Need input on debt reduction/settlement options

[Big Daddy]

Depending on how much debt you have I would advise a bankruptcy. Wipe the slate clean. Within 3 months you will be getting offers for credit cards. You can buy a house 2 years after a bk. If you are getting collection calls then your credit is already in the toilet. A bankruptcy will help you out and seriously relieve stress. It will also allow you to save for an emergency.

Sorry I have no compassion for credit card companies. They are crooks of the lowest kind. If you do claim a Bankruptcy be sure you get rid of everything but your house. After a BK you can pay cash for everything. Then call Dave Ramsey and say "I'm debt free, Yeah".

If you l;isten to Tom Martino he will advise a bankruptcy. Dave Ramsey works for the credit card companies.

 

[cherylrichardson]

Big Daddy.

Dave Ramsey works for the credit card companies.

Where did you get this?
Do you even know what Dave is about?
Credit card companies are the LAST people he would work for.

BTW. This is Greg, Cheryl's husband.

 

[FarmerChick]

I hear you on your hubby working hard. Tony does 4, 12 hr days on hard concrete working a factory job. Then on his 4 days off we run a full working farm with farmer markets etc. He is getting closer to 50 and it is seriously starting to affect his health. I see it just taking a hard toll now on both of us.

Too much work and mind overload with stress is a very bad combination.

Grandma---is there anything you can sell....truly to help pay off a big chunk to the credit card debt? You know, sometimes you might seriously have something of big value you can part with and get that cash you need. just a thought.


One thing I learned and thank goodness I learned this NOW----going into debt for whatever reason is a killer. I avoid debt like the plague now, but sometimes debt has to accumulate like for medical reasons etc....but if I can live simple and have low debt and be more stress free...I head in that direction all the time..LOL


you will find your options that work for you....hang in there....You will make the necessary corrections to get this more back on track for your lives.

 

[Big Daddy]

Big Daddy.

Dave Ramsey works for the credit card companies.

Where did you get this?
Do you even know what Dave is about?
Credit card companies are the LAST people he would work for.

BTW. This is Greg, Cheryl's husband.

Yes I know what Ramsey is all about. I used to listen to him. His debt consolidation programs are great if you are very disciplined and like beans. The reason people get overloaded on credit card debt is usually because they use their card for things they want vs things they need. Telling someone in extreme debt to pay off 60 or 70k in debt with a yearly income of 50k is not really reasonable. If you are a very frugal person and don't have any kids you can do it. The fact they are in the debt means they are not frugal. Kind of like asking a fat person that is fat because of bad eating habits to lose 150lbs. I've heard Dave tell people with cars that have a 20k balance but are only worth 10k to sell the car for 10k and arrange financing for the other 10k. How is that happening when you are up to your ears in debt. I know a lot of people on this forum consider him to be a financial messiah. My experience with messiahs is that they are usually frauds. Then at the end of every little lecture we can't forget the 10% tithing to the church. Make your kids eat beans and wear rags but give your 10% to help the people running the church live a little better. Sorry I think it's all a big scam. I don't actually think he works for the CC companies but only because they wouldn't pay him.

By the way. I'm sure there are a lot of people that have paid off small amounts of debt by using the snowball system and tightening up their spending some, When I say small I mean 10k or so and a car that your paying on but are not upside down on. Ramsey is in it for the money. If you don't think so please call me. I have some bundled mortgages that are a great investment and they are cheap.
JMO

 

[FarmerChick]

Big Daddy I agree.

I am not a ramsey fan at all. I never post about him when we throw his name out...LOL

his way to financial freedom is so severe that many can not or are not willing to do it.

Yes the snowball debt payment is a good idea. I have done it definitely, but the balance of the rest of his program, TO ME, is not usable for a normal family. A family...with kids, with real life happenings and costs, etc.


Key on Dave (as with with ANYONE) is pick the logical and good system that MIGHT apply to your family...throw the rest of the crap away...LOL


I do this with alot of people throwing out there info into the world.

