boosted98gst Posted March 9, 2010 Report Share Posted March 9, 2010 This is for people that really know what they are talking about or have gone through it. Someone in my family is in debt bad, much worse then we thought at first. First we thought it was around 30k but we found out its closer to 60k, He has never been late on any payments but its getting to the point where he is barley getting by to pay the bills. I just dont know where to start or who to call for help? Is there places for finanical advice on what to do? I did not want to post this type of stuff here but I really do not know what to do, his actions are now effecting my life too. Quote Link to comment Share on other sites More sharing options...
HAOLE Posted March 9, 2010 Report Share Posted March 9, 2010 This is for people that really know what they are talking about or have gone through it. Someone in my family is in debt bad, much worse then we thought at first. First we thought it was around 30k but we found out its closer to 60k, He has never been late on any payments but its getting to the point where he is barley getting by to pay the bills. I just dont know where to start or who to call for help? Is there places for finanical advice on what to do? I did not want to post this type of stuff here but I really do not know what to do, his actions are now effecting my life too. http://www.daveramsey.com There is no quick fix for that issue. The problem is between the ears, he needs to have a mental reset before any will improve. Quote Link to comment Share on other sites More sharing options...
Nitrousbird Posted March 9, 2010 Report Share Posted March 9, 2010 60k? I assume he rents, because most of us here are in far more debt than that. Also, what kinds of debt? Quote Link to comment Share on other sites More sharing options...
evan9381 Posted March 10, 2010 Report Share Posted March 10, 2010 60k? I assume he rents, because most of us here are in far more debt than that. Also, what kinds of debt? when i think of "debt", i dont count my mortgage or car payments in that...technically, yes, its debt, but when i think of debt, i think of CCs that are maxed and making minimum payments, collection accounts, etc etc. thats me though Quote Link to comment Share on other sites More sharing options...
boosted98gst Posted March 10, 2010 Author Report Share Posted March 10, 2010 60k? I assume he rents, because most of us here are in far more debt than that. Also, what kinds of debt? No he is a home owner, the debt im talking about is more along the lines of credit cards and loans from credit unions. Quote Link to comment Share on other sites More sharing options...
lawnman Posted March 10, 2010 Report Share Posted March 10, 2010 http://www.daveramsey.com + 1 on Dave Ramsey Also you can just call the credit card companies and negotiate a lower rate , usually around 4-6 % fixed. There is also a catch , which might be a good thing. Most of the time the credit card companies will not let there be anymore charges on the negotiated % cards. Quote Link to comment Share on other sites More sharing options...
boosted98gst Posted March 10, 2010 Author Report Share Posted March 10, 2010 I always hear stuff on the radio and tv about combine all of the money into one payment and rate? Is this true or a scam? Is is possible to round up all the debt in one payment? Quote Link to comment Share on other sites More sharing options...
Wease Posted March 10, 2010 Report Share Posted March 10, 2010 Another vote for Dave Ramsey. There will be no quick fix to the problem. You really have to commit to spending as little as possible on the "nice to have's" in life. And pay everything off as quickly as you can. I've been debt free for nearly 6 months now. Paid everything off right before my wife had her baby. Own all 6 cars and my boat. Just owe on my house. It takes dedication and a lot of focus. Good luck to him... Quote Link to comment Share on other sites More sharing options...
Wease Posted March 10, 2010 Report Share Posted March 10, 2010 I always hear stuff on the radio and tv about combine all of the money into one payment and rate? Is this true or a scam? Is is possible to round up all the debt in one payment? Most of it is a scam. Some of them are legit, but you have to research them to be sure. Quote Link to comment Share on other sites More sharing options...
boosted98gst Posted March 10, 2010 Author Report Share Posted March 10, 2010 Another vote for Dave Ramsey. There will be no quick fix to the problem. You really have to commit to spending as little as possible on the "nice to have's" in life. And pay everything off as quickly as you can. I've been debt free for nearly 6 months now. Paid everything off right before my wife had her baby. Own all 6 cars and my boat. Just owe on my house. It takes dedication and a lot of focus. Good luck to him... You have any tips since you just did this other then "focus"? did you some how deal with the creditors? Did you contact help? Or did you just plan yourself? Quote Link to comment Share on other sites More sharing options...
Guest tbutera2112 Posted March 10, 2010 Report Share Posted March 10, 2010 if he owns a home already and has a car, wouldnt it be beneficial for him to look into filing bankruptcy? Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted March 10, 2010 Report Share Posted March 10, 2010 You have PM. Quote Link to comment Share on other sites More sharing options...
Wease Posted March 10, 2010 Report Share Posted March 10, 2010 You have any tips since you just did this other then "focus"? did you some how deal with the creditors? Did you contact help? Or did you just plan yourself? I should also say that I didn't have any credit card debt. I had a top notch credit rating as well. It was a matter of cutting out any extras so that I could pay off the last car loan before my wife gave birth and quit her job. So I'm not really a good resource for what this guy is going through. Quote Link to comment Share on other sites More sharing options...
evan9381 Posted March 10, 2010 Report Share Posted March 10, 2010 I should also say that I didn't have any credit card debt. I had a top notch credit rating as well. It was a matter of cutting out any extras so that I could pay off the last car loan before my wife gave birth and quit her job. So I'm not really a good resource for what this guy is going through. +1...its a good feeling. i never really had a lot of debt...couple CCs(2k in CCs MAYBE...i dont even think it got that high), car payment, insurance, other monthly bills, etc...i couldnt save money for shit. then just kinda told myself i needed to change, and money is a big motivator for me. i paid my car off in october (granted it was <$3k left), dropped my insurance down to liability (car worth <$2k so it wasnt worth it), paid off a 0% CC because i was sick of the monthly payment...in the last 5 months ive been able to save just over $14000 by not spending my extra money and bonus checks, cutting back on some stuff, not eating out as often, and when we do go out we'll do something like red robin over damons, etc...so i can still get out and enjoy a weekend night, without spending quite as much money one thing that helped me set aside money and i think it was a HUGE help was to set up an online bank account...it takes 2-3 days to have money transferred into my checking account...when i find something i want or think i need, i know its going to take a couple days to get that money, and it gives me kind of a "cool down" period. ive actually been stalling on getting things ordered for my kitchen remodel because of this...i know 100% its getting done in the next couple months, i just keep going back and forth over a couple ways i want to redo it, so ive been waiting and waiting Quote Link to comment Share on other sites More sharing options...
