Actually $26,000 was the base price, but its the same reason people pay $50,000 for an SUV I guess, Its a 2001 that we bought in November 2001 and we got what I thought was a really good deal, but the question here is what to do? We had a minivan and a Mitsubishi Diamante that I drove. I sold the car to my father-in-law. I owe $23,000 on the van and the highest I could probably get is $19-20K. That leaves me paying $3-4,000 and then NO VEHICLE, what to do then? See my point?
<bump> There has to be more people who have experienced this....as busy as this board is, I KNOW I am not the only one........... PLEASE??????
well you say you get offers for CC's in the mail every day..could you transfer the remaining on a 0% offer and get a cheaper car? you would save a little on ins also... i dont know..new cars are a rip
We are on the edge ourselves, and trying to climb out of a hole , the only difference being we didn't take a big pay cut when DH got work--we are just so far behind. The problem I see is that you are not being 100% honest/realistic with yourself. You listed your major recurring expenses (which put you at below 0), but not odd stuff--and that odd stuff adds up. Glad to know your wife is protected (and I hope as well she doesn't decide to cash in early!) - but that costs money. Three boys, they have sports/activities/etc that costs as well. We didn't file BK, but everyday I wonder if that was a stupid move. Our scores are in the high 4 to low 500's - couldn't go much lower, and I wouldn't have this burden of trying to figure out how to catch everything up! Based on what you are telling us, it won't be long before your wife's credit starts crashing - you are out of $$. You are at the 6 yr mark. You might be pleasantly surprised if you pulled your credit reports how much repairing you can do this late in the game. Savings - is at 0 (so is mine) that scares the Hell out of us. What if something like this happens again, we have nothing to fall back on, and creditors still wanting money. You are going to have to weigh your options, evaluate the consequences of any actions you take, and decide what is best for you and your family. Its a personal decision. But you are young! Sorry this is so long, but I do feel your pain.
hmmm, the most we have ever been offered is $10,000 credit limit. I don't think I could pull that one off. But I appreciate all of the replies. Even if I don't do some of what you say, it makes me think more about what I am going to do. jlynn, I feel your pain as well. Everybody always talks about how bad a bankruptcy is, but at this point I see no other option, which is why I am asking for recommendations. I know about all the other stuff that comes into play as far as incidentals. That wasn't a budget I was showing you. It was a point to prove that I dont' even have money for food or anything else. My 2 oldest sons play soccer, but we don't have Doctor's bills, my kids are now on medicaid. Thanks again, and if anyone else has something to add, please, please, please, give me any advice you think might be helpful!
Let me tell you this...If you live in Maryland you do not want a judgement. It will stay on your report for 10 years and then they will renew it for another 10 years leaving you in credit hell for 20 years. Whatever the circumstances 20years of credit hell is not worth it. I say start looking around your house for stuff that's in good shape but you no longer use. I would ebay everything off and see how much money you can raise doing that. This may be a way to float you financially for a little while.
Ok: let's walk through the scenarios: 1: you don't bk but just stop paying the credit cards. You will get nonstop calls. The amounts in a few years will double or triple. The debts will either be assigned or sold to collection agencies in 6+ mos and your wife's credit is then screwed for 7 years or more. If in a few years you decide to try and pay these cards off (let's assume a bounce back in the economy and you go back to th4e 50k range) then your debts will be huge with bogus fees and interest and late charges. If you do this you can still keep paying on the minivan and use it as reliable transportation for work and the children. Or: 2: You can file a bk right now and walk away from the credit cards and the car. You then get another car and your wife's credit is shot for 2-10 years depending on how you rebuild. 3. You file a bk right now and reaffirm the minivan. the reaffirmation must be approved by the court.. but it allows you to keep making payments on the van and keep it throughout the loan and then the car is yours (I know lots of people who have done this very thing.. b/c after you file the bk your car loan rates will be nuts)... so if you're going to bk and want a car, I'd tend to lean towards reaffirmation. 4. Is there a family member who could loan you some money to pay off the credit cards and then you could pay them when you get back on your feet? that's another option. As an aside: the bk on your reports with stable income and good payments for the last 24 mos won't keep you from getting a house. You can get a reasonable mortgage with 24 mos good payments and a bk in your history... so don't assume you can't get a good mortgage with a bk in your past (in the future). So... defaulting on credit cards isn't the end of the world. they can get a judgment and go after your wages. It's a tough call: her good credit vs 2 ways for bad credit. If your only real choice is to let the credit cards go bad... which it appears from your budget and new income... then it's only a matter of do you want them to go bad, harass you, grow in size... possibly get judgments... or is there another method of dealing with them. I am irritated but not surprised that they wouldn't work with you. they want the late fees and punitive interest. You'd think they'd want their payments on time... but it's an odd world. I'd first see if someone can loan you some money. If not... your choice how her credit will go. I must confess, I would hate to see a bk for so little money.. but with your income it's not little in comparison... and always remember: ultimately, it's only blips of computer dots that we're talking about. the credit can rebound... but your main priority is always the security and happiness of your family. figure out which path will give you the most of what's really important in life... and just choose that one. I will also say that if you decide to go the bk route, do it quickly. it will avoid a lot of harassing calls and emotional stress from creditors hounding you. good luck whatever you do It's a tough situation and just do your best and go on!!!
