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Posts tagged with: personal loan

Possible Car Sale – Oh, The Stress!

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I have a viable offer for the van! The problem is the loan amount and the sale amount…well, they are farther apart than I’d hoped, but I’m confident this could be the best offer I will get. So right now I’m working with my banks to see if I can get a lower interest personal loan to pay the difference between the sale price and the loan.

Selling this van would immediately cut $1000 out of my monthly obligations…which in my mind more than makes up for the couple of hundred dollars a small personal loan would cost per month.

I don’t know if I’m going to be able to pull it off, if the buyers will wait to see if I can…but the opportunity has filled me with hope, that I really, really could make some significant progress to being debt free before the end of this year!

Just thought I would drop in and share this exciting possibility.

Updated: I received word from the bank this morning that they will give me a personal loan to cover the negative equity in the van. Wahoo! I’ve contacted the buyer with the news and am waiting to hear back. Please pray…the sell of this vehicle would be a GIANT leap towards my debt payoff.


Mandi’s Debt Introduction

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Note: This is the introduction written by Mandi about her debt to be the next BAD blogger. Take the time to comment or ask questions about her debt journey. This is part of the process to find a new BAD blogger which you can find out more about here

My name is Mandi, and I am debt! It is a secret from everyone, because I appear to be very in control most of the time. I grew up with very financially responsible parents, and I did not have debt of my own until I got married. My husband had about $20,000 in debt when we married, and we paid this all off in a few years. We then saved $20,000 before having children so that I could stay home. I stayed home until my son was 3, and then I went back to work.

Unfortunately, while I wasn’t working, we didn’t cut back too much and burned through all the savings and racked up incredible debt. Our current debt includes credit cards with balances of $3,000, $11,000, and $6,000. We also have a home equity loan of $31,000 and a loan from my parents for $3500. We have recently been able to pay off balances on other cards, so this is not our starting point. Our take-home pay is $6100 per month.

We also bought an older home while I wasn’t working. Our mortgage is inexpensive, but since it is older, we had many unexpected repairs (new HVAC and new ductwork, anyone?), and there are, of course, cosmetic changes that I would really like to make. Making our home inviting is very important to me, and I struggle with paying off debt versus making lasting changes in our home. This and travelling are our two top issues with saving versus spending. I don’t mean extravagant trips, either. Even a weekend at a nearby beach is no drop in the bucket for a family of 4.

In addition to paying off all that debt, I also want to replace the savings we’ve spent and increase our savings in other areas like 401(k)s, etc. I struggle with how to prioritize each item. I would really benefit from the advice that readers here provide, and I need people to call me on my “justified” expenses like new paint, light fixture, furnishings, etc.

I think it would be beneficial to post how much money has been spent each week (and if it was me or my husband). When I even THINK of doing that, I cringe at the items I would put down and not look at twice because I would have to justify the expense to everyone. This includes items at the grocery store. In some areas I feel we are very frugal, but objectively, I know that we probably aren’t. I only feel that way because I am comparing myself to others in my social circle.

I showed my husband the blog, and he is interested, especially in me contributing, but I don’t know how that translates to his involvement. He is very supportive, and he mostly listens when I express concerns about debt, but he does not want to get granular. In fact, he does not even know how to check any of our balances, including our checking account! He does not spend a lot of money on “things,” though, so it might not be as challenging as I think it could be.

I would love the opportunity to share more, answer questions, and start contributing to the site, so thank you for reading!


When Nothing Goes Right, Go Left – Jim’s Introduction

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Note: This is the introduction the Jim put together to introduce himself to all of you in hopes of becoming the next blogger for BAD. If you have any questions or observations for him, please leave a comment. You can find more information about this blogging position here

Hey everybody, my name is Jim, a 32 year self-employed husband and father of two. I have been on the road to get out of debt since last year. And to be honest I thought I was doing pretty well, paid off three credit cards, all my student loans, and a personal loan. This all done on about $30,000 combined income for my wife and I.

