Balancing My Debt Question

[Stretch]

Hey guys,

Wanted to know if anyone had some advice regarding some debt issues I currently possess.

I am behind on some payments, and have several lines of debt. With my income level I am unable to actually pay down the debts and have just been balancing them. I do not want to declare bankruptcy for obvious negative reasons, although I have looked into Consumer Debt Proposal. The bank would not qualify me for a debt consolidation loan as my debt to income ratio was over their limit.

Aside from a consumer proposal, would there be any other way of consolidating the moneys? My parents will not help. The total amount is in the ballpark of $25k.

Best,
eric

[lcianf01]

Call MBNA and see if they will consolidate all your debt to one of their credit cards. They were give you a special rate based on your credit score. My friend got 20,000 for .99 for two years. But he had to pay the cash advance fee of $180-$220 ish to get the money of the card to pay of the other lines.

Leo

[Pacman]

Put a loan on your car?

[XTOTHEL]

Also see if you can "downsize" anything to save money...

[PearlM3]

I don't want to seem like a dick....but didn't u just make a post about a 500 valentines day gift?

[loki]

Yes

http://www.torontomazda3.ca/forum/sh...t=#post1160479

[Kiyomi]

...

seems more like a spending problem, rather than a debt problem.
change your lifestyle and you wont have such serious debt.

[Default User]

First off - Cancel credit or cut up your cards so you don't fall into a loop of paying the minimum - only to use the available balance to buy McD's.

Then Look deep into your spending habits and see where you can cut corners.


Avoid convenience stores - there's a premium charge for that convenience

Stop gambling - even Lotto 6/49.

Buy cheaper smokes

Buy cheaper booze

Go grocery shopping
- bring lunch (even once or twice a week)
- buy a case of water/soda instead of buying one at convenience stores
- brew your coffee
- bring your own snacks

Change / cheapen your cell phone plan by using landlines when available.
- cancel vMail, lower data package, lower daytime minutes.

Ease up on the latest trends. Hipsters are the new yuppies - kids with WAAAY too much expendable money buying up every new gadget to be one of the cool kids.

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


No start saving your savings

Buy a piggy bank - I actually have a tin piggy bank that I throw all my change into at the end of the day. You can get these zodiac piggy banks at Dollarama - and you have to physically break it open to get money out. None of the kiddy ones with the trap door at the bottom or else you'll cheat.

The first one I did had $600 within a year

I even paid myself for coffee that I brew at home or work lol. $1 each time I brewed a cup I coffee went into the piggy bank.

[boo-ninja]

You Need A Budget software has really helped me. It's $60 but if you watch steam I got it for $15!

[Jenuine]

Like someone said above, I believe MBNA may consolidate your debt, you should definitely call them.

Worst case scenario, they don't and you can't find a way to consolidate your debt, you're going to have to reduce your spending and make extra cash. Set a budget for all your expenses and make sure you stick to them... you may even want to look at getting a cheaper cell phone plan, bringing lunch to work everyday, etc. Find a PT job for extra cash, it will really help. And pay down the card with the highest interest rate first (while still maintaining at least the minimum payment for your other cards).

Tough situation to be in. Best of luck

[fruitloops]

Budget, Budget, Budget.

[Hyperion]

https://www.mint.com/how-it-works/anywhere/iphone/
Try this to help you become more aware of your spending.

Also, Default User said cheaper alcohol and smokes..... By cheaper he meant none, at all. I mean, I understand nicotine addiction and what not, but alcohol is definitely not needed.

[Default User]

https://www.mint.com/how-it-works/anywhere/iphone/
Try this to help you become more aware of your spending.

Also, Default User said cheaper alcohol and smokes..... By cheaper he meant none, at all. I mean, I understand nicotine addiction and what not, but alcohol is definitely not needed.

No - I meant cheaper.

I know how hard it is to quit - and even harder when you're stressed about money.

The best thing to do (if not quit) is to at least buy the cheap economy brands - natives if possible.

$10-$12/pack a day for "premium brands" vs $7-8/day for budget brands.

