Personal Finance Advice

[buffalosoldier]

Hello,

I need some advice. I'm drowning in debt and I don't know where to turn. My debts include:

Car loan: $10,000
School: $ 5,000
Personal loan: $11,000
Credit cards: $ 3,000


My income is $2500 per month after taxes. After my minimun payments and rent and food, I'm broke. Help!

[ExtraSlow]

a couple of easy questions to get you started.

- What is the car, and how badly do you need it?
- Is there any more room on the personal loan, and what rate is it at?
- Where do you live?
- is that "school" debt a student loan? If so, have you looked into the forgiveness options on that?

[Twin_Cam_Turbo]

First step, sell your car and buy a cheaper reliable car like a 90s Civic.

[Sugarphreak]

...

[realazy]

Some suggestions and questions for you:

Always pay off credit card debt first as it's usually the highest interest. Is this one card or multiple cards? Some credit cards will offer balance transfers at introductory rates (5-8%) for 6 months or so, that can buy you some cheaper interest rates for a short time.

What are the actual payments for the car loan and personal loan? Details about the term and interest rates would be useful to help you prioritize.

I'm assuming school means tuition and that is a lump sum that is due? I'm not sure how long the school will let you keep a balance or how much interest they charge.

Do you have ways to borrow money at a lower interest rate than the current loans?

[ExtraSlow]

That's his net, not gross, so he's making ~$24 per hour, assuming he works 40 hours a week. But income is not the issue here.

[Modelexis]

Originally posted by ExtraSlow
- What is the car


The answer to this is below his username.

[buffalosoldier]

Its actually much worse than I indicated. First, I owe more on the car than it is worth, so I cannot sell it. Second, the personal loans are not from a bank so they are at ridiculously high interest rates. Finally, I tried to go to a bank to consolidate my debts, but I was denied due to bad credit. Should I file for bankruptcy?

[dirtsniffer]

Hopefully that's not the car.. haha.

Here is what you do OP. But I doubt you will

Get some room mates or move back in with your parents

Cancel your cell phone, cancel you cable, don't eat out, quit drinking, cancel your gym membership, stop buying luxury goods.

Try to get more hours at work; if not possible, get a second job

You put yourself in this mess, it's going to take some personal sacrifices to get out of it.

[Yuubah]

talk to your bank, get a consolidation loan. cut up all your credit cards.

start paying back all your debt.

what did you take in school? get a higher paying job if possible

[dirtsniffer]

probably basket weaving.

jokes aside. maybe OP had some bad circumstances that led to this situation.

[Twin_Cam_Turbo]

$2500 a month after tax and you can't start to pay this off? No wonder you have bad credit.

[Masked Bandit]

You're not going to like this but get a second job and start living the cheap life. Drink beer at home, not at the bar. Brown bag the lunch, not going out. Make coffee at home before you leave the house, not stop at Timmy's. Make debt repayment your #1 priority and you can get it done.

[FraserB]

How much are you paying for rent?

For food?

For utilities?

[E46..sTyLez]

Buy a giant bag of rice...that will reduce your food costs substantially.

Honestly though man, don't file for bankruptcy. You will regret it for the rest of your life.

[Mitsu3000gt]

Move back home, wherever that is. I bet your rent is eating up at least half your net income. Or get some roommates.

Get a ~5% unsecured line of credit, use that to pay off CC debt, and pay 5% instead of 18.5% going forward. Banks hand these out like candy, however I don't know the details of your credit situation.

Why the hell are you driving an Impala SS? Get rid of that ASAP, pick up a $1000 Civic or take transit. Your gas costs are probably more than any of your minimum payments.

Get another job as well?

Some pretty good advice in here already, what you need to do is pretty obvious, and it won't be fun for a while.

Can your parents bail you out? If they are like most people they have access to credit at 3%. Transfer your loan to them, cut up your credit cards, and begin a payment plan?

[buffalosoldier]

Thank you for the good advice and positive words ExtraSlow, realazy, Masked Bandit. I did not appreciate the negative comments from Twin_Cam_Turbo, Sugarphreak, Modelexis

[E46..sTyLez]

Is your car loan actually secured by your car? Cause if you have no lien on the vehicle, you can still sell it even if you owe more than it's worth.

You would just need to keep paying off the balance, which would be much less if you put the proceeds of the sale towards the loan...wish I could offer more advise. Good luck to you

[FraserB]

Originally posted by Mitsu3000gt
Move back home, wherever that is. I bet your rent is eating up at least half your net income. Or get some roommates.

Get a ~5% unsecured line of credit, use that to pay off CC debt, and pay 5% instead of 18.5% going forward. Banks hand these out like candy, however I don't know the details of your credit situation.

Why the hell are you driving an Impala SS? Get rid of that ASAP, pick up a $1000 Civic or take transit. Your gas costs are probably more than any of your minimum payments.



No one is going to give him a LOC after he was turned down for a consolidation loan and he probably can't sell the car since he is underwater on it and doesn't have the cash to pay the balance.

Parking the car with bare minimum insurance would be the best idea. Saves him insurance money and gas, which can be used for a bus pass and debt payments.

[DeleriousZ]

Lower your standard of living, grind through living in a shack eating cold noodles for a few years.

Bankruptcy is a brutal mark on your credit, take every other option you can before doing that.

[sabad66]

What are the rates and terms of each loan?
How much is rent?
What other bills/expenses do you have?
Are the student loans gov't or bank?

Have you tried talking to a credit counselling service? They can help you out with a consolidation / Orderly Payment of Debts loan... looks like it is around 5%. Not the best rate out there, but not too bad at all. Check out:

http://www.moneymentors.ca/
http://www.nomoredebts.org/

[ExtraSlow]

buffalosoldier, keep your chin up, this is totally beatable. Don't focus on the negativity, every post in this thread has some good info for you. The truth is that you are in a negative situation, and bluntness and negativity may look the same at this point.

Comb through this thread, read all the questions, answer all the questions on a piece of paper, and write out carefully what your exact situation is. I know not everyone wants to lay all this out on the internet, but you need to understand your situation really well before you can improve it.

Also, don't assume that anything is impossible at this point, including selling that car.

