How would you dig out from this?

[damnpoor]

Word, I can't opine on that but there is money to be had...unless he's working 60+ already, there is money out there just waiting to be had. Easier said than done but what isn't.

I don't know what you're suggesting exactly but the military pays you a flat annual salary based on pay grade and years of service regardless of how demanding your job actually is. Also the military requires commander's approval for service members to get a second job.

 

[DefyInertia]

I don't know what you're suggesting exactly but the military pays you a flat annual salary based on pay grade and years of service regardless of how demanding your job actually is. Also the military requires commander's approval for service members to get a second job.

Sounds like a bum deal.

I'm not suggesting anything specific. I'm suggesting the attitude should be "how can I" not "why I can't". That's all. It's america...there are ways to make legit money. If he's living in cali and only making 36K then he can't be working more than 40 hours, right?

I don't know ANYTHING about military restrictions on making ends meet and I'm not interested in discussing them. If he has restrictions, he will say so. My original "get a raise" statement was directed towards his household income, not just him.

 

[sideslider]

Someone told me a crazy idea involving something called GAP insurance.

Not my style but be careful or move to another country change names and move back with a work visa...

but seriously if you really want out, listen to everyone here.

1) eat top roman - no eating out

2) no going out on dates or movies

3) no fz mods

4) get a second job

5) dont drive unless it's to work - take public transit if poissible

6) cancel cable tv and internet

- there are a million ways to conserve money but you will just need to bite the bullet, maybe even move to that ghetto part of town if it is cheaper.

hope that helps, I did do a debt counciling service once... worked out great.

 

[Raid The Revenge]

THE DOCTOR IS IN

Wow! Taking a hit on your Ninja was like hitting on a 17! Sounds like you've busted. Actually, I know somebody who's in the EXACT SAME SITUATION as this. I know somebody who has a debt, new car and expensive bike...each with massive loans and leases.

1) YOU CANNOT SOLVE MONEY PROBLEMS WITH MORE MONEY.
--You guys saying the wife ain't making enough money? You all outta be ashamed of yourselves! Tell me you guys were joking! How much money does the wife need to make? $30.00 an hour? $50.00 an hour? A diamond a day? She might be making $8.00 US and hour, but she sounds like she's got better spending habits than sanguines! She's got a paid off car! AARRRGGHHHH!!! You know how to make me MAD!!

2) YOU'RE ASKING THE WRONG PEOPLE
--Here's what YOU are going to do (you'd better be reading this sanguine). You're going immediately to your wife and asking her what to do. You will do EXACTLY what she says! Obviously, she's got a paid off car and you have a debt! So....why are you asking us? Somebody already has proven the solution to this problem! Perhaps she should leave your ass with your own debt? AARRGH!!

3) HERE'S A SOLUTION (IN CASE YOUR WIFE LEFT YOU ALREADY).
--You seriously CANNOT AFFORD these loans! Get rid of the car and/or the bike! Or how about YOU get a better job? Make more money!! YOU CANNOT AFFORD THESE COSTS!! GET RID OF THEM BEFORE YOU CRASH YOUR CAR!! THAT'S WHAT HAPPENED TO THE OTHER GUY!! HE CRASHED HIS BRAND NEW CAR, WHICH HE FINANCED AND DROVE HIMSELF INTO MORE DEBT!! HIS GIRLFRIEND LEFT HIM!! THAT'S RIGHT!! You think you've got problems now??? HA! The guy I know was engaged with his girlfriend!! He crashed his brand new Cobalt SS Turbocharged, which he was financing! His girlfriend dumped his ass on the spot! HAH! She was in the car with him when they hit the barricade! Nearly drove off a cliff!! GOING TOO FAST!!!!!!

That was the Iridium Terrorist.

 

[Tour Guide]

live like us older folks did in the past when we were starting out. no cell phones, no internet, no wally world for impulse buying, no eating out, and no cable tv. sounds like a rough life but thats one reason people think the cost of living is so much higher now, those thing didn't exist years ago and life was just fine. not crazy about any consolidation loans - now refinancing for a lower rate - thats a possibility. good luck and there is light at the end of the tunnel.

