Author Topic: Reader Case Study - $231k in debt and need help!  (Read 60023 times)

PJ

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Re: Reader Case Study - $231k in debt and need help!
« Reply #200 on: March 08, 2017, 11:25:07 PM »
I'm checking in too, dashh.  Haven't seen you post recently.  Hope you'll check back in with us.  Not only are we rooting for you, we really do understand how hard it can be to make all the changes necessary.  Stick it out for the long run, and we'll be with you all the way!
'To be human you must bear witness to justice. Justice is what love looks like in public." 
Dr. Cornel West

ysette9

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Re: Reader Case Study - $231k in debt and need help!
« Reply #201 on: March 09, 2017, 01:54:45 PM »
Those are great steps. Come back when the truck is listed for sale for another round of virtual high fives. :)
"It'll be great!"

Vindicated

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Re: Reader Case Study - $231k in debt and need help!
« Reply #202 on: March 09, 2017, 01:59:34 PM »
Good steps you're taking!

I look forward to seeing the update on your debt totals after you sell the truck, get the bonus, and pay things off this month!
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Novik

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Re: Reader Case Study - $231k in debt and need help!
« Reply #203 on: March 09, 2017, 02:05:36 PM »
Good steps you're taking!

I look forward to seeing the update on your debt totals after you sell the truck, get the bonus, and pay things off this month!

Seconding this - can't wait to see an updated list with new totals, and the ones you've paid off crossed out. 8/20 debts would be amazing progress, but please for all our mental health, pay off "Loan #1   $4,676   35.90%   $177".  The interest rate is abysmal, and if you include that I think you could still pay off ~6 loans (loan 1+3, CC 1,2,9 and frontier loan).
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Laura33

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Re: Reader Case Study - $231k in debt and need help!
« Reply #204 on: March 09, 2017, 03:09:00 PM »
Could you make it 9 debts if you return the TV?  :-)

Come on, you know someone has to say it -- it's out of love.  You are really making great strides, and I am in actuality very proud of you; you have done things that involve significant blows to the ego and self-image, and yet you're still here coming back for more and executing the plan like a champ.  Yay you!  *But*:  That avoidance of hard conversations is something that will really hold you back -- I have a feeling that habit/preference played a significant role in how you got into this position in the first place, and so that is one of the behavioral changes you will need to make to maintain long-term success. 

[Yes, I am again being presumptuous, because I don't know you or what's in your head.  But I know that I myself absolutely dread hard conversations and do anything to avoid them, as if the issues will magically go away on their own if I avoid them long enough.  Hint:  they don't.  I had to learn that things are always better when they are faced head on and early, before they have a chance to spiral out of control.  I am trying here to help you move about 20 years ahead of me on that particular learning curve].

Tl;dr:  Return the TV.  Not because you need the $400 (although of course you do).  Because you need to learn how to tell your wife you need to return the TV.
Laugh while you can, monkey-boy

freya

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Re: Reader Case Study - $231k in debt and need help!
« Reply #205 on: March 09, 2017, 04:29:10 PM »
This is an outstanding and inspiring thread.  Dashh, I hope you keep posting regular progress reports!

I've noticed a lot of phrases like "in the next month or so", "planning to", "considering" etc.  I know you're doing a great job psyching yourself up to take all the great advice you've been getting, but I think it would do you a world of good to Do Something Right Now.

So how about this.  Get online right nowand pay off your smallest loan, using cash from savings.  Then repost a list of the debts with that one crossed out, or moved to a separate "Paid Off" list.  Hopefully, that will help motivate you to work on the truck sale this weekend.   The next time any income (paycheck, sale) comes in, calculate how much of it can go towards debt and then immediately pay off one of those high interest credit cards (like that 35% job) with whatever is left over after making minimum payments.  Then proudly post your new list!

I'd keep the rest of your savings in the meantime, for situations like that $900 car repair.  It's the slimmest of emergency funds.  After selling the truck, go through your house & closets with a fine tooth comb and get rid of anything you aren't using.  Donate it to goodwill and claim the tax deduction, or sell it on Craigslist or Amazon.  This will accomplish three things:  1) you'll pick up some extra cash which you can then put toward debt payments, 2) it will help prepare you to move, and 3) you'll feel like you've lost a huge weight of stuff purchased on those credit cards that's been weighing you down.

