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Old 11-12-2014, 01:15 PM
 
3 posts, read 9,696 times
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Hi everyone i joined tbhis forum just for this specific question and uncertainties about my financial wellbeing in life. heres the situation . I am 21 years old i stay in california. I am a full time student at a university, i already owe 20,000 in student loan debt and i still have 2 more years to finish. I recently purchased a car about 3 months ago from a dealership for 14,000 i managed to get a loan on it from chase bank because i also work 6 days a week at night and make about 700 a month. I also owe 2,500 on my credit card and can barely make minimum payments on it. well recently ive came to the conclusion that i dont want to work this much and because i wont be able to keep up wiith my academics and thats why im in college so that i dont have to work ****ty job. i work a demanding job and at night its taking its toll on me. also i have to pay close to 900 a month just for my apt i plan on moving out next semester. i plan on moving out next semester to a cheaper place but for now that where im at.. i also have decided i cant afford my car no onger and that i made a huge mistake by buying it in the first place. I really just want to focus on school and graduate and forget about all this financial ties theyre really wearing me down. ..in all honestly i see how bad ive mest up my life in sucha short period of time and im really trying to deal with it but its difficult i have no help from family or friends. i put myself into this financial hardship now i have to get myself out. Ive been doing research in what to do and it seems like i have a couple of options. My first is voluntary repossesion of the car and see how much i owe afterwards. i will quit my job and focus all my energy on studying and finishing school. but if i dont have job and dont plan on getting one then how will i pay back the difference for the car?
My other option is to file for bankruptcy and just clear all my debt and finish my academics in college. But bankruptcy seems difficult to do and i will probably need alot of help. my other option is join the navy and just see where that life takes me. ive always wanted to go the military route. and i hear they pay well and maybe after a couple of years in the navy i would pay back my car loan without messing up credit. in the end i will diffenitly wont be working much longer and will be focusing on school. I really im on here to get some guidance and advise from people who more experienced and maybe have some knowledge to share and any advise i would appreciate it so much.
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Old 11-12-2014, 01:26 PM
 
1,212 posts, read 1,916,056 times
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i think the military route is a great way to go; you'll work, have almost all your expenses covered, and if you choose to leave early you'll have veterans preference for certain jobs, GI Bill for tuition. Staying in until retirement too, you'll get a pension and healthcare.

Another option might be to join the reserves to earn extra money? But it sounds like you do want the full military experience. I have a sibling who joined the military right out of HS and it was the best thing he could have done for his career and personal development. I almost wish I had done it myself.
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Old 11-12-2014, 01:50 PM
 
Location: Las Vegas
14,086 posts, read 25,928,683 times
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Paragraphs are your friend and they make it much easier to read and understand.

If I was in your place, I would sell the car and pay cash for a 'beater'. Since you probably have a lease and can't move to a cheaper place right now, it would be smart to get some room mates to help pay the rent. I would use the money I saved on rent to pay off other debts like the credit card. Keep on working for now. If you can get grants for school, great, but don't rack up any more debt on student loans.

In the meanwhile start looking into your options in the military. Don't just sign up. You want to do something that is a skill in civilian as well as military life. It's hard to translate a job as a gunner into a civilian career. The Navy and Air Force are probably your best options. Only consider jobs that will pay in the civilian world. Like airplane mechanic or dental technician. Even if you plan to finish school down the road it never hurts to have something to fall back on.

Bankruptcy will not wipe out your student loan debt. If you do what I suggested above, you will not need to file.
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Old 11-12-2014, 01:52 PM
 
13,085 posts, read 10,429,478 times
Reputation: 10152
Quote:
Originally Posted by swordsmen81 View Post
Hi everyone i joined tbhis forum just for this specific question and uncertainties about my financial wellbeing in life. heres the situation . I am 21 years old i stay in california. I am a full time student at a university, i already owe 20,000 in student loan debt and i still have 2 more years to finish. I recently purchased a car about 3 months ago from a dealership for 14,000
Did you have a car before that? If not, you can probably go without. Take a private student loan to pay the negative equity off and sell it. You cannot afford to have a car on an income that low.

Quote:
Originally Posted by swordsmen81 View Post
i managed to get a loan on it from chase bank because i also work 6 days a week at night and make about 700 a month. I also owe 2,500 on my credit card and can barely make minimum payments on it. well recently ive came to the conclusion that i dont want to work this much and because i wont be able to keep up wiith my academics and thats why im in college so that i dont have to work ****ty job.
How did you get into credit card debt? Can you sell anything to pay it down?