 

[codeblue]

Don't know if this was posted yet , but there are many sites on the net that helps you get rid of a lease but letting someone else take over. I'm not sure how it will affect your credit score though, but it's well worth a look. Maybe you have "very" close family that's in need of a car and is willing to take over for you? Good Luck.

 

[wolfc70]

Alot of good advice has already been stated, so I will try and offer the advice I offer to our members.

Dump the lease, find someone to take over the lease agreement. Do you really need a brand new car? Cars are horrible investments, why pay high fees for something that will loose value anyway. There are alot of nice cars out there for $10,000, this gives you a $220 per month payment.

Refinance the bike loan. Go to a Credit Union and get an actual fixed loan on the bike, this is the only way to start getting out of the credit cycle. If you have any credit card balances, get a fixed loan on them too. Leases can not usually be consolidated unless you are close to the payoff date.

Stop spending money, really just stop. I make the same as you and the only non mortgage debt I have is the motorcyle loan, at $126 per month, and my car, at $218 per month. So $344 per month in vehicle payments. Granted I have never owned a new car, and until the FZ, never spent more than $1000 for two wheeled transportation. As you now know, NEVER, EVER roll negative equity from a vehicle on to a new loan. Get a unsecured loan for the negative equity. That way if you need to sell the vehicle, you do not have such a large loss from depreciation from TWO vehicles.

You can get out of this, but it takes time, effort and a complete change in lifestyle, but it is possible.

 

[Rushiku]

Do you really keep a balance sheet?

That reminds me - you have a computer (I assume), get Quicken, or a similar open source (freeware) product.

This will allow you to better visualize your income, debt and spending.

It's pretty depressing when you first enter all those negative numbers, but after a few months, you'll be motivated by being able to see your progress (I know I was)

Right now, interest payment is killing you - once you get the consolidation loan, there will be no need to drop eating out, cable, internet, etc, because you will have one loan with a, hopefully (remember to beg), reasonable rate. Personally, I went from paying $600-700 per month in interest (aka: flushing it down the toilet) to about $150 - if you can't live on the difference, you're doing it wrong.

 

[Fred]

Most of the advice posted here is good.

One thing needs to be addressed, though. Nobody on this forum is saying it because this is, after all, an FZ6 forum.

The FZ6 has to go.

Yeah, it gets 40mpg compared to the 20mpg car.
But let's look at some FZ6 related expenses.

1. Insurance. You're 21 and male. That's all I need to hear to know that you are paying out the nose to insure the bike.
2. Maintainance. 4000 miles between oil changes, compared to a modern car which probably does 10,000 miles.
3. Tires. For the FZ6, they're $150 to $200 each. And they last between 4 and 8 thousand miles. For $200 I can put four new tires on a car and have money left over. And they'll last for 20k miles or more.
4. The FZ6 cannot get groceries or carry more than two people. The car can.

You have two vehicles for yourself, both of which you owe on. You need to get rid of one of them. The FZ6 cannot do everything that you need it to do. The Subaru can.

I understand that this means you'll be selling the bike and continuing to pay off the loan for years afterwards. (How did you wind up owing $12.5k on a $7.5k motorcycle?) That sucks, but look at my list above and think about all the things you won't be paying for during those years. You'll save money by selling the bike.

 

[Hellgate]

In retrospect, asking about the 401k after re-reading that you're only 21 was a bad idea. Save that thought for older though.

Get a good rainsuit and park the lease at all costs. Save on gas! Money to use toward paying the principal on the bike.

Being in the military, it's not an easy option to work toward a raise as Nate suggested but he had great intentions!

There is no 401K for the military. There is retirement after 20 good years and there is the TSP (Thrift Savings Plan). The TSP is totally voluntary, no matching at all. The only advantage is that is totally no fee, no load, and is pre-tax money.

If you do have a TSP account you can take a loan against it for a $50 fee. TSP: FAQs, 2004 Loan Pgm Chgs; 2008 Jun 30

I'd suggest that you visit the Credit Union that is affiliated with your base and see if you can refinance your bike loan. Credit Union are perhaps the best place to get any loan, auto, bike, 2nd mortgage, etc. You don't get hosed with fees and bad interest rates like a normal bank. For instance on my truck my interest rate is 4.69% for a 72 month loan. A bank would be in the 6% to 7% range.

