Month: August 2016

Can it get any worse?

This could be laughable if it weren’t on the heels of a very bad year!

My unemployment has been held back because I forgot to list $100 I earned in December, 2004. It happened because I earned the money on Christmas Eve and hadn’t given it a thought. Now I’m appealing this so we’ll see. Their original determination was to suspend my benefits for FIVE WEEKS for an understandable (IMO) mistake.

Then I tried to get $2000 out of my 401K to pay off a couple of bills (finally) and they’re holding that money back until I can prove I’m not married.

Sheesh. And then Mel Gibson drives drunk, makes rude remarks and is still making millions. (I only use him as one example of how life can really suck).

“Then I tried to get $2000 out of my 401K to pay off a couple of bills (finally) and they’re holding that money back until I can prove I’m not married.”

This is a legal requirement they are not trying make your life miserable. Just give them the proof and get your money. If you were married then a spouse’s signature is required since this is a community property state.

Yes it can get worse. At least you have access to $2000 to pay a couple of bills. It might take a bit more effort then pulling out from under the mattress but it is available if you choice to comply with the withdrawal rules.

My credit union says i will need a co-signer

Okay, i checked at my CU and looks like if i want the $20k loan i will need 2-4 down-payment and a co-signer. that’s got me thinking if i go with dealer financing will i still be subject to those conditions? if its like that i will never get a car, maybe i should downsize for a cheaper car but ven if i do go with something that’s about 17k i will still need about 20k for the other costs.

Since this blog is about getting out of debt, not how to go further into debt, you have opened yourself to some questions and scrutiny.

  • Why would still need $20k?
  • Do lack credit or have bad credit?
  • Is there something you are not telling us?

If you are in dire straights for transportation and can not buy one outright, buy the cheapest you can from a reputable dealer. Make payments on it for at least 4 months, then ask the CU to buy the loan or refinance it to a lower interest rate.

Do you really need to spend that much on a car? is there a special transportation need you have? i’m not suggesting a clunker, but you should be able to find a decent used vehicle for about 1/2 that amount – you may need to look more, maybe change some thought pattern of what you need the vehicle for – is it status or transporation? Since I don’t know your circumstances, I don’t know the answer – I know I bought “too much” car once, got caught up in payments that I really couldn’t afford and ended up losing the car (voluntary repo) and I still had to pay MORE than the original loan – after 3 years of payments – with various fees and penalties – an expensive lesson well learned. Now my car is paid for – it’s an older model – no bells and whistles – but it does what I need it to do – get me from A – B reliably. Just a thought!

I’m confused about your post too. Just as a way to help you with what I think you might be asking is, do you really need $20k for a car? What for? Are there other debts you already have? If not, and your goal is to own a new or newer vehicle, but you can’t get a loan on your own for it now, just go for a used car you can pay for fairly quickly. Do you need to get a co-signer to help build your credit? If so, you still may want to start with something way lower priced than $17K. Don’t let a dealership sucker you into that. There are more cost effective ways to get a decent running car.

Do you need it just to drive to work? The last vehicle my husband and I purchased was $3000.00 from a personal seller. It was a 1997 SUV in perfect running conditioning, had some dings and bangs on the body, and only needed minor maintenance, that we could do ourselves. We have no payments on it. Only insurance, fuel and maintenance costs (now and then). It’s still way cheaper than financing a car. We’ll probably keep it until we run it into the ground! It keeps us out of debt that’s for sure.

Balance transfers question

I hope someone can help advise my husband and me on this matter. We have a credit card with MBNA that was actually a debt consolidation loan. We owe $9800 on it and pay a fixed payment of $225 a month. The interest is 18%. We are trying to do a debt snowball and want to eliminate this one soon because of the large payment. We checked into one of those credit cards that offer a balance transfer with an introductory rate of 0% for so many months and then a fixed lower rate like 7or 8% after that.

We don’t plan on borrowing anymore on a credit card, but we’d like to reduce the interest rate on our current debt to pay it off faster. We were denied one of these (they let us have the credit card but not the balance transfer). Is this a bad way to go and why were we denied? Should we try any more of the 0% balance transfers or just pay it slowly with the high interest?

Most of those balance transfer loans have hidden fees. Most people are better off trying to get their current creditor to lower their interest rate rather then transferring and paying an upfront fee. Persistence pays off with getting a lower rate. There are tons of books out on the subject of negotiating with creditors. You public library is the first place to start.

Nolo Press Credit Repair would be the more technical book on the subject but there are tons of other good titles. Be careful laws change from year to year so look at the year published date and try to find one written in the last two years. I would stop pursuing a balance transfer or new credit offers and spend some time trying to negotiate with your current creditors.

I had MBNA. I bugged them for years to lower my rate from 24.9 but they would not budge. I did a balance transfer 2 months ago to a WAMU 0% for 14 months (they give you free access to your credit score, mine is 670, not too happy about that!) My transfer amount was 2,400.

The fee was 2% of the transfer which worked out to about the interest rate for 2 months on my MBNA. I was paying $100 dollars a month on MBNA and it was not moving. Now with the zero percent I have a $100 dollar payment but in 14 months the balance will be $1,000 at 3.9. So I feel I did get rid of a headache.

My question to you is…I would love to get one of the books that you recommend but I need something real simple. Something I can easily understand. I am not fully comprehending how to fix my credit report. I need a book that is going to walk me through each step. Is there such a book?

Thanks for your time.