Also for a perspective on giving up the big house in favor of renting close to work:  I convinced my sister to do something similar.  She put her big, beautiful home on Airbnb and the family moved to a small rental house within walking distance of her kids' school and a nice downtown.  She had been spending $1000/month on gas shuttling kids around and driving 45 minutes to the grocery.  She almost cried tears of joy telling me how happy she is with the new living situation - and on top of it, the Airbnb income is more than enough to cover the rent.  She just had to buy a lockbox for key exchanges and a lock on the door to the room where they piled all the belongings they left in the house, and arrange for cleaning services.    You might want to do something similar, especially if your home sale will cost you $$ out of pocket given how little equity you have.  And, you'd be able to move as soon as you like with a lot less hassle, and it won't be an irreversible decision.
« Last Edit: March 09, 2017, 04:35:31 PM by freya »

PJ

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Re: Reader Case Study - $231k in debt and need help!
« Reply #206 on: March 09, 2017, 07:50:33 PM »
Man, I am glad to see your update!

Sure, I wish the TV had been returned (and please, read Laura33's post again, and really ponder it!)  But trimming those monthly bills is good.  And having an actionable plan to get the truck listed, with a timeline set, is also good.  Developing a plan for how you'll use your extra money to pay down debt, also good. 

Please do come back real soon, and give us the updates on taking the steps.  Like someone said, we'll be here for high fives and to continue cheering you on!
'To be human you must bear witness to justice. Justice is what love looks like in public." 
Dr. Cornel West

Paul der Krake

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Re: Reader Case Study - $231k in debt and need help!
« Reply #207 on: March 09, 2017, 08:13:40 PM »
This is great. Keep at it and you will be out of the hole in 2-4 years.

ToTheMoon

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Re: Reader Case Study - $231k in debt and need help!
« Reply #208 on: March 10, 2017, 10:38:13 AM »

Thanks for this it was very helpful!

Ok, I just called and paid off the remaining balance of Loan #3.

Loan #3   $882   20.00%   $284

I am running out to the bank and lunch to pay off the Frontier and I am listing it on CL tomorrow.

Also, last night instead of just sitting on the couch and wasting time on my tablet I decided to clean all of the bathrooms in the house.  It felt good to actually do something productive around the house during the week.   

This is AWESOME!

RidetheRain

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Re: Reader Case Study - $231k in debt and need help!
« Reply #209 on: March 10, 2017, 10:51:08 AM »
It's great to watch you make progress dashh. Just a tip from someone else in the negatives. I (try to) think about purchases in terms of time. My Dad used to say "Monday is for the government and that's why it sucks so much". Because every cent he earned on Mondays went to taxes.

Using a wise man's philosophy, we can point at individual purchases to see if they are "worth it".
For example, I want a Starbucks coffee right now because it's 9:30 and I haven't had my caffeine.
That coffee usually costs me about 7.50 and I toss the extra in the tip jar to round to $10. If I used that $10 to pay off my car loan (I get punches in my own case study) then I would save $10 plus the 3 years worth of interest on that $10. Say that works out to $12.
My hourly wage minus commuting, taxes, etc means that I would work roughly a half hour for that coffee. Every time I want one. Do I want that coffee more than I want to leave at 4:30? On a Friday?

For me, $10 = 1/2hour is a powerful deterrent, but scale up to your tolerance.

That doesn't even get into potential stock market returns because that math is too hard for someone without coffee. Keep a couple of these calculations in your head and you start getting angry at the coffee shop for stealing your life. I won't get into the TV here, but I'm guessing it is "worth" more than a few hours of work considering your snowballing.

In the meantime, congratulations on the most recent loan payoff! I love getting to see the successes on these. People often take the advice and run with it without progress notes. You sparked a lot of interest and we're all invested now :)
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PJ

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Re: Reader Case Study - $231k in debt and need help!
« Reply #210 on: March 10, 2017, 11:57:47 AM »

Thanks for this it was very helpful!

Ok, I just called and paid off the remaining balance of Loan #3.

Loan #3   $882   20.00%   $284

I am running out to the bank and lunch to pay off the Frontier and I am listing it on CL tomorrow.

Also, last night instead of just sitting on the couch and wasting time on my tablet I decided to clean all of the bathrooms in the house.  It felt good to actually do something productive around the house during the week.   

This is AWESOME! 

Thanks for the support!

Ok, truck is now paid off.

Auto loan #2   $1,172   3.84%   $525   Nissan Frontier

It feels pretty good since I have NEVER owned a car outright before.  But it will feel even better to sell it, get something more fuel efficient and be able to pay off a few high interest loans!

I am actually thinking about getting a manual car since I have never learned to drive stick.  I read MMMís post about that and it really inspired me.  I have always wanted to learn but as I got older just let it go.  I think learning a new skill (my wife can drive stick) is just what I need right now and someday I can teach my sons. 