There are several unanswered questions at this point, start there.
Where do you live, what is the car, what is the "school" amount etc.

[Sugarphreak]

...

[A790]

Originally posted by Masked Bandit
You're not going to like this but get a second job and start living the cheap life. Drink beer at home, not at the bar. Brown bag the lunch, not going out. Make coffee at home before you leave the house, not stop at Timmy's. Make debt repayment your #1 priority and you can get it done.
This right here.

Add $500/mo to your income, dedicated to paying down debts, and in about a year you'll be feeling MUCH better financially. For perspective, this is easily achievable with a serving job. My wife works 2 shifts per week and earns an extra $100 net/shift between her hourly and tips).

[carson blocks]

I've been in your situation and worked my way out. Like MB said, start living the cheap life. Make a budget that puts every penny you can towards debt repayment. I used what I think is called the snowball method. Use your 'extra' money all towards one bill, start with your credit card since it is small and high interest, pay that one bill off as quickly as possible. Now, take your old payments from that, add it to your debt repayment budget and attack the next smallest loan. Keep doing that and every time you pay off a debt your monthly repayment amount gets bigger and the next debt goes down even faster.

You're not in a bad enough spot to consider bankruptcy. If you can handle the scrutiny, maybe post up your monthly budget and get some tough but likely solid feedback on where you can cut expenses to accelerate your debt repayment.

[Darkane]

Something is off.

Buffalo, is your Carloan really 10,000? Impalla SS' fetch more than 10.

At 100,000 MILES, an American model is around 10K. Dealers would pay 8.5 and charge probably 12.

Source: http://www.motortrend.com/cars/2006/chevrolet/impala/ss_sedan/1479/pricing/

Next you need to get rid of Interest. I'd suggest Calling Multiple Credit-card companies and see if they'll do a Zero interest, or .9% Balance transfer for 12 months.

Now careful, this can make or break you. If can give you 12 months of high debt paying power and after it could sink you as it'll rise to 18-21%.

I would do that.

Second SELL the car. It doesn't matter if you LOSE 2 grand at this point. Pick up a 2001 civic, or equivalent for 3grand. Doesn't matter use the car payment to pick off an expensive loan.

Next, we don't know what you do for work and it may not be possible to work more. I'd suggest you get some Labour jobs for Saturdays and possibly sundays.

Landscaping, Demolition, Painting, Helper. Anything. Yeah the work sucks and you might think "you're above that kind of work" But believe me you're not. Nobody is.

Are you in a Relationship? Tell your sig other you're not spending anymore cash. Plain and simple. Forget about vacations for the next 3-5 years too.

AND FINALLY - Don't feel sorry for yourself. Fix it!

[civic_stylez]

As others have said, make the necessary cutbacks and it will fall into place.

Like people who need to loose weight but dont change their diet. You cant expect change without making any changes. It sucks at first but once you see the results, you will feel better and better about it.

First, cash flow analysis. Write down EVERY single expense not matter how small. Even the $2.50 for a drink. Its the little bits that add up to a lot of wasted spending. You then need to take a look at where you can cut back.

Buy the store brand groceries over the name brand. Yes, its not the same but if you have a goal, you need to accept the changes to reach it. Ride a bike or walk when and where you can. Less fuel, more fit = win.

Only buy items on sale and coupon as best you can. It sucks but once again, it adds up.

Sell what you can. Garage sale, kijiji, beyond marketplace. Let go of the things that are owning you to get your life back. Any extra funds you can put towards debt will accumulate.

Second. Try your absolute best to make more than minimum payments on any debts you have. All the minimum payments do is cover interest that is killing you financially.

Lastly, once you get out of debt, DO NOT RUSH BACK INTO IT. I work for a large financial services company and I see it a lot. People use consolidation loans to pay off credit cards and then rack them right back up. Its so easy to do. Do not carry any credit cards with you. If you dont have cash for it. You cant afford it. Only exception being business or if you religiously pay off your balance every month. Once you clear debt, take advantage of RSPs, TFSAs and investing tools to increase your net worth so that you can rely on your credit less for future large purchases.

[buffalosoldier]

Also, to answer some of the other questions, I have taken some steps toward reducing my debt. I have cancelled my cell phone and internet, moved in with a roommate, parked the car and bought a bus pass, and I'm looking for a second job and picking up more hours. The rent is $400 including utilities

[EK69]

MBNA platinum plus offers 0% balance transfer with 1% fee for twelve month. Get however much you can and pay off the highest interest loans u have. Apply thru great Canadian rebates and they give you $60 cash back too.

Who are u banking with?

Need more specific details regarding interest rates of the loans that u have.

Live like a bum and u can do it. Bankruptcy shouldn't be an option for you u make enough money to get thru it.

[bigbadboss101]

Good that you are asking for advice. It's no shame in living a basic life. If public transportation works, that is great. It will give you time to save some $ or pay off some debts. Later on you will get back into the positive. If you do need a vehicle, a $1500 car can be a good car if you choose well. I have a friend who had a car and he was a few thousand $ up side down on his car loan. He finally got rid of the car, at a loss or not.

Hard work will pay off. Stick with be basics and buy what you need, not what your want. Don't need to impress others. In a little while things will build back up and you will be glad that you were discipline with taking steps to get yourself out of a hole.

[J.M.]

Originally posted by buffalosoldier
Also, to answer some of the other questions, I have taken some steps toward reducing my debt. I have cancelled my cell phone and internet, moved in with a roommate, parked the car and bought a bus pass, and I'm looking for a second job and picking up more hours. The rent is $400 including utilities

Sell the car and use the money to pay down (or off) the loan as already mentioned.

[klumsy_tumbler]

Ok, there is TONS of excellent advice on here.

As far as you owing more for your car than it's worth: If you owe $10,000 on it, but can only sell it for $7,000 you'd still come out ahead as you'd technically reduce that debt to $3,000.

Like previously stated, pay off the debt with the highest interest rate first.

Have you tried calling your CC company to negotiate a lower interest rate?

Also, try out the resources on this site:
http://www.gailvazoxlade.com/resources/get_out_of_debt.html

I know it sounds super corny, but I'm a massive fan of that show, and she actually has excellent advice for people that are even worse off than you....

