Comments on: I have the most debt of anyone on NetworthIQ

By: jewel

jewel — Fri, 26 Oct 2007 21:01:48 +0000

I just want to congratulate you for taking a look at whats going on – and doing something about it. Funny, but, when you think you can’t get through it, a few years later you look back and its behind you.

Before I had a flood at my place of business, I had a monthly debt load of $50,000! I was stressed out of my mind – but I did it. I made that $50,000 month after month never believing that I’d do it again. Now, my debt load is $12,000 for my home and, since my office is in my home now, I have no business overhead. I still think I won’t make it, but I do. Until I get my debts paid off, and a reasonable emergency fund, I’ll probably be frightened. Good Luck to you and Keep it Up – this is what it takes to be successful beyond your comprehension.

By: debt kid

debt kid — Tue, 23 Jan 2007 01:34:28 +0000

Gustavia,

Thanks for that info. I will take a look at it later tonite, I’m currently on the phone with Sallie Mae trying to apply for a forbearance on my student loans. If I hear, “your call is very important to us…” one more time!

By: Gustavia

Gustavia — Tue, 23 Jan 2007 01:31:39 +0000

Congrats on at least having a plan and you sound sane. Not like Casey Serin who is still waiting for a “sweet deal” to save him from his 2.2m debt.

Snowballing:

http://en.wikipedia.org/wiki/Debt-snowball_method

I am not sure you have the time to do this; sounds like your monthly expenses are way more than you have coming in. Can you transfer balances from high to lower interest rates?

Be careful of missing any payments. Are you aware of the Universal Default clause for CCs?

http://en.wikipedia.org/wiki/Universal_default

This could have a different kind of snowball effect on the interest you are paying on the cards.

By: debt kid

debt kid — Mon, 22 Jan 2007 03:54:08 +0000

My plan is getting set up at the moment. It boils down to: create more income (I am self-employed, so this is possible), and stem my cash going out. I have about 12K in current debts DUE RIGHT NOW. So, I need to negotiate some sort of plan with the 17 creditors I have at the moment (excluding student loans). I have already put in a withdrawl request on my brokerage account (unfortunetly they are a swiss company, so it may take a week or more). I also have a 2003 bet and win 250 scooter that I am trying to sell on craigslist, that I should get 2K for. That will give me about 5K in cash to work with, and run my small business (I have 5 part-time employees…and I have to make payroll, and I cannot lay them off and generate more income) with.

Thanks for your advice Leebo, I will look at paying off the smallest debt when I can. Is that the ’snowball’ method or something?

By: Leebo

Leebo — Mon, 22 Jan 2007 03:34:45 +0000

Have you heard the phrase, “Living on beans & rice, rice & beans”? It sounds like that is what you are doing. Do you have a plan to get out of debt yet? I agree with Chris on getting a budget and selling some assets, if you can. You should think about paying off your smallest debt as aggressively as possible and then applying that payment to your next lowest debt. Maybe sell your stocks?

By: debt kid

debt kid — Sun, 21 Jan 2007 23:27:36 +0000

I cannot sell my house. If you notice on NetworthIQ, I have 2 mortgages on the house for over 500K, I could maybe sell the house for 450K. So, that isn’t an option at the moment, because I would have to come up with 60K+ just to sell the place.

I got a second mortgage at a much higher valuation than the house is actually worth. For income, I run a small business, and have $1500 a month in rental income from my roomates.

Thanks for the advice Chris. I’ll be posting more soon, I have alot to sort out the next few days.

By: Chris in Boston

Chris in Boston — Sun, 21 Jan 2007 22:34:46 +0000

Hi, I too have set a goal for 2007. To get my financial house in order! The good news for me is that I do actually have a networth today. Though nowhere near where it needs to be.

I can epathize with your situation. @ 23 I was living hand to mouth and had zero assets. You do own a house! I did not. I was renting.

Anyway… seems clear to me. You need to liquidate some assets you do have to restructure your life. At this points its all about cash flow.

Create a budget and live within 60% of your total gross income. If need be, sell the house, rent a small studio apartment. DOWNSIZE your life. Restructure your debt… by selling your house, should should be able to get some cash from equity if any, or at the very least erase a significant amount of debt. Paydown thos damned credit cards and get rid of them.

Been there. not as deep in the pit of hell as you are. But you can get out. What do you do now for income?