 

[Big Daddy]

Good point FC. You have to pick and choose what's right for you in all issues of life.

 

[cherylrichardson]

The reason people get overloaded on credit card debt is usually because they use their card for things they want vs things they need.

I agree with that and if you have listened to Dave he has also.

Telling someone in extreme debt to pay off 60 or 70k in debt with a yearly income of 50k is not really reasonable.

That statement all depends on their current expenses or how they can change their expenses.

So many of these people are driving $30K vehicles with payments if they freed them up would go a long ways to paying off debt quickly. Problem is they think that vehicle defines who they are.
Some are living in houses with payments taking up 50 to 60% of their monthly income.

But for fun lets take your numbers. If a person is bringing in 50K can they not down size car and house to live on 25K a year?
I have lived on that I know it can be done and I have 2 kids. In 2.5 years that debt be gone doing that.

Can it work for everyone? No.

But isn't it smarter to suggest looking at that instead of just throwing your hands up in the air?

I think so.


Dave normally runs the numbers.
And yes, I have heard him say BK may be the answer for one because it's just to much.

If you are a very frugal person and don't have any kids you can do it. The fact they are in the debt means they are not frugal. Kind of like asking a fat person that is fat because of bad eating habits to lose 150lbs.

Dave always tells people they have to change their lifestyle if they expect things to work out.
Thought you said you listened to him?

Doesn't matter if you are paying off debt little by little or doing BK if you don't change your ways you eventually be right back where you were before. Take a bit longer next time but unfortunately a person who doesn't change their habits will return to their old ways.

I've heard Dave tell people with cars that have a 20k balance but are only worth 10k to sell the car for 10k and arrange financing for the other 10k.

Have you done the math on this? If you free up the money to get out of debt and can get the dealer to take monthly payments that are less for the balance you have got cash flow. Curious how many people own 20K cars that are only worth 10K? Really? I know car values go down fast but I find your example extreme.

I know a lot of people on this forum consider him to be a financial messiah. My experience with messiahs is that they are usually frauds. Then at the end of every little lecture we can't forget the 10% tithing to the church.

Messiah? WOW! LOL!
Can't speak for the others but I can tell you I listen to Dave when I'm on the road.
I like to see if my advice in the same situation be the same.

There are times I disagree with Dave.
That being said, Dave has been a MUCH BADLY NEEDED VOICE ABOUT PERSONAL RESPONSIBILITY when way to many others out there are to PC to say anything thinking tax payers should foot the bill for everything.

You mention tithing...........
I bet I have listened to couple hundred hours of Dave in the last few years on the road and think I maybe heard him speak about tithing once. Nothing wrong with that. This show is a BIBLICAL based show. Kind of makes sense to talk about important subjects like that. In fact I think Dave needs to talk a bit more about it.

Make your kids eat beans and wear rags but give your 10% to help the people running the church live a little better. Sorry I think it's all a big scam

.


Ahhhhhhhhhhhhh yes, the rice and beans saying he uses.

That saying is to zap these people out of the current lifestyle that got them into the mess.
Are you telling me your kids can't wear nice clothes from the thrift stores? Been to one lately?
They have very nice clothes that certainly aren't rags for 80% or more off retail.
Dave has mentioned they did that when they got in their mess years ago. It works. Works is good don't ya think?

He is not saying live in RAGS like you are twisting his words to say.

So giving 10% to the church makes the leaders live a better life? Hmmmmmmmmmmmmmm.
I agree with you on some churches. They are scams.

Just like some sales people., construction companies, stores, etc.
Scams are all over the place.

Should we not go out to eat because a bad cook might be there?

No. Just like churches you go to different ones using discernment until you find one.
Never will be a perfect church because if it was you nor I nor anyone else could attend.

If one becomes bitter then everything becomes a scam.

Ramsey is in it for the money.

Of course he is in it for the money besides to help people. You want him to work for free?