**** the Heinecken and drink ****ing Brava if you need a buzz.


Bein strapped for cash doesn't mean he has to drastically change his life habits (although it would be a good thing)

[Tahna Los]

I'm gonna sound like a jerk for saying this but maybe it's time to sell your car, and get something that's not only cheaper to maintain, but also lighter on gas. All those upgrades that you put in your MS3 are putting a serious drain in your finances.

[m3rk]

Default user has some really good tips. And Kiyomi is right as well. It may be a spending habit that got you into this. I'm on the same boat as you but not in that range.

A few months ago, I even looked up some methods on cutting down debt like the snowball effect and etc. If you have credit card debit, RIP THAT SHIT UP, hide it or take it out of your wallet so you don't get tempted to use it to buy small things or car parts... It all adds up eventually. Don't just pay the minimum.

It takes patience, effort and determination I would say. Unless you win the lottery! but don't go buying tix every week

[Stretch]

Thanks for all of the replies guys! Let me clear some things up:

Yes I did buy my gf an iPad for valentine's day. It is coming out of the tax return money I will get next week. I am also doing brake repairs out of that money, and then the remainder will go towards bills. I bought her the gift because as of late I have not been able to really do anything extravagant, so I wanted to do something.

-I don't smoke
-drink maybe once per 2-3 weeks
-can't sell car as it's still being paid for
-already bring soup or pasta for lunch daily
-have not bought new clothing in over a year
-have no assets other than a 4 year old computer and some old radios
-only non-essential car mod currently is RMM, the rest were done because the stock parts were literally falling apart

I have carried the debt in one for or another for the past 7 years, I have just not been able to get it paid down completely ever. I will look into the MBNA credit card consolidation to see if they can offer any solutions.
best,
eric

[schmat66]

my girlfriend was 35k at her peak (car loan, CC's) now she plenty down

you need to get another job… give up 3 weeknights for 4 hours a night and do dishes or something.. do some simple math.. 12 hours a week @ say $10 a hour = $120 a week… = approx $6200 a year… yeah i know how it is giving up life time.. time with the girlfriend time with friends etc. i do it. but sometimes its gotta be done.

i know lots of people who have worked 2 or 3 jobs. full time and part time on the side just to pay down school debt or afford things they want. I've done/do it.

[loki]

Because it is coming out of your tac return does not mean its ok

Just wanted to point that out

If you're ok with carrying the debt then you can continue to justify your spending saying things like you haven't done anything extravagant

Anyway you should go talk to a financial advisor or a debt professional because it sounds like it might be a mind set that got you in this situation in the first place

Good on you for not smoking

Also I'm not judging you if anyone is wondering, I'm just saying what comes to my mind when I read what you posted that's all

[SomeGuy]

If your gf was of any worth she would not need an ipad and would be helping encourage you to pay it all down. Tax return isn't free money, you spend just as much time earning it and since it's "out of the ordinary money" it should go 100% to paying down debts.

Looks like you just make some dumb choices (MS3 being one of them) and can always convince yourself it's ok if you spend money for various reasons. You would be shocked at how far even $30,000/year will go if you don't try to live beyond your means.


And FYI I AM judging you, or really anyone who accumulates a large debt for stupid reasons...a reasonable car loan is ok (don't buy a new bmw when you should have a used honda civic), house is ok and schooling to some extent is ok although so many people abuse osap. Debt is a bad habit/addiction like smoking or drugs.

[Stretch]

If your gf was of any worth she would not need an ipad and would be helping encourage you to pay it all down. Tax return isn't free money, you spend just as much time earning it and since it's "out of the ordinary money" it should go 100% to paying down debts.

Looks like you just make some dumb choices (MS3 being one of them) and can always convince yourself it's ok if you spend money for various reasons. You would be shocked at how far even $30,000/year will go if you don't try to live beyond your means.


And FYI I AM judging you, or really anyone who accumulates a large debt for stupid reasons...a reasonable car loan is ok (don't buy a new bmw when you should have a used honda civic), house is ok and schooling to some extent is ok although so many people abuse osap. Debt is a bad habit/addiction like smoking or drugs.

