Log In Sign Up

How to consolidate debt?


Forum: Financial Planning and Budgeting

Notices

Welcome to the JustMommies Message Boards.

We pride ourselves on having the friendliest and most welcoming forums for moms and moms to be! Please take a moment and register for free so you can be a part of our growing community of mothers. If you have any problems registering please drop an email to boards@justmommies.com.

Our community is moderated by our moderation team so you won't see spam or offensive messages posted on our forums. Each of our message boards is hosted by JustMommies hosts, whose names are listed at the top each board. We hope you find our message boards friendly, helpful, and fun to be on!

Reply Post New Topic
  Subscribe To Financial Planning and Budgeting LinkBack Topic Tools Search this Topic Display Modes
  #1  
May 7th, 2009, 04:34 PM
Bre+Will=Reid
Guest
Posts: n/a
Okay, this might be a dumb question, but I figure that there HAS to be a way to consolodate all of my debt.

Chase $4,000 19.99% (shoot me) $145 min/month
USAA $10,800 8.9% $180 min/month
Credit Union $10,700 7% $200 min/month

Obviously I have some major debt, but decent interest rates with the exception of the Chase. It used to be 11.99% but it went up. Don't ask me why. Might have been a few days late once, but who knows.

I can afford the payments just fine, and the rates are fine for the bulk of it, but I NEED to consolidate so that I can come up with a solid pay-back plan. I want to treat it like a car payment. lol. I want to pay ONE PLACE a certain amount for X months. I would love to have a 3 year pay-off plan. I want to know when I will have this paid off. Right now I feel like I can never get ahead.

The credit union debt is a personal loan with a variable rate. I already went in and tried to increase it so that I could put everything on it, but they won't go any higher. The most I could borrow would be $12k with my credit score and income. (high 600's credit, $4k/month income) I already have the $10,700, so I could only move $1,300 over to it.

Is there ANY WAY I could consolidate? Is there something that I'm not thinking of? Anyone know about private lending?
Reply With Quote
  #2  
May 7th, 2009, 08:21 PM
~Jess~'s Avatar Platinum Supermommy
Join Date: Oct 2005
Location: Central California
Posts: 16,959
In this economy, and with banks struggling as much as they are, you probably will not get a loan to consolidate $25k unless you have some sort of security (paid off car, etc).

To give you an idea though, $25,500 on a 3-year term at 8% would be $800 a month. You can do that on your own, just be sure to pay off the $4000 card first. And most importantly don't use them anymore. Just pay the bare minimums on the 2 big cards and $420 on your $4000 card.
__________________






Reply With Quote
  #3  
May 8th, 2009, 08:28 AM
Platinum Supermommy
Join Date: Oct 2006
Posts: 32,940
How much has the variable rate with the CU changed? I would be worried that it could get jacked up. Having 25K is quite a bit of debt, especialy when it doesn't look like any of that is car debt. Are you still currently using the cards? Have you worked out a budget to be able to put the max towards the debt each month? Cutting back here and there could help a lot. Paying it back in 3 years time at 8%, you are looking at paying almost $100/month just for the interest alone. Consolidaion isn't the answer, paying off the debt is.
__________________
Reply With Quote
  #4  
May 8th, 2009, 10:21 AM
Bre+Will=Reid
Guest
Posts: n/a
I feel like I need to consolidate in order to realistically pay it off. I haven't used any of them in about 3 months, and 3 months ago, I had to give my mom $400 off of the credit union line.

I can do $800/month.

It's all about the mentality for me. I feel overwhelmed right now. I need a realistic plan. I need to be able to tell myself, "Okay, if you just keep paying $800/month, it will be paid off in 3 years" which would even be before my car was paid off. My pay payment doesn't freak me out at all, and it was a $27k loan at 5.9% for 72 months.

I know I don't NEED to consolidate....I would just like to.

The variable rate started out at 10.9% and has only gone down. Worst case, it has a ceiling of 15% (which would suck, but it's not HORRIBLE).

