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I can also attest to the Speed 3 thing. My fiancee had a ridiculously modded speed and it ate gas like no ones business. I convinced him to sell it. Better to get debt paid off and then in the future you can have a nice car again without the added stress of having to pay for it AND pay other debts too.
Short term sacrifice for a long term gain.
Then don't buy a Mazda 3. Buy something even cheaper than that. Like a really used Yaris, or even a Chevy Aveo. But look up the maintenance history of the vehicle.Quote:
Originally Posted by peterm15
At this point, he needs basic transportation that doesn't burn a hole in his pocket. Basic with a Capital B.
Not disagreeing. But again. Sometimes the cost to get rid of a vehicle balances out.Quote:
Originally Posted by Tahna Los
This would be my scenario. I would have to take a large loss on the vehicle, leaving me with payments still (which won't work as I can't sell with a lien), and then purchase a much worse vehicle somehow and make insurance/payments on that at the same time.Quote:
Originally Posted by peterm15
Reduce your spending, take all the "excess" you were spending and put it towards debt relief.
I live without Cable TV, I get my internet through a discount provider (Teksavvy), my cell phone is with WIND (super cheap). I lived car-free from 2002-2010 and took public transit, even when I commuted from the Toronto Beaches to Oakville. I lived in a shitty apartment. I ate Mr. Noodles (50c a meal). I did this so that I could pay off my student loans and other assorted debts I had accrued. I hated being car-free, but today I am glad I did it.
-Geoff
If definitely takes balls to be posting this up on the forum. Don't really have much to say cause everyone has pretty much narrowed it down but what I will say is considering you're on the forum and members always want new mods I'd suggest you start parting out your car. Anything helps!
I don't understand why ppl insist on parting out or selling his/her vehicle, quit smoking/drinking, etc. (And yes - I understand smoking and drinking is bad for you). But it really isn't that easy
The man is in debt - like 99% of the world. And 25K is peanuts.
I'm in for almost half a mill. Mortgage, car loan, line of credit, credit cards. And on top of that - raising two kids, cell phones, gas for 2 cars, cable, internet, yadda yadda yadda.
The trick is to get ahead of your bills and BUDGET!!.
With your tax return pay off the credit card with the highest interest. If anything is left - pay off your cell phone two months in advance.
Let your girl know you're tight on funds. She'll understand. If she doesn't - kick her to the curb.
Best advice yet.Quote:
Originally Posted by Default User
25k is miniscule compared to some. As long as your debt isn't getting worse there is no need to sell stuff.
Make some life changes and youll be fine. Get rid of higest intrest first. Then move on to the lower stuff.
If you have student loans through the government apply for intrest relief or one of the many repayment assistance options.
Split the due dates on your bills across the month so your not juggling 5 bills due the same day. even that can make a huge difference.
Congrats. U have assets that are collateral for your loans. He doesn't have a house nor much of a car to back the debt.Quote:
Originally Posted by Default User
As well, you are not taking into Con sideration his income vs yours. It seems you Can service your debt. Meanwhile he cannot.
I think quitting bad habits that drain his wallet and selling his car (to get one more fuel efficient) should be considered since he stated that he has relatively low income. Even if he does budget, it'll probably be hard for him to handle his debt if he can only manage to pay the minimum payment after fixed living expenses as interest is going to make his debt rise faster than he can pay it. In a situation like that, every penny counts. Not buying cigarettes/alcohol means that money is gonna go towards his debt.Quote:
Originally Posted by Default User
Hes doesnt smoke. Drinks rarely. And selling car is not an option as it would increase his debt rather then decrease it.
Exactly.Quote:
Originally Posted by Pacman
This is mostly bad advice IMO. Debt is not a good thing, 25k or not, if he can't stay ahead of it he will end up in big trouble.Quote:
Originally Posted by Default User
Mortgage is about the only "good" debt. A car loan is understandable (although I've personally bought all my vehicles cash). There are a few other circumstances that they are necessary, say for a business/work where the debt is earning you a greater return. The rest, forget it.
The other suggestions about ahead of bills/budget is good though.
Hi Eric,
First start by Calculating the required biweekly payment over 5 years at the interest rate you'll be paying (high risk) that will be required if you consolidate all your debt into one loan.
Now look at this number and think of what it means to consolidate... 1 payment over 5 years every two weeks with no chance of changing it unless you pay it off completely.
Now look at your current situation and note the items with highest interest that can be paid off soonest. Focus on one at a time and as you pay 1 off, close it, and start on the next.
What you'll find is that as you pay1 thing off, your minimum payments will decrease by that payment giving you more room to pay off the next.
You ask how to consolidate and I earn you that consolidating will strap you further. To consolidate means to close your cards, lines, etc in place of one loan that has 1 payment over five years with no chance to reduce that payment.
Don't do what I did years ago and consolidate... It ruined me for 5 years
OP - seek professional help from a financial advisor. I'm sure a quick google search can even help u find some "fill in the blank" spreadsheet to help you balance it out.
Just wondering what kind of debt it is. Is it from OSAP, car loan, credit cards or a mixture?
If it's mostly OSAP, many graduates have this debt load. If it's mostly credit card debt then you may need some professional help. Best way to use credit cards is to pay it off in total the following month.
Anyways, lots of great ideas here. Choose a few that relate most to you and stick to them.
If it is OSAP, watch out. While you can apply for a 6-month deference to pay due to extenuating circumstances (low income being one of them), they do look at what you own. And they WILL tell you to sell your car (no excuses) in order to apply for the deference. I know someone in that position, it was a beater vehicle he owned to get to a low paying job on a farm. The OSAP guys refused the deference on the basis he had a car, and the guy ended up declaring bankruptcy shortly afterwards and ended up losing the car for basically pennies. THEN he got the deference, but by then it was already too late.
Not 100% true.Quote:
Originally Posted by Tahna Los
If you are asking to pay interest only, they really have no problems with that.
If you are asking to make interest payments only while the government pays your principal, they look at your last 3 months income of the household. (They don't look at assets and they also don't take many of you debts into consideration)
The only debt they take into consideration is other student loans.
Thinking that 25K in consumer debt is "peanuts" is horrible. He can't make progress and will simply be deeper in the hole.
not intended to be taken as an insult.Quote:
Originally Posted by midnightfxgt
Just stating that there are PLENTY of ppl in debt (in some cases even deeper) - and can manage (even barely) - when they take a good look at their priorities.
Referring to it as "peanuts" was meant to be consoling LOL - considering im in pretty deep myself. And if I can squeek by, I'm certain he'll be able to manage once he sits downand analyizes everything
Quote:
Originally Posted by Default User
http://getsmarteraboutmoney.ca/en/ma...x#.UweCemJdUzI
+1, Best advice.Quote:
Originally Posted by Default User
I know what you mean, but we have no idea his bills, or income.Quote:
Originally Posted by Default User
So many people are in serious debt, its crazy. Common sense with money falls behind the "I want it" attitude people have. I think we need a class in High School teaching people how compound interest works, mortgages, credit cards etc. We would have a lot less people in these situations.
I wouldn't consider mortgage a debt, unless your house is seriously depreciating in value, in which case you've got problems
Sure I have a mortgage, but if I sell my house tomorrow I will turn a profit