Author Topic: 7000 Dollars Negative Equity (Automobile) and other debts...  (Read 10041 times)

mittenslol

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7000 Dollars Negative Equity (Automobile) and other debts...
« on: September 20, 2015, 11:46:15 PM »
Hi, new to the forum. Specifically came in hopes to find advice on my current predicament.

Here are my debts

- Capital One Card - 4,000 (300/month payment, 100 minimum)

- Chase Card - 2,700 (100/month payment, 69 minimum)

- Auto Loan - 26,000 (550/month) (Car is a 23000 new car.. had to roll over neg. equity in a roll-over accident with no gap coverage :(  )

- Motorcycle Loan - 8300 (140/month)

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I generally have 400-500 dollars cash flow every month. I spend it all usually, as my budget has a everything else going into above debts, savings, 401k, and bills.

I net 720.00 a week.

2,880 a month roughly.

Overtime, 5 week months, and bonuses not included.

---------------------------

I suppose I'm looking for guidance on which one I should tackle first... I have a 2,500 post tax bonus coming and will have an extra 1000 or so on top of that to lay down on something.. What do you think?

The car payment is outrageous.. but, I might be able to knock out the capital one card in November when the bonus comes..

Frustrating position.

nanu

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #1 on: September 21, 2015, 04:28:23 AM »
Do you really need both a car and a motorcycle? (assuming you have the motorcycle, and not just a loan for it)
I think selling whichever one you can get rid of and putting that money towards loans would be a wise move...

Either way, the Dave Ramsey snowball method is to start with the smallest debt first (in your case, the Chase card) so you'd pay it off
quickly and feel good about erasing a debt, and then moving to the next smallest debt (Capital One card) until you have no debt left.

From a purely financial standpoint, it's better to tackle the highest interest rate debt first, but that ignores the psychological satisfaction that comes from eliminating a debt.

alsoknownasDean

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #2 on: September 21, 2015, 04:37:29 AM »
What's the interest rate on these?

Honestly, sell the bloody car. You can't afford that fancypants car, buy a $5000 Camry. The motorbike too.

Facepunches aside, you've got a choice between attacking the smallest debt, or the one with the highest interest rate.

DagobertDuck

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #3 on: September 21, 2015, 05:13:31 AM »
This pretty much looks like a hair on fire situation.

Agree with above posters. Ditch the motorbike, the fancy car, or both.

Be aware of the loss aversion fallacy when dealing with your vehicle situation. Your too expensive car probably depreciated a lot since you bought it, which makes selling it seem like an unattractive option. But selling it and getting a cheaper, more fuel-efficient second hand car will highly probably save you money in the long run.
« Last Edit: September 21, 2015, 05:25:47 AM by DagobertDuck »

mittenslol

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #4 on: September 21, 2015, 06:14:09 AM »
Yeah, I'm fully aware that the car is outrageous.

Remember the post title is 7000 dollars negative on the car. I don't exactly have 7000 dollars to drop the car off and cover the remainder. It was even worse when I first got it.. I also don't have 5000 to go buy a used car with in the case that I got an installment loan to cover the upside downdedness. :D

The capital one card is 22% and the chase card is 17%. My car is thankfully 0.9%. Bike is 6%..

I think the capital one card will have the biggest financial impact seeing as how I'm budgeted to pay 300-400 on it per month. I get my bonus in November and an extra check in October.. this combined with my budgeted payment each month will be enough to knock it out I'm thinking.

The chase card will follow, all the payment on the previous card will go onto this one after it's paid. 500-600 per month.

Then on to my bike, 700/month plus it's monthly payments in the mean time.

Hopefully by this point I'll just be a few months out from being neutral on my car, make a few more payments, save up 4000-5000 bucks and get a used Toyota or Honda :)


Just a few notes also.. I'm driving a Civic Si, it gets pretty decent gas mileage. I just got my motorcycle.. so that would be upside down money I don't have at my disposal to pay back immediately.. similar to my car in that sense. I get overtime every week, and a monthly 200 dollar bonus that I can use to eliminate the debt too..


Thanks guys.

Jags4186

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #5 on: September 21, 2015, 06:47:52 AM »
You might want to see if you can get a personal loan to cover the difference on what you owe and the worth of the motorcycle.

Le Barbu

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #6 on: September 21, 2015, 07:23:43 AM »
1- Sell the motorcycle even if you owe more than it worth. Figure the difference and find the money to fill the gap, even if you got to get a personal loan @8-12%
2- Tackle the Capital One with every $$ you got (only keep doing minimum on other loans and Chase)
3- Kill the Chase ASAP when Cap One is done
4- Look for a 5k$ car and manage to swap even if you "lose" 7k$. You'll lose more if you keep this one.

I did my best to calculate your total interest cost, fees and depreciation even if I miss some info. Following steps 1-2-3-4 will probably bring your annual interest from 2k$ to 1.5k$ but your "depreciation" rate from 4k$ to 1k$. The fees (insurances, maintenance etc) will drop also and the net difference on your NW will be about 4k$/year!

From what you told us, your actual NW is  probably like -15k$ so, even with this quite agressive plan and a lot of OT, your NW will be positive in 3-4 years from now. This mean the statu quo only break even because your "net cash-flow" only cover the depreciation rate on the car + motorcycle.

Sorry to be that straight but, if you are realy minded to achieve FI someday, you got to move on now!

justajane

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #7 on: September 21, 2015, 07:31:37 AM »
Can you explain your reasons for having a motorcycle considering you just bought it? IMO, you need to cut your losses on that one and get rid of it. It is purely frivolous and you can't afford it. Otherwise, get rid of the credit card debt first.

HairyUpperLip

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #8 on: September 21, 2015, 08:43:55 AM »
Can you explain your reasons for having a motorcycle considering you just bought it? IMO, you need to cut your losses on that one and get rid of it. It is purely frivolous and you can't afford it. Otherwise, get rid of the credit card debt first.

I'm curious about this too?

Get rid of the bike.
Pay off the credit cards.
Then deal with the car situation.

mittenslol

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #9 on: September 21, 2015, 08:49:16 AM »
Can you explain your reasons for having a motorcycle considering you just bought it? IMO, you need to cut your losses on that one and get rid of it. It is purely frivolous and you can't afford it. Otherwise, get rid of the credit card debt first.

To be completely honest I bought the bike in the midst of a bad situation financially.. I can see that, and even knew that while doing it. Sometimes we mess up in life.. it's even about to be winter so no one will buy it.. and what I could get out of it will be minimum! I will ride through till next spring at least when it's at least a little more in demand.

