Author Topic: 21, married, 2 cars, 1 motorcycle, 10k credit, and that's just the start.  (Read 4400 times)

MrBuckBeard

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https://www.reddit.com/r/personalfinance/comments/2ujex8/21_years_old_married_in_a_whole_lot_of_debt_and/

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Hey everybody, this is my first time visiting your sub so I don't know what to expect really but I'm looking for some advice or input towards what I should do in my current situation.
I am 21 years old and have been married since I was 18. My wife and I live in an apartment with one room mate who is a coworker of mine right now.
I have a problem, and I'm not afraid to admit it. I like buying things. I like feeling like I am living a life above my own and telling myself I'll take care of everything later.
This attitude towards purchasing things has gotten me in a lot of debt, not something I can't get out of but definitely enough that it is going to take some time and dedication to clean the slate again.
Currently here are my monthly bills.
2014 Ford Fusion Lease, 36 month lease, 27 payments of $445 remaining.
2013 Scion FR-S Lease, 48 month lease, 38 payments of $560 remaining.
2013 Yamaha R6 Purchase, 60 month term with 59 payments of $160 remaining @ 8.24%
Rent $860/month on a 12 month lease with 10 payments remaining.
Insurance of $450/month
Cell phone plan $230/month
Utilities approx. $200/month
Here is a snapshot of my current credit card debt situation.
Chase Freedom Card with $8000 limit, current balance = $7,400 @ 0%
Capital One Quicksilver Card with $1500 limit, current balance = $1250 @ 0%
Chevron Gas Card with $2150 limit $1280 @ 18%
So as you can see, I have definitely dug a deep hole for myself. I really dream of the day to see all those balances at $0 but I have such a hard time not purchasing things spontaneously.
To top it all off I owe about $3300 in taxes as well this year which I will have to pay in a few months as well.
As far as my employment goes I work in auto sales so monthly income can vary greatly. My wife brings home about a steady $1800/month after taxes. I am guaranteed at least minimum wage from my job which is usually around $1500 but can make much more depending on the month. The most I have ever made was $12,930 last March but since then haven't been anywhere close to that. The last few months I have not made more than minimum wage so it has made me look into other jobs. I have an interview today for a job that could pay around $14/hour plus some bonus money. But at that I see my take home at probably around $2200-$2400. Which is more then I make on a month I don't sell many cars but at that rate my wife and I only have at best an extra $1000/month to pay debt with and that doesn't seem like very much to me, but the good part would be I would have steady income instead of fluctuating. It is also a job I think I would enjoy more.
I also feel however that if I stick it out in the auto sales job a bit longer and have another decent month or 2 it would help pay off a big chunk really quick and then maybe move on. But I also don't want to waste anymore time making minimum wage so I don't know which angle to take.
Any advice on how I can work towards being debt free guys?

Oh, and the bike... he bought it FIVE DAYS before posting this.  And he started out upside down because they added $3k to the loan.  That's from a separate post in his Reddit history.


cashstasherat23

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Re: 21, married, 2 cars, 1 motorcycle, 10k credit, and that's just the start.
« Reply #1 on: February 02, 2015, 11:31:56 AM »
I mean, at least he's trying to get out of it? First step is admitting you have a problem!

Just looking at those numbers makes me cringe, but honestly I don't think it's so far out of the norm. Some people just honestly don't realize that it's not smart to just keep putting things you can't afford on credit-if everyone around them is doing it, I can see how it would be easy to fall into that trap!

Hopefully he gets some good advice in that thread and starts working to turn his life around.

Forcus

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Re: 21, married, 2 cars, 1 motorcycle, 10k credit, and that's just the start.
« Reply #2 on: February 02, 2015, 12:05:44 PM »
honestly I don't think it's so far out of the norm.

I totally agree with this. I am 32 and the last 6 or so years have really opened my eyes to the true position of most people. I used to make fun of my stepdad for driving an ancient Taurus wagon. Now I'm driving an ancient wagon (hatchback). Most people with all the fancy things don't have $.02 to rub together. And many of the ones that do are trust fund babies, received inheritance, etc.

At least this guy is waking up. I can sort of identify. I am not motivated when things are so-so. Things have to get bad before I snap out of my stupor sometimes. Sounds like the bike loan and buyers remorse might have done that. Although I never would have guessed they were making so little with that list of purchases. I'm surprised they can even pay their current bills.