Another option is to cut all costs a much as possible; cancel cable TV, pack lunches, eat dinner at the house, don't go out partying. Yes you will live like church mice but all of us have been there at one time or another.

Also use your NCO support channel for help and advice. Trust me, your squad leader and platoon sergeant have seen this many times.

There is help that you can get on post, take advantage of what Active Duty offers you.

FYI...the military has a COLA (Cost of Living Allowance) that is based on Zip Code of there the Servcie Member is stationed, each one is different. There is also BAH (Basic Allowance of Housing) with and w/o Dependents. And of course if you are deployed to a "hostile" zone there is other pay that kicks in; Imminent Danger Pay, Involuntary Seperation Pay and Per Diem.

Basic Pay: Army News, benefits, careers, entertainment, photos, promotions - Army Times HOME

BAH: Army News, benefits, careers, entertainment, photos, promotions - Army Times HOME

COLA: Army News, benefits, careers, entertainment, photos, promotions - Army Times HOME

I have always told my Soldiers, it is not how much you make but what you spend your money on. The first person you would pay is yourself.

Bottomline: Cut costs and get rid it dept.

Good luck!

 

[sideslider]

Calm down there Elm. It's advice. Not a "you had better do".

Are you a wife by chance? and I think your assuming a lot, unless I missed something, it sounded like she has a paid off car not HAS paid off her car.

could have bought it out right for all we know.

 

[boo68]

1) You won't be able to sell the FZ6 for what you owe on it, so you will have to come up with the difference of the loan to obtain the title from the bank/title holder.

2) maybe you could trade the lease and the other vehicle with a payement, in for a less expensive car with a smaller payment, and the paid off car could be utilized more.

3) Maybe your wife could find a way to make more money, by asking for a raise or working a little overtime(don't know what her position is, but sounds like retail that would be hard) I had to work two jobs for about 2 years and I make $40k a year. I got a retail part time at $10 per hour.

4) You could probably do ok with a consolidation loan but it would likely not cover all of your debt.

5) If you could put down some money toward a refi on the FZ6 move it to a bank/installment loan, that would save you money and likely get you a smaller payment. I don't know the balance on the bike as of this date, but NADA.com will give you the value. (I just did this on my husband's bike that had the special finance rate for 2 years, I had to pay an extra year due to value/debt balance)

I wish you luck with this, this is a hard economy for everyone, so we have to pinch where we can.

Take care,

Deb

 

[sanguines]

Most of the advice posted here is good.

One thing needs to be addressed, though. Nobody on this forum is saying it because this is, after all, an FZ6 forum.

The FZ6 has to go.

Yeah, it gets 40mpg compared to the 20mpg car.
But let's look at some FZ6 related expenses.

1. Insurance. You're 21 and male. That's all I need to hear to know that you are paying out the nose to insure the bike. 77 bucks a month with State farm. It's half what my car insurance costs.
2. Maintainance. 4000 miles between oil changes, compared to a modern car which probably does 10,000 miles.I do them myself; a big jug of Rotella T and an oil filter is what, 20 bucks? I don't know how to work on cars, and the services on them are way expensive...
3. Tires. For the FZ6, they're $150 to $200 each. And they last between 4 and 8 thousand miles. For $200 I can put four new tires on a car and have money left over. And they'll last for 20k miles or more. Got me here, that's totally the truth.
4. The FZ6 cannot get groceries or carry more than two people. The car can.
There's only my wife and I - no kids - and it carries groceries acceptably thanks to the Cortech saddle/tailbags I picked up recently. Gallons of milk don't work, though
You have two vehicles for yourself, both of which you owe on. You need to get rid of one of them. The FZ6 cannot do everything that you need it to do. The Subaru can.

I understand that this means you'll be selling the bike and continuing to pay off the loan for years afterwards. (How did you wind up owing $12.5k on a $7.5k motorcycle?) That sucks, but look at my list above and think about all the things you won't be paying for during those years. You'll save money by selling the bike.I'm not sold on selling it yet - what with gas prices being what they are here, it's more than 100 bucks a week to drive the car to work, or 25 bucks to ride 5 days (which I'm planning on starting)

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[sanguines]

Two words: Consolidation Loan.

