vanquished bill then move on to other balances. Once all the little stuff is out of the way, then hammer down on the highest balances.

 

Whatever you do don't send the cut up cards back to the credit card companies or close the accounts that don't have annual fees. You don't want closed accounts with balances showing, as in my personal case with Citibank they reported the CL as zero on a closed account with a balance.


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#9 bafflingsteveo

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Posted 24 January 2017 - 12:54 AM

I can't believe I'm typing this but you could be one of the few that would benefit from the DR (Dave Ramsey) philosophy. Don't buy his books and other snake oil but just adopt an all cash attitude until you get this under control - Start a debt snowball by paying off something, apply that payment to something else. Philosophies here differ on debt snowballs - One valid method is paying down highest APR first then the next highest APR, and so on. Others (including myself) believe in paying off the lowest balance first to get that psychological victory over a vanquished bill then move on to other balances. Once all the little stuff is out of the way, then hammer down on the highest balances.
 
Whatever you do don't send the cut up cards back to the credit card companies or close the accounts that don't have annual fees. You don't want closed accounts with balances showing, as in my personal case with Citibank they reported the CL as zero on a closed account with a balance.


I appreciate the positive vibes. I am crossing my fingers that I get an offer from the CU, I feel like that would relieve a lot of my stress. If I don't, I will take your advice and work on them one at a time. I am confident that I can fix this and move on with my life. I have been scouring these boards and there is a ton of info.

I didn't send the cards back to the companies, I shredded them and threw them away. I don't plan on closing the accounts.
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#10 JeffeVerde

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Posted 25 January 2017 - 05:25 PM

"Were you telling me to make a sheet with all the creditors, interest rates, and minimum payments to show you guys, or just for my personal records?"

 

If you'd like help in making a paydown plan, post balances, interest rates, and min payments.  You can just list them as "card1, card2 .. .".  But if you list the names, there might be specific advice on particular lenders.


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#11 bafflingsteveo

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Posted 25 January 2017 - 10:17 PM

IMG_2949.png

 

I am still waiting to hear back from the CU about a loan. In the mean time, any advice you all have is more than welcome. I greatly appreciate the information you all have already shared. 


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#12 bafflingsteveo

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Posted 01 February 2017 - 06:39 PM

Well, loan denied by the credit union.

Edited by bafflingsteveo, 01 February 2017 - 06:55 PM.

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#13 IndyPoolPlayer

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Posted 02 February 2017 - 05:33 PM

Well, loan denied by the credit union.

 

Not surprising. CU's can get really jittery when it comes to those teetering on the edge. 


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#14 bafflingsteveo

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Posted 04 February 2017 - 12:54 AM

I turned to OnPoint after the other CU failed, and they gave me a $15,000 credit card. That almost covers my balances. It's at 1.99% for 12 months, and then prime + 8%. Not a bad deal. I can look at rolling the balance into a loan at the end of the 12 months. This will cut my payments by over $350 a month. 

 

Now I have to setup a solid budget, and hopefully I'll be able to pay more than the minimum payment every month. Things are looking up. 


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#15 breeze

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Posted 19 February 2017 - 05:34 PM

Congrats! Stick to your plan, you can be out of this quickly. :)






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