boosted98gst Posted March 10, 2010 Author Report Share Posted March 10, 2010 You have PM. Thanks we will be getting in touch soon. Quote Link to comment Share on other sites More sharing options...
Bam Posted March 10, 2010 Report Share Posted March 10, 2010 Paid everything off right before my wife had her baby. Who's the daddy? Quote Link to comment Share on other sites More sharing options...
boosted98gst Posted March 10, 2010 Author Report Share Posted March 10, 2010 if he owns a home already and has a car, wouldnt it be beneficial for him to look into filing bankruptcy? They would never let him file backrup, he is full retired from the military(recieves a monthy pention ) and makes too much money a year. We just need good advice on how to take on the debt. Quote Link to comment Share on other sites More sharing options...
87GT Posted March 10, 2010 Report Share Posted March 10, 2010 They would never let him file backrup, he is full retired from the military(recieves a monthy pention ) and makes too much money a year. We just need good advice on how to take on the debt. He needs to get his mind set on not spending money on anything but food and utilities. Once he has enough willpower to handle that then pay minimum payments on everything except 1 bill with highest interest rate. This one bill dump all the money you can. Keep doing that until it is paid off. Then move to next highest interest rate. This will take years but it will work. Good luck Quote Link to comment Share on other sites More sharing options...
AWW$HEEET Posted March 10, 2010 Report Share Posted March 10, 2010 file bankruptcy Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted March 10, 2010 Report Share Posted March 10, 2010 They would never let him file backrup, he is full retired from the military(recieves a monthy pention ) and makes too much money a year. We just need good advice on how to take on the debt. Not true........again....have them call my wife. If their income is strong they will likely be put into a chapter 13...as they should IMO. However, you need to consult a knowledgeable, caring lawyer, not some bankruptcy puppy-mill type shop or the rip off consolidation companies. Get a good lawyer. Consults are free. All they have to do is complete some preliminary fact finding sheets so she can have an informed face to face meeting with them. See my PM. Quote Link to comment Share on other sites More sharing options...
boosted98gst Posted March 10, 2010 Author Report Share Posted March 10, 2010 Not true........again....have them call my wife. If their income is strong they will likely be put into a chapter 13...as they should IMO. However, you need to consult a knowledgeable, caring lawyer, not some bankruptcy puppy-mill type shop or the rip off consolidation companies. Get a good lawyer. Consults are free. All they have to do is complete some preliminary fact finding sheets so she can have an informed face to face meeting with them. See my PM. We are def going to be talking with your wife, its going to be maybe next week before he can call due to being out of state for business. Thank you for the help, if anyone has been in this position before knows how much stress this can bring. Not only for him but our family , he is now on blood pressure meds prolly due from the stress, either way thanks again for your guys help! Quote Link to comment Share on other sites More sharing options...
HotCarl Posted March 11, 2010 Report Share Posted March 11, 2010 I always hear stuff on the radio and tv about combine all of the money into one payment and rate? Is this true or a scam? Is is possible to round up all the debt in one payment? Most of those companies are profit companies and will hurt him more than they will help him. Hell even the non-profit one's dont seem very legit to me. Everyone wants an easy way out of a difficult problem thats why these companies thrive. This topic was posted a few months ago, try searching. There were a few people that said they were good but i think the general consensus was that he's better off on his own. FYI, i bought Dave Ramsey's book for my mom and my gf. As soon as my girl's done with it I plan on reading it. There's really no magic potion's or stragies, most of it is common sense. Ive been smart enough to stay mostly debt free but he has some sound financial advice regardless of where you are. Quote Link to comment Share on other sites More sharing options...
OGRE Posted March 11, 2010 Report Share Posted March 11, 2010 He needs to get his mind set on not spending money on anything but food and utilities. Once he has enough willpower to handle that then pay minimum payments on everything except 1 bill with highest interest rate. This one bill dump all the money you can. Keep doing that until it is paid off. Then move to next highest interest rate. This will take years but it will work. Good luck wrong answer. Pay the smallest debt first, this frees up money to kill the next largest, ect. I am a Dave Ramsy guy too. My wife and I paid off over $21K in 13 months. The patience to make a budget, and stick to it is the hardest part. Eventually it got to be a game, i would go through the entire budsget to see if i could save and extra 5-15 bucks a month by adjusting our phone plan, not buying pop when on break at work, ect. And like some have said there is no magic bullet or easy way out other than getting your head screwed on strieght. Go get Dave's book, "The total money makeover" Quote Link to comment Share on other sites More sharing options...
87GT Posted March 11, 2010 Report Share Posted March 11, 2010 wrong answer. Pay the smallest debt first, this frees up money to kill the next largest, ect. You will end up paying out more money in interest this way. Quote Link to comment Share on other sites More sharing options...
boosted98gst Posted March 11, 2010 Author Report Share Posted March 11, 2010 You will end up paying out more money in interest this way. All the things ive been reading , say to start with the smallest debt first , then work your way up. Everyone is going to have their options but im just going by what I read. Quote Link to comment Share on other sites More sharing options...
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