When buying the bike.. I told myself.. okay, I'll just work 2hrs extra a week to pay for it, then I won't have to adjust my lifestyle. I have different views now :( Should have worked 2 hrs extra per week to pay off my debts I already had.

Going to knock out the cards first. I can do that before years end if I keep at it!

kaposzta

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #10 on: September 21, 2015, 09:01:27 AM »
"as my budget has a everything else going into above debts, savings, 401k, and bills."

Hm, when you have so much debt, you shouldn't put your money into savings. Use the monthly savings to pay off the credit cards. As soon as you're debt free, you can start saving again. Of course, if you don't have an emergency fund ($1000-$2000), you should build one first.

mittenslol

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #11 on: September 21, 2015, 09:17:57 AM »
"as my budget has a everything else going into above debts, savings, 401k, and bills."

Hm, when you have so much debt, you shouldn't put your money into savings. Use the monthly savings to pay off the credit cards. As soon as you're debt free, you can start saving again. Of course, if you don't have an emergency fund ($1000-$2000), you should build one first.

Correct, I have no emergency fund. Therefore I've met in the middle on debt paying and saving. 50 a week into my accessible savings, 20 per week into a partially accessible savings.

My girlfriend has 4000 stowed away. I just don't feel morally right using her money as an emergency fund :P

If for some reason I did fall, and even went under my emergency fund she would help me.. it's just not acceptable in my mind to rely on that.

mittenslol

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #12 on: September 21, 2015, 09:27:13 AM »
I know what I need to do here I think.

I pay the most interest on the capital one card. 100+/month

Chase card, 70/month

Car, 50/month

Bike, 50/month

-----------------------------

Just seems obvious to tackle the ones that are charging the most per month in interest that have the least amount of total balance. Cap.1, Chase, Bike, Car in that order.

Thanks for the insight. I appreciate all of you very much.


HairyUpperLip

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #13 on: September 21, 2015, 09:34:24 AM »
I know what I need to do here I think.

I pay the most interest on the capital one card. 100+/month

Chase card, 70/month

Car, 50/month

Bike, 50/month

-----------------------------

Just seems obvious to tackle the ones that are charging the most per month in interest that have the least amount of total balance. Cap.1, Chase, Bike, Car in that order.

Thanks for the insight. I appreciate all of you very much.


No man, you don't know what you need to do.

You need to sell the motorcycle. Honestly you should get rid of the car too but I know it'd be a bit much to get rid of everything and buy a cheap cash car.

Look, I'm a car guy and I have a toy project car and I hold a motorcycle license so I'm not just hating on automobiles but you need to prioritize.


DagobertDuck

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #14 on: September 21, 2015, 09:39:45 AM »
motorcycle

To be completely honest I bought the bike in the midst of a bad situation financially.. I can see that, and even knew that while doing it. Sometimes we mess up in life.. it's even about to be winter so no one will buy it.. and what I could get out of it will be minimum! I will ride through till next spring at least when it's at least a little more in demand.

Beware of the sunk cost fallacy!
You bought a bike you don't need and can't afford, and that cost you a lot of money. But holding on to the bike will cost you more (gas, insurance, depreciation, maintenance).

If you really can get a better price for it this spring, don't ride it and keep it in the garage during the winter to keep it in mint condition with low mileage.
« Last Edit: September 21, 2015, 09:43:20 AM by DagobertDuck »

mittenslol

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #15 on: September 21, 2015, 09:41:18 AM »
I never said I didn't want to get rid of either of them. If you can explain HOW I may be willing to do it.

Here are my questions for you

1. If I'm upside down, how do I sell it if I don't have money to cover the remaining balance? If you say to get a loan.. but are also suggesting both bike and car, will I be able to cover both?

2. If I don't have cash for a replacement vehicle, what will I drive to and from work? Or will I just finance a 5000 car instead? Plus, the loan to cover my negative equity from bike and car?

Don't consider me a fool for prioritizing one thing over another. I'd rather you just consider me ignorant, and explain HOW I could go about doing what you're saying..

Thanks ahead of time.

mittenslol

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #16 on: September 21, 2015, 09:45:46 AM »
I know what I need to do here I think.

I pay the most interest on the capital one card. 100+/month

Chase card, 70/month

Car, 50/month

Bike, 50/month

-----------------------------

Just seems obvious to tackle the ones that are charging the most per month in interest that have the least amount of total balance. Cap.1, Chase, Bike, Car in that order.

Thanks for the insight. I appreciate all of you very much.


No man, you don't know what you need to do.

You need to sell the motorcycle. Honestly you should get rid of the car too but I know it'd be a bit much to get rid of everything and buy a cheap cash car.

Look, I'm a car guy and I have a toy project car and I hold a motorcycle license so I'm not just hating on automobiles but you need to prioritize.

I should note that I don't have any sort of emotional attachment to these things. Especially my car.. it's just insane cost wise..

The bike is a great bike. It's rated the best standard of the year, great on the track. But, my financial health is more important to me than the bike. I just think I'll get more out of it when the demand is higher.

Easye418

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #17 on: September 21, 2015, 09:48:45 AM »
Can you explain your reasons for having a motorcycle considering you just bought it? IMO, you need to cut your losses on that one and get rid of it. It is purely frivolous and you can't afford it. Otherwise, get rid of the credit card debt first.

I'm curious about this too?

Get rid of the bike.
Pay off the credit cards.
Then deal with the car situation.

I echo this sentiment.

I almost recommend you back down your 401k if you are putting in more than your company match.  Those credit card interest rates have to be sky high.

I see that you own a Honda Civic SI.  Not sure if you should sell it or keep it.  Too hard to tell without all of your finances posted, Rent, utilities, etc. 

Man, I totally don't miss paying $500+ a month on a car payment.
« Last Edit: September 21, 2015, 09:52:13 AM by Easye418 »

Syonyk

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #18 on: September 21, 2015, 09:49:00 AM »
What's the weather where you live?  I definitely agree that you need to get down to one vehicle, though if you don't get snow (or aren't expected to be places if there's snow), you might be able to sell the car & keep the motorcycle.

A good set of expanding tail bags covers an awful lot of use cases, and if your gf has a car you can use if you absolutely need a car, that could be a possible path.

As for selling an underwater car?  No clue.  I'd try to pay it down to a point it wasn't underwater and sell it, but I've never actually sold a car that I didn't have a clean title to.

DagobertDuck

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #19 on: September 21, 2015, 10:03:08 AM »
What are your expenses?
Possibility to cut down on groceries/starbucks/eating out? (rice & beans regime).
Can you walk or bicycle to work to save on gas (and vehicle maintenance and depreciation)?
Got any valuable stuff to sell?

