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Bad debt Desicion need help

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crews58
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Bad debt Desicion need help  Reply with quote  

Need help,I have 2 credit cards valued @$5k outstanding bad debt. drawing about $40 a month in interest combined. Pay min payments on both. Dont have room to really punch them out with my reg income, prob will take a year, with all my expense i have.One of my Solutions for a knockout punch was to sell my car. i have 2 vehicles. a 93 chevy truck gets 13 mpg but its a truck, and my daily driver 98 firebird which i prob could get close to 5k for it. My wife has her own car which is very dependable 09 honda civic. Selling my car is the best i got for leverage, good idea or not? and would you have another solution.
Post Sun Oct 21, 2012 2:43 pm
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oldguy
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quote:
One of my Solutions for a knockout punch was to sell my car. i have 2 vehicles. a 93 chevy truck gets 13 mpg but its a truck, and my daily driver 98 firebird which i prob could get close to 5k for it.


Two drivers in the family and three cars? I agree, sell the FB and drive the truck, the cost of gas isn't that different (not worth keeping an extra car).

As for your plan to retire at 30 - I'd forget it - it's hard to become rich when you pay $480/yr to borrow only $5000. Very Happy

OTOH, marrying an RN was smart - and her 3-yr-old Honda indicates that she is smart.
Post Sun Oct 21, 2012 11:40 pm
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Concatenate
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quote:
Originally posted by oldguy
quote:
One of my Solutions for a knockout punch was to sell my car. i have 2 vehicles. a 93 chevy truck gets 13 mpg but its a truck, and my daily driver 98 firebird which i prob could get close to 5k for it.


Two drivers in the family and three cars? I agree, sell the FB and drive the truck, the cost of gas isn't that different (not worth keeping an extra car).

As for your plan to retire at 30 - I'd forget it - it's hard to become rich when you pay $480/yr to borrow only $5000. Very Happy

OTOH, marrying an RN was smart - and her 3-yr-old Honda indicates that she is smart.


what is a RN?
Post Mon Oct 22, 2012 1:18 am
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crews58
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registered nurse, letting go of the car is going to be hard, but it is smart, i do have a house im trying to flip at the moment i paid 88k for it was a reo property, spent about 2-3k on it and its on the market for 110k . Just waiting to see what happens.
Post Mon Oct 22, 2012 2:11 am
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crews58
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cmon i need more input, this is money talk not money look, 98 views 2 responces, geesh,.
Post Tue Oct 23, 2012 2:24 pm
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credit_guy
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You're right on  Reply with quote  

Hi crew58,

You are right on in your plan. I would definitely sell your car! That removes 50% of your debt right there. I know your truck isn't nearly as good but the alternative is the debt. A car dragging a debt behind it makes its gas mileage decrease! Smile

The best thing you can do is get on a WRITTEN BUDGET. I SWEAR this will make all the difference in the world. KNowing where your money is going is so crucial.

Stay the course, don't look at the interest. You can have these cards knocked out in no time. Don't default on them; that can really zap your credit.

Good luck!
Post Tue Oct 23, 2012 2:38 pm
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Wino
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quote:
Dont have room to really punch them out with my reg income, prob will take a year, with all my expense i have


What kind of expenses are keeping you from paying off $5K? That's not all that much. That is $400 per month. That's a car payment for most people.
Post Tue Oct 23, 2012 2:52 pm
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crews58
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i could prob squeeze out 400 a month but im searching for a knockout punch meaning 2 months and its gone. Sell the car maybe? i have had luck flipping cars in the past might try that? Second or season job? Sell my soul lol i dont know but i want it gone.
Post Tue Oct 23, 2012 6:27 pm
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credit_guy
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A little pain to get rid of it might just be worth it!
Post Tue Oct 23, 2012 7:41 pm
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oldguy
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quote:
cmon i need more input, this is money talk not money look, 98 views 2 responces, geesh,.


Well, your're missing the obvious question - what is the answer to my family's financial life?

You have two solid income producers - service mgr & RN - so income isn't a problem, outgo is the problem.

You've probably read about Boomers who are approaching 65 with less than $100,000 in the bank plus house payments & car payments - ie, as a group, they have spent their lifetime earnings (usually over $3,000,000) on toys, cars, and eating out.

The answer (for the Boomers) would have been surprisingly simple - invest $150,000 of that $3,000,000 income stream. And it is just as simple for your generation, just as it was for my generation (WW2). Invest $5000/yr into an 11%/yr index fund for 30 yrs, that's a million.

So, rather than focus on small $5000 bills, focus on the $5000/yr investing. Make it the family priority, have it done automatically - ie, invest first and live on what's leftover (if you live first and invest what is leftover at the end of the month it will never happen). If you make the $5000/yr the family priority, you can enjoy spending the rest any way you want to, safe in the knowledge that you'll be millionaires in 30 yrs.
Post Tue Oct 23, 2012 8:04 pm
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crews58
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i like the feedback, so i came up with a plan, going to make 400 a month payments. And going to try and hustle the rest, have been succuessful fliping cars off craigslist. If it dont work then by bye firebird.
Post Wed Oct 24, 2012 2:52 am
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crews58
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invest first and live on the rest i do agree,
Post Wed Oct 24, 2012 2:53 am
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oldguy
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quote:
so i came up with a plan, going to make 400 a month payments. And going to try and hustle the rest, have been succuessful fliping cars off craigslist. If it dont work then by bye firebird.


lol - so the part about a Family Plan to be millionaires 30 years from now was reduced to flipping 15 yr old cars and paying off a $5000 loan? Yipe (I blame the school system)
Post Wed Oct 24, 2012 2:19 pm
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moren
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borrow loan  Reply with quote  

Try to find a loan at low rate or may be ask your friend help and tell him take the interest that you paying. If i were at your situation i will find part time job to make additional money to clear the debt.
Post Thu Oct 25, 2012 12:04 pm
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Publius
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I'll throw my opinion about this out there again: Do not get a payday loan! Do anything to avoid these predators. Sell your car, sell your stuff, sell your plasma -- anything to avoid paying the 100s of %s that these "companies" charge.

This isn't necessarily directed at the OP, just at the above ad, er post.
Post Thu Oct 25, 2012 12:12 pm
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