Hi,
I was going back through some postings and -G- talked about making more than one payment a month on your cc. It sounds great but I want to make sure I understand this. Lets say your required payment is $200 a month and you divide that by 4 weeks and pay $50.00 per week to equal that $200, do each of those $50.00 payments after they equal your $200 due satisfy the cc company as making your payment that month? I’m not sure if I’m explaining that correctly, I hope you understand what I’m trying to ask. I guess what I’m saying is that as long as the cc company gets a total of the amount due ($200) it doesn’t matter if it’s all in one payment or spread out weekly as long as that total of $200 due is made by the due date?
Thanks for helping me understand.

What *I* try to do every month is:

  • Pay their minimum on or before the due date, THEN,
  • Pay another payment (Usually I try for the FINANCE CHARGE or more) out of the following paycheck.

I just scheduled the payment for GEOnline for $100.00 on the 25th… they are due $82.00 on the 5th of the month… and then on the 7th (next payday) I’ll tack on another $60-80.00. This means I am paying just over double their minimum payment and keeping the balance going down much faster than the usual $82.00 a month.

Penny’s, balance $603, $50.00 on the 25th. They want $15.00 minimum, Then on the seventh, another $50.00

Signature closed end loan, $190.00 on the 5th, firm. Then in the next payday, I usually send another $25-50.00.

Same with Target VISA and another smaller loan, which will be gone the end of March. It does mean less money for me and my pocket, but these payments over the minimums do make a big difference.

It’s different from most of those I hear on Dave Ramsey and other talk shows about debt, I don’t have a big income like some “Oh, we bring in about $60,000.00 -or more- a month…”.

From my part time job, I made $15,110.00 this last year, and get about $2,700.00 a year from SSI. Thanks to my parents, I have a paid off house, and only have utilities, property tax and insurance to HAVE to pay for. So, my groceries and all these household goo gahs get done first. Then the minimums. If my hours go down again, or I get more, that dictates most of the ‘extras’ I pay to my debt. There have been a couple of months I could only pay $20.00 more, but hey… that is something extra :-)

I see what you’re saying, but I would rather just meet their minimum, and if something happens to my check or hours, I’m not hung out to dry.

Thanks for the information. I usually pay online and I thought I could break the minimum due into 4 payments adding extra when I can and save on the daily interest they charge as long as by the due date I met the monthly minimum due. I guess that won’t work. It just seems with the way we get paid it would be easier to break it into more than 1 payment instead of having to come up with it all at once.

Does anyone know, does the minimum payment for the month have to be all in one payment or can it be broken down? By paying online I know it gets there on time.

It bothers me that schools don’t offer any *real* money/debt management classes (at least not in my daughters school). I can’t help but think that might help people also with staying out of debt. Everything from balancing your check book,the use of credit cards to what mutual funds are,Roth IRA’s,to how the stock market works. This was just a few subjects off the top of my head. I’m just now learning more about these things (I was taught how to balance my check book…thank god). Just my 2 cents here.

I teach a class at University of San Francisco called Quantitative Methods in Math. There are four “modules” to talk about different aspects of financial mathematics. When I get to interest calculations and so forth, I show them a spreadsheet of how long it would take to pay off a $5000 credit card with minimum payments and how much money they are ultimately paying. The best exercise was when I told them to find a credit deal and determine how long and how much they would have to pay if they maxed out the card and only made minimum payments. I know it opened some pairs of eyes when they realized that they’d still be paying from the grave.

I have always thought that this should be absolutely mandatory for graduation in our school systems. You should have to learn it, just like learning to read, write, and form a complete sentence.

You will deal with money and finances and contracts and paychecks and taxes and tipping your waiter the rest of your life. You should learn about credit, debt, financing, buying a car, renting an apartment, writing a check, fees associated with all of it, before you are thrust into the world after graduation with your first job/first apartment/college loans/etc.

It would stop a lot of problems before they start. I heard a short story in the news several months ago that it was going to be standard high school curriculum starting in 2009/2010 in some school districts.

I graduated from HS in 1980 and somewhere along the line we learned to balance a checkbook but that’s it. My sons graduated 6 and 5 years ago and they didn’t even learn that much. Dave Ramsey has a program that’s taught in many schools including one in our area. It’s called Financial Peace for the Next Generation. I wish all schools taught it!