[FraserB]

With only $400 actually needing to go to rent, you should be able to put ~$1,400 towards debt payments once you sell the car. Put your credit and debit card in a drawer at home, just having them on you will make you spend. It's incredibly easy to justify "it's only $5" or "it's only just this once".

Biggest piece of advice I would give is to get rid of the car. You lose the car payment, a chunk of debt, insurance payments and gas payments.

[nickyh]

I wont repeat a lot of the advice given, but sometimes if you call your creditors and tell them you cant pay them and are thinking of bankruptcy, i have heard some companies will accept a set amount per month and waive the interest... Don't accept no on the first try, sometimes you have to get to a supervisor after a few calls to get the deal.
They would rather get their money the easy way than stand in line.

[Darkane]

Originally posted by buffalosoldier
Also, to answer some of the other questions, I have taken some steps toward reducing my debt. I have cancelled my cell phone and internet, moved in with a roommate, parked the car and bought a bus pass, and I'm looking for a second job and picking up more hours. The rent is $400 including utilities

Cancelling a phone is something I'd never do.

If you've cancelled all other communications (IE: Internet) it'll be difficult to communicate for whatever reason.

Anything done on improving credit via haggling with companies, getting new low rate ones, finding casual Labour jobs, or even being Stand by for more hours at work.

I'd re-think it.

I'd rather cancel eating out personally (assuming you do, maybe not).

Also another thing maybe not mentioned, I would NOT cancel my gym membership if you have one. Right not believe it or not might be a perfect time for you to get lean and get into amazing shape.

Mindset Cut spending, reduce debt, cut Calories, and put more weight on the Bar! :whipped:

[pheoxs]

@buffalosoldier

The first thing I suggest is to actually make up a budget.

1) What are the interest rates for the various debts?
2) What is the current minimum monthly payments for each of them?
3) This will take some life style changes in order to dig yourself you, you're genuinely over your head and need to make some changes to actually get yourself out but it is definitely doable.

4) What is your current budget. You make 2500$ a month, I can't see all those loans being more than 1000$ a month for payments (unsure to say because of interest rates/term) but that would leave 1500$ for month.

What is your current rent? Cell phone? Insurance? etc. Post up all the monthly payments you currently have, and roughly how much you spend on food / drinks / going out / gym / etc and we can provide advice to try and help yourself out.

It'll basically come down to this, for the near term you are going to have to sacrifice somethings which will likely be eating out, drinking, partying, etc to cut back your budget as much as possible. Any extra money will be paid onto the highest interest account (likely the credit card). Once it's paid off you'll roll all that payment into the next highest (presumably personal loan) and so on.

It may be hard but realistically you could dig yourself out of this mess in a couple years. That may seem like a long time but this situation won't go away. It's either deal with it now when it is fixable or ignore it and be much worse.

Edit: Left this open for too long and see lots of other people posted oops

[Neil4Speed]

Sell the car, it seems like transit is working okay for you. If you sell it for even 7, its only 3k + accumilated interest on 7 to pay down instead of the full 10 and letting it park and depreciate.

Get a second job, your in the right city where you can get good paying basic jobs if your willing to suffer a bit (night stocking shelves perhaps?)

Lots of good help here, its beatable.

[D. Dub]

Work harder, get another p/t job? Get a job swinging a hammer for $20 an hour? Lotsa farm jobs around that pay more. Get a camp job up north and pay it down really quickly?

[buffalosoldier]

Allot great advice here, thanks guys! But I have been cutting back for a month or so and I haven't seen the extra cash to pay down debt. Its not adding up. I no longer drink or go to bars, I did not renew my gym membership when it expired, and I don't drive my car (don't pay insurance, don't pay for gas). The only other things I need to cut are buying smokes and eating out. I also owe thousands in taxes and traffic/speeding tickets. I owe money to my brother and my mom. I am beginning to feel very hopeless. I will post all my bills here in the next post....

cheers

[buffalosoldier]

Bills
-----

Personal loan: $225
Personal loan: $356
Personal loan: $104
Car payment: $297
School: $407
Rent: $400
TV: $ 35
Food: $200
Credit Cards (min): $100
Cell phone: $ 60
Bus Pass: $ 90
----------------------------------
Total: $2,274

[buffalosoldier]

***Update***

I've cut my phone so it should be:

Bills
-----

Personal loan: $225
Personal loan: $356
Personal loan: $104
Car payment: $297
School: $407
Rent: $400
TV: $ 35
Food: $200
Credit Cards (min): $100
Bus Pass: $ 90
----------------------------------
Total: $2,214

[Neil4Speed]

Originally posted by buffalosoldier
Bills
-----
School: $407


What are you going to school for?

Eating out is one of the worst expenses to have, adds up super quick. Stock up on foods that are cheap per serving, Instant noodles with an Egg and Broccoli is about a dollar a serving and has some nutrition value, (There are good ones out there actually haha), Mac & Cheese, Oatmeal. Buy groceries and be smart about cost per serving. Start looking at the $/kg or $/100g on the tags.

You can get out of this, you need to work more though, bottom line, otherwise it will take you so long to take this down that you will be discouraged and fail. Your gonna sleep deprived, worn down, but will come out of it stronger if you succeed.

[A790]

Originally posted by buffalosoldier
Allot great advice here, thanks guys! But I have been cutting back for a month or so and I haven't seen the extra cash to pay down debt. Its not adding up. I no longer drink or go to bars, I did not renew my gym membership when it expired, and I don't drive my car (don't pay insurance, don't pay for gas). The only other things I need to cut are buying smokes and eating out. I also owe thousands in taxes and traffic/speeding tickets. I owe money to my brother and my mom. I am beginning to feel very hopeless. I will post all my bills here in the next post....

cheers
There is definitely a way out here.

Options include:

1) Get a second job.

2) Move back in with family temporarily to lessen your rental obligations.

3) Do both 1 and 2.

Whatever you do, don't resolve yourself to failure. You can work your way out of this. Short term pain for long-term gain.

[buffalosoldier]

Originally posted by Neil4Speed


What are you going to school for?