As for selling an underwater car?  No clue.  I'd try to pay it down to a point it wasn't underwater and sell it,
That's what makes things a bit more complicated here.

How much is the negative equity on the bike?
« Last Edit: September 21, 2015, 10:11:06 AM by DagobertDuck »

Telecaster

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #20 on: September 21, 2015, 10:14:29 AM »

To be completely honest I bought the bike in the midst of a bad situation financially.. I can see that, and even knew that while doing it. Sometimes we mess up in life.. it's even about to be winter so no one will buy it.. and what I could get out of it will be minimum! I will ride through till next spring at least when it's at least a little more in demand.


It still could make sense to sell the bike.  Here's a hypothetical:  The loan is $8300, so let's say you could sell it for $4000.   Take the $4K and pay off the Capital One. Boom!  That's your biggest problem out of the way.  Now, take the Capital One payment and apply to the Chase.   That should knock the Chase down to zero in about seven months.   That's roughly next April, right?   

Now take those two payments and apply them to the bike loan.   That should knock it down to zero in about a year.   And that's paying less than you are planning on.   

mittenslol

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #21 on: September 21, 2015, 10:19:35 AM »

To be completely honest I bought the bike in the midst of a bad situation financially.. I can see that, and even knew that while doing it. Sometimes we mess up in life.. it's even about to be winter so no one will buy it.. and what I could get out of it will be minimum! I will ride through till next spring at least when it's at least a little more in demand.


It still could make sense to sell the bike.  Here's a hypothetical:  The loan is $8300, so let's say you could sell it for $4000.   Take the $4K and pay off the Capital One. Boom!  That's your biggest problem out of the way.  Now, take the Capital One payment and apply to the Chase.   That should knock the Chase down to zero in about seven months.   That's roughly next April, right?   

Now take those two payments and apply them to the bike loan.   That should knock it down to zero in about a year.   And that's paying less than you are planning on.

It's a negative. 8300 loan, 7000 value.

Upside down 1300 at the very least.

Your plan would work if I actually had 4000 of positive equity..

FrugalWad

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #22 on: September 21, 2015, 10:22:42 AM »
If you just bought the motorcycle from a dealership, is there a possibility of returning it?

Would it be possible to pick up some part-time work somewhere? Get paid to donate plasma? Take online surveys on Mturk? Is there anything you have that you don't want anymore that you could sell on Craigslist? Could you put an add there to offer handyman services, computer repair, car detailing, lawn care, whatever?

Could you cut back on your phone plan? Internet plan? Cable package? Eat cheaper (budgetbytes.com to the rescue)? Stretch out laundry so you're using the dryer less? Keep the A/C or heater at a higher/lower temperature?

AT&T offers to pause plans for up to 6 months. The other big carriers might do the same. Then you could get a stupid cheap flip phone and prepaid minutes for a lot cheaper, while you spend down the debt.

Could you move into a smaller place, closer to work? Carpool? You could read up on Cleanmpg.com about hypermiling to get better mileage out of the SI.

Even though you probably have to have full coverage for both, could you up the deductibles to their maximums?

Could you get a roommate (make sure they pay upfront for the first month)?

DagobertDuck

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #23 on: September 21, 2015, 10:24:31 AM »
It's a negative. 8300 loan, 7000 value.

Upside down 1300 at the very least.
1300 is manageable.
Minimize the depreciation of your bike (i.e. by not riding it) while scraping together $ 1300 asap.

justajane

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #24 on: September 21, 2015, 10:28:45 AM »

To be completely honest I bought the bike in the midst of a bad situation financially.. I can see that, and even knew that while doing it. Sometimes we mess up in life.. it's even about to be winter so no one will buy it.. and what I could get out of it will be minimum! I will ride through till next spring at least when it's at least a little more in demand.


It still could make sense to sell the bike.  Here's a hypothetical:  The loan is $8300, so let's say you could sell it for $4000.   Take the $4K and pay off the Capital One. Boom!  That's your biggest problem out of the way.  Now, take the Capital One payment and apply to the Chase.   That should knock the Chase down to zero in about seven months.   That's roughly next April, right?   

Now take those two payments and apply them to the bike loan.   That should knock it down to zero in about a year.   And that's paying less than you are planning on.

It's a negative. 8300 loan, 7000 value.

Upside down 1300 at the very least.

Your plan would work if I actually had 4000 of positive equity..

The car is not going to magically not be upside down by spring, right? It's a depreciating asset. Sell at a loss now and pay the minimum on the remaining balance until you pay off your higher interest loans first. And then accelerate the payments on the now-not-yours-anymore motorcycle. People carry debt around for things they don't own anymore all the time. I have a family member paying off a house he hasn't lived in for SIX years. It sucks, but you gotta take your lumps sometimes.

What are your carrying costs for the motorcycle? Insurance? Etc.? If you really can't stomach selling it at a loss right now, I like the idea someone mentioned upthread about parking it for the winter and selling it in the spring in pristine condition. That way you can drop the insurance on it for now.

mittenslol

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #25 on: September 21, 2015, 10:29:14 AM »
What are your expenses?
Possibility to cut down on groceries/starbucks/eating out? (rice & beans regime).
Can you walk or bicycle to work to save on gas (and vehicle maintenance and depreciation)?
Got any valuable stuff to sell?

As for selling an underwater car?  No clue.  I'd try to pay it down to a point it wasn't underwater and sell it,
That's what makes things a bit more complicated here.

How much is the negative equity on the bike?

I could cut down on eating out on the weekends. I eat very clean during the week however..about two chicken breasts a day, 4 cups of vegetable, 4 cups of coffee, 4tbsp coconut oil, 2tbsp butter, redskin peanuts as desired.

I've deliberately invested in a coffee machine to cut back on getting Tim Hortons or Starbucks. Coffee is a staple in my diet, and helps me through my fasting periods.

I'm rather knowledgeable on fitness and nutrition actually if anyone would care to have a customized plan made. Training is pretty universal, the diet part more specific.

Negative equity on the bike, at best its only 1300, could be up to 1600 though. My company offers a holiday low interest loan.. I may actually be able to take advantage of that, sell and pay off remainder. Auto deducts 30 a check at lower than my current interest rate. Got me thinking now.

mittenslol

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #26 on: September 21, 2015, 10:34:21 AM »

To be completely honest I bought the bike in the midst of a bad situation financially.. I can see that, and even knew that while doing it. Sometimes we mess up in life.. it's even about to be winter so no one will buy it.. and what I could get out of it will be minimum! I will ride through till next spring at least when it's at least a little more in demand.