I am unreasonably and excessively pleased about a complete stranger on the internet having two less debts to pay on every month.  You are inspiring! 

While you still need to see how much you can get for the truck, and how much of the proceeds you'll need to spend on your next car, I'm wondering...

Have you done the cash flow math yet? 

Do you know, that's $809 you've freed up from your monthly debt payments?

Please, tell us, which debt is that going to next?  How long, at that rate, will it take to pay off the next one? 

Inquiring minds need to know...
'To be human you must bear witness to justice. Justice is what love looks like in public." 
Dr. Cornel West

Novik

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Re: Reader Case Study - $231k in debt and need help!
« Reply #211 on: March 10, 2017, 12:04:13 PM »
I am unreasonably and excessively pleased about a complete stranger on the internet having two less debts to pay on every month.

Same.
Over-thinking, over-planning and over-committing, aka my 2017 goals: Procrastinating my way to FIRE
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wintertell

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Re: Reader Case Study - $231k in debt and need help!
« Reply #212 on: March 10, 2017, 12:09:00 PM »
I am unreasonably and excessively pleased about a complete stranger on the internet having two less debts to pay on every month.

Same.

Make that three folks!!!!! Congratulations! Dash to the rescue, to rescue Dashh! ... OK now I'm just being silly. : )

Laura33

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Re: Reader Case Study - $231k in debt and need help!
« Reply #213 on: March 10, 2017, 12:29:15 PM »
Dashh, I am sort of irrationally happy for you -- two down and almost $900/mo in extra cash??  Just like that!  Huzzah!
Laugh while you can, monkey-boy

PJ

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Re: Reader Case Study - $231k in debt and need help!
« Reply #214 on: March 10, 2017, 12:53:37 PM »
Fantastic! 

284 + 525 + 177 + 194 = $1,180 to snowball

So CC#9 ($1,000) only has one more month to live! 

*rubs hands together gleefully*

You're killing this!
'To be human you must bear witness to justice. Justice is what love looks like in public." 
Dr. Cornel West

rpr

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Re: Reader Case Study - $231k in debt and need help!
« Reply #215 on: March 10, 2017, 01:01:19 PM »
Fantastic! 

284 + 525 + 177 + 194 = $1,180 to snowball

So CC#9 ($1,000) only has one more month to live! 

*rubs hands together gleefully*

You're killing this!

There is something magical about watching that snowball grow.

freya

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Re: Reader Case Study - $231k in debt and need help!
« Reply #216 on: March 10, 2017, 01:50:53 PM »
That's 5 debts either gone or with less than one month to live!!  Isn't this exciting?  And easier than you probably thought initially?  When your wife's bonus payment comes in, have a wonderful time paying off that usurious 35% loan and then show us a list with 3 loans crossed out.  I must say this is more fun than watching the Super Bowl!

Best of luck with Craigslist this weekend.  Look out for the scammers though.  And have fun with the housecleaning.  Doesn't it feel great to clear junk out of your life?

BlueHouse

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Re: Reader Case Study - $231k in debt and need help!
« Reply #217 on: March 10, 2017, 01:53:29 PM »
current plan is as follows:

1)    My wifeís bonus hits next week so I am using that plus some of savings (~$1k) to get rid of Loan #1.

2)   I was going to pay off Loan #2 with some savings as well.  That should leave us around $4k - $5k in savings and get rid of the two super high interest loans.

3)   Next we can use start using our snowball on CC #9.

4)   Use the proceeds of truck sale (less new car) to pay off as many other high interest CCís and loans.

So this is the order I am focusing on now:

Loan #3   $882   20.00%   $284
Auto loan #2   $1,172   3.84%   $525
Loan #1   $4,676   35.90%   $177
Loan #2   $4,278   27.98%   $194
CC #9   $1,000   26.24%   $41
CC #1   $2,588   25.99%   $28
CC #2   $2,279   24.99%   $72
CC #5   $4,376   14.90%   $109
I'm so impressed with your progress so far and it sounds as if you'll have another big win in a week or two.  Great work and thanks for motivating me to change something up ! 
Sometimes nothing can be a real cool hand

DanishMM

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Re: Reader Case Study - $231k in debt and need help!
« Reply #218 on: March 10, 2017, 01:58:27 PM »
Congrats!!
Thats amazing!
Have you and your wife celebrated? I dont mean by buying champagne or lobsters...but a hug and a screw-debt-dance?

