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Slowly hitting debt and need help

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JohnCenaSuperslams
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Slowly hitting debt and need help  Reply with quote  

Recently I've come into quite a bit of a consistent squeeze with my money. I have a fairly solid full-time job that nets me a little over $700 per check (every 2 weeks). The problem is, I'm seemingly retarded with my money because I never have any in my account, and today was the final straw when seeing that I was literally negative $2 -- not a single cent in my checking account either. I was floored. My basic expenses go about like this:

- $250 for rent
- $210 for my car loan
- $125 for my motorcycle loan
- $120 for my pets and phone bill
- $110 for a Hair Club loan (Rolling Eyes)
- $30 for my motorcycle insurance
- $25 for my credit card bill

That's not even accounting for groceries, gas, and fun money. Now, that's not all at the same time or I'd be way in debt, but I can't seem to keep up with it. The car payment, cycle loan, cycle insurance, and HC loan all hit me within the last dozen days of the month, and then of course rent is at the beginning of the following month, so that pretty much takes an entire check right there, leaving me with little for the next two weeks when the $120 and $25 is usually due.

I'm just really trying to figure out what to do in this situation. I could sell the bike (which is really what's catapulted me into this, I admit), yes, but that doesn't take care of the loan. Is there a way to get out of loans? What do you guys suggest I do?
Post Tue Oct 06, 2015 4:28 am
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littleroc02us
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The good news is you make enough money to survive. The bad news is you don't write up a budget and have too many loans for someone with your income. This problem is fixable. First sell the Motorcycle asap. I hope that either covers the total loan or brings you a small profit. So now gives you $150 back in your pocket a month. As for the car loan. How much is it worth on KBB for private sale? How much do you own. If you owe more then it's worth, I would sell it privately on Craigslist and take out a small loan to cover the difference.
Then I would buy a very inexpensive car that is no more then 5k. Until I know more of the numbers I'm not sure what math to do.
As for your pets expenses, I'm not going to tell you what to do there because that is a very personal issue. Get back to me with more numbers and I can continue with my math.
Lastly, your going to need to do a basic budget where you put your income on one side of the sheet and make categories for everything your going to spend for the month. Such as $50.00 for entertainment and then that's all you can spend no matter what. Do this for all of your categories until you come up with every dollar spent and believe me it works. This is called Zero budgeting. Make sure to make a savings category. If you follow your budget the best you can then there is no excuse for not digging yourself out of a whole and start to succeed financially.

I forgot to ask one more question. How many hours do you work a week? I used to work 80 hours a week @ 3 jobs to make headway with my debt.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Tue Oct 06, 2015 3:44 pm
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Peter Gillespie
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This is the issue with these debts, it takes no time in making monstrous, so if we are not noticing or been lazy to keep it up with, it will crash us badly financially. I always prefer to clear every due because I fear if I am unable to do, I will get in massive hole, I have seen my friend had to destroy his life due to wanting too much compare to what he could have afforded and now not only he lost it, but also is using 5 years debt free plan from www.IVA-Advice.co , so all I say is be careful with these things or it can get out of hand very quickly!

Last edited by Peter Gillespie on Thu Nov 19, 2015 9:29 am; edited 1 time in total
Post Fri Oct 23, 2015 2:10 am
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oldguy
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quote:
- $250 for rent
- $210 for my car loan
- $125 for my motorcycle loan
- $120 for my pets and phone bill
- $110 for a Hair Club loan (Rolling Eyes)
- $30 for my motorcycle insurance
- $25 for my credit card bill


You're mixing bills with loans. Your loans are car, m/c, hair, bank loan. You should list the amounts owed, the interest rate, and the term in years. And then add up the amounts to see how much you owe - that's what you want to control. The most common biggy is 'cars', many people over-buy cars, dealers provide easy loans - zero down, zero interest, yada - so people fall into the trap of over-spending. There are lots of folks who should be owning a $5000 relaible used car - but instead they have a $20,000 near-new car - one of the most common causes of financial failure.

BTW, what's a hair club? And how do you borrow money from them??

A big problem with loans is that people think only about the 'monthly" and not about the loan amount. Cars are a good example - salespersons know about that weakness, so they can easily entice you into a $25k car (rather that a $20k) by stretching the term from 60m to 72m - and a unsuspecting public falls for it.
Post Fri Oct 23, 2015 3:09 pm
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oldguy
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quote:
yes, but that doesn't take care of the loan. Is there a way to get out of loans? What do you guys suggest I do?


Get out of loans?? Hopefully you aren't trying to borrow money and then stiff your lenders? Not a good way to live your life!! You either repay what you borrow (you're the one who asked for a loan) - or you don't borrow money from people.
Post Fri Oct 23, 2015 4:13 pm
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