It still could make sense to sell the bike.  Here's a hypothetical:  The loan is $8300, so let's say you could sell it for $4000.   Take the $4K and pay off the Capital One. Boom!  That's your biggest problem out of the way.  Now, take the Capital One payment and apply to the Chase.   That should knock the Chase down to zero in about seven months.   That's roughly next April, right?   

Now take those two payments and apply them to the bike loan.   That should knock it down to zero in about a year.   And that's paying less than you are planning on.

It's a negative. 8300 loan, 7000 value.

Upside down 1300 at the very least.

Your plan would work if I actually had 4000 of positive equity..

The car is not going to magically not be upside down by spring, right? It's a depreciating asset. Sell at a loss now and pay the minimum on the remaining balance until you pay off your higher interest loans first. And then accelerate the payments on the now-not-yours-anymore motorcycle. People carry debt around for things they don't own anymore all the time. I have a family member paying off a house he hasn't lived in for SIX years. It sucks, but you gotta take your lumps sometimes.

What are your carrying costs for the motorcycle? Insurance? Etc.? If you really can't stomach selling it at a loss right now, I like the idea someone mentioned upthread about parking it for the winter and selling it in the spring in pristine condition. That way you can drop the insurance on it for now.

Oh how I'd love to just trade in my car and pay 550 month on the 7000 leftover.. and not have a car to drive. I wouldn't be saving myself much when my interest is at 0.9% on the car anyway. Who's going to finance me a gently used car when I'm 7000 in debt on an auto loan still?

ShoulderThingThatGoesUp

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #27 on: September 21, 2015, 10:36:29 AM »
What are your expenses?
Possibility to cut down on groceries/starbucks/eating out? (rice & beans regime).
Can you walk or bicycle to work to save on gas (and vehicle maintenance and depreciation)?
Got any valuable stuff to sell?

As for selling an underwater car?  No clue.  I'd try to pay it down to a point it wasn't underwater and sell it,
That's what makes things a bit more complicated here.

How much is the negative equity on the bike?

I could cut down on eating out on the weekends. I eat very clean during the week however..about two chicken breasts a day, 4 cups of vegetable, 4 cups of coffee, 4tbsp coconut oil, 2tbsp butter, redskin peanuts as desired.

I've deliberately invested in a coffee machine to cut back on getting Tim Hortons or Starbucks. Coffee is a staple in my diet, and helps me through my fasting periods.

I'm rather knowledgeable on fitness and nutrition actually if anyone would care to have a customized plan made. Training is pretty universal, the diet part more specific.

Negative equity on the bike, at best its only 1300, could be up to 1600 though. My company offers a holiday low interest loan.. I may actually be able to take advantage of that, sell and pay off remainder. Auto deducts 30 a check at lower than my current interest rate. Got me thinking now.

IF you made smart decisions with the bike and the car, you might as well max that out and pay off as much of your high-interest crap as you can. NO RIDICULOUS PURCHASES with that, though.

mittenslol

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #28 on: September 21, 2015, 10:55:26 AM »
What are your expenses?
Possibility to cut down on groceries/starbucks/eating out? (rice & beans regime).
Can you walk or bicycle to work to save on gas (and vehicle maintenance and depreciation)?
Got any valuable stuff to sell?

As for selling an underwater car?  No clue.  I'd try to pay it down to a point it wasn't underwater and sell it,
That's what makes things a bit more complicated here.

How much is the negative equity on the bike?

I could cut down on eating out on the weekends. I eat very clean during the week however..about two chicken breasts a day, 4 cups of vegetable, 4 cups of coffee, 4tbsp coconut oil, 2tbsp butter, redskin peanuts as desired.

I've deliberately invested in a coffee machine to cut back on getting Tim Hortons or Starbucks. Coffee is a staple in my diet, and helps me through my fasting periods.

I'm rather knowledgeable on fitness and nutrition actually if anyone would care to have a customized plan made. Training is pretty universal, the diet part more specific.

Negative equity on the bike, at best its only 1300, could be up to 1600 though. My company offers a holiday low interest loan.. I may actually be able to take advantage of that, sell and pay off remainder. Auto deducts 30 a check at lower than my current interest rate. Got me thinking now.

IF you made smart decisions with the bike and the car, you might as well max that out and pay off as much of your high-interest crap as you can. NO RIDICULOUS PURCHASES with that, though.

I think that would be easier to swing. If I used it toward the Chase Card (Cap.1 card will be paid by then), I would be only 2 months away from paying that one off after doing so (using the old payment from the capital one card for it). Then I would come in swinging during spring with my bike.. 600 dollars to put into that a month after the two cards are eliminated, more if I continue the OT work I took on for the bike -_-*...

It's funny, the more I explain my situation the more I just want to go back and slap myself in the balls...

Once the snowball is rolling though, it only gets bigger. Things will get paid off faster and faster, money saved sooner, be able invest more, retire sooner..

PS : to the person earlier who asked about my 401k contribution, I brought that down to 6% (my company's match). I also found out that they actually match 100% up to 6%, an additional 3% by default, and an additional 2%-8% (2 for me) based on my years of service. I put in 60/wk, they put in 110!.. I opened a Roth, where I will put additional money later on (you know, like when I have additional money). I don't see the point in putting any more than what my company will match in the 401k, I'd rather diversify. Never know which one will be of benefit later one. Better to have both just in case I think.

DagobertDuck

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #29 on: September 21, 2015, 11:08:30 AM »
I wouldn't be saving myself much when my interest is at 0.9% on the car anyway.
Even if interest were 0, you'll still have to pay down the principal, while the car is steadily depreciating, and costing money in insurance, maintenance and gas.
http://www.mrmoneymustache.com/2011/05/02/car-strategies-to-cut-your-costs-in-four-or-more/

Smokeydave

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #30 on: September 21, 2015, 11:19:02 AM »
How about a second job to get it under control.  Drive for uber or something.....

Le Barbu

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #31 on: September 21, 2015, 11:20:06 AM »
As I explained before in my previous post, think about depreciation. In your case with new car and new bike, depreciation shift as much (in fact a lot more) than interest. That's the reason why you got to get rid of the bike ASAP even if demand is less at this time of year. In spring, new models are released and last year models value goes down. You never get ahead at this game. Your 2 CC and underwater motorcycle loan total a negative 8k$ wich is manageable. The car issue can wait few weeks/months until the rest is done.

Keep up mittenslol, we (fellow Mustachian) are good at managing numbers and most advices here are sounds

mittenslol

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #32 on: September 21, 2015, 11:20:14 AM »
EDIT : Ignore this post.