Quote:
Originally Posted by swordsmen81 View Post
i work a demanding job and at night its taking its toll on me. also i have to pay close to 900 a month just for my apt i plan on moving out next semester.
You make $700/month and your rent is $900? Please tell me you know why this is a problem!!!

Get roommates and live near school. Don't buy a car unless doing so would allow you to increase your income enough to cover it.

Quote:
Originally Posted by swordsmen81 View Post
i plan on moving out next semester to a cheaper place but for now that where im at.. i also have decided i cant afford my car no onger and that i made a huge mistake by buying it in the first place. I really just want to focus on school and graduate and forget about all this financial ties theyre really wearing me down. ..in all honestly i see how bad ive mest up my life in sucha short period of time and im really trying to deal with it but its difficult i have no help from family or friends.
Does this mean you can get Pell grants?

Quote:
Originally Posted by swordsmen81 View Post
i put myself into this financial hardship now i have to get myself out. Ive been doing research in what to do and it seems like i have a couple of options. My first is voluntary repossesion of the car and see how much i owe afterwards. i will quit my job and focus all my energy on studying and finishing school. but if i dont have job and dont plan on getting one then how will i pay back the difference for the car?
My other option is to file for bankruptcy and just clear all my debt and finish my academics in college. But bankruptcy seems difficult to do and i will probably need alot of help. my other option is join the navy and just see where that life takes me. ive always wanted to go the military route. and i hear they pay well and maybe after a couple of years in the navy i would pay back my car loan without messing up credit.
You are obviously overextended. Apply for Pell grants ASAP.

Quote:
Originally Posted by swordsmen81 View Post
in the end i will diffenitly wont be working much longer and will be focusing on school. I really im on here to get some guidance and advise from people who more experienced and maybe have some knowledge to share and any advise i would appreciate it so much.
We'll need more detail regarding your financial aid to give you any specifics but definitely apply for what you can. You probably can also get food stamps and free some money up to pay for your rent without going further into credit card debt (but you'll still need a roommate.)
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Old 11-12-2014, 02:14 PM
 
3 posts, read 9,696 times
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OP here. i get all financial aid benefits like pell grants but i still pull out student loans. i also have food stamps also. got in credit card debt by being dumb and using it alot. and no i dont need a car. Ive been trying to sell car but havent had any luck and its been a month and im not going to pay this moths payment becaus i will be broke. . Im really just tired of the mess im in but i know theres no escaping it.
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Old 11-12-2014, 02:19 PM
 
Location: Florida
3,252 posts, read 4,736,058 times
Reputation: 9770
I would hold off on the military route, seems like your goals are more financial than serving despite what you said.

Since you live in CA, why not get a cheap bike off CL and ride instead of driving? You would save on the car note, gas and insurance.

What about taking a summer job? Christmas season job? What about easy side work such as dog walking or cutting grass?
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Old 11-12-2014, 03:18 PM
 
13,085 posts, read 10,429,478 times
Reputation: 10152
Quote:
Originally Posted by swordsmen81 View Post
OP here. i get all financial aid benefits like pell grants but i still pull out student loans. i also have food stamps also. got in credit card debt by being dumb and using it alot. and no i dont need a car. Ive been trying to sell car but havent had any luck and its been a month and im not going to pay this moths payment becaus i will be broke. . Im really just tired of the mess im in but i know theres no escaping it.
You make $700/month. If your food and school is covered, you can possibly afford a $450/mo. rent, but not much else. You badly need at least one roommate, maybe 2 or 3. I think it can be made to work (do you have Medicaid to cover health care?), but there is no way you are keeping that car. If you can't sell it, you should probably do a voluntary repo, just call the finance company and tell them to take it. Cancel the registration after they take it, then the insurance.
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Old 11-12-2014, 06:50 PM
 
19,674 posts, read 21,740,800 times
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Can you sell the car for what you owe? Just to get rid of the paynents. Dnt do a voluntary repo.
Call your lender and ask for a release of lien. This will release their interest in the car but you will still be liable for the loan. Borrow the money to bridge the sale price and payoff price. Maybe a parent can help you?
A voluntary repo will still leave you liable for the difference. If it's a popular car you may be able to sell quick

Pay off that CC.

Move in and rent a room with a few roomates to save money.

The military may not take you with bad credit.