LadyMuMu

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Re: Reader Case Study - $231k in debt and need help!
« Reply #219 on: March 10, 2017, 06:08:09 PM »
I just read this entire thread and am blown away by the progress you've made in such a short time. I only have one small suggestion. When you sell the truck and get a new-to-you car, get one that is as unglamorous as you can stand. (I like your idea of a manual!) I have three reasons for this. 1) It will start to cement your new mustachian identity into your brain each day as you drive around your town in a "less than" car while knowing inside that you are KILLING it in debt eradication. 2) By comparison, it will make you question other fancy pants choices you are still making. Perhaps next time you need something, you'll opt for another new-to-you (ie Craigslist) option first. 3) The obvious visual difference between your car and your wife's may help nudge her a little closer to team Mustachian. Its a visible sign to her about what you're willing to do to bring financial stability to your family.

We're a one-car family. My husband walks to work each and every day. We live in Iowa. Now he loves to walk and we're a hiking family, but this little daily sacrifice gets him a TON of respect from me all the same.

N

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Re: Reader Case Study - $231k in debt and need help!
« Reply #220 on: March 10, 2017, 09:59:48 PM »
Hey, I think your turnaround is going great! As you flex your MMMuscles, you will get stronger and stronger at resisting spendypants choices.  Keep it up! Keep questioning every expense! Keep talking to your wife and having the tough conversations. Looking forward to following your progress.

PS I was able to sell a car to an aquaintance after sharing I was selling on FB. Dont overlook your own network of friends and relatives when selling a car :)

Good Luck!
N

CmFtns

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Re: Reader Case Study - $231k in debt and need help!
« Reply #221 on: March 10, 2017, 10:43:48 PM »
I am actually thinking about getting a manual car since I have never learned to drive stick.  I read MMMís post about that and it really inspired me.  I have always wanted to learn but as I got older just let it go.  I think learning a new skill (my wife can drive stick) is just what I need right now and someday I can teach my sons.

You should definitely do this. Driving a manual is awesome. Also, a lot of times manual cars especially manual economy cars are tougher to sell due to a lazy and unwilling to learn population... so you might get a little bit of a deal compared to the automatic equivalent.
"the only efficient way to get there is on the front of the wave" -MMM

PJ

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Re: Reader Case Study - $231k in debt and need help!
« Reply #222 on: March 11, 2017, 12:26:33 AM »
dashh, I wanted to post back this evening to let you know that you inspired me.

I thought I'd cut my budget back pretty far this month, and left myself very little wiggle room so that I could prioritize paying down debt.  But when my utility bills came in much lower than I'd expected, I re-ran my numbers for this month, and decided that "if dashh can get his truck listed and get several bills paid off entirely this month, the least you can do is squeeze out every cent you can toward your debt!"

So I logged into online banking and got that little extra CC payment made!
'To be human you must bear witness to justice. Justice is what love looks like in public." 
Dr. Cornel West

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Re: Reader Case Study - $231k in debt and need help!
« Reply #223 on: March 11, 2017, 09:38:41 AM »
Fantastic! 

284 + 525 + 177 + 194 = $1,180 to snowball

So CC#9 ($1,000) only has one more month to live! 

*rubs hands together gleefully*

You're killing this!

Plus the $185 a month saved on TV/internet, and the money he's about to save on gas and insurance when the truck is replaced with a little >40mpg commuter car.  And the money they'll save on eating out because Dash will use some time meal planning/prep cooking at night instead of channel surfing.  It's like a habit snowball too!

Awesome work.  I'm also over here cheering you on.  It must feel great to have that bit of breathing room that will now let you effectively snowball the hell out of those CC balances!

Villanelle

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Re: Reader Case Study - $231k in debt and need help!
« Reply #224 on: March 11, 2017, 08:18:48 PM »
f you return that TV, you can pay off several more of those debts.  Think how good it felt to ditch the first couple.

I kind of hate to keep harping on the TV thing, but it's more than just the TV.  It's a commitment to your new mindset.   You struggle with actually acting on your ideas and impulses.  Yet you are giving yourself a pass on the TV and allowing yourself to follow the old pattern of not following through.

You are doing great.  You are!  But it's important during these early days of change that you keep your feet to the fire, or you'll gradually ease off and be back where you started. 