Eating out is one of the worst expenses to have, adds up super quick. Stock up on foods that are cheap per serving, Instant noodles with an Egg and Broccoli is about a dollar a serving and has some nutrition value, (There are good ones out there actually haha), Mac & Cheese, Oatmeal. Buy groceries and be smart about cost per serving. Start looking at the $/kg or $/100g on the tags.

You can get out of this, you need to work more though, bottom line, otherwise it will take you so long to take this down that you will be discouraged and fail. Your gonna sleep deprived, worn down, but will come out of it stronger if you succeed.


Thanks for the encouragement!

[A790]

OP, there are resources available that aren't a bank that will help you consolidate your credit.

http://www.moneymentors.ca/

http://www.nomoredebts.org/canada/alberta/calgary/debt-consolidation.html

Both are non-profit. At the very least, they're worth exploring and having a conversation with. Banks and financial institutions aren't the only resources available to you.

[EK69]

if that school payment is repayment for a student loan, try to tell them about ur situation and they can suspend payments for a period of time i think? (at least govt of alberta and canada student loans can... not sure about the stipulations but u can read up on them)

if u cut ur phone then how will prospective 2nd job employers get a hold of u?

check out all the pay as u go options for a cell phone and use ur current phone...if the phone is worth anything, sell it and get a cheap ass phone and use that instead for the time being...

check out the mbna thing
u never know thye might just approve u
their "approval" is pretty relaxed and will basically go on what u tell them and not ask for any documentation from my experience

[Sugarphreak]

...

[Feruk]

Some of you are poor readers... he owes money to family members, not just banks. You can't "consolidate" that.... I'd see if your family would cut you some slack and allow you time to pay off the high interest stuff you might owe first. Never borrow from family.

Sell the car!

[ExtraSlow]

You absoloutley can consolidate loans from family members. Either by asking one of them to loan you enough to pay the others out, or by taking a loan from a bank to pay them all back. Although, depending on the terms with your family, and your relationship with them, it may involve some embarrasing conversations.

Most people would hate to ask their family for a payment holiday, but it may make sense in this case if you can start paying down the principle on your credit cards.

[lasimmon]

Something reeks of trolling in this thread, might just be me though.

[n1zm0]

Originally posted by Darkane
Cancelling a phone is something I'd never do.

:werd: , there are $25 plans with WIND with unlimited canadian calling and texting.

As for food, I know it's probably not normal for you to eat it everynight, but if you're by yourself, a $12 bag of rice goes a long ass way if youre only cooking one cup a night, much healthier than eating instant noodles all the time, frozen veg, whatever meat you can find, add whatever sauce and crap you want, maybe eggs. If you can handle luncheon meat (spam) and/or corned beef (can type) that could work as well.

I could get way farther into cheaper eating but I don't think it's something most people can tolerate for dinner :rofl:

[ExtraSlow]

A pretty tasty and cheap meal is instant noodles (throw away the flavour package), can of thai chili flavoured tuna, and some frozen peas.
Decent flavour, you hit some of your nutrients, fast to prepare, and cheap as fuck.

[supe]

I'd say get a second job, doing anything! It will help give you an extra couple cheques a month and during that time you're not spending money.

Its tough to ask family members for financial favors if you live the hookers and blow lifestyle, but if you're working two jobs it shows the people around you that you're going to work your way out of this.

[rage2]

If you're taking on the suggestion of getting a Credit card with 0% balance transfers for 12 months, make sure you rip up that credit card and not spend on it. Anything you spend is at the nominal CC rates (20% or whatever), and any money you put on the card lowers the 0% debt first. So as long as the balance transfer isn't paid off, anything else that you've added since will continue to eat away at 20%.

[sabad66]

Originally posted by A790
OP, there are resources available that aren't a bank that will help you consolidate your credit.

http://www.moneymentors.ca/

http://www.nomoredebts.org/canada/alberta/calgary/debt-consolidation.html

Both are non-profit. At the very least, they're worth exploring and having a conversation with. Banks and financial institutions aren't the only resources available to you.
This x10000

moneymentors.ca shows a 5% OPD (orderly payment of debts) loan. I don't know specifics on qualifying, but it doesn't hurt to look into. Consolidating all into a 5% loan would be a godsend to you at this point.

[Darkane]

Nobody said it yet, but buffalo you've gotta quit smoking. If you're at a pack/day well shit.

Honest question: are you a convenience store guy? I've know these people, shit I know one at work now. He spends 20-30bucks A DAY at fucking macs. Smokes, 2 energy drinks and some pastry or sausage roll. Everyday! Christ.

[Mitsu3000gt]

Why haven't you sold the car yet? There is several thousand dollars sitting right there and it's depreciating while you aren't even using it. By the time you can use it again it will be worth nothing anyways - get rid of it!

Also $200/mo on food seems really high. I buy a very healthy lunch every single work day, plus groceries at home, and I barely spend $200/mo on food (excluding sit down restaurants)...maybe $220. You could be easily saving another $100/mo there with bag lunches and superstore groceries.

You don't need to be paying for TV, especially if your house has internet included in the rent (not sure if it does?). An unnecessary expense regardless.

Why haven't you stopped smoking a long time ago? That is a super expensive habit.

I know you're looking for advice but a lot of the things you're *still* doing well after acknowledging you're in major financial trouble make me feel less and less sorry for you. You've got to make the necessary changes immediately.

[benyl]

Originally posted by Darkane
Nobody said it yet, but buffalo you've gotta quit smoking. If you're at a pack/day well shit.

Honest question: are you a convenience store guy? I've know these people, shit I know one at work now. He spends 20-30bucks A DAY at fucking macs. Smokes, 2 energy drinks and some pastry or sausage roll. Everyday! Christ.

Ding Ding Ding Ding!

I worked at a convenience store in High School. People would come in a do their grocery shopping. Milk, Eggs, bread, etc. Prices were 3 times as high as the safeway 4 blocks away. They were too lazy to walk across the street and down a couple of blocks.

They were all WTT throwing away their money for "convenience."

[EK69]

Originally posted by rage2
If you're taking on the suggestion of getting a Credit card with 0% balance transfers for 12 months, make sure you rip up that credit card and not spend on it. Anything you spend is at the nominal CC rates (20% or whatever), and any money you put on the card lowers the 0% debt first. So as long as the balance transfer isn't paid off, anything else that you've added since will continue to eat away at 20%.

