Buried Beyond Belief! (credit rating, pay down, foreclosure, financial)

[HappyTexan]

Originally Posted by NYSinger

Try calling the Suze Orman Show. She might be able to help.

Stop living a lie to impress others. You have no idea how fortunate you are to be making $7000 a month. But you chose to be ungrateful. It's time to change things around.

You have to admit..the OP came here and admitted they need to get their life back in shape. That's a big first step..no need to bash him/her as they came here for advice.

[plaidmom]

Originally Posted by HappyTexan

You have to admit..the OP came here and admitted they need to get their life back in shape. That's a big first step..no need to bash him/her as they came here for advice.

I was thinking the same thing....

Admitting you have a problem is often the first step toward solving that problem.

czubmeister, youv'e been given some good advice here, especially from Karla on the first page. You might want to consider meeting w/ a BK atty just to discuss your options (especially considering you own a biz: not sure how you have that set up?).

Also check out the how-to-cut-back thread:

http://www.city-data.com/forum/perso...-cut-back.html

for some tips on saving on daily living expenses.

[totallyfrazzled]

I second the poster who suggested Suze Orman. Even if you don't actually try to get on her show, DEFINITELY go to her website (Suze Orman internationally acclaimed personal finance expert : The Suze Orman Show : Will & Trust Kit : FICO Kit : Insurance Kit : Women & Money) because there are tons of resources there for people in exactly your predicament. I believe she also has articles there that describe in detail the difference between the 'good' and 'bad' kinds of credit-card/debt-relief companies that are out there.

Several months ago a friend of mine was raving about how much she loves the Suze Orman Show and so out of curiousity I tuned in one Saturday night. Now of course I'm hooked! This woman has a ton of good common sense and straight talk to offer.

There's a great Household Budget tool (an Excel sheet) on her website also. Everybody, even people who aren't in financial straits, should download it and plug in their numbers just to see in black and white what they're actually doing income/outgo-wise. I did it two months ago and was appalled at our ratio.... I thought we were doing okay (not great but acceptable) until I actually SAW everything broken down month by month. It will also tell you where your areas of greatest expenditures are. You may THINK you know... but once you do the Excel thing, you'll probably be surprised!

[Kathleen1971]

Why all the beating up of the OP? He admitted he screwed up and is looking to change his way of living. Hate to tell you but there are a lot of Americans in that position. It makes them irresponsible but not subhuman. I see on many threads people either beating up on or laughing/mocking those in trouble. Nice. It takes balls to admit to strangers how much you have screwed up and ask for advise. No need to kick someone when they are down.


And btw- I find it hard to believe that all the folks I have seen across forums acting this way have perfect credit and assets themselves. As a mortgage processor I have seen thousands of credit reports and loan apps with bank asset information over the years and I hate to be the one to tell you but the vast majority have one issue or another. Sometimes even both. Me thinks some posters are in the same exact boat the OP is in. Isn't the old saying that which we hate most about others is what we hate most in ourselves? I think more of us live to check to check and day to day than we care to admit. It's just easier to rag on others in the same situation. And even if you are perfect, you may one day not be. Anything can happen and does.

[goodbyehollywood]

You don't need Suze Orman. Living within your means is far from rocket science. It just takes discipline.

Know where every single penny goes. Track it on a spreadsheet. If you don't have to spend it, don't.

Learn the difference between a need and a want. If it's optional, cut it out. If you have to have it for work, downgrade to the lowest possible level. Go back to dial up Internet and a prepaid cell phone. Or bundle services.

Cut your utilities way down. Wear sweaters. Don't use the gas fireplace. Conserve water. You can save a lot simply by trying.

Sell the house. Work it out with your bank, get an aggressive agent and unload it. It's an albatross. You could rent a nice place for less and use the savings to pay down credit cards.

Drive cheaper cars or carpool.

Well, you get the idea. You don't need a bankruptcy; you need a plan.