I would be happy if they would teach reading, writing and arithmatic. Here all they worry about teaching is the standardized tests.

Have you explored Dave Ramseys Snowball method?

You pay a total of 256.00 extra a month if you just look at the low end of what you are paying extra. You could pay off Penny’s in a little over 2 months with that extra and then you will have the 256 plus the 30 Penny’s payment to pay on the next smallest debt which is the GE Money, but since there isn’t much difference between that and Target I’d hit the Target next since it carries a higher interest rate. Then you’d have Target paid in under a year and then apply you extra and what you were pay Penny’s and Target and hit the next bill. And keep going until all is paid off. You have more a feeling of accomplishment, and hopefully keep the impatience moster at bay. You can wave each bill in its face as you pay it off!

snowballGood thinking, I didn’t get too far at Ramsey’s site because there are fees all over that place. I like what he says, I listen to his podcast (The free one on iTunes) but he does charge. I’ll go look again, but it’s almost like you can’t get deeper into the site without…. ironically,…. a CREDIT CARD….LOL!

Penny’s is on my fecal scroll now, next I’ll bring Target down….! That would be good to get rid of those and then GE moneybank. That’s an old debt and I want to be rid of it.

There’s a lot of free information on Dave’s site. You can listen to his archived shows free, too. At least the last 10 days worth. And…. he doesn’t accept credit cards. 😉

Also, you can check out this forum of his fans:

http://www.livinglikenooneelse.com/

And there are a lot of other sites just loaded with his information.

You can change the currency when you calculate your snowballs.

I found stuff at ‘The Motley Fool’ too… So, even if I wanted to get the financial peace uni course, I could not use my VISA Debit card?

Yes, you can use a debit card. I had a friend try to use her credit card and it absolutely would not go through. She tried another credit card..no go. She used her debit card and it went through fine.

That’s weird, and kinda neat they can evidently tell a cc from a debit card…. Nice then.

Won’t do it yet, with my overzealousness I don’t have enough to get any of the ‘coursework’ and to be frank(Fred, George etc…) I can’t do a lot of the ‘saving’: IRA’s and so one.

Even out of debt, when you get SSI, you cannot have more than $3,000.00 in the bank. Really stupid IMO, but that’s the law for us.

I totally understand the impatience Monster (and the frustration Monster, the despair Monster–I’ve met them all!).

One way that’s worked for me in the past is to pay minimums on everything but the card with the lowest balance. Pay whatever you can extra on that card with the low balance and watch it go away over a short period of time. Then throw what you were paying to that card into the one with the *next* lowest balance, plus whatever minimum you have to pay. Etc. Repeat until you are paying a huge payment to the debt with the highest balance. Sometime it’s a good idea to apply for payday loans online and solve your urgent financial needs at once.

It gives you faster and more tangible results, and keeps you motivated.

Way to go on paying stuff off!

Not sure if this is what you’re asking (or want to hear) but I’d get rid of the DISH net bill. I know public television has it’s limitations for entertainment. However, it can be done. I have chosen not to have dish or (paid) t.v. channels. I rent a couple of movies during the week or maybe buy a movie on sale. It would save you $78/month.? Just a suggestion.

Keep attacking the smaller debts and put as much as you can towards each one..To fight the monster of impulse is easy.. Do you want to continue barely getting by and not having extra cash? You have to get that mindset that your ticked off and sick and tired of being in debt. If I ran the numbers on how much interest you are paying, which is money being thrown out the window you would be sick to your stomach. The borrower is slave to the Lender, do you feel that way right now? because if you do, that’s because you are. You are making everyone else alot of money. Make that money for you when you pay off this debt and you will be financially and mentally free. Just remember it took you time to get into debt, it’s going to take time to get out of debt. And trust me it’s well worth it..

Appreciated, but the roommate, my fella and I use it and all three of us pay on it. I should have broken that one down better… With all of us 3 on the $77-78, that’s $26. a month.

We have no antennas here, and you know in a year all channels will be digital. You won’t have TV at all without converters and so on.

Makes sense and snowballing will make it easier on my budget too. I am and have been there. That’s why I was going hammer and tongs at all the debts at once.