« Last Edit: September 21, 2015, 11:24:15 AM by mittenslol »

snogirl

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #33 on: September 21, 2015, 11:21:05 AM »
OP I have been exactly in your shoes & made the same mistakes.
First I would go on a 100% purchase pause with the exception of the basics, bare bones, rice & beans staple food etc.
Second draw up a budget, list your bills out every single one, including any luxuries such as memberships, subscriptions, etc.  Cut out all non essentials, I mean everything.
Third keep a spend journal like every single penny that comes in and out of your hand. Seriously you will see where money leaks out of you.
Fourth, if you do 1, 2, 3 that will build momentum and make you feel good.
Fifth, search and find every single shiny thing you can sell to go towards your debt. 
Sixth start an emergency fund even if it is a fancy pants decorated empty peanut butter jar (so you cannot see the money).  I did this. Keep it there.

I would definitely look at selling the bike back to the dealer if, as you said, the season for selling bikes is turning against you.
That payment, insurance, upkeep, storage is just going to mentally wear you down.  Explain your situation to them. 
Maybe they will work with the difference you owe them or do it on consignment.

Search and find any shiny thing you can sell that is just taking up empty space.  You might own a gold mine of shiny things that you can flip for cash.
Any cash goes towards your debt snowball.  A second job or side work or even finding free stuff at the dump makes money.  I did it.  You can too.

Honestly, it all starts with one step to change an attitude, one day at a time.  Each day adds up to more days, less debt, more motivation to get free of spending.

Following this formula, it works.  In the last 18 months, my hair was on fire in debt from years of emotional spending and not making good financial decisions.
You gotta figure out the why of your spending too.  It is mindset that made someone like me a prison to stuff and debt.
As of today I no longer have cc debt.  My car loan is almost done.  My house is almost paid off. My job didn't change and I didn't die just eating rice & beans & writing stuff down in a notebook.
It is empowering and there is real freedom if you are willing to do the work.  Guaranteed.
Good luck.


mittenslol

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #34 on: September 21, 2015, 11:25:17 AM »
How about a second job to get it under control.  Drive for uber or something.....

I like this idea a lot. My car would probably qualify for a higher model price as well being as new and clean as it is.

justajane

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #35 on: September 21, 2015, 11:25:23 AM »

To be completely honest I bought the bike in the midst of a bad situation financially.. I can see that, and even knew that while doing it. Sometimes we mess up in life.. it's even about to be winter so no one will buy it.. and what I could get out of it will be minimum! I will ride through till next spring at least when it's at least a little more in demand.


It still could make sense to sell the bike.  Here's a hypothetical:  The loan is $8300, so let's say you could sell it for $4000.   Take the $4K and pay off the Capital One. Boom!  That's your biggest problem out of the way.  Now, take the Capital One payment and apply to the Chase.   That should knock the Chase down to zero in about seven months.   That's roughly next April, right?   

Now take those two payments and apply them to the bike loan.   That should knock it down to zero in about a year.   And that's paying less than you are planning on.

It's a negative. 8300 loan, 7000 value.

Upside down 1300 at the very least.

Your plan would work if I actually had 4000 of positive equity..

The car motorcycle is not going to magically not be upside down by spring, right? It's a depreciating asset. Sell at a loss now and pay the minimum on the remaining balance until you pay off your higher interest loans first. And then accelerate the payments on the now-not-yours-anymore motorcycle. People carry debt around for things they don't own anymore all the time. I have a family member paying off a house he hasn't lived in for SIX years. It sucks, but you gotta take your lumps sometimes.

What are your carrying costs for the motorcycle? Insurance? Etc.? If you really can't stomach selling it at a loss right now, I like the idea someone mentioned upthread about parking it for the winter and selling it in the spring in pristine condition. That way you can drop the insurance on it for now.

Oh how I'd love to just trade in my car and pay 550 month on the 7000 leftover.. and not have a car to drive. I wouldn't be saving myself much when my interest is at 0.9% on the car anyway. Who's going to finance me a gently used car when I'm 7000 in debt on an auto loan still?

OP - I'm talking about your motorcycle. Sorry for the misunderstanding. Yes, you need a car to drive. I personally think you should keep the car.
« Last Edit: September 21, 2015, 11:26:58 AM by justajane »

Easye418

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #36 on: September 21, 2015, 11:26:57 AM »
EDIT : Ignore this post.

I was just going to respond to this post.... we don't know what kind of "pickle you are in" because you haven't released all of your financials. 

At $2,800 net a month and a $2,500 bonus, you look to make around $50-60k a year?  You are "cash-flowing" 400-500 bucks a month.  Where is everything else going?

mittenslol

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #37 on: September 21, 2015, 11:36:45 AM »
OP I have been exactly in your shoes & made the same mistakes.
First I would go on a 100% purchase pause with the exception of the basics, bare bones, rice & beans staple food etc.
Second draw up a budget, list your bills out every single one, including any luxuries such as memberships, subscriptions, etc.  Cut out all non essentials, I mean everything.
Third keep a spend journal like every single penny that comes in and out of your hand. Seriously you will see where money leaks out of you.
Fourth, if you do 1, 2, 3 that will build momentum and make you feel good.
Fifth, search and find every single shiny thing you can sell to go towards your debt. 
Sixth start an emergency fund even if it is a fancy pants decorated empty peanut butter jar (so you cannot see the money).  I did this. Keep it there.

I would definitely look at selling the bike back to the dealer if, as you said, the season for selling bikes is turning against you.
That payment, insurance, upkeep, storage is just going to mentally wear you down.  Explain your situation to them. 
Maybe they will work with the difference you owe them or do it on consignment.

Search and find any shiny thing you can sell that is just taking up empty space.  You might own a gold mine of shiny things that you can flip for cash.
Any cash goes towards your debt snowball.  A second job or side work or even finding free stuff at the dump makes money.  I did it.  You can too.

Honestly, it all starts with one step to change an attitude, one day at a time.  Each day adds up to more days, less debt, more motivation to get free of spending.

Following this formula, it works.  In the last 18 months, my hair was on fire in debt from years of emotional spending and not making good financial decisions.
You gotta figure out the why of your spending too.  It is mindset that made someone like me a prison to stuff and debt.
As of today I no longer have cc debt.  My car loan is almost done.  My house is almost paid off. My job didn't change and I didn't die just eating rice & beans & writing stuff down in a notebook.
It is empowering and there is real freedom if you are willing to do the work.  Guaranteed.
Good luck.

I write it down every month, see what's came in and out. It's pretty bad when you just ignore the signs huh?

I appreciate your post a lot, thank you.

I will not succumb to eating ONLY rice and beans however. I'm very health minded, and carbohydrates do my body an injustice that I cannot explain. Seems like any variety of grain, sugars, and beans give me terrible bloating, gastrointestinal problems, general puffiness throughout. I fair well with Rice and Potatoes.. but I'm not so far off that I cannot afford chicken, oil, nuts, coffee, and vegetables.