Feivel2000

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Re: Reader Case Study - $231k in debt and need help!
« Reply #225 on: March 12, 2017, 12:38:21 AM »
Just read everything, great progress, man. My thoughts regarding your wife, just from reading this; If I were in her shoes, I would probably think something like:

"We had a good life with everything figured out and then HE had to chase his stupid real-estate flipping dreams! Now we are in dept. But I haven't burned all that money, I have my job and income, making even some extra money thanks to bonuses. Why should I lose all my nice things (house, car, nails,...)? He f***ed up, not me! "

And from what you wrote, she wouldn't be all wrong. Of course, it's a marriage and you are in it together, but you have to go and lead by example and hope that she comes along. Let her have her nails polished and her nice car and take on a second job to pay for all of it. Work your ass of and be frugal. At some point she will prefer having you by her side on a weekend instead of driving an Uber.

Print out the dept and put it somewhere where both of you see it to keep the situation, and your progress, in mind.

But even without any dept, move closer to your work. I did a 60+minutes commute for some time and it drained me. Think about all the lost time! Your child does not have to lose his friends, if both of you can drive this distance every day, you can drive him once per week to keep the connection.

Oh, and return the TV. How many big screens do you need???


Bee21

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Re: Reader Case Study - $231k in debt and need help!
« Reply #226 on: March 12, 2017, 01:25:57 AM »
Dash, you are doing so well. I think this tv and car repair incident came at the right time, as an alarm bell that with all those good intentions you are prone to slipping back into the old habits. Change won't happen overnight, it takes a while to change your spending habits  You made lots of cuts recently, and while those small changes will help, it is the big ticket items (the cars and the house) which will improve your situation considerably.

I hope the truck sells. Don't regret selling it, nobody needs a truck to commute to his office job (khm, apparently my husband does, but we are not in debt). And i disagree with the previous poster about buying a crappy car, buy a decent looking, fuel efficient small commuter car you are comfortable driving.


ShoulderThingThatGoesUp

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Re: Reader Case Study - $231k in debt and need help!
« Reply #227 on: March 12, 2017, 05:48:19 AM »
You're doing it, dashh. When future posters come and are in a really bad way, we'll point to you as an example that it can be done.

SwedishMoustache

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Re: Reader Case Study - $231k in debt and need help!
« Reply #228 on: March 12, 2017, 11:01:59 AM »
Damn sweet job! keep pounding this! You're killing it! :)

Allie

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Re: Reader Case Study - $231k in debt and need help!
« Reply #229 on: March 12, 2017, 12:49:10 PM »
What an awesome read!  You guys are going to do great.  Just remember it is always easy to get another truck, TV, house, whatever.  I was reading a minimalist book, becoming minimalist available on hoopla, recently and it was suggested that you do experiments for 30 days or 60 days or however long and see how it works for your family.  If it doesn't work, that's fine, go back to the old way.  If it does, awesome.  At least that way you know. 

Sell your truck and buy a little car.  If it doesn't work for you after six months, you know for sure and you can go back to make a plan to get a truck again.  Same with the TV.  Go without one of the TVs in a rooms for three months, or the summer, and if it really makes a difference, make a plan to get a new one.  Give up soda and fast food for a month and just see how it makes you feel, if you really want the Big Mac, start eating it again. 

We dug out of six figures of debt with the frugal living and Dave Ramsey plan before mmm came along, but revving up the badassity with the help of this community and blog has really helped us take it to the next level.  Once you start changing your mindset, your wife will join and it will be awesome!  Took my husband a year or so to even consider being more frugal and another to really buy into the plan and make it his own.  But it happened!  Looking forward to reading about your journey!

I'll second how enjoyable it is to take apart a TV.  Our Samsung LCD died a few years ago so we pulled it apart, what's the harm right?  I think it was the capacitor but when we called Samsung to complain about their crappy TV, they sent a guy out to fix it with a new, larger, better part...for free.  If we had just installed the old version, it would have blown again, so a guy to came out and installed the new version.  He was pleased to see the TV already in pieces, it saved him a bunch of trouble!  Always call, always complain, always expect better service, always think of a way that meets your needs and saves money!

Better Late

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Re: Reader Case Study - $231k in debt and need help!
« Reply #230 on: March 12, 2017, 01:32:35 PM »
Hey Dashh. I'm cheering you on as I read the recent posts. From your post about the car and TV though I'm  concerned that you may still be using your credit cards rather than making the complete conversion to cash only budgeting. Using one card to purchase while paying down another doesn't move the needle. And I'm commenting because I have been there (we were over $500k in debt inc. mortgage, cc's, 401k loan, car lease, etc just a couple of years ago);  it's hard to be completely honest with yourself when you've spent years skirting the truth of your reality)

Oil Patch Adams

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Re: Reader Case Study - $231k in debt and need help!
« Reply #231 on: March 12, 2017, 02:47:54 PM »
I just read this entire thread.  Slow start but the snowball is moving, good job.