He saw when he messed up there were millions out there just like him that needed guidance.
Why not give that guidance and make a living off of it?

Has our world become better since Dave and others started saying enough is enough you need to be accountable for your actions? I'd say so.

Dave has got a lot of publicity in the last few years because people are finally waking up to the fact they don't need to impress their next door neighbor or their co workers. They can be free from debt.

Nothing Dave has said is a secret. It's all common sense.

Dave has been smart enough though to harness that common sense in a way more people can relate to thus his popularity.

Even though I disagree with Dave sometimes I thank God for him. He has been a BLESSING for many people.

 

[Big Daddy]

The reason people get overloaded on credit card debt is usually because they use their card for things they want vs things they need.

I agree with that and if you have listened to Dave he has also.

Telling someone in extreme debt to pay off 60 or 70k in debt with a yearly income of 50k is not really reasonable.

That statement all depends on their current expenses or how they can change their expenses.

So many of these people are driving $30K vehicles with payments if they freed them up would go a long ways to paying off debt quickly. Problem is they think that vehicle defines who they are.
Some are living in houses with payments taking up 50 to 60% of their monthly income.

But for fun lets take your numbers. If a person is bringing in 50K can they not down size car and house to live on 25K a year?
I have lived on that I know it can be done and I have 2 kids. In 2.5 years that debt be gone doing that.

Can it work for everyone? No.

But isn't it smarter to suggest looking at that instead of just throwing your hands up in the air?

I think so.


Dave normally runs the numbers.
And yes, I have heard him say BK may be the answer for one because it's just to much.

If you are a very frugal person and don't have any kids you can do it. The fact they are in the debt means they are not frugal. Kind of like asking a fat person that is fat because of bad eating habits to lose 150lbs.

Dave always tells people they have to change their lifestyle if they expect things to work out.
Thought you said you listened to him?

Doesn't matter if you are paying off debt little by little or doing BK if you don't change your ways you eventually be right back where you were before. Take a bit longer next time but unfortunately a person who doesn't change their habits will return to their old ways.

I've heard Dave tell people with cars that have a 20k balance but are only worth 10k to sell the car for 10k and arrange financing for the other 10k.

Have you done the math on this? If you free up the money to get out of debt and can get the dealer to take monthly payments that are less for the balance you have got cash flow. Curious how many people own 20K cars that are only worth 10K? Really? I know car values go down fast but I find your example extreme.

I know a lot of people on this forum consider him to be a financial messiah. My experience with messiahs is that they are usually frauds. Then at the end of every little lecture we can't forget the 10% tithing to the church.

Messiah? WOW! LOL!
Can't speak for the others but I can tell you I listen to Dave when I'm on the road.
I like to see if my advice in the same situation be the same.

There are times I disagree with Dave.
That being said, Dave has been a MUCH BADLY NEEDED VOICE ABOUT PERSONAL RESPONSIBILITY when way to many others out there are to PC to say anything thinking tax payers should foot the bill for everything.

You mention tithing...........
I bet I have listened to couple hundred hours of Dave in the last few years on the road and think I maybe heard him speak about tithing once. Nothing wrong with that. This show is a BIBLICAL based show. Kind of makes sense to talk about important subjects like that. In fact I think Dave needs to talk a bit more about it.

Make your kids eat beans and wear rags but give your 10% to help the people running the church live a little better. Sorry I think it's all a big scam

.


Ahhhhhhhhhhhhh yes, the rice and beans saying he uses.

That saying is to zap these people out of the current lifestyle that got them into the mess.
Are you telling me your kids can't wear nice clothes from the thrift stores? Been to one lately?
They have very nice clothes that certainly aren't rags for 80% or more off retail.
Dave has mentioned they did that when they got in their mess years ago. It works. Works is good don't ya think?

He is not saying live in RAGS like you are twisting his words to say.

So giving 10% to the church makes the leaders live a better life? Hmmmmmmmmmmmmmm.
I agree with you on some churches. They are scams.