Yeah forgot about that part doh
ONLY do the balance transfer and don't spend it on anything else at all. Ever.

[buffalosoldier]

Ok yes you are right about smoking and yes I do buy things from the macs every few days (as I've said, I'm just beginning on the new budget and this is the FIRST thing I will correct). I plan on living on mac/cheese and hot dogs and ramen for 1 year as suggested. Also, this is the last pack I buy...As to why I haven't sold the car yet, I cannot transfer the title until the bank is paid in full. So I first need 3-4k to make up the difference in what is owed and what it sells for. The school payment is not a student loan. I've signed up for an 2yr diploma program where I can pay $407 for 24 months (maybe you can provide some feedback on this).

I would love if someone could provide more info on transfering my balances for credit cards or personal loans, even with poor credit. As I said the bank has turned me down. I would also like more info on how to sell a car that I am upside down in. It was suggested by someone here that it is possible.

[buffalosoldier]

As for TV, I pay $35 for FULL tv channels. I get all the channels, including movie adult/sport. Every single one. I get an employee rate since I work at Shaw. I figure its worth it as I have decided that I'm not going to movies/restaurants/bars/clubs/concerts anymore

[A790]

Originally posted by buffalosoldier
Ok yes you are right about smoking and yes I do buy things from the macs every few days (as I've said, I'm just beginning on the new budget and this is the FIRST thing I will correct). I plan on living on mac/cheese and hot dogs and ramen for 1 year as suggested. Also, this is the last pack I buy...As to why I haven't sold the car yet, I cannot transfer the title until the bank is paid in full. So I first need 3-4k to make up the difference in what is owed and what it sells for. The school payment is not a student loan. I've signed up for an 2yr diploma program where I can pay $407 for 24 months (maybe you can provide some feedback on this).

I would love if someone could provide more info on transfering my balances for credit cards or personal loans, even with poor credit. As I said the bank has turned me down. I would also like more info on how to sell a car that I am upside down in. It was suggested by someone here that it is possible.

Buddy. Check out the links I posted earlier and get in touch with them.

They aren't banks.

[sabad66]

For the diploma payment plan thing, have you looked into a gov't student loan to finance it instead?

[Darkane]

Originally posted by buffalosoldier
Ok yes you are right about smoking and yes I do buy things from the macs every few days (as I've said, I'm just beginning on the new budget and this is the FIRST thing I will correct). I plan on living on mac/cheese and hot dogs and ramen for 1 year as suggested. Also, this is the last pack I buy...As to why I haven't sold the car yet, I cannot transfer the title until the bank is paid in full. So I first need 3-4k to make up the difference in what is owed and what it sells for. The school payment is not a student loan. I've signed up for an 2yr diploma program where I can pay $407 for 24 months (maybe you can provide some feedback on this).

I would love if someone could provide more info on transfering my balances for credit cards or personal loans, even with poor credit. As I said the bank has turned me down. I would also like more info on how to sell a car that I am upside down in. It was suggested by someone here that it is possible.

You don't have to eat that shit.

Buy:

Regular ground beef (club pack cheap 4-5/lb)
Big bag of rice or Noodles

Buy the 30 pack carton of eggs
A big ham (5-6$/lb)

Between those 4 items You have around 5-6 DAYS of breakfast and supper.

Buy a couple loafs of bread.

You can still eat well on a budget.

[buffalosoldier]

Originally posted by sabad66
For the diploma payment plan thing, have you looked into a gov't student loan to finance it instead?


Isn't it better to pay for your school, instead of borrowing the money?

[EK69]

Originally posted by buffalosoldier



Isn't it better to pay for your school, instead of borrowing the money?
Yeah but student loans are payment and interest free while it in full time school (3 classes)

[buffalosoldier]

Originally posted by EK69

Yeah but student loans are payment and interest free while it in full time school (3 classes)


Whats would be the advantage of using a student loan rather than paying in installments? I would just be delaying another debt...

[buffalosoldier]

I'm 12 months in and will be fully paid off in another year and will have a diploma and hopefully a better paying job...and wont come out of school with another $11,000 in debt...

[sabad66]

The advantages of deferring the school fees into student loan is that you could use that $407/month to pay off your other higher interest loans. Yes you will have a "new" loan in a year, but at least it was interest free for a whole year.

[EK69]

Originally posted by buffalosoldier



Whats would be the advantage of using a student loan rather than paying in installments? I would just be delaying another debt...

1) delay that interest free 0 payment debt until you are in a better position to pay it off is the biggest advantage. Use the money that you free up to help pay your other debt. 407*8 months = 3256 extra in your pocket.

2) the interest that you do end up paying eventually is a tax credit or deductible (cant remember one or the other) and the payments are not HUGE..plus the interest isnt that high either (just above prime i think? i can't remmeber, google it lol)

3) payments don't start for 6 months AFTER you graduate (interest starts, but they delay the payments for half a year). Another 6 months of no payments on this loan and like i said, the interest you accumulate will help with your taxes.

I don't know for sure since ur message is just text, but it sounds like you are either going into or already may be slightly depressed (by the sounds of your last sentence). If so, don't let it bother you man! You just need a plan and to stick to the plan.

another piece of advice, don't live off junkfood. Do as the other poster said and buy a shitload of meat, rice/noodles/pasta and sauces. That should be better for you physically than eating junk for the next year. Reason: I have no idea where you are at physically now, but almost guaranteed you will be worse off in a year if you go the route you are thinking... which may lead to another problem (weight gain, depression linked to it, etc)

eat healthyish (fat, protein, carbs) and although the meals will be boring, at least they won't fuck your health over.

//edit
just read that you also work for shaw
buddy the benefits for that place seem amazing! Im not well versed in the specifics, but overall they are good as far as i know.

redo the CREDITS structure to give you awesome therapy, massage, acupuncture, etc benefits since you pay nothing out of pocket i think for them if you are at the highest tier and enjoy them! theres others that i can't think of right now but remember they are x amount per year PER place.

drop the ones you dont need to zero (vision? prescription drugs?) and up the ones you want (the paramedical shit i think they call it)

[buffalosoldier]

I can't apply for a student loan because I defaulted on my student loans years ago back in Ontario....*bracing myself for a shitload of negative comments*...

