Debt help

[Hoot]

@PAhntr91
1. You need a budget! youneedabudget.com is what my wife and I use.
2. Do you own or rent your home? If you have home equity, you might think about a cash out refinance to consolidate some of your debt.
3. The snowballing debt is a good strategy, but there are additional strategies that CAN work with snowballing debt, and help you get it done faster. Do you get lots of credit card offers in the mail still? Make a list of every credit card company you can think of, call them and open a new credit card with 0% interest on balance transfers for a year, transfer the max amount from your highest interest credit card. Still follow the minimum payments on everything except your lowest debt and knock that out fast. You might have to cycle through a number of credit cards with balance transfers before you get it whipped, but it works.
4. Get a side job, even 1 4 hour shift a week at a pizza joint delivering pizzas will help, that one shift a week plus tips could pay your tacoma payment and you'd not have to get rid of it.


I don't subscribe to Dave Ramsey's no debt ever, but I do realize that his target audience is in a much more extreme set of circumstances. I agree with him that it is mostly behavioral, but I have discipline, and I am a numbers person, I will do the math on every scenario and choose the best course of action that way. My wife and I both drive nice cars, 2019's hers we paid cash for and mine is 0% interest, so I dont consider it bad debt. Our mortgage is our only other personal debt. That said debt can be useful in other ways, there are a ton of real estate investors who have considerable net worth and cash flow financial independence, and they use debt to get them there. (I'm on my way).

 

[EastCoaster]

Knowing where your money is going is step one. Most people, myself included, underestimate certain categories in their monthly budget. Your food budget (Grocery Store, Eating Out, gas station snacks) will make you cringe when you really itemize it. This year I am going to make 20% less than last year and have more money in the bank. Plug the leaks and watch your cash grow.

 

[ChrisAU]

Making it my new years resolution to stop using CC's. I've gotten a lot better the last couple years about at least making sure I cover new toys by selling others. Before that my strategy was to get what I wanted and hope for the best. It is a weight that hits me every now and then, I hate the feeling.

 

[iashow]

Another vote for Dave Ramsey!

Plus one here too.
Went the envelope route and has worked well so far.

 

[Nomadx2]

I can't add much to the great advise already given.....but does anyone else like "Ol' Blue" more than the new truck or is it just me?

Had a '57 Chevy in high school. Could do most of the work on it myself and even see the engine.

Just bought a new Ford F150 because some idiot after a right turn decided to make a u-turn right back into the intersectioninfront of me at 55 mph. You almost need a fighter pilots training with all the new electronics.

There is great appeal for 'Ol blue.

 

[EastCoaster]

Had a '57 Chevy in high school. Could do most of the work on it myself and even see the engine.

Just bought a new Ford F150 because some idiot after a right turn decided to make a u-turn right back into the intersectioninfront of me at 55 mph. You almost need a fighter pilots training with all the new electronics.

There is great appeal for 'Ol blue.

Man old trucks are like good ole dogs.....you just don't forget them. I bought 94 Toyota pick for $4000 in 04 and drove it for 10 years. Talk about a truck that didn't owe me a thing! Bought a 99 4Runner for $4200 when it died and drive it until last year when it died. Now I'm back on the look out for my next 'Ol Blue........

 

[Justinjs]

There are a lot of good responses on this thread.

Nobody knows your situation better than you.
It might be a good idea to sit down and check each monthly bill, get a good idea of your monthly bills. You can do it, some have said figure out what you don't need and cut them (netflix, gym membership, restaurants, unnecessary trips places, ect..). Your life will be bland and suck, but you won't owe money. You will come out with a better education on how to manage your finances after doing it.

Credit cards are great if you can pay them off. There are a lot of good rewards, just pay it off each month.

As for bankruptcy, I am not in favor. As a small business owner who got the shaft from someone filing bankruptcy, I am against it. I've read some responses about how it's one avenue for hardship and consider your family's way of life. Welp, my family is out that money, while they drove off in a new car and had zero obligations to repay their bill. Also, don't plan on buying a house for a few years with one on your record. Legal or not, someone else is getting shortchanged because of a legal "financial reset"

Nobody can tell you what to do, I think it's great you're reaching out for advice. There is hope, don't give up. Buckle up and be prepared for boring.

Books for inspiration: "Millionaire Nextdoor" and "Rich Dad, Poor Dad". As for price, library is free and audible usually gives you a free book when you sign up for a 30 day free trial.
End of rant...

 

[boom]

just asking the question is a huge start. you can either spend less or make more. ideally, both.

but start somewhere.

 

[william schmaltz]

Good to see the Dave Ramsey responses. Please listen to that suggestion, it changed our lives when we got on board 5 years ago! I would listen to his podcast daily on my commute to keep my mind right. His Financial Peace University class is now online and I would recommend it.

He’s also having his book sale. Send me your address and I’ll have a copy of Total Money Makeover sent to your house. Merry Christmas and God bless.