Get your ass down to the bank on base and start begging.

Cut up your credit cards, you didn't mention them, but we know they're all maxed.

Yes, even the one for 'emergencies', there are no emergencies more urgent than the financial emergency you're already in.

Park the stupid expensive cage until it's time to return it.

Get raingear and do your 3 times a week commute on the bike.

Give up shopping as a hobby. Take your wife to the park or beach, stay the flip out of the mall. Spend some time watching your, no doubt ridiculously expensive, TV.

Before every purchase from now until you die, ask yourself "Do I need this, or do I want this?" If you can't honestly say you need it to live, don't flipping buy it! (eg: you need raingear, you want the most expensive raingear you can find because you think price indicates quality, it doesn't. Having such-and-such logo on it doesn't make you cool, it makes you a tool AND it's a pretty good indication the item was made by exploited children in some 3rd world cesspool...but that's another conversation)

There is no more 'afford' for you, you either have the extra cash in the bank for a non-essential purchase, or you don't, period.

Once you get your consolidation loan, pay it every month! Add $50 to every payment, every month, if you can (you can).

It will take you a long, long time (maybe three or four 'longs', or at least it will seem that way, given you're only 21) to pay it off, flipping tough - you spent the money and/or agreed to 'Oh, you're in the military? (mental fist pumping, yes, yes, yes!) Let me set you up with our special moron rate' "deals", you get to pay it back. (I too was in the military, I am more than familiar with the shady, sneaky, underhanded (to be nice), tactics used by those f*cks)

On the upside, when you get it paid off, it will have been so long since you f*cked up and you will have done such a great job of paying on the loan every month, your credit score will be through the roof, do not let this go to your head!

Also on the upside, you now know the consequences of ignoring that voice in your head that said "Don't do this, stupid, you cannot afford it" - listen next time and walk away.

Once you have the current problem under control, look at what's left over. Ah, no, I didn't say spend it. I said look at it. Now, what do you want? what does your wife want? You each get one thing, split the money and (here's the catch) set it aside. Yep, I said it, save the money. Keep putting money into each of your 'I want' accounts until the day comes that you have enough money to walk in, point, say "I want that" and then slap the cash down - end of transaction.

I have walked in your shoes, and there is, believe me, no better feeling than doing what I just described, other than sending off your last payment for the consolidation loan, that is.

You sound like you're inside my brain. Everything you said (down to the ridiculous tv) is truth.

Thank you to everyone for some solid advice. I'm gonna hit the bank on base today and see what happens.

 

[Hellgate]

You sound like you're inside my brain. Everything you said (down to the ridiculous tv) is truth.

Thank you to everyone for some solid advice. I'm gonna hit the bank on base today and see what happens.

Let us know what happens brother! Don't give up!

 

[reiobard]

good luck, i wish you the best in your long road to recovery, I myself started down this road but caught myself before it was too too late, i am almost out of it and it only took some careful budgeting, Pay your bills on time and if you need a credit card to buy it, then you don;t need to buy it, I currently have 3 credit card accounts, that i don't even have the cards for. it adds up quick and you have to ask yourself (what happens if i have to go a few weeks without a paycheck?) it is a scary thought if you will have no food and no way to get food, no rent, and no $ for Gas to get anywhere to help your situation.

Try getting a 2nd job if you are only working 3 days a week then you have 4 days off, work for 2-3 of them and earn some extra. Your GF should also look into advancing her carreer, $8.00 an hour is garbage, the last year i was in retail (granted i was a manager, and working full time) i made $47,000 after bonuses and salary. That combined with your salary should get you out pretty quickly. Why do you both seem to work only part time?

 

[reiobard]

Oh, and DO NOT go out to eat, it will cost you a weeks worth of groceries to eat out one night.