[buffalosoldier]

I'm fucked aren't I?

[buffalosoldier]

Which post suggested I am depressed? Just curious...

[EK69]

Originally posted by buffalosoldier
I'm fucked aren't I?

depends, did u just get fucked? lol :poosie:

just apply and see what happens lol
if you expect a no, u wont be disappointed
if you get a yes, its a good thing!

and don't forget the shaw benefits shit
they also have therapist benefits too ya know
$x per year PER practice

also have that employee counselling stuff if u need it

ur not fucked, like someone else said they were in a worse position than u and still got out of it. It just takes patience and time and a positive outlook on the future.

now go eat your meat and rice and watch some tv (NOT video on demand unless its free lol) and relax.

did u try those credit consolidation places that someone linked? that is your best bet man. One lump sum loan at even 10% annually is better than credit card debt. Not sure about ur family debt though. If I was u i would tell the family that ur kinda stuck financially and would appreciate it if they relaxed on ur payments a bit (they might not agree to stopping them altogether, but maybe reduce the amount paid... and interest if ur paying interest?)

[EK69]

Originally posted by buffalosoldier
Which post suggested I am depressed? Just curious...

i was just reading too much into it maybe lol my bad
it was the ... part that threw me off

but the rest still stands
use the shaw benefits to ur advantage

[BoostinAround]

Cutting expenses will not solve long term problems. It is a poor mindset that will keep you struggling for your whole life. When you feel shitty, you will be less able to make money.

Why not focus on how you can make more money? Do you have 1-2 hours extra per day (Im assuming you work a regular 9-5) that you could do work instead of TV time / relax time whatever?

[ZenOps]

Consuming your way to prosperity is only a US attitude that only works in certain situations (when the government specifically rewards obesity, which is very slowly coming to an end.) Consumption based economies will give out free marijuanna to people (Berkeley, California) just to keep the ball rolling and people consuming.

Productive attitudes like being a Bangladeshi garment factory worker that works 12 hours/day but only makes $38/month also does not always make for success.

Truth be known, I don't think this generation or upcoming generations will ever have it as easy as the $3/barrel oil generation - which will never be seen again.

The "consumption trap economy" is the idea that charging your neighbor $200 to use an oil burning machine to shovel a sidewalk is somehow "productive", or charging $500 to tow a car, etc. Which becomes increasingly burdonsome on the greater whole, not productive as energy prices rise. Those trapped in the consumption circle, usually declare bankruptcy even seven years (if their country allows it)



Surviving on less is not entirely a bad tactic for a Canadian, never has been. Especially if it prevents you from declaring bankruptcy every seven years and placing the financial burden of excessive consumption on the rest of us.

[Feruk]

Originally posted by Darkane
You don't have to eat that shit.

Buy:

Regular ground beef (club pack cheap 4-5/lb)
Big bag of rice or Noodles

Buy the 30 pack carton of eggs
A big ham (5-6$/lb)

Between those 4 items You have around 5-6 DAYS of breakfast and supper.

Buy a couple loafs of bread.

You can still eat well on a budget.
Fruit and vegetables! A lot of them are DIRT CHEAP and should not be neglected in any diet. A lot of what Darkane said above is pretty tasty and smart purchases on a budget, but you don't really need ham, noodles/rice, or bread. But you do absolutely need fruit and veggies. Neglect these, and the health problems will easily outweigh any savings. It's not hard to make balanced meals on a budget and there is nothing more important to long term health (physical and mental) than what you eat.

[supe]

Originally posted by BoostinAround
Cutting expenses will not solve long term problems. It is a poor mindset that will keep you struggling for your whole life. When you feel shitty, you will be less able to make money.

Why not focus on how you can make more money? Do you have 1-2 hours extra per day (Im assuming you work a regular 9-5) that you could do work instead of TV time / relax time whatever?

I 100% back this logic. I find sometimes people spend hours on RFD or running around the city just to save a couple bucks when in that time you could be making real life changing differences.

[FraserB]

Your benefits also probably provide access to financial planning aid or credit counseling. They are confidential and using the service won't hurt your situation at work.

[ZenOps]

Originally posted by supe


I 100% back this logic. I find sometimes people spend hours on RFD or running around the city just to save a couple bucks when in that time you could be making real life changing differences.

Like?

I'll put this generation into perspective. The last time I went in for a job interview, I went all that way just to be rejected by the secretary - I'm pretty sure because I wasn't wearing a tie, and didn't wear my nice shoes.

Now, how much time and money and parking did I waste on that morning going to an interview that probably only had a 1 in 1,000 chance of happening? Should I sue the potential employer for wasting my time, effort and money?

Hope is one thing, reality is another. If you have already declared once - you are probably already on the way to a lifetime of bankruptcies. I do know many people who take multiple bankruptcies as normal (usually US/canadian hybrids BTW) but probably would have simply been happier living within their means.

False hope just means the rest of us have to bail people out when they inevitably fail at reaching for the moon (which IMO, never happened)

Too much of todays society is based on making money by making other people consume things that they cannot afford. Real estate agent is definitely one of them.

Yes, I'm a buzzkill. But 98% would probably be happier just getting something to sustain them with a few beers, and buying a lottery ticket every week. Put too much hope - and they will not be able to afford the beer. And British people will pay you millions if you paint some macaroni, and glue it to cardboard (any work, no matter how seemingly insignificant is worth money)

[supe]

Originally posted by ZenOps


Like?


Reading a book, in this case specifically financial management books or go on the internet and learn a new skill, then get a job doing landscaping, or delivery whatever.

Put your interview into a different perspective. You now gained some interview experience. At the very least you learned to wear a tie. Its only wasted time if you see it that way.

[pheoxs]

Originally posted by supe


I 100% back this logic. I find sometimes people spend hours on RFD or running around the city just to save a couple bucks when in that time you could be making real life changing differences.

The problem is some people need to cut back on their budget because it's genuinely a spending problem. They are already in debt but decide they want a vacation so go and spend a few thousand going off somewhere and just put it on their credit cards. Then they get back and oh I want a bigger TV I should buy one.