MrBuckBeard

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Re: 21, married, 2 cars, 1 motorcycle, 10k credit, and that's just the start.
« Reply #3 on: February 02, 2015, 12:13:41 PM »
Trouble is, he bought the bike five days ago.  Which makes his wake up five days too late to prevent that.  I don't think it's a real wakeup, honestly.  I think it's just buyer's remorse and/or guilt.  I think he bought this toy because he wanted it, and if he could go back he'd do it again.  Maybe I'm wrong, I certainly don't know.  That's just my gut.

Copperwood

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Re: 21, married, 2 cars, 1 motorcycle, 10k credit, and that's just the start.
« Reply #4 on: February 02, 2015, 12:55:01 PM »
best comment in that thread
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Here's some advice: your situation is so bad, but SO BAD that it seems like you're trolling this subreddit, because you are doing everything wrong.

You claim to want to get out of debt, but you bought a goddamn motorcycle a month ago at an absurd interest rate.

Take the job with the steady stream of income. Without that, you can't make a bona-fide budget to tackle your crippling debt (yes, it is crippling.) Not taking it is making excuses that enable your bad habits by creating false expectations of future income that won't materialize.

Also, get rid of that cell phone plan immediately. You can't afford it. I pay $15/mo on average for my no-frills PagePlus pay-as-you-go without a data plan.

You owe what I imagine to be your entire family's annual income on a good year ($42,735) on three vehicles. That is outrageous. Sell the motorcycle.

Really, you need to grow up. Don't spend more than you make on shit you don't need. It's not rocket science. Be accountable for yourself.

Forcus

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Re: 21, married, 2 cars, 1 motorcycle, 10k credit, and that's just the start.
« Reply #5 on: February 03, 2015, 11:51:06 AM »
Trouble is, he bought the bike five days ago.  Which makes his wake up five days too late to prevent that.  I don't think it's a real wakeup, honestly.  I think it's just buyer's remorse and/or guilt.  I think he bought this toy because he wanted it, and if he could go back he'd do it again.  Maybe I'm wrong, I certainly don't know.  That's just my gut.

Well, I'm giving him the benefit of the doubt (not having read the thread, see his responses, etc.). It might be exactly as you describe it.

I consider myself half-stache and I still have to temper impulses all the time. To be perfectly honest if my income was more "normal" (e.g..... lower) I am wondering if my spending would actually be higher.

SpicyMcHaggus

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Re: 21, married, 2 cars, 1 motorcycle, 10k credit, and that's just the start.
« Reply #6 on: February 03, 2015, 01:13:17 PM »
I used to do that. I even made less money at the time. Not smart. At some point he will have to take the loss by selling the cars and toys or default, take the credit hit, and drive a cash bought clunker (as we all should) while repairing his credit for a few years.

LalsConstant

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Re: 21, married, 2 cars, 1 motorcycle, 10k credit, and that's just the start.
« Reply #7 on: February 04, 2015, 05:44:43 AM »
I used to be just about that bad.

What you need to understand is the mental state you get yourself into when you're that far gone allows you to simultaneously rationally realize you have a problem and yet continue to sabotage yourself.

The behavior of a serial debtor is a hard thing to change.  I spent about a year digging a deeper hole for myself even after realizing what I was doing was terrible.

There is shame here but also hope for there go I.

robotclown

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Re: 21, married, 2 cars, 1 motorcycle, 10k credit, and that's just the start.
« Reply #8 on: February 04, 2015, 05:58:08 AM »
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I purchased the bike with intent to use it everyday to keep miles off the car until lease end.

Logic!

Indio

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Re: 21, married, 2 cars, 1 motorcycle, 10k credit, and that's just the start.
« Reply #9 on: February 04, 2015, 06:57:06 AM »
I hope his next job is not in an area where there are so many buying temptations. Working in a car dealership when can't resist buying cars is not a good combination.

James

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Re: 21, married, 2 cars, 1 motorcycle, 10k credit, and that's just the start.
« Reply #10 on: February 04, 2015, 07:30:49 AM »
Posts like that are sad, but I don't think I would even reply. The answers are all obvious, he just wants a short cut. Get rid of the three vehicles, cut the spending, and pay off the debt. Doesn't much matter how he goes about doing that, because in the end I don't think he will or even wants to. He just wants to complain about how he has a "spending problem", and then keep spending because hey, it's a problem, but not spending is too hard...
 
I would guess he will eventually not have the credit to spend, and then he will learn how to live on less.

Edit: I guess that's a bit cynical, maybe he will take advice, but he didn't even list his income or anything he had thought of to help his "problem", just sounds like whining to me, but who knows.
« Last Edit: February 04, 2015, 07:50:31 AM by James »