Debt Support Group

Where do I start.

I introducecd myself a while back and I started snowballing my cc's and started a budget.

That was great for a while however my husband has not been making as much as he used to.  He sells car parts for one of the dealerships here and he is part part salary and commission.  Well they've been slow for the past few months and his commission check that is coming up is going to be the lowest ever.  His checks have been at least $400 less than 6 months ago.  He's putting in apps for a part time job in the evenings  but nobody has called him back yet.  We have a 1 1/2 year old and I don't want to work in the evenings but I might have to suck it up and try my luck at getting a second job.  Honestly, I'm not sure if that will help us, it would help but I'm not sure if it will be enough financial help. 

Anyway to get on with my situation, we've had to charge a some bills like our utilities, cell phone & water bill to keep current with our bills.  So even though we're still snowballing it's not making a difference on that one credit card because we're having to charge on it for the basic needs.  That defeats the purpose but we dont' have enough cash to cover some bills.  His checks are different amoutns every month.  His check on the 10th is the same because that is part of his base salary but the other check is the one that goes up & down.

We're going to have to charge some bills this month just to keep on top of things.  We're not behind on anything yet.

I was thinking of surrendering my husband's truck and just taking the hit on the credit score.  I've looked into it and I know that the lender will come back at us for the difference of what we owe and what they can sell it for at auction.  I've read horror stories of the lenders garnishing wages to get their money back.  I don't want that to happen to us.  I've also read that some lenders will work out a payment plan for the difference and not demand a lump sum.  I would try to sell it but who's buying Ford F 150's right now?  Even if we did sell it, I doubt we would get what we owe on it.  We owe about $14K and I believe we have 3 more years to pay it off after the first of the year.  My husband and I have been carpooling to work so he drivers his truck maybe once   week if that.  If we were to sell the truck for less I don't know where we would come up with the difference.

Some people are telling me to file bankruptcy but I don't think that is the best way to go if one payment is messing us up.  Plus car loans are a secured debt so I don't that would be included in the bankruptcy option but I could be wrong. 

After all our bills are paid we have about $450 left for the month and that doesn't include groceries, household supplies or anything else.  We spend about $300 a month on groceries and we both take our lunches to work everyday and I cut coupons and go shopping at different stores to get the best deal.

We've really cut back on everything we can and I don't know what else to do.

I guess my questions are:

Would it be better to file bankruptcy or surrender the truck?

Has anyone voluntarily surrender a vehicle?  If so how long did it take you to clear up and how helpful was your lender?

Is it best to charge the bills for a while until one of us gets a part time job?

Any advice will be greatly appreciated.

My advice and of course you do not have to agree with it You can even think it is silliest advice you will ever get.

 I would first find out exactly what the truck is worth. Blue book. Then I would wash it and shine it up big time.  Then I would take a ton of pictures of it all sides. And I would list it for 500.00 (people love to offer less for things this will give you some bargaining room) more then what the blue book says it is worth. Put it on Craigs list that is free. And relist it about every 7 days. Check out any place on line that will give you a free add. And there is tons of little places. There is also a group in my area and they are in other areas across  the county that is call Cheapcycle. it is through yahoo great place to sell things. Auto dealer is pretty cheap too. Also make up flyers to put in Laundromats and super markets.

If you have a internet provider that gives you a free web page make a page for selling the truck. When you do the adds put on one picture and the web page address for more pictures and information.

Got any freed up money on a credit card somewhere where they will give you cheap interest on purchases I would charge everything food gas and everything you intend to spend for a month or so. Purchases do not cost a fee. Take the money cash money and put it away to pay off the truck or what ever the differences in the price you are going to sell it at and the amount you owe find If you can cheap interest maybe just get a cash advance for that amount. Up to you.

I sold a house this way after having it listed with three realtors for around 18 months. This could work for you too on the truck. I sold the house in 4 weeks.

I used to work in a car lot years ago I would see people turn in cars or have their cars repoed and the owners would bid them in for 10 cents on a dollar then turn around and resell them and still go after the people for a large amount of money. Try everything before you just turn in a car or truck.

If this doesn't work after a month or so Then this might be another option. Go around to every Good will and thrift store in your area. You can get some free business cards on line. and give   the cashier or manager about  a dozen business cards. Little consignment stores too.  I can tell you how many times I have wanted to buy something at a thrift store that did not fit in the back of our car and had a hard time finding someone to haul it. recently I bought a washer and dryer from an estate and I had a terrible time finding someone to go and pick it up Finally I found a man that would do it It cost me 75.00 for him to pick it up and bring it home It took him less then an hour to do the job.

Before he died, there was this guy here in town that did that. He made around 200.00 or so a week He was retired. You and your husband could maybe do this on weekends. Most places will hold things for 7 days if they are paid for before having to be picked up.  Also most places like goodwills have boards put a flyer up there for light hauling. With everyone short on money and people buying more from thrift places there is great need for that service. Put an add on the cheapcycle too. They will let you do that. A truck is a great thing to have to make money.

Have you checked with your electric company about having them to average your monthly bill that might help you out a lot.

If I were you I would stop snowballing all together until times get better. You are right you are making yourself short on one end to only have to charge on the other end. You have got to get to 0 at the end of the month with out charging anything. My self I snowflake if I have 5.00 left at the end of the week I put it into bill pay and send it to one of my bills. Some times doing something like that can make as big a difference as sending in 50.00 or 100.00 extra on a bill each month because I don't charge .

Lastly if the truck is not that old check around with some credit unions they are offering car refinance loans around here for 3.9 or 4.9 maybe you could refinance on a long term and lower your payments Even if you have to get a cash advance for the difference. Credit card payments go down.

This is what I would do if I was you.

Good luck

Mary Ann

 

Thanks for your advice Mary Ann.

I never thought about using the truck to haul for people.

Brilliant idea!!!  There are always people looking for someone with a truck.

Refinancing...I didn't even think of that.

I will be looking into that too.

You're right the snowballing might have to be put on hold for a while.  It felt so good to send more money on that darn card too. 

let the truck make your snowball money

Mary Ann

 

I don't think voluntary surrender is a good idea..because if you think that you will have a hard time getting what you owe on it, think about what it will get at auction, when the bank doesn't care what it gets sold for, because you will owe the difference!

I would take it to carMax (do you have one of those?) and see what they would give you for it.  The maybe you could get a loan to cover the difference?  (Or use a low rate balance transfer check from a cc, if that is an option)  You would save money on insurance, too!!

My FIL had to get out of the car business this year after being in it nearly 35 years...the economy is that rough right now, so I understand what you are going through.

But a voluntary surrender is going to wreck your otherwise good credit.  It wouldn't be such a big deal if your credit was already tanked, but it doesn't sound like that is the case.

Anyhow, just a suggestion.  Times are rough, for sure.

Heather