Financial Advice

[nate0123]

This may sound counterintuitive, but I wonder if you could get a second credit card at this time. If you find one with a low interest rate (even promotional for say a year) that's willing to take you, transfer about 1/2 of your balance to that one. Your utilization rate will go down as a result. Devote more of your payment to whichever has the higher interest rate.

Also consider joining a credit union. They have better rates than most banks so when you go to refinance your car you'll get a better rate. Never use dealer financing, unless they have some subsidized 0% financing or some other deal - and even then you may save more by taking a cash back alternative, negotiate like a cash buyer, and use your credit union to finance.

 

[jred321]

that would be nice but given the way the credit market is now i don't know that he would be able to get anything with a remotely decent interest rate given that he only has a 590 credit score and his debt/credit ratio is already awful

 

[jon619]

Don't close your credit cards after you pay them off. That hurts your credit to debt ratio and reduces your score. Pay off everything asap. Start with the highest interest rates first.

 

[sxates]

I've heard from several people that their credit card limits have been lowered without warning. It may have nothing to do with your parent's bankruptcy, lots of CC companies are hurting with the rest of the banking industry and reigning in credit lines.

 

[GoFast]

Im trying lol but every girl i meet is in debt! (fuoops) whoops me too lol

Anyways I just had an idea, tell me if you agree. Call the bank see if they can refinance, pressure them that if they dont their just going to have to come tow the car and lose the money,

Unfortunately things don;t work that way. If you tell them to come get the car then they sell it for fair market value and come after you for the rest. It also shows up on your credit basically as a repo. the only way to avoid paying them the rest is to then file for bankruptcy. Get rid of the credit card debt. stay in on friday nights and pay off your car asap

 

[Kain]

Im not getting rid of the Speed3 , its either lifestyle which is really only car mods because my life consists of work-school-work...

The apple doesn't fall far from the tree.

Anyways I just had an idea, tell me if you agree. Call the bank see if they can refinance, pressure them that if they dont their just going to have to come tow the car and lose the money.

You do realize your "idea" is what the rest of us call a voluntary repossession. What happens in a repo is that the lender takes the item back, sells it at an auction, and sends you a bill for the repo fee and the difference between the selling price and your loan principal. Don't want to pay that bill? No problem, a court can rule in the lender's favor and garnish your wages. Oh, and to top that off, your credit takes a huge hit for defaulting on the loan.

 

[AWDthis]

I mean just tell them their going to have to, no actually let them, I love my MS3 too much to lose it, just to see if their willing to refinance on good will that I have paid them good, maybe they can see past my score which is just a number which is inflicted by dumb credit cards lowering my credit line...right before I finish college too, in 3 to 4 months im going to be in a better spot, but paying 11% interest is too much I agree, plus my CC's are like 16% and 18%, ouchies. Its like a never ending loop, my CC's lower my line, my credit drops, then the other CC's raise my % and lower my line of credit and so on and so forth, gradually my credit has dropped from 740's a year and a half ago to 590 now...sucks.

 

[jred321]

can you explain why you think you can afford your MS3?


edit: please don't misinterpret this. i don't mean this in a facetious/sarcastic way. i think that is a legitimate question that you should be asking yourself and i am curious to see the answer as well.

 

[StealthWyvern]

Dude pay the min balance on all your cards but one. Then take the extra that you would normally pay on those that your now paying the min balance on and put it towards the one card. Continue to do this tell its paid off and work on the next one. ect... ect...ect... its called the snow ball effect.

 

[AWDthis]

can you explain why you think you can afford your MS3?


edit: please don't misinterpret this. i don't mean this in a facetious/sarcastic way. i think that is a legitimate question that you should be asking yourself and i am curious to see the answer as well.

Thats easy to explain, Im making 1/2, maybe a little more, of what I used to be making before before I lost my 2nd job. And I know im not the only one thats tight on money, but I guess you all work as repo men and are making a killing (drunk) , if you tell me seriously that 80% of the users in this forum have not felt some kind pressure from this recession thats BS because everyone is worried about layoffs and losing their job. I COULD keep paying all my debts, thats not what im saying, Im just saying I want to REDUCE them. If I cant, OK , will keep paying what Im paying and let the banks screw me with their high interest rates.