....and I know that it's a lot of debt....trust me Some days it literally gives me an anxiety attack. I started off with just $4k....then used another $7k to save our house when DH got laid off 2 years ago....and then used another $9k on balance transfers for DH who, when he got laid off, got behind on his cards and was paying 30% interest rates. I don't really know where the other $5k came from. I guess that's what happens when you have two $12,000 limit credit cards at "decent" rates....
Reply With Quote
  #5  
May 8th, 2009, 10:34 AM
Bre+Will=Reid
Guest
Posts: n/a
double post
Reply With Quote
  #6  
May 8th, 2009, 12:04 PM
C&K'sMama's Avatar Platinum Supermommy
Join Date: Sep 2008
Posts: 6,150
I agree with PP. Figure out how much you can put towards the cards every month (the max that you can consistantly pay)

pay minimum pmts on the larger debts and as much as possible towards the 4K debt. In a year that should be paid off. take all the money you're putting towards the 4k debt plus the minimum payment of the CU debt and put it towards the CU. (at that point you'll be makingin the area of $600/$700 per month towards cu. That shoud be paid off in a year to 18 months and then you can roll that $600ish plus the minimum USAA payment towards USAA. That's an 800/mo payment to them. That should take about a year, but that's your 3 1/2 year plan without having to consolidate unto another loan.
__________________





"Disability is not a brave struggle or ‘courage in the face of adversity.’ Disability is an art. It’s an ingenious way to live."

Last edited by C&K'sMama; May 8th, 2009 at 12:07 PM.
Reply With Quote
  #7  
May 10th, 2009, 08:04 PM
Platinum Supermommy
Join Date: Oct 2006
Posts: 32,940
Quote:
Originally Posted by Bre+Will=Reid View Post
....and I know that it's a lot of debt....trust me Some days it literally gives me an anxiety attack. I started off with just $4k....then used another $7k to save our house when DH got laid off 2 years ago....and then used another $9k on balance transfers for DH who, when he got laid off, got behind on his cards and was paying 30% interest rates. I don't really know where the other $5k came from. I guess that's what happens when you have two $12,000 limit credit cards at "decent" rates....
I can totally see saving the house, that was a fast fix for a temporary problem. But, what changes have been made in your spending habits to make up for it? I assume your husband is back to work? Did you buy the car before or after the lay off/getting behind on payments? If after, to be brutally honest, that wasn't a wise choice. Also, taking on a car loan for 6 years is a long time! Most financial experts suggest not taking on payments for more than 3 years, 4 at max. If you can't afford payments in that time, then you really can't afford it in general. Not knowing where the $5K debt came from is another problem. Does your husband also have debt? Are you working on paying it off together or do you have his money and her money? It sounds like you don't have a united front on your financial situation, which almost always leads to disaster.
__________________
Reply With Quote
  #8  
May 12th, 2009, 09:37 AM
Bre+Will=Reid
Guest
Posts: n/a
Quote:
Originally Posted by ~Kris~ View Post
I can totally see saving the house, that was a fast fix for a temporary problem. But, what changes have been made in your spending habits to make up for it? I assume your husband is back to work? Did you buy the car before or after the lay off/getting behind on payments? If after, to be brutally honest, that wasn't a wise choice. Also, taking on a car loan for 6 years is a long time! Most financial experts suggest not taking on payments for more than 3 years, 4 at max. If you can't afford payments in that time, then you really can't afford it in general. Not knowing where the $5K debt came from is another problem. Does your husband also have debt? Are you working on paying it off together or do you have his money and her money? It sounds like you don't have a united front on your financial situation, which almost always leads to disaster.
I didn't ask for advice on anything else besides consolidating the debt. I understand my financial situation.

Furthermore, I don't think your assumtions are really necessary. I think I made it pretty clear that I'm already a tad stressed about the burden of it all, and don't exactly appreciate lectures about what is responsible and what I can afford. Obviously I got myself into a bad situation. I don't need anyone else to tell me that. I did not come here for an indepth analysis of my family's budget.

*leaves a tad angry*

Last edited by Bre+Will=Reid; May 12th, 2009 at 09:44 AM. Reason: typo
Reply With Quote
  #9  
May 12th, 2009, 07:02 PM
C&K'sMama's Avatar Platinum Supermommy
Join Date: Sep 2008
Posts: 6,150
I hope you don't let one possibly inappropriate/agressive post discourage you. We recently dug ourselves into a hole that we really could have avoided and by rearranging our money and how we thought of it (which you seem to have a grasp on) we were debt free (minus car payments) in 2 years. Now DD has savings and our heads are above water again. I don't think you have to consolidate your debts to be clear in 3 years. You've clearly realized that things have to change. I think it's very possible and I wish good luck to you and your family!
__________________





"Disability is not a brave struggle or ‘courage in the face of adversity.’ Disability is an art. It’s an ingenious way to live."
Reply With Quote
Reply

Topic Tools Search this Topic
Search this Topic:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT -7. The time now is 06:24 AM.



Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
Search Engine Optimization by vBSEO 3.6.0