There are many people that make 100k+ and are upto their ears in debt because they spend/waste so much money. If he's already this far into debt, defaulted on loans, but still has a job, simply making more money won't be enough to fix his situation. He needs to correct it which is spending too much money in the first place.

Obviously the best is to fix his budget AND increase his income. But even if he doubles his income, I doubt he'd get himself out of debt. Some people are just compulsive spenders and can't seem to plan more than a month in advance. If he reduces his spending and manages to pull himself at least partway out of this mess, maybe he'll realize he doesn't need a ton of shiny objects and that once he clears off his debt his disposable income will have doubled because he's already shelling out half his take home to debt payments.

[buffalosoldier]

I agree 100% with pheoxs. Although me getting a second job is part of the solution, it is first and foremost a spending problem. Eating out, going to clubs every weekend. After I was already in credit card debt by $3000 and had a personal loan and a car payment, the loan clerk advised me to borrow 6k from them at 35% APR for 60 months to 'consolidate' my credit card and personal loans. I then went on vacation for 3 weeks. It was an amazing vacation, but I don't think those were particularly good decisions I made.

[pheoxs]

Originally posted by buffalosoldier
I agree 100% with pheoxs. Although me getting a second job is part of the solution, it is first and foremost a spending problem. Eating out, going to clubs every weekend. After I was already in credit card debt by $3000 and had a personal loan and a car payment, the loan clerk advised me to borrow 6k from them at 35% APR for 60 months to 'consolidate' my credit card and personal loans. I then went on vacation for 3 weeks. It was an amazing vacation, but I don't think those were particularly good decisions I made.

I would suggest going to a credit union, sitting down with them and speaking to them about consolidating your debt. They may be able to help, typically credit unions have more flexibility than banks.

Even if you can't consolidate all of it, if you can get the credit card debt and higher interest loans pushed into one you can try paying the same amount but with a lower rate you'll pay it down faster.

Secondly once you get the credit card debt cleared lock your credit card away and stop using it.

I highly suggest you go to reddit.com/r/personalfinanceCanada and post up there as well as read other peoples posts/stories. Many people have been in the same boat as you, or worse, and pulled themselves out. It is 100% doable without considering bankruptcy and they can give much better advice for your situation.

[buffalosoldier]

Originally posted by pheoxs


I would suggest going to a credit union, sitting down with them and speaking to them about consolidating your debt. They may be able to help, typically credit unions have more flexibility than banks.

Even if you can't consolidate all of it, if you can get the credit card debt and higher interest loans pushed into one you can try paying the same amount but with a lower rate you'll pay it down faster.

Secondly once you get the credit card debt cleared lock your credit card away and stop using it.

I highly suggest you go to reddit.com/r/personalfinanceCanada and post up there as well as read other peoples posts/stories. Many people have been in the same boat as you, or worse, and pulled themselves out. It is 100% doable without considering bankruptcy and they can give much better advice for your situation.


Thanks for the advice. I do also owe the government 1 years worth of taxes and I have 2 or 3 items in collection. IF I get a second job, can I get out of this mess in 1 year? I would be willing to post all my debts and associated interest rates. Also, will credit union reject me if I have poor credit???

[pheoxs]

Originally posted by buffalosoldier



Thanks for the advice. I do also owe the government 1 years worth of taxes and I have 2 or 3 items in collection. IF I get a second job, can I get out of this mess in 1 year? I would be willing to post all my debts and associated interest rates. Also, will credit union reject me if I have poor credit???

hard to say but this will likely be longer than a 1 year endeavor but you could get close within a year or two.

You have roughly 19000 in debt (excluding car, sell it tbh if you don't need it, find a way to cut the loses on it and get away from it), not counting collections and taxes owing. Assuming an average of 20% interest across the board (credit cards / your 35% loan are higher, school loan is lower etc) you would need ~23000$ to pay it all down.

With your income of 28000 take home, it's going to be hard to pay it down within a year but if you got another decent paying job and could do say 20hrs a week extra @ 15$ an hour thats about 800 a month extra. If you could just put that onto the debt that could cut away 9600 of your debt or almost half.

Coupled with gaining traction as the principal goes down it is possible within a year if you find a decently good part time job and keep your spending to near minimum.

The biggest thing is to keep motivation once you make progress. Just keep picturing that one year from now you could have an extra 1500$ a month of spending without having to rack up debt.

[pheoxs]

I would suggest the following, and others can chime in. The first is I would cancel going to school and push it out one year. Yes getting a better job will be good but you realistically can't sustain yourself for a year while going to school. One year delay is much better than bankruptcy and flunking out of school because you can't afford it.

Personal loan: $225
Personal loan: $356
Personal loan: $104
Car payment: $297
Delay by 1 year - School: $407
Rent: $400
TV: $ 35
Food: $200
Credit Cards (min): $100
Bus Pass: $ 90
----------------------------------
Total: $2,214 - 407 = 1807 a month expenses

Step 1: Start finding a part time job. Like others said you should probably just get a cheapo prepaid phone so you can apply to places and have a number.

Step 2: You have roughly 700$ free the first month, put it ALL onto the credit card. Any extra money from the credit card you do likewise. 2-4 months depending on a part time job your credit card is now gone. Lock it away, do not use it. You have 100$ extra a month to pay shit down.

Step 3: I would take the 2-4 months and save up enough to get out of the car loan. Sell it for as much as you can and pay off the rest of the balance to get out of it. This will free up another 300$ in your budget.

Step 4: Attack the personal loans with everything you have. Now depending on the amounts and interest rates if you can post them up will decide which to throw all the money at. Finish one, then go to the next one. If you can get a decent part time job, even ~600$ extra a month, plus the 1100$ spare you now have, you could realistically pay the personal loans off in around 5-6 months. (1700 * 5 = 8500$ plus whatever your minimum payments are taking off the principal will be roughly the 11000)

So you're roughly one year in, yes it will be a hard year but look at your new budget.