 

[bwidrick]

100% agree on Dave Ramsey's Financial Peace University program

 

[AKBorn]

I can't add much to the great advise already given.....but does anyone else like "Ol' Blue" more than the new truck or is it just me?

Nope, I'm with you, I like the old truck.

 

[boom]

Nope, I'm with you, I like the old truck.

me too. i dont think i can stomach a new truck now. they have gotten crazy expensive. i am driving my 2006 tacoma until something catastrophic happens.

 

[The Ri Guy]

I'll probably get laughed at but my ol' man was a firm believer that us kids needed to read The Richest Man In Babylon every year at least once from the time we were literate until we were no longer in his house. You can skip the book and get the "lessons" on Wikipedia if you want, they're pretty straightforward but cover the fundamentals.

The Richest Man in Babylon - Wikipedia

en.wikipedia.org

Even while in debt, pay yourself first -- I find it easiest to have my employer take a chunk off the top and directly deposit it into my IRA every month. If you're not investing, there's no excuse not to be, go to Schwab and use their auto-investor tool and you don't even have to think about it if you want to be lazy.

Split half of what's left into Savings and Checking, live out of checking, don't touch savings unless it's an emergency or you saved for a big expense. If you have recurring expenses you can't afford, make a list of all the recurring expenses in order of mandatory/needs, down to optional/wants. Start trimming from the bottom up until you're in the positive and paying things off every month.

Also, cash pay-out landscaping/snow shoveling/car washing/etc. gigs on the weekends can really help. I did them from about 13 y/o until I finished college at 21 and was pulling in an extra $200+ cash most weekends.

CC's are great tools, but you're spending someone else's money and it's a real easy to get your nose stuck in that honey pot. Live below your means.

 

[PAhntr91]

me too. i dont think i can stomach a new truck now. they have gotten crazy expensive. i am driving my 2006 tacoma until something catastrophic happens.

Yeah I cought get he bug young and dumb. Wanted a cool truck then just didn’t have the guidance had a diesel pick up then downsized to the Tacoma. I’ve been wanting out of payment for a while now. My wife kinda talked me into having a newer vehicle. But yeah working on cars all day then coming home and working on your own was something I wasn’t interested in. Now I’m ready. To much money. Any one wanna buy a truck?!

 

[AKBorn]

Man old trucks are like good ole dogs.....you just don't forget them. I bought 94 Toyota pick for $4000 in 04 and drove it for 10 years. Talk about a truck that didn't owe me a thing! Bought a 99 4Runner for $4200 when it died and drive it until last year when it died. Now I'm back on the look out for my next 'Ol Blue........

Yup - I bought a Mazda B4000 4WD pickup in 2001, drove it as my 2nd vehicle (hunting/fishing/fun vehicle) until I left Maryland in June of this year. Gave it to my buddy's son, he is already reworking the interior and plans to drive it for a while! Lots of good memories tied up in that truck.

 

[AKBorn]

I'll probably get laughed at but my ol' man was a firm believer that us kids needed to read The Richest Man In Babylon every year at least once from the time we were literate until we were no longer in his house. You can skip the book and get the "lessons" on Wikipedia if you want, they're pretty straightforward but cover the fundamentals.

The Richest Man in Babylon - Wikipedia

en.wikipedia.org

Even while in debt, pay yourself first -- I find it easiest to have my employer take a chunk off the top and directly deposit it into my IRA every month. If you're not investing, there's no excuse not to be, go to Schwab and use their auto-investor tool and you don't even have to think about it if you want to be lazy.

Split half of what's left into Savings and Checking, live out of checking, don't touch savings unless it's an emergency or you saved for a big expense. If you have recurring expenses you can't afford, make a list of all the recurring expenses in order of mandatory/needs, down to optional/wants. Start trimming from the bottom up until you're in the positive and paying things off every month.

Also, cash pay-out landscaping/snow shoveling/car washing/etc. gigs on the weekends can really help. I did them from about 13 y/o until I finished college at 21 and was pulling in an extra $200+ cash most weekends.

CC's are great tools, but you're spending someone else's money and it's a real easy to get your nose stuck in that honey pot. Live below your means.

Laughed at??? DUDE! I just retired in January at 59, and just got done this week reading that book again - have read it every year for the past 20 or so, have followed many of its principles, and just retired with more than enough money to last me into my 90s.

That's a great little book, easy to read, and its tenets still work in today's world.

Old Arkad, he knew what he was doing...

 

[nrh6.7]

Regarding debt consolidation services...many lenders view debt consolidation the same as bankruptcy. Avoid both if at all possible.

 

[Justinjs]

Regarding debt consolidation services...many lenders view debt consolidation the same as bankruptcy. Avoid both if at all possible.

Interesting, I've not heard that before. Could you elaborate?

 

[beforethehunt]

That is an amazing story. No idea how you were able to stick with it and knock out that amount of dent in so little time but congrats!

Thanks! Baby steps you can become a better husband, father, archer etc with baby steps. God is good!


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[timmymac24]

forgot about Rich Dad Poor Dad that's another good book to read