Frozen green vegetables are dirt cheap. Even the steam fresh bags are like $1 per 4 cup bag.
Fresh Chicken Breast is 1.99/lb
Oil is 10-20 cents an ounce?
Nuts are the most expensive part. My main source of fiber however. Only carbs I can really have.

My girlfriend and I split all of our apartment bills and groceries. Groceries are generally 30-40 dollars each a week, with and without toiletries respectively.

I'm making a journal in the journal section if you care to know more. I'll try to type up most of it between now and tomorrow evening.

Easye418

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #38 on: September 21, 2015, 11:39:33 AM »
OP I have been exactly in your shoes & made the same mistakes.
First I would go on a 100% purchase pause with the exception of the basics, bare bones, rice & beans staple food etc.
Second draw up a budget, list your bills out every single one, including any luxuries such as memberships, subscriptions, etc.  Cut out all non essentials, I mean everything.
Third keep a spend journal like every single penny that comes in and out of your hand. Seriously you will see where money leaks out of you.
Fourth, if you do 1, 2, 3 that will build momentum and make you feel good.
Fifth, search and find every single shiny thing you can sell to go towards your debt. 
Sixth start an emergency fund even if it is a fancy pants decorated empty peanut butter jar (so you cannot see the money).  I did this. Keep it there.

I would definitely look at selling the bike back to the dealer if, as you said, the season for selling bikes is turning against you.
That payment, insurance, upkeep, storage is just going to mentally wear you down.  Explain your situation to them. 
Maybe they will work with the difference you owe them or do it on consignment.

Search and find any shiny thing you can sell that is just taking up empty space.  You might own a gold mine of shiny things that you can flip for cash.
Any cash goes towards your debt snowball.  A second job or side work or even finding free stuff at the dump makes money.  I did it.  You can too.

Honestly, it all starts with one step to change an attitude, one day at a time.  Each day adds up to more days, less debt, more motivation to get free of spending.

Following this formula, it works.  In the last 18 months, my hair was on fire in debt from years of emotional spending and not making good financial decisions.
You gotta figure out the why of your spending too.  It is mindset that made someone like me a prison to stuff and debt.
As of today I no longer have cc debt.  My car loan is almost done.  My house is almost paid off. My job didn't change and I didn't die just eating rice & beans & writing stuff down in a notebook.
It is empowering and there is real freedom if you are willing to do the work.  Guaranteed.
Good luck.

I write it down every month, see what's came in and out. It's pretty bad when you just ignore the signs huh?

I appreciate your post a lot, thank you.

I will not succumb to eating ONLY rice and beans however. I'm very health minded, and carbohydrates do my body an injustice that I cannot explain. Seems like any variety of grain, sugars, and beans give me terrible bloating, gastrointestinal problems, general puffiness throughout. I fair well with Rice and Potatoes.. but I'm not so far off that I cannot afford chicken, oil, nuts, coffee, and vegetables.

Frozen green vegetables are dirt cheap. Even the steam fresh bags are like $1 per 4 cup bag.
Fresh Chicken Breast is 1.99/lb
Oil is 10-20 cents an ounce?
Nuts are the most expensive part. My main source of fiber however. Only carbs I can really have.

My girlfriend and I split all of our apartment bills and groceries. Groceries are generally 30-40 dollars each a week, with and without toiletries respectively.

I'm making a journal in the journal section if you care to know more. I'll try to type up most of it between now and tomorrow evening.

Tread lightly on the food topic, these guys will jump down your throats if you say you eat a ton of meat.  If you aren't mixing all of your meats with beans and rice, you aren't being a mustachian.........

That being said, I can afford to eat all the meat I buy, I stock up on all of my meat once a month, usually for $125-$150 bucks, 10lb chicken breasts, 20 chicken patties, 10lb chicken tenderloin (breast meat), turkey patties, ground turkey meat x 4.  As you can see, I like chicken and turkey.  Couple that with veggies medley, green beans, and peas.  I'm good to go.
« Last Edit: September 21, 2015, 11:43:10 AM by Easye418 »

mittenslol

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #39 on: September 21, 2015, 11:43:48 AM »
EDIT : Ignore this post.

I was just going to respond to this post.... we don't know what kind of "pickle you are in" because you haven't released all of your financials. 

At $2,800 net a month and a $2,500 bonus, you look to make around $50-60k a year?  You are "cash-flowing" 400-500 bucks a month.  Where is everything else going?

2,800 net / month
160 net (bonus) / month
Sporadic daily and Weekend OT,  net 200/month minimum

Yes, 60,000 a year.

Monthly Bills

Rent - 779
Garage - 50
Water - 50
Electric - 70
Gas - 25
Groceries - 160
Internet - 90
_________________________
Above Bills are Split 50/50, Below are Personal 100% mine
_________________________
Fuel - (budget for 250) 200-300
Phone - 93
Car Insurance/Renters/Bike - 330
Car Payment - 550
Bike Payment - 140
Chase Card Payment - 70
Capital One - 300
Misc. (Netflix, Hulu, XBL, Gym Membership) - 60

mittenslol

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #40 on: September 21, 2015, 11:50:13 AM »
OP I have been exactly in your shoes & made the same mistakes.
First I would go on a 100% purchase pause with the exception of the basics, bare bones, rice & beans staple food etc.
Second draw up a budget, list your bills out every single one, including any luxuries such as memberships, subscriptions, etc.  Cut out all non essentials, I mean everything.
Third keep a spend journal like every single penny that comes in and out of your hand. Seriously you will see where money leaks out of you.
Fourth, if you do 1, 2, 3 that will build momentum and make you feel good.
Fifth, search and find every single shiny thing you can sell to go towards your debt. 
Sixth start an emergency fund even if it is a fancy pants decorated empty peanut butter jar (so you cannot see the money).  I did this. Keep it there.

I would definitely look at selling the bike back to the dealer if, as you said, the season for selling bikes is turning against you.
That payment, insurance, upkeep, storage is just going to mentally wear you down.  Explain your situation to them. 
Maybe they will work with the difference you owe them or do it on consignment.

Search and find any shiny thing you can sell that is just taking up empty space.  You might own a gold mine of shiny things that you can flip for cash.
Any cash goes towards your debt snowball.  A second job or side work or even finding free stuff at the dump makes money.  I did it.  You can too.

Honestly, it all starts with one step to change an attitude, one day at a time.  Each day adds up to more days, less debt, more motivation to get free of spending.

