financial trouble

[jbol]

after reading the investing thread,i realized there are some very smart bros on here,so i just thought id ask for some opinions on my financial situation,i have about $42,000 debt on credit cards,i own a mobile home it is free and clear (i owe nothing on it),i currently have roughly $10,000 in the stock market,i would use my stock money to pay off some of the debt,but my intrest rates on the cards vary from 3% to 8%,i feel i will get a better return on the stocks than if i was to use it to pay off some of the debt.i only bring home about $23,000 a year, i have a daughter that lives with me,and really cant afford the payments on the cards,i looked into chapter 7 bankruptcy and im only allowed $12,000 in exemptions,my mobile home is worth roughly $25,000 so i risk losing my home....i also looked into chapter 13 bankruptcy and payments to the trustee would be around $275 a month....i really would like to avoid fileing bankruptcy...i was just wondering if maybe someone had a better idea.......any advice would be appreciated

[spywizard]

Ok........i am not trying to pass judgement.. so just take what i am saying for what it is worth...

Your asset (mobil home) is a depreciating asset... that is it is going down in value.. (unless you can rent it for more than your mortgage payment) i know you said it is paid off..

A mortgage is tax deductable... but if you are that strapped $42,000 in revolving debt payment is about $1200 a month... correct??? that means that each month you are spending $1200 (interest) and you are getting nothing for that......

I would take a mortage on the house... pay off the debt, and make the payments to the mortgage instead of the revolving debt..

with that said..

you are obviously having priority issues... you may have spent alot of money with your daughter... stop it..........

and by the way.. congradulations having $10,000 in the stock market..

Do you take full advantage of your 401k program... that's free money also..

Chapter 7 may be the only option... chapter 13 means nothing to creditors... they are both the same...

and a repayment thing that you see advertised is worthless also.. you can do the same by contacting them yourself.. but it will effect your credit no matter what...

get the mortgage first if you can....................

Peace....

after reading the investing thread,i realized there are some very smart bros on here,so i just thought id ask for some opinions on my financial situation,i have about $42,000 debt on credit cards,i own a mobile home it is free and clear (i owe nothing on it),i currently have roughly $10,000 in the stock market,i would use my stock money to pay off some of the debt,but my intrest rates on the cards vary from 3% to 8%,i feel i will get a better return on the stocks than if i was to use it to pay off some of the debt.i only bring home about $23,000 a year, i have a daughter that lives with me,and really cant afford the payments on the cards,i looked into chapter 7 bankruptcy and im only allowed $12,000 in exemptions,my mobile home is worth roughly $25,000 so i risk losing my home....i also looked into chapter 13 bankruptcy and payments to the trustee would be around $275 a month....i really would like to avoid fileing bankruptcy...i was just wondering if maybe someone had a better idea.......any advice would be appreciated

[jbol]

Ok........i am not trying to pass judgement.. so just take what i am saying for what it is worth...

Your asset (mobil home) is a depreciating asset... that is it is going down in value.. (unless you can rent it for more than your mortgage payment) i know you said it is paid off..

A mortgage is tax deductable... but if you are that strapped $42,000 in revolving debt payment is about $1200 a month... correct??? that means that each month you are spending $1200 (interest) and you are getting nothing for that......

I would take a mortage on the house... pay off the debt, and make the payments to the mortgage instead of the revolving debt..

with that said..

you are obviously having priority issues... you may have spent alot of money with your daughter... stop it..........

and by the way.. congradulations having $10,000 in the stock market..

Do you take full advantage of your 401k program... that's free money also..

Chapter 7 may be the only option... chapter 13 means nothing to creditors... they are both the same...

and a repayment thing that you see advertised is worthless also.. you can do the same by contacting them yourself.. but it will effect your credit no matter what...

get the mortgage first if you can....................