I think this next month, I’ll be snowballing them. Of course honoring the $190 minimum on the closed end loan, I can round that up to $200. but the others can have minimums and I’ll get my smaller debt out of the way hopefully by end of April.

The ones with the minimums in the $82-83 range I could go a hundred, but not going nuts and doubling those. I can back up a bit from that.

I do know what you mean. I was just getting so impatient, but it is stressing me out, so I have to try to sit back and be gentler on myself in the endeavor.

some areas don’t get local tv reception even with a good antenna. I’m in one of them, you may get 1 station, kinda.

That is fighting the Monster of Impatience.

I know the goal will be met and achieved, but how do you control the impulse to pay too much at a time to debt?

I pay so much to the debts, getting them down, and a couple of times I leave myself a little short. Not short enough to use cc’s to buy necessities, but just shorter than comfortable if you get my drift. I want to make big payments to get this monkey off my back soonest as humanly possible, and I know there are others like me. How to you just focus and not get too carried away?

Two of my cards want minimums of $82.00, and another’s more like $30.00, and another is a closed end signature loan with a firm $190.00, but they don’t have a pre-payment penalty or such so I add a hundred more a month to that if I can, last one is $120.00, but I pay at least $150.00 if not more like $200.00 a month.

My SSI is like $226-$265.00 a month, sometimes less if I earn more than my usual $900.00 from work a month, and the roommate pays $475.00 for rent of one of our rooms. Big bills this month was the second installment of Property tax and IRS for their $204.56 due the second of March (Monday because of the weekend).

Bills outside of utilities:

  • Closed end loan: $3,327.00 Interest 12% Minimum: $190.00 actual: $250-300
  • Target $2,791.00 Interest 21% Minimum: $82.00 actual: $120-160
  • Kinecta cc: $3,750.00 Interest 13% Minimum: $120.00 actual: $200-220
  • Penny’s $ 553.00 Interest 22% Minimum: $30.00 actual: $ 50-100
  • GE Money (closed) $2,551.16 Interest 18% Minimum: $82.00 actual: $140-200

Utilities etc:

  • House insurance $ 77.00 a month
  • SoCal Edison (LPP) $ 135.00 a month
  • DISH net $ 78.00 a month
  • AT&T only cell serv $ 66.00 a month
  • Property tax $ 65.00 a month to savings, payable in dec. and april.
  • Groceries, roughly $ 200.00 a month

Most of my bills come at me on the first part of the month, and the second part of the month is when I add a payment to cc’s and get some groceries.

Any thoughts on this? Staying to minimums only for some and socking it to others? I plan on socking it to penny’s as they are the lowest in balance (Under a thousand) and the card’s been cut up now anyway, I also cut up the Target card. I know some would say I’m trying too hard, but what else to do….?

I don’t think you can try too hard to pay off the debts and be rid of them. I do think you can go overboard and stress more than needed, as you stated. If you can afford to send one debt an extra $100 this month, do it. But, don’t try to send all of them and extra $100 this month, and then fill a real pinch after you pay your utilities and go to the grocery store.

Snowball it. Pay minimums on all but one, put everything to the last one.

I’m not going to use your examples, just make it bare bones, so you can see.

Also, go to www.whatsthecost.com they have a great snowball calculator.

  • X debt 1500 $30 minimum
  • Y debt 1700 $45 minimum
  • Z debt 2100 $65 minimum

You would have $140 in minimums. Say you want to apply $300 to debt. Pay minimum on Y and Z and pay $190 to X. When X is paid in full then you pay minimum to Z, and pay $235 to Y. When Y is paid off, pay $300 to Z until paid in full.

Clear as mud?

My Ex-inlaws have filed bankruptcy twice and I’d be very surprised if they don’t make it a 3rd time. I swear I believe they do this on purpose…get several credit cards, max them out buying all new stuff,file bankruptcy, wait a while until they can get more credit (10yrs. or whatever) and then start all over. Who absorbs this cost/loss??? Is this why interest and late fees on credit cards is through the roof? WHY after they have filed bankruptcy 2x would *anyone* want to give them credit again? I know it gets erased off their credit report…..but should it? Sometimes when I look at my very old crappy looking couch, not very pretty dining room table,etc……it almost makes me want to go out and do this.However, my guilty mind would nag at me.