At least you're learning how quick you can get in financial trouble. Good luck. bankruptcy isn't as easy to do anymore. And to file over a car and $2500 in cc balance?
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Old 11-12-2014, 07:04 PM
 
Location: Clinton Township, MI
1,901 posts, read 1,490,238 times
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Quote:
swordsmen81

....heres the situation . I am 21 years old i stay in california. I am a full time student at a university, i already owe 20,000 in student loan debt and i still have 2 more years to finish. I recently purchased a car about 3 months ago from a dealership for 14,000 i managed to get a loan on it from chase bank because i also work 6 days a week at night and make about 700 a month. I also owe 2,500 on my credit card and can barely make minimum payments on it....
also i have to pay close to 900 a month just for my apt i plan on moving out next semester. i plan on moving out next semester to a cheaper place but for now that where im at.. i also have decided i cant afford my car no onger and that i made a huge mistake by buying it in the first place.
You are 21 with two years of college already (which puts you at the Associates Degree level) and you can't formulate a damn paragraph? You can't formulate a damn sentence with proper structure?

So let's see, you have $20,000 in student loans after two years, which means you might be on track for $40,000 after you complete the final two years. You have a $14,000 plus car loan, and you have over $2,500 in credit card debt. And you make $8,400 a year living in one of the HIGHEST cost of living areas/states in the country paying $900 for rent for what I assume is a studio apartment?

Boy...this is bad....


Quote:
well recently ive came to the conclusion that i dont want to work this much and because i wont be able to keep up wiith my academics and thats why im in college so that i dont have to work ****ty job. i work a demanding job and at night its taking its toll on me.

You make $8,400 a year apparently you currently aren't working "that much". So what if you work at night, some of us work over 60 hours a week.


Quote:
I really just want to focus on school and graduate and forget about all this financial ties theyre really wearing me down.
Too bad, the era of going to school only is over. You are going to have to go to school and work about 2-3 jobs on the side right now. 1-2 of the jobs you work is for INCOME to survive in the high cost of living area that you are right now. The other job is for resume value so you build the experience needed to get an entry level position within your field upon graduation.

Quote:
... Ive been doing research in what to do and it seems like i have a couple of options. My first is voluntary repossesion of the car and see how much i owe afterwards. i will quit my job and focus all my energy on studying and finishing school. but if i dont have job and dont plan on getting one then how will i pay back the difference for the car?.....My other option is to file for bankruptcy and just clear all my debt and finish my academics in college.....my other option is join the navy and just see where that life takes me.
You need to do a NUMBER of things:

1.) If you can't move out of California, you need a roommate or section 8, you need something to take your total rent payment down to $200 - $300 a month TOPS. That's with the room and utilities.

2.) You need to pick up another job or two more jobs to bring in about $2,000 a month right now.

3.) You need to STAY in college, maybe try to take your courses online if they are offered so you can work during the day and do school work at night.

4.) For the car, try to get rid of it as soon as possible. Talk to the dealer, try to sell it, just get RID of it and get from under the payments of it. The $2,500 in credit card debt shouldn't be that much of an issue? Is your APR 22%? I mean that shouldn't be no more than a $25 - $40 minimum payment on that card, right?

Bankruptcy is an option if you CAN'T get rid of the car, as that's one of the ways to get rid of it. The bankruptcy will remain on your credit for a period of 7 years if it's a Chapter 13 or 10 years if it's Chapter 7. Chapter 7 would wipe away the Car and Credit Card debt, it MIGHT wipe away the student debt but it's going to have to be a very dire situation to do so (https://studentaid.ed.gov/repay-loan...n#discharge-in).

There's other ways to get rid of the student loan debt once you graduate without filing bankruptcy though, such as through the Public Service Forgiveness programs.
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Old 11-13-2014, 01:05 AM
 
3 posts, read 9,696 times
Reputation: 20
Thank you for all the advise and your time guys. As for the sentence and paragraph comment, i guess i just didn't think i was going to be critiqued on that. So my plan is to repo the car, pay off the remaining car and credit debt, with a student loan, move in to with a friend and finish school. Im in college so that i dont have to work ****ty jobs. i also work 45+ hours right now and its just adding stress thats why i want to finish school and work towards a career. Im a communications major btw.

just in case i do file for bankruptcy, would the navy really not consider me? even if i score high on the ASVAB? im not dumb or nothing im just obviously really bad at managing money. Also if i did file for bankruptcy is there any advise on how to do that? ill do my own research but if anyone can give me any advise on that i would greatly appreciate it. Thanks again guys. As for my family situation well lets just say my fathers been dead since i was a baby and mom has been in prison pretty much my whole life. so yeah just any advise would be helpful!
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