Paid - Personal loan: $225
Paid - Personal loan: $356
Paid - Personal loan: $104
Sold / paid - Car payment: $297
Added back in - School: $407
Rent: $400
TV: $ 35
Food: $200
paid - Credit Cards (min): $100
Bus Pass: $ 90
----------------------------------
Total: $1132

1370$ a month left in your account to save up an emergency fund / for trips / for school expenses, etc.

It will be a hard year, definitely. But just keep focusing on the light at the end of the tunnel. Even if this is all overly optimistic, look at how much better your life would look once you get out of the debts. Maybe it takes a bit longer, a second year, it is still worth it to push as hard as you can.

[buffalosoldier]

On selling my upside down vehicle, I found this on Dave Ramsey's website:

"Your best source is to borrow it from the company that has the car loan now. If you have it at a local credit union or a bank, you could go and sit down with someone and say, “I'd rather owe you $4,000 than $17,000 because I'm what's known as broke. Let me sign a note for whatever the car doesn't bring. Whatever the car does bring will be applied to the loan, and you’ll release the title.”

[buffalosoldier]

But then, the next paragraph is not good news for me:

"You can usually negotiate that if you have a small, local community bank or a credit union, because they actually have a brain. If the car loan is with a major national car company, you won’t get this to happen. You will simply have to go borrow the money—the $4,000—from your credit union. Hopefully your credit is good enough to do that. But in order to get the title release, you have to pay the loan off or have permission from the lender that has the lien on the title. That's the big problem. But it's very, very doable. It happens all the time."

[buffalosoldier]

Originally posted by pheoxs
I would suggest the following, and others can chime in. The first is I would cancel going to school and push it out one year. Yes getting a better job will be good but you realistically can't sustain yourself for a year while going to school. One year delay is much better than bankruptcy and flunking out of school because you can't afford it.

Personal loan: $225
Personal loan: $356
Personal loan: $104
Car payment: $297
Delay by 1 year - School: $407
Rent: $400
TV: $ 35
Food: $200
Credit Cards (min): $100
Bus Pass: $ 90
----------------------------------
Total: $2,214 - 407 = 1807 a month expenses

Step 1: Start finding a part time job. Like others said you should probably just get a cheapo prepaid phone so you can apply to places and have a number.

Step 2: You have roughly 700$ free the first month, put it ALL onto the credit card. Any extra money from the credit card you do likewise. 2-4 months depending on a part time job your credit card is now gone. Lock it away, do not use it. You have 100$ extra a month to pay shit down.

Step 3: I would take the 2-4 months and save up enough to get out of the car loan. Sell it for as much as you can and pay off the rest of the balance to get out of it. This will free up another 300$ in your budget.

Step 4: Attack the personal loans with everything you have. Now depending on the amounts and interest rates if you can post them up will decide which to throw all the money at. Finish one, then go to the next one. If you can get a decent part time job, even ~600$ extra a month, plus the 1100$ spare you now have, you could realistically pay the personal loans off in around 5-6 months. (1700 * 5 = 8500$ plus whatever your minimum payments are taking off the principal will be roughly the 11000)

So you're roughly one year in, yes it will be a hard year but look at your new budget.

Paid - Personal loan: $225
Paid - Personal loan: $356
Paid - Personal loan: $104
Sold / paid - Car payment: $297
Added back in - School: $407
Rent: $400
TV: $ 35
Food: $200
paid - Credit Cards (min): $100
Bus Pass: $ 90
----------------------------------
Total: $1132

1370$ a month left in your account to save up an emergency fund / for trips / for school expenses, etc.

It will be a hard year, definitely. But just keep focusing on the light at the end of the tunnel. Even if this is all overly optimistic, look at how much better your life would look once you get out of the debts. Maybe it takes a bit longer, a second year, it is still worth it to push as hard as you can.

In response to this post, first: isn't is suggested to save about $1000 in emergency funds before beginning to pay down debt? Secondly, I am hesitating to delay school, for many reasons. 1) I don't know if the school will allow me the flexibility to delay my payments for 1 year 2) Part of my 1 year plan is to land a better paying job in a year or so and school would need to be completed to accomplish this 3) My family will forgive and/or delay the debts I owe them and be much more understanding if I stay in school 4) I am not getting any younger and I am tired of entry level jobs 5) Right now, studying is the only thing that gives me a sense of accomplishment and purpose (sad, right?); its a set goal, a challenge that I need desperately. Without it, I am just getting up everyday and going to a job that anyone off the street can do. The stimulation for my brain is much welcomed after doing menial work 8 hours a day.

[egmilano]

Dude just hit the rigs and you'll be debt free in a couple of months

If your not into that consolidate your credit like I've read previously here ! Best thing you can do is
Combine and look for a better interest rate. Scotia bank was really helpful with mine, I had less than 10k in consumer debt on 3 cards and got an awesome rate and a little credit card for emergencies. Td who I owed most of the debt to didn't want to help :( , scotia was awesome and helped me with a budget and more advice I could ask for. Switched banks from Td I was so happy with them

[KappaSigma]

Blows me away how people can be so stupid in life when it comes to finances.

[A790]

Originally posted by KappaSigma
Blows me away how people can be so stupid in life when it comes to finances.
Everyone has faults.

[buffalosoldier]

Originally posted by KappaSigma
Blows me away how people can be so stupid in life when it comes to finances.


Fuck you

[ipeefreely]

Originally posted by buffalosoldier
Fuck you
Nice! :love:

I was going to offer some advise about rebuilding your credit after but why bother...

[KappaSigma]

People need to live within their means. My advice sell everything you can. And work more. For example you don't understand about a gov school loan to defer payments interest free. Which afterwards the interest on tuition loans are tax deductible.

[Sugarphreak]

...

[pheoxs]

A emergency is always a good idea but be realistic. Are you going to have the will power to keep say a thousand dollars in your account and remain frugal or will you look at your account and think I'm doing okay and go eat out a few times? If you think you can then yes I'd say build one up but if it's just gonna get spent in a month it's better attacking loans. You're already in an emergency situation with barely being able to sustain yourself.

[dirtsniffer]

Originally posted by KappaSigma
People need to live within their means. My advice sell everything you can. And work more. For example you don't understand about a gov school loan to defer payments interest free. Which afterwards the interest on tuition loans are tax deductible.

Only 25% of interest is tax deductible.