Following this formula, it works.  In the last 18 months, my hair was on fire in debt from years of emotional spending and not making good financial decisions.
You gotta figure out the why of your spending too.  It is mindset that made someone like me a prison to stuff and debt.
As of today I no longer have cc debt.  My car loan is almost done.  My house is almost paid off. My job didn't change and I didn't die just eating rice & beans & writing stuff down in a notebook.
It is empowering and there is real freedom if you are willing to do the work.  Guaranteed.
Good luck.

I write it down every month, see what's came in and out. It's pretty bad when you just ignore the signs huh?

I appreciate your post a lot, thank you.

I will not succumb to eating ONLY rice and beans however. I'm very health minded, and carbohydrates do my body an injustice that I cannot explain. Seems like any variety of grain, sugars, and beans give me terrible bloating, gastrointestinal problems, general puffiness throughout. I fair well with Rice and Potatoes.. but I'm not so far off that I cannot afford chicken, oil, nuts, coffee, and vegetables.

Frozen green vegetables are dirt cheap. Even the steam fresh bags are like $1 per 4 cup bag.
Fresh Chicken Breast is 1.99/lb
Oil is 10-20 cents an ounce?
Nuts are the most expensive part. My main source of fiber however. Only carbs I can really have.

My girlfriend and I split all of our apartment bills and groceries. Groceries are generally 30-40 dollars each a week, with and without toiletries respectively.

I'm making a journal in the journal section if you care to know more. I'll try to type up most of it between now and tomorrow evening.

Tread lightly on the food topic, these guys will jump down your throats if you say you eat a ton of meat.  If you aren't mixing all of your meats with beans and rice, you aren't being a mustachian.........

That being said, I can afford to eat all the meat I buy, I stock up on all of my meat once a month, usually for $125-$150 bucks, 10lb chicken breasts, 20 chicken patties, 10lb chicken tenderloin (breast meat), turkey patties, ground turkey meat x 4.  As you can see, I like chicken and turkey.  Couple that with veggies medley, green beans, and peas.  I'm good to go.

Sorry, but I didn't get to my physique and 205lbs at 5'8" eating beans and rice alone. Right now I'm actually eating VERY light, cutting.. and saving money in the process.

I'll give you an idea of what I was eating before to bulk. This is PER day.

Protein
2lbs chicken breast (weighed raw)
10 eggwhites
2 double whey isolate shakes, 1 double casein shake (50g each one)

Carbohydrates
42oz Red Potatoes
1 White Bagel
1 Cup of Oats
2 bananas

Fats
6-8 Tbsp Olive Oil
6-8 Tbsp Peanut Butter
8 servings of Great Value Mountain Trail Mix

Vegetables
5 cups of bright green, lightly steamed vegetables


Easye418

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #41 on: September 21, 2015, 11:57:05 AM »
OP I have been exactly in your shoes & made the same mistakes.
First I would go on a 100% purchase pause with the exception of the basics, bare bones, rice & beans staple food etc.
Second draw up a budget, list your bills out every single one, including any luxuries such as memberships, subscriptions, etc.  Cut out all non essentials, I mean everything.
Third keep a spend journal like every single penny that comes in and out of your hand. Seriously you will see where money leaks out of you.
Fourth, if you do 1, 2, 3 that will build momentum and make you feel good.
Fifth, search and find every single shiny thing you can sell to go towards your debt. 
Sixth start an emergency fund even if it is a fancy pants decorated empty peanut butter jar (so you cannot see the money).  I did this. Keep it there.

I would definitely look at selling the bike back to the dealer if, as you said, the season for selling bikes is turning against you.
That payment, insurance, upkeep, storage is just going to mentally wear you down.  Explain your situation to them. 
Maybe they will work with the difference you owe them or do it on consignment.

Search and find any shiny thing you can sell that is just taking up empty space.  You might own a gold mine of shiny things that you can flip for cash.
Any cash goes towards your debt snowball.  A second job or side work or even finding free stuff at the dump makes money.  I did it.  You can too.

Honestly, it all starts with one step to change an attitude, one day at a time.  Each day adds up to more days, less debt, more motivation to get free of spending.

Following this formula, it works.  In the last 18 months, my hair was on fire in debt from years of emotional spending and not making good financial decisions.
You gotta figure out the why of your spending too.  It is mindset that made someone like me a prison to stuff and debt.
As of today I no longer have cc debt.  My car loan is almost done.  My house is almost paid off. My job didn't change and I didn't die just eating rice & beans & writing stuff down in a notebook.
It is empowering and there is real freedom if you are willing to do the work.  Guaranteed.
Good luck.

I write it down every month, see what's came in and out. It's pretty bad when you just ignore the signs huh?

I appreciate your post a lot, thank you.

I will not succumb to eating ONLY rice and beans however. I'm very health minded, and carbohydrates do my body an injustice that I cannot explain. Seems like any variety of grain, sugars, and beans give me terrible bloating, gastrointestinal problems, general puffiness throughout. I fair well with Rice and Potatoes.. but I'm not so far off that I cannot afford chicken, oil, nuts, coffee, and vegetables.

Frozen green vegetables are dirt cheap. Even the steam fresh bags are like $1 per 4 cup bag.
Fresh Chicken Breast is 1.99/lb
Oil is 10-20 cents an ounce?
Nuts are the most expensive part. My main source of fiber however. Only carbs I can really have.

My girlfriend and I split all of our apartment bills and groceries. Groceries are generally 30-40 dollars each a week, with and without toiletries respectively.

I'm making a journal in the journal section if you care to know more. I'll try to type up most of it between now and tomorrow evening.

Tread lightly on the food topic, these guys will jump down your throats if you say you eat a ton of meat.  If you aren't mixing all of your meats with beans and rice, you aren't being a mustachian.........

That being said, I can afford to eat all the meat I buy, I stock up on all of my meat once a month, usually for $125-$150 bucks, 10lb chicken breasts, 20 chicken patties, 10lb chicken tenderloin (breast meat), turkey patties, ground turkey meat x 4.  As you can see, I like chicken and turkey.  Couple that with veggies medley, green beans, and peas.  I'm good to go.

Sorry, but I didn't get to my physique and 205lbs at 5'8" eating beans and rice alone. Right now I'm actually eating VERY light, cutting.. and saving money in the process.

I'll give you an idea of what I was eating before to bulk. This is PER day.

Protein
2lbs chicken breast (weighed raw)
10 eggwhites
2 double whey isolate shakes, 1 double casein shake (50g each one)

Carbohydrates
42oz Red Potatoes
1 White Bagel
1 Cup of Oats
2 bananas

Fats
6-8 Tbsp Olive Oil
6-8 Tbsp Peanut Butter
8 servings of Great Value Mountain Trail Mix

Vegetables
5 cups of bright green, lightly steamed vegetables

At that weight, I presume you are bulky heavy lifter.  Looks like you are eating just fine.