 

[Donas64]

I'm sorry man but I gotta say you cut your losses and sell the speed3. It seems like the sensible thing to do and it should give you some breathing room.

 

[jred321]

Thats easy to explain, Im making 1/2, maybe a little more, of what I used to be making before before I lost my 2nd job. I COULD keep paying all my debts, thats not what im saying, Im just saying I want to REDUCE them. If I cant, OK , will keep paying what Im paying and let the banks screw me with their high interest rates.

to me a debt that you have that screams REDUCE ME is your car. i know if i lost 50% of my income i'd have to realign my priorities and a luxury item like a nice car would be the first thing on the chopping block. even if i owned a nice car outright i'd sell it, buy a cheaper but reliable car, and use the rest either for debts or to set aside money for future bills. reducing your interest rates is in no way reducing your debts btw

 

[AWDthis]

lol idk why you guys think im in such a bad spot. Im not, I could be debt free, only owe the car, housing i got paid for (parents, thank god), food paid for(work at a restaurant so its free + free at home), i dont really an emergency fund, no kids wife not even gf right now, just gotta pay, car, gas, cell phone, and im on my last term so no more college books. But then if something does happen...like say i lost my job or my parents need more help, I wouldnt be able to help them out. So If I could pay less on the car so i can put more towards credit cards, (and pay less interest, damn crooks) and still have those 4g's in cash on my side of the game id be set. Or I can be CC debt free with no money on the side...I guess thats the only two options for me, I was hoping you guys knew some kind of magical way to make something better happen but i guess im stuck

 

[jred321]

your goal should be to get yourself debt free. at such a young age you should not have any debt. paying interest on credit cards is the worst thing to ever do. it's giving away money for free.

 

[AWDthis]

so you think i should just pay off my credit cards instead of having the cash laying around?

 

[jred321]

i don't think you should get rid of all of your cash but credit card debt is an unacceptable debt. you should get it gone quickly.


people are saying what they are saying because they see what you're typing and the logic you're using and seeing that you're starting life out with seemingly the wrong view of finances and starting out on the wrong foot. now is the time to set your path straight so things are easier down the road and to make sure you're prepared for some down time in your income or whatever else life may throw at you that makes it difficult to make ends meet in the future. if you keep rolling credit card debt, have high car payments, make a majority of your income go to other people before you even see a penny, and then say you get disabled you're screwed. if however most of your money you get to choose where to spend it every month and it's not already assigned to your debts it's much easier to cut back if needed

 

[Donas64]

i don't think you should get rid of all of your cash but credit card debt is an unacceptable debt. you should get it gone quickly.


people are saying what they are saying because they see what you're typing and the logic you're using and seeing that you're starting life out with seemingly the wrong view of finances and starting out on the wrong foot. now is the time to set your path straight so things are easier down the road and to make sure you're prepared for some down time in your income or whatever else life may throw at you that makes it difficult to make ends meet in the future. if you keep rolling credit card debt, have high car payments, make a majority of your income go to other people before you even see a penny, and then say you get disabled you're screwed. if however most of your money you get to choose where to spend it every month and it's not already assigned to your debts it's much easier to cut back if needed

+1.

The nice cars will always be there. Set yourself up for success now. Not gunna lie, you'll miss the MS3 if you get rid of it, but you'll be happier in the long run. Pick up a cheap MSP or something

 

[daonly1around]

if you have enough "cash stashed away" under your bed, that can pay off your C.C. THEN PAY THAT THING OFF!!!!

Your money is earning you nothing, and having a CC balance is COSTING you... thats a NO brainier!!!

 

[AWDthis]

You guys are right in everyway, but this is how i see it. I got through college on my own, it was either pay college and not be in debt, id be a poor man with a not so nice car. The way I am now, im a poor man with a nicer car. lol either ways, ill be a poor man id rather have the MS3. And damn would I miss the MS3 ALOT, if I had to pick up a cheap car id have to be a 240sx with an SR20DET on it, i've always wanted that car for some reason?

 

[Nliiitend1]

...and people wonder why we're in an economic crisis...