Peace....

thanks for the reply spy,i realize my mobile home is a depreciating asset,when i took out the loan for this home there was only one bank in town that would finance a mobile home(risk factor i guess)although my credit is good and i have never defaulted,the loan for my mobile home was at 11.24% which is rediculaus........so what i did was i took and paid it off with my creditcards(thats where alot of my credit card debt came from) and now by averaging the intrest rates on the cards i paid it off with it now stands at 5.24%,i dont think i can get a mortgage that low on a mobile home.i realize intrest on a mortgage is tax deductible,but by paying it off with low intrest credit cards more money is now going toward the principle and actually the payments are just as much as they were when i had the loan for it........around $500 a month........but with my total debt im paying about $800 a month(that is for the total $42,000, which includes the credit cards i used to pay off the mobile home) add that in with a $400 lot rent(cuz i dont own my land) and i am paying about $1200 a month...not including insurance,electricity,gas,food..ect.i really dont spend excessively on my daughter,but when you only make $24,000 at the most a year its pretty hard to keep up these payments,also good to know that it doesnt matter what kind of bankruptcy you file.......its all bad,so i really want to avoid it,also,yes i do take advantage of my 401k...you really cant beat the advantages of that.

[spywizard]

Thanks for the extra info.........

Most financial advisors will tell you to dump the stock and pay off the debt.. period.. i was trying to come up with a different answer for you..

the interest thing is true.. but what ya going to do........

that same advisor would tell you to cash out the stock....

file chap 7..

after that is done.. put aside about $3000 to fix your credit.... it will take about 1 year....

then re invest the money..

I know that's not what you want to do...


the only other advise.................... GET A DIFFERENT JOB..... make more money.. it's what i tell everyone........if you aren't making enough money to live the lifestyle you want.. get a different job.........

thanks for the reply spy,i realize my mobile home is a depreciating asset,when i took out the loan for this home there was only one bank in town that would finance a mobile home(risk factor i guess)although my credit is good and i have never defaulted,the loan for my mobile home was at 11.24% which is rediculaus........so what i did was i took and paid it off with my creditcards(thats where alot of my credit card debt came from) and now by averaging the intrest rates on the cards i paid it off with it now stands at 5.24%,i dont think i can get a mortgage that low on a mobile home.i realize intrest on a mortgage is tax deductible,but by paying it off with low intrest credit cards more money is now going toward the principle and actually the payments are just as much as they were when i had the loan for it........around $500 a month........but with my total debt im paying about $800 a month(that is for the total $42,000, which includes the credit cards i used to pay off the mobile home) add that in with a $400 lot rent(cuz i dont own my land) and i am paying about $1200 a month...not including insurance,electricity,gas,food..ect.i really dont spend excessively on my daughter,but when you only make $24,000 at the most a year its pretty hard to keep up these payments,also good to know that it doesnt matter what kind of bankruptcy you file.......its all bad,so i really want to avoid it,also,yes i do take advantage of my 401k...you really cant beat the advantages of that.

[jbol]

thanks spy........im gonna try to stick it out a little longer,in hopes something will come up.......if not..... im gonna take your advice..thanks for the advice i appreciate it

[lifesabitch]

Have you tried debt consolidation? Or at least talking to a financial advisor to make a budget?

[jbol]

Have you tried debt consolidation? Or at least talking to a financial advisor to make a budget?

ive thought about the debt consolidation thing,but from what i understand is they only try to lower your intrest rates,mine cant go much lower...and as far as the finacial advisor,im trying to hire spy...j/jkn

[Stea7jjdyEddie]

Gentlemen.....I am looking for this investment thread everyone is reading about......I am not being lazy but I honestly am not seeing it.....can someone point me in the right direction please........

[lifesabitch]

I payed off my credit cards through debt consolidation. The main thing I liked was only having one payment to make instead of trying to juggle 5 or 6(you make one payment and they disperse the money to all the creditors). Good luck bro!

ive thought about the debt consolidation thing,but from what i understand is they only try to lower your intrest rates,mine cant go much lower...and as far as the finacial advisor,im trying to hire spy...j/jkn

[lifesabitch]

Gentlemen.....I am looking for this investment thread everyone is reading about......I am not being lazy but I honestly am not seeing it.....can someone point me in the right direction please........

It's in the AR Lounge bro.