Just like some sales people., construction companies, stores, etc.
Scams are all over the place.

Should we not go out to eat because a bad cook might be there?

No. Just like churches you go to different ones using discernment until you find one.
Never will be a perfect church because if it was you nor I nor anyone else could attend.

If one becomes bitter then everything becomes a scam.

Ramsey is in it for the money.

Of course he is in it for the money besides to help people. You want him to work for free?

He saw when he messed up there were millions out there just like him that needed guidance.
Why not give that guidance and make a living off of it?

Has our world become better since Dave and others started saying enough is enough you need to be accountable for your actions? I'd say so.

Dave has got a lot of publicity in the last few years because people are finally waking up to the fact they don't need to impress their next door neighbor or their co workers. They can be free from debt.

Nothing Dave has said is a secret. It's all common sense.

Dave has been smart enough though to harness that common sense in a way more people can relate to thus his popularity.

Even though I disagree with Dave sometimes I thank God for him. He has been a BLESSING for many people.

You find the car example extreme because you don't deal with people everyday that are in exactly that position. Most people buy cars with little or no down and pay more than they should. How are you going to sell a car without a title? Easy you tell the potential buyer that if he gives you the money you'll go make arrangements with the finance company for the balance. Then when that is done they can have the title. It's a pretty silly concept.

I haven't listened to Dave for about 3 years now. When I listened to him he did the tithing thing every time he did his calculations. Yes he does tell people to change their lifestyle. That's why I used the 150lbs analogy. Try being 150lbs overweight and lose it and keep it off for more than 5 years. The NHI says that 97% of the people that do it gain the weight back plus more within 5 years. People that have developed spending habits like that are very similar to people that can't control their eating. Your right everything Dave says is common sense and is in any book you read about reducing debt. Too bad people spend money to get the info. If you dispute the messiah bit then read some of the postings on this and BYC over the past year. No I am not bitter at all. I have a wonderful family, a nice house, a good job and relatively good health. No bitterness here. I do recognize scams when I see them though.

By the way in some parts of the country you will need to spend 50-60% of their income on renting an apartment just to stay out of the ghetto. That's one of Daves other problems. He doesn't live in the real world. I know his sob story he tells it on every show. Same story you hear from all the preachers that used to be drunks and cheated on their wives. He knows how to target his audience.

 

[Wifezilla]

Dave normally runs the numbers.
And yes, I have heard him say BK may be the answer for one because it's just to much

Exactly.

I really don't get the hostility. He offers one of many methods. I also listen to Tom Martino and have for about 20 years. He is also very frank and honest about money issues. I like them both for talking, not only about the intellectual side of finance, but the human nature aspect.

Having seen so many people screw up, having screwed up myself, and having been both well off and poor, I see nothing wrong or bad about either of their perspectives. Hard to fault either one of these guys for making money on seminars, real estate or book sales when the same advice in their publications is AVAILABLE FREE on their radio shows.

As for the tithing advice, Dave is a religious guy. He is up front about that. Since I am not I can easily ignore that particular aspect of his show.

 

[hwillm1977]

Do not give anyone access to your account electronically.

This is HUGE... I had my student loan payments coming out of my bank account automatically, fell behind and because my work requires direct deposit it happened four different times that I went to the bank and they had withdrawn EVERYTHING... balance of $0... everytime I got paid, if I didn't get the money out within 6 hours the student loan company knew when I got paid and withdrew everything out of the account leaving me with nothing for rent, food, or gas to get to work... it was a nightmare.

I watch a show called 'Til debt to us part', and she's got some great advice for living within your budget, and it's free But really you just need to gather up various advice, take a little from each person and create a plan that is going to work for you and your family. It's hard, we're still working through it... but we're almost where we need to be.

And I'm an example of a person that has a car that we owe $17,000 on and it's probably worth $8000... it's a 2005 Chevy Blazer, and we have no way of getting out of the high interest loan... we're trapped in that cycle until it's paid off.