Personal Finance is different than "a finance" job...I've seen it first hand with my DW.  It's up to you now to educate yours and set a better example for your kids when they can understand the value of a dollar.

Last face punch you'll need is from your spread sheet.  Total up what your debt is costing you each day.  Then break your wages into a day rate.  Sucks to pay someone because you don't have money, that thought alone should ring out in your dreams so when you wake up tomorrow it's a new day and I hope it costs less than the day before.  Soon your day will earn money.

queensborocorp

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Re: Reader Case Study - $231k in debt and need help!
« Reply #232 on: March 13, 2017, 08:02:45 PM »
I hate to be the anti-TV nag. (OK, I love being the anti-TV nag.)

Here are some of the things I knew about The Real Adult World, 10 years ago when I graduated from college:

You have to spend a lot of money on a first date, or your date will think you're a loser.
A small car is unsafe in a crash, plus people will think you're a loser.
It is important that all your furniture matches, or people will think you're poor.
You need to wear expensive designer clothes and shoes, or you'll have no friends.
There is no substitute for living in the most desirable neighborhood.
Real adults don't have Ikea furniture or drive old used cars. Real adults buy new, expensive things.
If you can afford something you should buy it. You work hard, you deserve it.

Only later did I realize all of this was lies. Where did I learn such "knowledge"? From TV, of course.

Big corporations pay for TV shows to be made, and it's in their interest to demonstrate that a high-consumption lifestyle is normal and desirable. They want you spending and in debt. And they know that it's very hard for the brain, on a lizard level, to distinguish TV norms from actual social norms in real life.

TV can end up costing you a lot more than you think.


rpr

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Re: Reader Case Study - $231k in debt and need help!
« Reply #233 on: March 13, 2017, 08:16:34 PM »
I hate to be the anti-TV nag. (OK, I love being the anti-TV nag.)

Here are some of the things I knew about The Real Adult World, 10 years ago when I graduated from college:

You have to spend a lot of money on a first date, or your date will think you're a loser.
A small car is unsafe in a crash, plus people will think you're a loser.
It is important that all your furniture matches, or people will think you're poor.
You need to wear expensive designer clothes and shoes, or you'll have no friends.
There is no substitute for living in the most desirable neighborhood.
Real adults don't have Ikea furniture or drive old used cars. Real adults buy new, expensive things.
If you can afford something you should buy it. You work hard, you deserve it.

Only later did I realize all of this was lies. Where did I learn such "knowledge"? From TV, of course.

Big corporations pay for TV shows to be made, and it's in their interest to demonstrate that a high-consumption lifestyle is normal and desirable. They want you spending and in debt. And they know that it's very hard for the brain, on a lizard level, to distinguish TV norms from actual social norms in real life.

TV can end up costing you a lot more than you think.

queensborocorp -- Welcome to your first post on MMM forums. It is a wonderful one!

Oil Patch Adams

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Re: Reader Case Study - $231k in debt and need help!
« Reply #234 on: March 14, 2017, 06:59:05 AM »
The G rated Tyler Durden speech in advertising!

galliver

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Re: Reader Case Study - $231k in debt and need help!
« Reply #235 on: March 14, 2017, 12:45:48 PM »
3)   Debt:  I am planning on paying off several of our debts in the next month or so.  My wife is getting a bonus of around $3,500 (net) this month which is great.  I should hopefully get around $8-9k from selling the truck and plan on using ~$4k of savings leaving us around $5k.  Also, one of our personal loans will be paid off this month as well.  So if all goes as planned we should be able to pay off around 8 debts which will save us ~1,400/mo which we can snowball.  I am very excited about this as I feel like we will finally be making some progress with the debt!

Ok truck is officially posted on Craigslist, Facebook and my wife's work board!

Hoping for a quick sale!

WOO-HOO! *giant round of applause*

That's all I got :)

Optimiser

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Re: Reader Case Study - $231k in debt and need help!
« Reply #236 on: March 14, 2017, 01:40:51 PM »
Here is another post from an internet stranger who is really excited and happy to see you moving in the right direction!

jessicat

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Re: Reader Case Study - $231k in debt and need help!
« Reply #237 on: March 14, 2017, 03:28:29 PM »
Congratulations on your progress!  So excited for you and your family and your journey!  Can't wait to hear the truck sold.