As a heavy lifter myself, 6'0", 180-182lbs, I'm not ripped, but keep myself in pretty good shape.  If I could give up weekend drinkin, I could cut and get ripped.  I suffered a Grade 1 AC Joint tear about 3 weeks and I lost 8lbs over that time.  I am going to give it one more week to heal then hit the weights hard to recover my mass.

Anyways, best of luck.  These guys offered up great advice.
« Last Edit: September 21, 2015, 11:58:43 AM by Easye418 »

Cycling Stache

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #42 on: September 21, 2015, 12:02:44 PM »
It's funny, the more I explain my situation the more I just want to go back and slap myself in the balls...

No need.  People here will do that for you.  The one thing I will add is to forgive and forget why you made the decisions to get here.  It doesn't matter now.  You just need to game plan how you're going to move forward.  The flip side to that, though, is don't be too invested in any of the things you bought and feel like you ought to hold on to them because you bought them.  Just a cost-benefit analysis going forward.

mittenslol

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #43 on: September 21, 2015, 12:15:02 PM »
OP I have been exactly in your shoes & made the same mistakes.
First I would go on a 100% purchase pause with the exception of the basics, bare bones, rice & beans staple food etc.
Second draw up a budget, list your bills out every single one, including any luxuries such as memberships, subscriptions, etc.  Cut out all non essentials, I mean everything.
Third keep a spend journal like every single penny that comes in and out of your hand. Seriously you will see where money leaks out of you.
Fourth, if you do 1, 2, 3 that will build momentum and make you feel good.
Fifth, search and find every single shiny thing you can sell to go towards your debt. 
Sixth start an emergency fund even if it is a fancy pants decorated empty peanut butter jar (so you cannot see the money).  I did this. Keep it there.

I would definitely look at selling the bike back to the dealer if, as you said, the season for selling bikes is turning against you.
That payment, insurance, upkeep, storage is just going to mentally wear you down.  Explain your situation to them. 
Maybe they will work with the difference you owe them or do it on consignment.

Search and find any shiny thing you can sell that is just taking up empty space.  You might own a gold mine of shiny things that you can flip for cash.
Any cash goes towards your debt snowball.  A second job or side work or even finding free stuff at the dump makes money.  I did it.  You can too.

Honestly, it all starts with one step to change an attitude, one day at a time.  Each day adds up to more days, less debt, more motivation to get free of spending.

Following this formula, it works.  In the last 18 months, my hair was on fire in debt from years of emotional spending and not making good financial decisions.
You gotta figure out the why of your spending too.  It is mindset that made someone like me a prison to stuff and debt.
As of today I no longer have cc debt.  My car loan is almost done.  My house is almost paid off. My job didn't change and I didn't die just eating rice & beans & writing stuff down in a notebook.
It is empowering and there is real freedom if you are willing to do the work.  Guaranteed.
Good luck.

I write it down every month, see what's came in and out. It's pretty bad when you just ignore the signs huh?

I appreciate your post a lot, thank you.

I will not succumb to eating ONLY rice and beans however. I'm very health minded, and carbohydrates do my body an injustice that I cannot explain. Seems like any variety of grain, sugars, and beans give me terrible bloating, gastrointestinal problems, general puffiness throughout. I fair well with Rice and Potatoes.. but I'm not so far off that I cannot afford chicken, oil, nuts, coffee, and vegetables.

Frozen green vegetables are dirt cheap. Even the steam fresh bags are like $1 per 4 cup bag.
Fresh Chicken Breast is 1.99/lb
Oil is 10-20 cents an ounce?
Nuts are the most expensive part. My main source of fiber however. Only carbs I can really have.

My girlfriend and I split all of our apartment bills and groceries. Groceries are generally 30-40 dollars each a week, with and without toiletries respectively.

I'm making a journal in the journal section if you care to know more. I'll try to type up most of it between now and tomorrow evening.

Tread lightly on the food topic, these guys will jump down your throats if you say you eat a ton of meat.  If you aren't mixing all of your meats with beans and rice, you aren't being a mustachian.........

That being said, I can afford to eat all the meat I buy, I stock up on all of my meat once a month, usually for $125-$150 bucks, 10lb chicken breasts, 20 chicken patties, 10lb chicken tenderloin (breast meat), turkey patties, ground turkey meat x 4.  As you can see, I like chicken and turkey.  Couple that with veggies medley, green beans, and peas.  I'm good to go.

Sorry, but I didn't get to my physique and 205lbs at 5'8" eating beans and rice alone. Right now I'm actually eating VERY light, cutting.. and saving money in the process.

I'll give you an idea of what I was eating before to bulk. This is PER day.

Protein
2lbs chicken breast (weighed raw)
10 eggwhites
2 double whey isolate shakes, 1 double casein shake (50g each one)

Carbohydrates
42oz Red Potatoes
1 White Bagel
1 Cup of Oats
2 bananas

Fats
6-8 Tbsp Olive Oil
6-8 Tbsp Peanut Butter
8 servings of Great Value Mountain Trail Mix

Vegetables
5 cups of bright green, lightly steamed vegetables

At that weight, I presume you are bulky heavy lifter.  Looks like you are eating just fine.

As a heavy lifter myself, 6'0", 180-182lbs, I'm not ripped, but keep myself in pretty good shape.  If I could give up weekend drinkin, I could cut and get ripped.  I suffered a Grade 1 AC Joint tear about 3 weeks and I lost 8lbs over that time.  I am going to give it one more week to heal then hit the weights hard to recover my mass.

Anyways, best of luck.  These guys offered up great advice.

Currently I'm 190, injured lower back, have just been eating to maintain and lose minimal muscle.

Here's how I'm eating at the moment


Protein

2lg Chicken Breasts/day

1 double Whey Isolate shake post workout, 1 double casein shake before bed

Carbohydrates

(None)

Fats

4tbsp MCT Oil
2tbsp Butter
Tons of high fiber nuts (yes, fiber is carbs.. but I shoot for less than 20g of NET carbs... Total Carbs minus fiber equals Net carbs)
2-3tbsp Olive oil

Vegetables

As much low carb varieties as I can eat.


MountainFlower

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Re: 7000 Dollars Negative Equity (Automobile) and other debts...
« Reply #44 on: September 21, 2015, 12:35:28 PM »
There seem to be a lot of 0% balance transfer credit card offers out there.  Citibank keeps sending me offers with 0% for 21 months.   Can you apply for a couple and use those to pay down the motorcycle loan so that you aren't upside down and then sell it? Perhaps even the car too? 

Good luck!