I’m new here and can’t get out of dept

I’m not sure what I’m doing wrong but I’m almost 46, filed my 1st bankruptcy in December and still having problems. This is what happened. After I filed bankruptcy, I needed a car, so I borrowed money from Quik Check to pay the $1000 down-payment, the next 2 payments were $500 and now I’m down to $300 a month and in June it will be paid off.

I paid off the bad credit loan at www.ElcLoans.com I got after bankruptcy to build my credit so I could buy a house. I used the credit cards to pay off Quik Check. Every month I pay off the credit cards except last month I paid off only 1 and the other I paid $80 on it. I very much want to move back east because I’ve been stuck out here since basically 1990 when I got out of the military and haven’t had the opportunity to go back until now.

My income is $2519 a month

  • $300 Premier Credit card
  • $300 Aspire Credit card
  • $300 car payment
  • $115 Quik Check(keep having to take loans)
  • $504 Mobile Home Mortgage & lot rent
  • $ 8 HSLDA(Homeschool attorney)
  • $ 44 daughter’s lunches at school(she buys)
  • $ 73 Qwest local phone
  • $ 9 Webband internet
  • $154 Avista(electric)
  • $200 Groceries approx
  • $200 Gas
  • $ 73 Car ins(full coverage and $100 deductible
  • $ 30 House ins
  • $ 25 allowances(divided among 3 kids)
  • $ 16 oil change(every other month I have to change my oil every other month because I go to Montana a lot to pick up my son)

And there’s always tons of one time things we need.

Anyone have any idea how to get moved fast.

Today I cut my cell phone bill in half

Today I cut my cell phone bill in half and cancelled my newspaper subscription. Saved some $$ by doing that.

My food budget is already low, I am a coupon fanatic.

There are a couple of areas that I still could possibly reduce my expenses on so I will call about those tomorrow.

It’s not a matter of IF I will get my money but when. The lawyer that I am using for this is a specialist and doesn’t handle things like credit issues. I do have another attorney but like everything else, it costs $$ to talk to them. 🙁

Thanks also for the post about the tone of the group. I was surprised but figured that it wasn’t like that every day and I just let it go.

Thanks again for the advice. I look forward to posting positive things about how my finances are going!

You aren’t going to like what I have to say

You aren’t going to like what I have to say; but please bear with me. For $64,000 of credit card debt, paying $111 per month; you can’t get there from here. The minimum payment you offer of $111, and assuming an interest rate of 15% (which is low as the low/late payments will cause the interest rates to increase) means it would take over 50 years to payoff those credit cards.

No creditor will work with you under those circumstances; unless you only owe them a couple hundred dollars.

With a net income of only $2,000, it is hard to live, save for emergencies and try to payoff the debt you have. I don’t know what state you are in, but the minimum credit card payment required will be doubling soon (from the standard 2% up to 4%), this will occur in a gradual sweep from West to East; starting in California.

If you, or your husband, can’t increase your income soon (2nd jobs, different jobs with better pay, etc.) you have few options:

  1. sell everything you can to help pay down the debt and/or
  2. sell the house, rent or buy with lower monthly payments (not always possible, I know) OR
  3. file bankruptcy and start over

To get the credit card debt paid off in a little over 5 years, would take a minimum monthly payment of about $1,300-$1,500; over 50 years is unreasonable and I don’t see you doing it in less than 10 or 15 to be honest; and that’s too long also. I don’t even think 1 and 2 will help you much at this point; as you would also have to substantially increase your income to make any headway to making payments Creditors will accept.

If you still want to try however here is what I would suggest:

Do 1 & 2 above, plus

Look for other/supplemental jobs to increase income,

Sell your cars too if they have loans against them, get cheaper cars with no loans against them

Cut expenses to the absolute bone, if it isn’t needed for the two of you to SURVIVE, it doesn’t stay in the budget at all. No gifts, no eating out, no extras… this also means cutting your grocery bill, eating cheaper meals prepared at home, taking your lunch to work, this also means cutting down and getting less expensive toiletries, household cleaners, etc.

Negotiate with your mortgage holder to see if you can lengthen the term of the mortgage to lower the payments (do NOT take out an equity loan, or other secondary mortgage to try to pay these credit cards)

Contact your creditors and ask for a deferment; set a reasonable time for the deferment (several months to a year). I don’t hold out much hope for them granting this; but some may and that can provide a little breathing room.

You could try to work through a Credit Counseling Service but to be honest with you, I don’t think they can do anything for you either; you just don’t have enough income for the amount of debt you have.

Sometimes, you just have to bite the bullet and file bankruptcy; there is no reasonable expectation that you can pay off these debts within a reasonable time unless you can dramatically increase your income.

Now, for the next thing you need to think about… Lisa, how are you and your husband getting along? How are you two feeling about yourselves? Are you stressed, depressed, not feeling right? If you are it is to be expected under the circumstances and you really, really have to think hard about this … do you want to feel this way for the next 10, 20, 50 years? Is this how you want to live your life? If not, and I hope you understand I am not chewing you out; I am seriously concerned for your health and your marriage… please talk with a financial counselor or bankruptcy attorney now… it’s great to be able to pay off your debt but there needs to be reasonable expectations (and income) in order to do it.