Verdure

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Re: Reader Case Study - $231k in debt and need help!
« Reply #238 on: March 14, 2017, 03:51:50 PM »
Another internet stranger excited about your progress here!  Congrats on listing the car--that's a huge step. Good luck on a quick sale!  So loving seeing your debt repayment progress; that snowball is super satisfying!

TealBlue

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Re: Reader Case Study - $231k in debt and need help!
« Reply #239 on: March 14, 2017, 05:39:14 PM »
Hi dashh!  I just found you and am excited to follow you're progress :)  Although my debt isn't to your level, I see so many similarities between us in our debt payoff struggle of feeling deserving of the things we are (unreasonably) purchasing and having a spouse who isn't quite as sold on the emergency of the situation as you are!  Anyway, I know firsthand that once the first steps are made, it's easy to keep that momentum going.  Just don't let stupid non-emergencies deter you!  That's my issue!


nouveauRiche

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Re: Reader Case Study - $231k in debt and need help!
« Reply #240 on: March 16, 2017, 06:52:50 AM »
This is awesome dashh!  Another internet stranger here, cheering you on from the sidelines.

I'm excited at the progress you've made already.  It's awesome that your wife has agreed to quit the nail salon for now.  Great work posting the truck!

A few things.
Not sure if this has been mentioned or not:  Would it be possible to rent out your house to cover the mortgage?  It involves becoming a landlord, which is sometimes a pain.  But it would allow you to hang onto the house for now.  Also, your 5/1 rate is now is 4.5%, right?  When it becomes adjustable, it may not change that much.  (It's not going to go to 10%.)  Rates are really low.  You might want to check the fine print & see what will happen with your house payment.  (Ultimately, it would be best to lock into a low rate - they can't stay this low forever.)

MMM writes that people who have a debt emergency should be eating only rice & beans until it's fixed.  He makes it sound like a punishment. I've started making red beans and rice regularly and everyone loves it.  I've also been experimenting with red lentil curries (trying to find the perfect recipe).  Red lentils are dirt cheap at Trader Joe's (if you have one).  There are some great recipe threads in the forum.

One thing we learned from MMM is that "little" things do add up.  When we first found MMM about 2 years ago, I though there was no fat to cut in our spending.  We wound up trimming over $1000 per month by cutting out the housekeeper & the lawn guy, bringing meals & snacks to work, calling around for better deals on insurance, dropping cable, changing cell phone plans, etc, plus generally being more conscious of our spending.

Best of luck to you.  I'm looking forward to following your story as you slash these debts!

ETA:  Another thing I love about MMM is that the changes you make will improve your life in many ways (not just financial).  Cooking at home is better for your wallet and your health.  Biking instead of driving saves you money, gets you fit, and is better for the environment.  Etc. 
« Last Edit: March 16, 2017, 06:56:20 AM by nouveauRiche »

itstheboz

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Re: Reader Case Study - $231k in debt and need help!
« Reply #241 on: March 16, 2017, 09:55:46 AM »

A few things.
Not sure if this has been mentioned or not:  Would it be possible to rent out your house to cover the mortgage?  It involves becoming a landlord, which is sometimes a pain.  But it would allow you to hang onto the house for now.  Also, your 5/1 rate is now is 4.5%, right?  When it becomes adjustable, it may not change that much.  (It's not going to go to 10%.)  Rates are really low.  You might want to check the fine print & see what will happen with your house payment.  (Ultimately, it would be best to lock into a low rate - they can't stay this low forever.)


Rates were really low, but the Fed just raised the rate from .75% to 1.0% (a 33% increase) this week.  This will impact mortgage rates and other interest rates in the near future.  The historically low rates we've seen in the past are probably gone... If you didn't get under 4% before they start creeping up you probably won't anytime soon. 
"People too weak to follow their own dreams will always find a way to discourage yours" -Bob Mayer

horsepoor

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Re: Reader Case Study - $231k in debt and need help!
« Reply #242 on: March 17, 2017, 07:44:56 AM »

A few things.
Not sure if this has been mentioned or not:  Would it be possible to rent out your house to cover the mortgage?  It involves becoming a landlord, which is sometimes a pain.  But it would allow you to hang onto the house for now.  Also, your 5/1 rate is now is 4.5%, right?  When it becomes adjustable, it may not change that much.  (It's not going to go to 10%.)  Rates are really low.  You might want to check the fine print & see what will happen with your house payment.  (Ultimately, it would be best to lock into a low rate - they can't stay this low forever.)