Hey it's not a problem, if I didn't want personal opinions or to be judged, I would not post in an open forum!

Yes perhaps the ms3 wasn't the best financial choice, although I did get it for $10k which at the time was affordable for me (current job pays less). I live in a bad basement apartment, and the only thing I do beyond my means I would say is eat subway too often, although if you work out the cost of a daily deal there it's only slightly more than a much less nutritious meal prepared at home, oftentimes cheaper. I will have to cut back on that though I know.

I may be looking in the wrong places for part time work, but even a grocery store would not hire me for weekends when I applied, and I have over 3 years past experience in a grocery store.

[SilentJay]

I'm not sure of your other life parameters, but would it be possible to move back home with your parents? Rent, no matter how cruddy the basement is, is still money going into someone elses' pocket. I paid "rent" to my parents when I lived at home in the form of a contribution. It was less than renting a room, but enough to help them out with their bills. Win-win.

Not to beat a dead horse but admittedly the iPad was a bad move, but what's done is done.

Like everyone else has stated, cut your set expenses - things like the gym, remove all data from your cell phone plan, 407ETR use, see about porting to a second tier cell phone provider to get rock-bottom voice/text plans (wind/mobilicity/chatr), etc. It's painful, but you need to categorize things that are "luxury" and things that are "need-to-live".

A good example of luxury would be booze. Even Mexican-piss costs $5/beer x 26 times a year (1 every 2 weeks), that's $130 down the drain. Once you've got your luxuries and necessities listed out on paper in front of you, you'll have a better sense of where the little $10s and $20s are disappearing to.

What is your current job now? Are you actively looking for an upgrade? If you don't have specialty training, have you looked at doing manual labour jobs? I know this might be even more painful, but you might need to park your speed so you aren't paying $1.46+/L, and see if you can get a reduction in your insurance rates if it's stored, and bus it like a student.

[SomeGuy]

Sometimes people need to be smacked in the face a bit.

1) Evaluate your bills each month (cell/tv/internet, gas/hydro/water, insurance/car, etc) and get rid of what you can or conserve where you can. Taking a shorter shower and turning your heat down and leaving lights off and only having basic cable could save you $100's a month.
2) Don't carry cash, it's easier to spend on little needless things where you otherwise wouldn't (the pack of gum and energy drink from the convenient places for instance).
3) Each time you go to spend money while shopping, ask yourself if you really need this to survive the day/week/month whatever. If the answer is no, then leave it behind.
4) Get side jobs, deliver papers, shovel snow...do you have anything you can do well (fix computers, take pictures, whatever) that could be a side job of your own. That's if you can't find part time employment (try EVERYWHERE, even places that you'd rather not work and don't give up).

All this money you save goes right into paying off your debt. Pay off the highest interest stuff first as it's costing you the most. Consolidate to lower rates wherever you can.

[SilentJay]

although if you work out the cost of a daily deal there it's only slightly more than a much less nutritious meal prepared at home, oftentimes cheaper.

Knowing the actual costs of the alternatives really helps when you're deciding on things like this. Believe me, I had to go through something like this when I was young and stupid - Even if you only eat the 6" raccoon fetus salad from Subway, it'll at least run you $4 taxes in for that one meal. If you eat that sub 3 times a week, you're at around $12.

Loaf of bread = $2 ($3 if you buy that fancy 12-grain stuff)
Cold cuts = $6 (cuz that sh*t is expensive)
Condiments = $3 (or take them from fast food joints to save the money)
Cheese = $4 (or more cold cuts if you're lactose intolerant)
===============
$12-16 to feed you like a king for the week vs. $12 for 3 so-so diarrhea-inducing subs

[peterm15]

Also take a look at bank fees. if you pay any switch banks to pc. That saved me over $120/year.

[Stretch]

Good advice everyone! Especially your advice about staying away from the raccoon-fetus subs SilenJay, they were never my favorite anyway.

Ill put to use the ideas/comments from you guys, and get back to car-related discussion rather than these soap box threads.

eric