Is leaving the right thing to do? (Mullica Hill, Chester: mortgage, credit)

[neekah18]

Originally Posted by nic529

Moving to another house is not an option! OMG! All I'm saying is we're thinking about it! Is there something so wrong with that? I don't think anyone should save me and I never eluded to that either. Tough times happen to everyone - mostly - anyway - and I'm sure we'll be fine in time - but what exactly is it that is so wrong questioning leaving a state with corrupt politicians and a high cost of living? My goodness - its just a question.

Nic I understand where you are coming from and more people than you think are in your same situation and choose to keep it to themselves. Property taxes in nj have jumped over 30% in some areas within a year and regardless of what some may have you believe, not all of us have enough savings in the bank to cover financial pitfalls. If you are thinking of selling your home and moving to "the ghetto" or an urban area, don't. Not just because of the visual but, because propery taxes will be high there too because you will be paying for the shortcomings of the city. You said you had a brief stint of unemployment so maybe that caused you to rely more on credit cards and fall behind on some bills so pay as much as you can on those credit cards to pay them off. Even if it's $20 more than the minimum due atleast you know that $20 will go towards the finance charges and you will have reduced your bill by your initial payment. Cut down on gas consumption. Drive to and from work only and make a trip to the grocery store once a week, use coupons, make a list, and only buy what's on sale. If you have cable take off premium channels and get the very basic that alone will save you maybe $25 a month. Keep the thermostat at 67 degrees and put winterize your home. Make little adjustments in your life so that way not only are you playing catch up, but you are also paying things off. Keep your head up we are all trying to find ways to trim the fat.

[mike0421]

Originally Posted by tahiti

Mike: one little quibble with this paragraph. The tax rate at that level of income is 25% (amount over about 60K, 14% at the first 60K) . 35% is income over $180k' ish (again, a smaller percentage up to that point, and 33% over it).

Let me qualify this statement somewhat by saying the net versus gross when you factor in all of the taxes is in my paystub is proportionally not in balance with my dad's, due to all taxes. I had mentioned my dad bringing home 103 and grossing 118. This was based on all taxes. Of course, in 1967, New Jersey didn't have a state income tax. It sure has one now. Then there is the matter of the increasing F.I.C.A. charges that have been added. My F.I.C.A. on a bi-weekly basis is 146.41. My gross pay is $2103. That's 7% of my gross earnings evaporated on F.I.C.A. Another big one is medical. Every year when my company renews its medical insurance policy, two things happen: the co-pay rises, and the amount in which is deducted from your paycheck rises. It's very incremental, but there is no end in sight. My deduction for this very necessary expense is 172.60, bi-weekly. This comprises another 8% of my paycheck. Again, I have my paystub here right in front of me, because I wanted to illustrate the chasm between gross versus net. My gross reads 2103, my net reads 1352. (New Mexico's state income tax is extremely progressive, and I am in the top bracket here) When the smoke clears, 1352 is 64% of 2103. Contrast that again to my dad in 1967, who netted 103 and grossed 118. 103 is 87% of 118. I believe herein lies the plight of the average middle class citizen in this country, and it is why our OP is encountering hardship currently. Combine this with the fact that housing today consumes on average 30% of your salary, compared to 20% in 1967, and the result of all this analysis (to me anyway) is a cumulative erosion of the middle class. I wish I had the answers. I have some, but since I am not running for public office, I'd never be able to implement them.

[cyntmac]

I don't think the OP is really considering the ghetto. I would never accuse her of a victim mentality either. I don't know her or anyone else here. The judgements on here are way too much.

[neekah18]

Originally Posted by cyntmac

I don't think the OP is really considering the ghetto. I would never accuse her of a victim mentality either. I don't know her or anyone else here. The judgements on here are way too much.

I know she doesn't want to move to the ghetto I was making a point. People say sell and lower your standards then move to where "the ghetto???". What I am saying is she doesn't have to move simply cut costs in small ways and make the best of it.

[nic529]

Originally Posted by neekah18

I know she doesn't want to move to the ghetto I was making a point. People say sell and lower your standards then move to where "the ghetto???". What I am saying is she doesn't have to move simply cut costs in small ways and make the best of it.

Thank you both! Neekah - in case you haven't read the threads I have been judged and misunderstood cymantac has been very nice to try to help people to understand what it is I'm saying. I appreciate both of you. I really do - the "ghetto" thing was a response to someone else. Thanks for your advice!