 

[sanguines]

good luck, i wish you the best in your long road to recovery, I myself started down this road but caught myself before it was too too late, i am almost out of it and it only took some careful budgeting, Pay your bills on time and if you need a credit card to buy it, then you don;t need to buy it, I currently have 3 credit card accounts, that i don't even have the cards for. it adds up quick and you have to ask yourself (what happens if i have to go a few weeks without a paycheck?) it is a scary thought if you will have no food and no way to get food, no rent, and no $ for Gas to get anywhere to help your situation.

Try getting a 2nd job if you are only working 3 days a week then you have 4 days off, work for 2-3 of them and earn some extra. Your GF should also look into advancing her carreer, $8.00 an hour is garbage, the last year i was in retail (granted i was a manager, and working full time) i made $47,000 after bonuses and salary. That combined with your salary should get you out pretty quickly. Why do you both seem to work only part time?

I'm in the Air Force, it's a full time gig. 5 days a week, 0730-1630. I also go to college 3 nights a week so getting a second job is not likely to happen (in the military, it has to get approved by your supervisor, and since I'm already taking 8 college units he won't approve it). My wife is part time-ish. Some weeks she gets nearly full time, other weeks only in the 20 hour range. It depends. $8 is minimum wage in California, and for a 20 year old with no experience it's about the going rate - does that seem wrong? I've got no problem pitching to her to work more, but I want to know what I'm talking about when I do.

 

[reiobard]

THE DOCTOR IS IN

Wow! Taking a hit on your Ninja was like hitting on a 17! Sounds like you've busted. Actually, I know somebody who's in the EXACT SAME SITUATION as this. I know somebody who has a debt, new car and expensive bike...each with massive loans and leases.

1) YOU CANNOT SOLVE MONEY PROBLEMS WITH MORE MONEY.
--You guys saying the wife ain't making enough money? You all outta be ashamed of yourselves! Tell me you guys were joking! How much money does the wife need to make? $30.00 an hour? $50.00 an hour? A diamond a day? She might be making $8.00 US and hour, but she sounds like she's got better spending habits than sanguines! She's got a paid off car! AARRRGGHHHH!!! You know how to make me MAD!!

2) YOU'RE ASKING THE WRONG PEOPLE
--Here's what YOU are going to do (you'd better be reading this sanguine). You're going immediately to your wife and asking her what to do. You will do EXACTLY what she says! Obviously, she's got a paid off car and you have a debt! So....why are you asking us? Somebody already has proven the solution to this problem! Perhaps she should leave your ass with your own debt? AARRGH!!

3) HERE'S A SOLUTION (IN CASE YOUR WIFE LEFT YOU ALREADY).
--You seriously CANNOT AFFORD these loans! Get rid of the car and/or the bike! Or how about YOU get a better job? Make more money!! YOU CANNOT AFFORD THESE COSTS!! GET RID OF THEM BEFORE YOU CRASH YOUR CAR!! THAT'S WHAT HAPPENED TO THE OTHER GUY!! HE CRASHED HIS BRAND NEW CAR, WHICH HE FINANCED AND DROVE HIMSELF INTO MORE DEBT!! HIS GIRLFRIEND LEFT HIM!! THAT'S RIGHT!! You think you've got problems now??? HA! The guy I know was engaged with his girlfriend!! He crashed his brand new Cobalt SS Turbocharged, which he was financing! His girlfriend dumped his ass on the spot! HAH! She was in the car with him when they hit the barricade! Nearly drove off a cliff!! GOING TOO FAST!!!!!!

That was the Iridium Terrorist.

Wow, a bit rough aren't you about this? The debt is technically both of theirs and the decisions to buy these things would have been a joint purchase, $8.00 is simply not enough, I made more than that when i was 15 years old, and $8.00 part time is even worse if she is not in school then she needs to be at work at least full time and with full time comes higher pay. There are some situations that would warrant this, but that is when staying home and not working is cheaper than daycare or she is working on a degree to further herself, but those have not been mentioned.

 

[sanguines]

How do you get a job that pays more than minimum wage without any experience? Having never really job hunted much, myself (thanks, Air Force), I don't really know how it works.

She's a college dropout, after 2 years. Says she wants to go back in spring - we'll see.

BTW - the wife's car is paid off because she paid cash, from a trust fund.