You have ethics, others do not. OK, I was stupid getting into debt, but haven’t kept going deeper, I stopped and am paying off. My fella’s sister is like that though. She went BK, got back up, charged more, went BK again, got back up, got a small house and she’s going to lose that too now. Problem with most folks and bankrupcy is they don’t learn anything.

Just like anytime one is bailed out, you don’t learn from it. I have a couple that are very dear friends. They “bought” a 5 acre property owner finance, got screwed on the contract, and their “payment” went from $900 per month to over $1300 per month in less than 1 year. They were bailed out by another neighbor that wanted the property, rented them half of it, plus one of the mobiles. And you would think with being close to weeks from being homeless w/a cougar, 5 gators, birds, snakes, etc. They would be saving every dime they could, nope, spending money like it’s water.

And has been mentioned before, it isn’t always stupidity. Life throws all kinds of things at us – sometimes all at once and things have just got to be paid (health, house repairs, food).

This is true. I’m not referring to the 1x mistake or the long term health problem, house burning down,etc. that causes bankruptcy. I’m talking about I believe some people do this on purpose.When my ex’s parents filed bankruptcy they continued to live like there was no tomarrow (all their bills were gone) …eatting out all the time(even buying the dog burgers at Burger King).They’ve filed for a second time…still living like there’s no tomarrow….nice vacations,bought both my kids brand new computers for Christmas,etc. When will the courts,credit card companys,banks,(America) decide enough is enough….how many times should a person be able to file bankruptcy.

The companies know that if they run up debt again, they can’t file for bankruptcy and get rid of the debt for some time. That, plus they don’t care.

chapter 7

I am currently in Chapter 7 and now my mortage company wants to foreclose on my house. I am 3 months behind on my mortgage payments.

I could probably beg, borrow, etc, but my car insurance has doubled, my property taxes have increased by 30% and my oil bill has almost tripled. I have a daughter who has been accepted at college but I don’t think we’ll qualify for any FAFSA or other financial aid.

I have a lawyer who has basically thrown in the towel; he doesn’t return my calls.

Question:
Does anyone have a suggestion where I can put off foreclosure until after my daughter graduates from high school in June. She is being treated for depression and to have to get up and move in the next few months would absolutely crush her. I also have a fifteen year old son. Both children live with me (I have been separated for four years).

I’m trying to do the right thing; I just don’t know where to go for help…………. Thanks very much…

Well, first, your situation totally sucks. You have my sympathy, and good for you for trying to make this easier for your kids. I don’t know how us “regular people” are supposed to keep up with the cost of living these days.

Anyway, I work at a university, and I wanted to encourage you to put that FAFSA in anyway. It sounds like you’re not a billionaire or anything, and there should be some money for your daughter to help her with tuition costs. If you get it in by March 3rd, she’ll have a better chance at grabbing some financial aid. (Make sure you go to the .gov site for the FAFSA, and not the fake .com site that charges you to apply.) So, there’s your weekend plan. :)

I’ve seen messages from other folks on this blog that the most important thing in dealing with foreclosure is to try to talk to the mortgage company and work something out. Take a deep breath and call them.

Good luck. Things will get better (eventually). I’m sorry to focus on this one issue but how could you not possibly qualify for financial aid. If you can’t, who can? The reason I ask is that I have a friend in a similar situation. She makes very little money and FAFSA only gave her 10% of her daughter’s expenses for the first year of school.

I work at the University of San Francisco and I understand tuition alone there is $34,000. How does anyone afford it these days?

Also, suffering from depression myself, my thoughts and prayers go to you, your daughter, and your son.

Sorry to hear about your situation, I will be praying for you through this hard time. Did you lose your job? How did your property taxes go up 30%, car ins. double, and oil triple? Ive never heard of all that happening at once. Do you have alot of debt on top of your mortgage? Just curious why your mortgage isnt getting paid.

I don’t believe that you can do anything about stalling the forclosing procedings. It’s just a matter of time if your not paying the bills. They aren’t going to giving you a grace period on it. I’ve seen messages from other folks on this blog that the most important thing in dealing with foreclosure is to try to talk to the mortgage company and work something out. Take a deep breath and call them.