It seems like this might be another plug for selling the expensive house now?  What's "affordable" to many buyers shopping at the top of what the bank will approve them for will decline as interest rates rise.  If the housing market slumps, the Dash family could end up losing equity or even going underwater, whereas selling now and renting near work would be a guaranteed leg up.  Renting is risky and they don't have the financial padding to deal with repairs and legal fees that could be incurred if they get bad renters.

Rates were really low, but the Fed just raised the rate from .75% to 1.0% (a 33% increase) this week.  This will impact mortgage rates and other interest rates in the near future.  The historically low rates we've seen in the past are probably gone... If you didn't get under 4% before they start creeping up you probably won't anytime soon.

Vindicated

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Re: Reader Case Study - $231k in debt and need help!
« Reply #243 on: March 17, 2017, 01:14:31 PM »
I understand your difficulty in deciding options.  I'm kind of in a similar situation.

My current job, we'll call Job Type-0, has medium pay, and I'm not enjoying it at all.

Job Type-1 I'm applying to / interviewing for is higher pay, but I know it will be a lot more work.

Job Type-2 I'm applying to / interviewing for is medium pay, but I'm sure I would enjoy it.

Job Type-3 I'm not applying to, but will probably do when I am closer to FI is lower pay, but I loved it when I did it previously.

For me, I'll likely jump to either Type-1 or Type-2 if I'm given a reasonable offer.  On one hand, Type-1 will be tough, but it'd move my FI timeline up dramatically.  On the other hand, Type-2 would be wonderful and keep me at my current, or maybe slightly better, financial position.

I think your options are similar.  It doesn't really matter if you go for a Type-1 or Type-2, just get out of what you dread.
My MMM Journal: https://forum.mrmoneymustache.com/journals/my-almost-perfect-life-experience/

"Remember that sometimes not getting what you want is a wonderful stroke of luck.Ē - Dalai Lama

MountainFlower

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Re: Reader Case Study - $231k in debt and need help!
« Reply #244 on: March 17, 2017, 02:12:48 PM »
I work as an administrator in a government funded research institution.  Your background would be appropriate for this type of role, but it's so much more than accounting.  We basically manage programs handling everything from finances to HR and hiring, reporting, and everything in between.  Is there a university or something like that in your area?  Might be worth looking into.  While the salaries aren't as high as the private sector, the environment can be very nice and the benefits are usually very good.  For example, my company puts in 10% of my salary for retirement.  I get 11 holidays and 5.5 weeks off per year, plus lots of work from home flexibility. 

Also, the university that I went to will provide career counseling even for Alumni.  I think that there might be a fee for it....but maybe that would open up your horizons. 
« Last Edit: March 17, 2017, 02:15:53 PM by MountainFlower »

RidetheRain

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Re: Reader Case Study - $231k in debt and need help!
« Reply #245 on: March 17, 2017, 03:54:58 PM »
Another idea would be to work for a larger consulting firm.

I work as a consultant for a pretty big company so I don't have to worry about not finding a contract to work for the most part. You get the benefits and the PTO, but work at what you are good at. I know my company is always looking for industry experts to fill out their workforce. Consulting is also a pretty good place to make a career change because you can slowly work your way into it with small contracts here and there to expose you to the new work before you plunge right in.
See my journal

meandmyfamily

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Re: Reader Case Study - $231k in debt and need help!
« Reply #246 on: March 17, 2017, 06:03:55 PM »
dashh-I would cut up your credit cards right now to stop any temptation to charge them back up as you pay them off.

SwordGuy

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Re: Reader Case Study - $231k in debt and need help!
« Reply #247 on: March 17, 2017, 06:29:58 PM »
It looks like you're making some real progress.  Good job!

BeautifulDay

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Re: Reader Case Study - $231k in debt and need help!
« Reply #248 on: March 19, 2017, 09:57:34 PM »
Congrats on all your progress. Posing to follow your journey and send well wishes along your way.

Setters-r-Better

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Re: Reader Case Study - $231k in debt and need help!
« Reply #249 on: March 21, 2017, 05:18:20 AM »
Hi Dashh - regarding your career - it seems like your side hustle of real estate made you pretty happy. Is there something you can do related to that that isn't as capital intensive as flipping houses? Maybe you could work with other investors to advise them on flipping. Maybe you could do some manual labor such as painting, landscaping, get your real estate license, even just clean/organize other people's houses might be rewarding for you..I don't know what you're good at...to both stay involved in real estate and also bring in some extra income to pay down your debts faster. If you could build a side hustle you enjoy, that could help you do two things 1) pay down debt faster and 2) build a business for yourself that you could eventually turn into a full time business.