[billb7581]

That house payment works out to 4x annual income on a 30 yr fixed at around 6%. No wonder they're strapped.. 2 times income is comfortable, 3 times income is pushing it. 4x income is just nuts.

[nic529]

Originally Posted by mike0421

Let me qualify this statement somewhat by saying the net versus gross when you factor in all of the taxes is in my paystub is proportionally not in balance with my dad's, due to all taxes. I had mentioned my dad bringing home 103 and grossing 118. This was based on all taxes. Of course, in 1967, New Jersey didn't have a state income tax. It sure has one now. Then there is the matter of the increasing F.I.C.A. charges that have been added. My F.I.C.A. on a bi-weekly basis is 146.41. My gross pay is $2103. That's 7% of my gross earnings evaporated on F.I.C.A. Another big one is medical. Every year when my company renews its medical insurance policy, two things happen: the co-pay rises, and the amount in which is deducted from your paycheck rises. It's very incremental, but there is no end in sight. My deduction for this very necessary expense is 172.60, bi-weekly. This comprises another 8% of my paycheck. Again, I have my paystub here right in front of me, because I wanted to illustrate the chasm between gross versus net. My gross reads 2103, my net reads 1352. (New Mexico's state income tax is extremely progressive, and I am in the top bracket here) When the smoke clears, 1352 is 64% of 2103. Contrast that again to my dad in 1967, who netted 103 and grossed 118. 103 is 87% of 118. I believe herein lies the plight of the average middle class citizen in this country, and it is why our OP is encountering hardship currently. Combine this with the fact that housing today consumes on average 30% of your salary, compared to 20% in 1967, and the result of all this analysis (to me anyway) is a cumulative erosion of the middle class. I wish I had the answers. I have some, but since I am not running for public office, I'd never be able to implement them.

Thank you!

[imperieux]

This woman has clearly stated she has only 5k in credit debt and yet everyone is jumping all over her as if she is horribly financially unstable and a monster. She's not on government assistance, her children aren't either, she pays her taxes, she pays her mortgage, she's not asking for a Section 8 voucher, in fact she's not asking the state for ANYTHING. So why in the world is everyone so defensive because she is THINKING ABOUT LOOKING at other options in other states? Do you really think she is the only one out there thinking about it?

The Monmouth University/Gannett New Jersey Poll found 49 percent of New Jersey adults would like to move out of the state, and the poll found 51 percent of those who want to leave say they're very likely to make good on that wish, with most of those who want to leave adults less than 50 years of age and earning between $50,000 and $100,000 per year.


And what about all those who have already LEFT the state? Including myself? Should we all be tarred and feathered? And what if it IS much better in the South and we have the nerve to say so? Am I some kind of "traitor to my people" now because I was raised in NJ and moved to Charleston?

Look at what's happening, folks:

A Rutgers University study, released last week, found New Jersey's accelerating population loss is starting to have significant economic and fiscal consequences.

The report found the state lost 231,565 people between 2002 and 2006, including 72,547 people last year. The latter was the fourth highest loss in the nation behind only California, Louisiana and New York.



And why is this exodus happening? Oh yeah, it's all nic529's fault!

The latest poll found 28 percent of people wanting to leave citing America's highest property taxes as the leading reason; 19 percent mentioned the state's generally high cost-of-living, with 6 percent citing housing costs and 5 percent citing state taxes.



And thanks a lot, now my northern attitude is coming back after nearly 2 years of happily hibernating.

[nic529]

Originally Posted by billb7581

That house payment works out to 4x annual income on a 30 yr fixed at around 6%. No wonder they're strapped.. 2 times income is comfortable, 3 times income is pushing it. 4x income is just nuts.

read the threads my mtg is 300,000 - and my taxes have risen 3000 in 3 years - on top of needing a new roof and paying to hook in to public water and sewer - and having a roll with unemployement this summer for a couple of months. i can't possibly be the only one who has been in this type situation. so if you are in a situation where income is down for about 2 months its just that your in over your head? you can't catch up? you have no forgiveness from people like you who are judging by certain presumptions? if your going to be so tough on saying that i should downsize and so on then tell me where to look? what towns should i go to? where can i find a house for less then 300,000? where can I rent without being put in different tax bracket and government taking the difference of what i rent or mortgaged? 4x would be 4000 per month

[billb7581]

You're rate sucks then... on a 30 year fixed you should be around 1800 P&I on 300K

Even with your taxes it works out to 2300/month