Debt help

[PAhntr91]

Hello everyone. Looking for some advice here with our financial situation. My wife and I both have two newer cars she leases in paying to own. We each have school loans which are deferred at the moment. And a bunch of credit card debt which were only making the minimum payments on. We don’t really have much left over after everything is paid to pay extra on CC. we have be thinking of doing some debt consolidating or somethjng of that nature. I’m not sure if I should downgrade in vehicles and get something cheaper or with no payment at all I’m sure it’s possible with having some equity in my Tacoma. We are just ready to get out of this debt and be free of it. Any thoughts????

 

[EastMT]

My recommendation is listen to Dave Ramsey podcast, consider his plan. It’s pretty brutal, but after following it we’ve worked our way debt free at 43 years old. It’s a commitment, selling stuff with payments, no credit cards etc. He usually says buy a beater, drive it till you can afford a nice car, because you can’t afford it if it’s got payments.

 

[wseidel]

Check out Dave Ramsey on-line. He has developed debt management programs for people who have decided they want to be out of debt. His ideas have helped many people. Congratulations on taking the first step towards managing your finances.

 

[eightyeight mag]

Dave Ramsey!

 

[JGross1]

Another vote for Dave Ramsey!

 

[ewade07]

Credit card debts the worst, that damn interest will get ya big time. Drop the nice cars. What's the purpose of a car? To get you from A to B. As long as it does that who cares what it looks like. Make sure it runs well and you're set. I own two vehicles, a 2002 Tundra which has been paid off for close to 3 years and a 1998 Subaru Outback that I bought for 1000$ that I use as my daily driver.

Not trying to pass judgment, but if you and your wife both have lots of credit card debt you need to really reel in your spending. I get it, I was there once. If it goes on the credit card you don't have to worry about it and see your bank account dwindle. Think about necessity, need vs. want. There are ALOT of things one can live without in this world, but many buy because they want it.

I'm not sure how much debt you two are in but there is light at the end of the tunnel. Like someone said previously, its not going to be easy, but getting out of debt is one of the greatest things to be. Before i bought my house, i was debt free at age 30.

 

[PAhntr91]

Thanks guys already been thinking at getting out of car payments so we have money to pay more on the debt. Does Dave recommend consolidating CC debt?

 

[Rolen]

Dave Ramsey and commit to it. Me and my wife are now debt free and own everything we have, except the house.

 

[PNWGATOR]

No, Dave Ramsey does not recommend debt consolidation. He recommends the debt snowball.

Read The Total Money Makeover by Dave Ramsey and enroll in Financial Peace University ASAP!

Follow his teachings, change your habits and grind your way out of the debt you’re in as fast as possible.

 

[gustafsj]

Another vote for Dave Ramsey... baby steps. Not sure if it works to paste links in here.

Dave Ramsey's 7 Baby Steps

Beat debt, save money and plan for the future!

www.daveramsey.com

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[JGross1]

Thanks guys already been thinking at getting out of car payments so we have money to pay more on the debt. Does Dave recommend consolidating CC debt?

He recommends prioritizing your debt based on the amount you owe on each one. Create a monthly budget and stick to it. Take every spare penny you have and put it towards the debt starting with the smallest amount owed. If you stick to your budget you'll be amazed at how the debt disappears. Look up his 7 baby steps and follow them

 

[TXCO]

Your credit card interest costs is probably the most expensive debt (20% +). Cut your car costs and just have something reliable and pay down the CC as fast as you. Cut your spending as much as you can. You have chance to make good headway while student loans are deferred.

Dave Ramsey has helped a lot of people. A different twist is reading Mr Money Mustache who focuses on lifestyle adjustments. Also the book I Will Teach you to be Rich by Remit is good too.

 

[browning2480]

Thanks guys already been thinking at getting out of car payments so we have money to pay more on the debt. Does Dave recommend consolidating CC debt?

No Dave doesn’t recommend consolidating debt. Take all your debts except your mortgage and list them smallest to largest. Start attacking the smallest first while paying minimum on everything else.

He might even tell you to keep the cars, just depends on how much you owe on them and how much your income is.

Read the Baby Steps someone else listed above and fight like crazy to get out and never go back. Raise your kids the same way.

 

[Dos Perros]

I think you have received some good advice above. Get aggressive on paying down the debt. Change your lifestyle.

But one thing I haven't seen mentioned: if you make more money, you can pay down your debts faster, and get to retirement faster. Work your ass off at work, seek out mentors (bonus if those mentors are people that can hire/promote you), get organized and be driven and someone other people want to work with.

 

[Antarctica]

Dave Ramsey.

In general, other than possibly a mortgage, you should never have other loans/payments. Either pay off or sell the cars to get something cheaper that's paid for. If you want to save even more, drive a beater and carry no collision insurance. Do everything you can to pay off the credit cards. When those are done, target the student loans.

And try to make more money.

And if you're serious, no, you won't be doing any hunting trips until all that is done. So learn your local public land.

If your wife sticks with you though the lifestyle reduction, you've found the right woman.

 

[cusecat04]

...... And a bunch of credit card debt which were only making the minimum payments on. We don’t really have much left over after everything is paid to pay extra on CC. we have be thinking of doing some debt consolidating or somethjng of that nature......

Start with a budget, I like excel but even a legal pad is enough to see where the money is going. It can be eye opening to see what you are paying for every month when its all listed together.

 

[beforethehunt]

I recommend you go all in on Dave Ramsey’s plan. It’s helped millions of people like you. It’s a marathon not a sprint
Here’s my story

 

[beforethehunt]

Join a financial peace class


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[Nickofthewoods]

I'll second ridding yourselves of car payments and the required full coverage insurance that comes with them. Pay cash for some Craigslist gems and get liability only. I'm just guessing but that would probably free up $500.00 or so just on monthly expenses for the Tacoma? Get rid of it and put that toward the CC's and aggressively pay them down.

I don't know who Dave Ramsey is but if you and your wife have a lot of CC debt, like more than 10k I would look into a loan from a Credit Union or something and pay all of them off at once and have a much lower monthly interest rate than on those CC's that gouge you every month. Then aggressively pay off that one loan.

Just remember, the Credit Card companies love it when people max them out and make the minimum payments, and hate the people that pay them off in full every month.

 

[Dos Perros]

One time I was coues deer hunting in Arizona by myself and spent a lot of time in the vehicle driving around. There was a Ramsey program on the radio. I had long been a critic of his "no credit cards, pay cash" method, because if you pay off the card every month, what's the big deal? But then it hit me:

You spend less if you carry cash because you have to actually count out the money before you hand it to a cashier. It's more psychologically painful to make bigger purchases compared to a card, where a swipe is a swipe is a swipe.

Can't argue with Ramsey's results. I know several people who have done his plan and it changed their lives.