My greatest accomplishment was paying off the pain in the butt personal loan at the end of the year It just so happens to be also one of my biggest consumer mistakes I have ever made. My wife and I were just moving in together, when we got this loan for all of our furnishings. They were marked at great prices, and even had a 18 months same as cash plan. Well turns out that they didn’t make the monthly payments to equal a complete payoff in 18 months. And when month 18 came around, we got hit with all the incurred interest. Needless to say a $5,000 loan turned into $9,000.

Have you ever heard the Booker T. Jones quote, “If it wasn’t for bad luck, I wouldn’t have any luck at all,” well story of my family’s life. We don’t dwell on it, but almost all the time, things just don’t work out for us. Don’t get me wrong, there are periods of time where everything is going pretty good, but then we are hit with something we didn’t expect, or something that was totally out of our grips to control.

We have no savings, no emergency fund, no college savings, and very little for retirement funds and live month to month. At the end of last year, I had written up a game plan and that was to really snowball our debt and start building our credit scores back up to a respectful number. But as stated in the last paragraph, our luck just wouldn’t let this happen for the last few months and we ended up taking more debt on.

Let me start from the beginning of this year… First off I was totally unprepared for the winter that we have been having. We have been in the house that we rent, since End of September 2011. Before that we rented apartments. With that said, we were going through roughly 100-150 gallons of oil per month, the last two years. Well this winter, we have been going through 250-300 gallons (I honestly don.’t even know how I came up with this money). and we ran out of oil on two occasions. On both occasions we had oil coming the next day. Last week was one of those occasions, and well… Our pipes froze overnight and the radiator in our kitchen burst. Talk about an added expense, with that and the next thing I talk about about… there went our income tax return.

In the beginning of last month, my wife and I were in a car accident where we hit some black ice and went into a guard rail. The vehicle that we were driving (’04 Chevy Malibu) was deemed a total loss. I only had $1400 left to pay on it. Now I hated this car, I put just about the same amount of money fixing this beast as I did financing it. I was hoping to get another year at least out of it, then trade it in for something better. If everything would have worked out, it would have been paid off in April if not sooner, and we could have started saving for one. Well after everything was said and done, we got $2400 for the payout.

I already knew that both the wife and I had pretty bad credit (I will tell you about it in another post, if I am chosen) and I was going to start working on this, this year. As this was our only vehicle, we had to find another one. The wife and I had each a stipulation when we were out buying a vehicle. Her’s being that if I wanted another child that we get a bigger vehicle. Mine was that I wanted one that had low mileage so I would be able to pin point many things that could be wrong with it, as I do most of the car maintenance on my own. We ended up getting a ’13 Dodge Grand Caravan.

I am pleased to say that we love the van, what I can also say is that I hate the financing that we got. I hope that I can get it refinanced, if there is such a thing. But we do have sub-prime credit… and might have to take the big hit if we have to.

Well I know all of you readers are number people and want to see the numbers so here you are. The first table you might not be interested since it has to deal with my utilities and everything, but it is something I track so I am still going to put it here.

Rent Electric Oil Verizon Auto/Renter Ins.
January 2014 $600 $105.44 $1019.79 $76.35 $369.28
February 2014 $600 $84.46 $388.90 $76.59 $134.52
March 2014 $600 $89.10 $ $76.54 $118.48

And here is my total debt numbers as of the end of last month… Please note that there are two car amounts, that is because we still have a balance until the bank gets the check from the insurance company.

Store Card #1: $203.18 (24.99% APR)
Store Card #2: $532.55 (22.9% APR)
Credit Card #1: $3279.37 (13.99% APR)
Personal Loan: $1725.63 (15.5% APR)
Car Loan #1: $1435.92 (10.19% APR)
Car Loan #2: $17914.69 (12.99% APR)
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Total: $25,091.34

So there you have it… As of next month I will be starting from scratch, and am willing to take any and all suggestions into advisement if I am chosen. Not only will I talk about my journey to get out of debt, but I am also willing to talk about how I am trying to improve my credit and everything that is dealing with personal finance. Before heading out I also wanted to leave you with a picture of me and my family.

Jim