Excuse me for not reading the whole thing, maybe read the first 7 pages and the last one here. Congrats on your whole turning around.
My current situation sits me at a job with about $12k-$13k takehome a year. Ya, I have an assoc. in IT work, but there is never anything open in my city. Can't afford to travel for jobs/interviews, too money strapped. I am on my own but it's not pretty, talk about a have-to-have job. Currently flip/flop some bills each month and car won't pass inspection this year (too much rust/holes), oh boy! Even with a money plan, I still flip/flop bills, ugh!
I'm not trying to be a downer, but whenever I hear about people fixing their debts from overspending on crap they don't need, it's kinda irritating. Try not being able to pay on things you actually need like food/gas/water/electricity every month. I tend to stay positive, but people don't realize how fortunate they are, even when they claim tens of thousands in debt and can at least make min payments...
Hey, man, don't get yourself too far down... even those of us who have debts from things we didn't need have troubles. I make $24k a year as the sole provider for my family of 3. I put my wife through a quick Nail Tech school, and she got licensed, and promptly came down with lupus, bipolar, schitzo, and rheumatoid arthritis -- which has taken three years to diagnose, three years which she couldn't work -- making the license totally useless.
Good luck finding work, and with the car. Sometimes, the hardest part of getting out of debt is simply getting back on your feet. Take care of your four walls first -- shelter including utils and a basic phone, transportation, food, and clothing -- then worry about the rest.
Alas I too seemed to have learned before I leaped - my only long-term unfunded ccard debt being returning from holiday to unemployment; other loans have been intentional (one to get a credit rating; the second for a tax-deductible investment).
And whenever I start (re-) earning money, I keep on the "broke" path until I have a one-pay buffer in the bank which I "never" go below (except when I get that impulsive gotta have thing - but the it's back to buffer-build skimping.
I'm surprised that your minimum payments would have paid off your debt (in 6 years). In Aus. the minimum is merely IMO a watch-dog timer to ensure you are still alive. It DOES NOT eve cover the interest, hence your debt grows. (In fact cumulatively - you pay interest on interest - watch $100 blow into a >$1000 debt! It's the reverse of a house mortgage.)
And as usual, it's the poorer in society that pay. (Else the gullible or less educated.) Those with money use the 25-55 day credit free by paying it off every month. (Hence poor people can't even roll them for cash!)
But I find it amazing that people break the cycle... just one more fixes it (for a while) is a tempting habit.
But to realise that digging creates a bigger hole - and you didn't want an Olympic swimming pool in the first place (it was only an in-ground bath tub you wanted!) - is a revelation cum revolution.
But then to be staring at the impossible debt....! Maybe that's why I was/am so controlled - the thought of it scares the crap out of me.
And I seriously doubt that I could handle the type of debts I have read about.... (Then again, I know I/we usually handle anything - that's what we do. Else don't).
Like any problem, I admire you all for overcoming it.
Personally I like preventing problems, but I'll leave my criminal dislike for our debt enticing society for elsewhere.
Meanwhile - for today anyhow - I am working with a mob that entices with 3 years @ 14% finance. That adds 47% to the original purchase price - way too rich for my book, but quite acceptable if it is a must-have or an investment.
But a personal loan at the same rate drops the total interest paid by a lot (was it 16%? a saving of ~1/3rd the purchase price?).
There is a big difference paying interest on a reducing principle (loan) and paying a flat 14% on the ORIGINAL amount until fully paid off.
The moral - NEVER get finance from the place you are buying off.
The irony - the seller prefers cash (meaning cash or credit card) anyhow. They would rather the cash now (at 10% discount) than wait for payment.... So you could get your own loan & be better off and the seller be happier too.
Indeed, it is a strange world.
Sorry - I digressed. Again.
I guess you didnt read the first post at all. I was making $700/month in college and living on $12,000/year after graduation. I know exactly what it's like to not be able to pay for things you need. That's how I wound up with so much debt. I bought other things I didnt need but guess what? You do, too. I know this because you're using a computer and the internet.
Originally Posted by detlion1643
Your problem is income (and maybe that you're in Detroit but I can't tell). Bad news is it's low, good news is it's easy to double it. Go take that rusty car and get a job delivering pizzas and newspapers. Don't be too proud to take a job washing dishes or cleaning houses. If you're not working 80 hours a week, don't complain about how you're not making any money.