Have u talked with Loss Mitigation department yet? They could extend your loan probably. Chat with someone from there. Watch this video to get the idea:

I have never filed for bankruptcy and hope to avoid it, no matter how far behind I may fall.

That said, even debt collection employees do not have the right to abuse you, threaten you, curse you, etc. It is illegal.

  • You know that you owe the money.
  • You know that the debt is really yours.
  • You know that it is your responsibility to pay it.

Now, there should be some type of middle ground. If it takes doing it, disconnect your phone. Write each of your creditors and clearly state that your telephone has been disconnected and please contact you only in writing and via the U.S. Mail. NOTE: You have to disconnect the phone. Instantly the telephone threats and calls and “intimidation” will CEASE.

First, write out what you “ideally” want to take place. For instance, I want to negotiate a settlement in $_______ (input amount) or $_____ per paycheck/month, etc.

Then, call the creditor. Explain that you can not pay $_________, but you are able to pay $_______ instead. Once you reach an agreement, ask for it to be put in writing. Make sure that the agreement clearly states that by paying the agreed upon amount of $________, this debt is considered paid in full.

After you receive the written agreement, with all of your negotiated terms included, get a cashier’s check from your bank, copy it and the letter, mail it SIGNATURE REQUIRED to the creditor. Include a copy of the letter with your payment. KEEP RECORDS OF EVERYTHING !!!!!!

Disconnect telephone after speaking to all of the creditors. They are stubborn and they will keep calling unless you do this.

Some of you think this is drastic. It is.

Even though you owe the debt and are willing to pay, NOBODY has the right to constantly call you and threaten you and harrass you until they receive the full amount due. It is not your fault that they get paid more for harrassing you to the inth degree. When they TRY to continue the telephone barrage (AND THEY WILL), they will reach your DISCONNECTED phone. They will then stop calling. They will realize that in order to communicate, they will have to write it down and mail it to you. They don’t want to. TOUGH. You will have a written record of what they say. MOST will not threaten you in writing. They are fully aware that it is against the law. You keep every single paper they mail you. If it comes down to he said/she said and you have to go to court, take all of the written communication with you. Let them deny that they threatened you and/or harrassed you in front of a judge. When you present copies of the 50+ letters you received in 3 weeks time, what can they say? You are holding the proof! Got it??????

Pay your debts and cover your assets.

P.S. Give only your home phone number. It is against the law for them to call you at work once you ask them not to do so. It is against the law for them to call your friends and family once you ask them not to do so.

If you give them your cell phone, you will have to change numbers in order to stop the phone calls.

Can you please tell me which debt settlement company you are dealing with. I am in debt up to my eyeballs and I’m not sure which way to go? Thanks in advance.

Just a word to the wise, I enrolled into a debt management situation and yes they were successful in getting my payments down.. BUT at teh same time were collecting 30 Bucks a month as long as my cards were in debt management. I have since killed them and I am handling it myself now that I knwo the mistkaes I have been making for years… 30 is a nice extra payment on something rather then waste it.

My question is have you exhausted every resource possible before doing that..? Compared your budget to your actual, eliminate all un necessry items,

Negotiated with your creditors for better terms.. I was able to get mine to do so. Just have to be peristent. And finally coming up with a formal plan to eliminate the debts one by one. Just a thought, not sure of your specifics..

Is it okay to list my company? If so, it is Effective Financiaal Services, based in Clearwater Florida, and I I found it on the internet. I like it, they amke you go through a telephone interview thta takes about 30 minutes, and the send you bank statements of the money you have accued, which seems so legitimate to me. You do have to pay for a few months until it kicks in.

Now that it is time to file our taxes, have you noticed how many businesses are willing to help you file, so you will spend your refund (which they all assume you are getting) with them? Furniture stores, car sales, electronics stores – all in the past few days have had ads running in our area.

File your taxes with us and we will use your refund for your purchase. File taxes for free!

What is wrong with people??????? I’m guessing when Spring rolls around and those rebate checks start coming out, we’ll be able to buy all kinds of things for just under $300 or just under $600. Anything to get our money.