Lots of people live in L.A. on far less than you make. You can, too. It's not fun and it's not easy, but where you are now isn't fun or easy, either. Good luck!

[kwalk65]

Originally Posted by czubmeister

Doesn't help with Christmas right around the corner. Pretty tough to tell the wife right now, "Sorry, you can't buy gifts for anybody this christmas.. we're broke" But I guess that's the reality.

The BEST THING you can tell yourself, your children, and your wife is that "you CAN'T afford it".

[Asheville Native]

Several times you have not known what actual payments were. Sounds like a big clue to me, you don't have a budget, or a plan.

What is your monthly interest payment (charges) on your credit cards. I bet that alone is burying you deeper every month.

Your daughter spent her college money on a truck? And another American family tradition is carried forward by the next generation. but since that was 'her' choice, then you pay her tuition? And the lesson she learned from this is exactly what?

[darstar]

So many people think BK is the way to go , and , it used to be. Today , its not the case, for most people. Forget the Credit cards , they are non secured loans , juice loans. The credit companies have already made enough from you. Like some others here have said , the credit , restructure plans , are a scam. After , about 3 years , the CC companies will write off the debt ,.as noncollectable.
Cash is king , for every one these days.Get as much as you can , and , hide it , you will need it. What you can't get away from is the IRS. Since you are in your own business , you may owe , I don't know. That could be your biggest problem ,.or not.
Separate your business from your personal as much as you can. Incorporate the business . Set up a separate bank account. Do not use a savings and loan , or a credit union. Bank somewhere away from your personal accounts. Your biggest asset is your income from the business , Gard it anyway you can , and , have a separate phone for business , not in your name, but in the name of the corporation. Do not mingle business with personal finances.
Walk from the house, when the time is right , be prepared for lots of collection calls. Use a cell phone , get rid of your house phone asap.. STOP USING THE CREDIT CARDS , and , stop paying on them.
Move out of state , if you can , or , to another area , that is more affordable.
If the Feds you owe , a lot , they will settle for cash , for a fraction. One more reason to have cash , that no one knows about.
Ebay is a great way to sell stuff , for cash , check it out. Many folks have turned their Ebay sales into another business , on the side , and , since , you work independently , you can devote as much time to it as you want. ........all this advice , comes at a cost , I always recommend you consult with legal council , but , some of the things I have said , a lawyer will not respond too...depends. You are the best manager of your own problems , be creative , it can be a challenge , run it like a business , and , you will survive.

[NYSinger]

Originally Posted by HappyTexan

You have to admit..the OP came here and admitted they need to get their life back in shape. That's a big first step..no need to bash him/her as they came here for advice.

It IS a big step. I'm not bashing him, but he has to realize what he's done to himself and his family. He wants to earn $10 000 a month to maintain his lifestyle, but he should pay off his debts and decrease his lifestyle. I used some tough love, I did not insult him.

To the OP, I wish you the best of luck! It will take time, but you can do this!

[Sgoldie]

Here's a sample budget (copy it down) -

Income $7,000 mo: Use half to live on, and half to pay down credit card (est payoff time 3 1/2 yrs w/o addl interest - not sure if the card co's will agree)

$2,000 Rent: means moving elsewhere (rent a Uhaul), ok since you work from home anyway
580 Health Ins: too risky to lose, mail it in every month (Cut up all credit cards)
100 Auto Ins: get down to one vehicle, kids pay their own, cell phone, college too.
200 Food: money saved by scratch cooking, shopping food sales, and one less car = wife can
stay home to maintain budget if she isn't going to make more than $12,000 yr
20 Ip phone: only one phone for personal/business
200 Utilities: water/electric in cheaper place
100 Gas:
51 800#: justified business expense
100 cable/isp

This leaves $150 a month for misc unforseen, birthday presents, repairs, etal. Many people live on much less. You can get out of trouble if strictly adhered to and it won't take forever but everyone has to be onboard with the plan.