advice needed

**trawick85** · 11-30-2010, 02:06 AM

Hey all, I just recently discovered Dave Ramsey and his total money make over book. Let me explain the situation I'm in:

Dec 31, 2009 I filed my petition for chapter 13 bankruptcy. Mostly all credit cards, a few Dr bills and a truck note. I also had a car note that my dad cosigned with me for. The bankruptcy took my name off the car note and left it as my dads responsibility. I still make that payment every month though. The truck that is wrapped in the bankruptcy is supposed to be given back to the bank because it hardly gets used and I don't see paying over $300 a month for somethibg that just sits in the yard. Anyway back to the car, I ow roughly 20k on it. It may be worth about 12k on the high side.

My bills are as follows : car 513.05, rent 250, satellite 100, cell phone 100, bankruptcy 297, insurance 101. I need to get the car knocked out as quick as possible. I bring home on avg 1600/month after bankruptcy.

Any advice or insight would be greatly appreciated.

**Virginia Gentleman** · 11-30-2010, 05:36 AM

Since the car is in your dad's name, is it an option for him to sell the car and take out a loan to cover the other ~8K? You could then drive a beater until you paid off that note and begin saving for a nicer car.

If you're intent on keeping the car, then it sounds like you just need to live on rice and beans for a year and knock that debt out. If you're looking for places to cut, I would think that the satellite and cell phone could go.

**khaski** · 11-30-2010, 07:16 AM

Is it possible for you to take on another job part time to help bump up your earnings? You may simply need to bump up your income until you can get through this.

**Greebo** · 11-30-2010, 08:12 AM

The car represents a third of your take home pay.

You cannot afford it.

**jessep** · 11-30-2010, 03:50 PM

How long is your plan 3 or 5 years? If you sell the car for less than you owe do you have the cash to cover the amount your upside down? If not, you are stuck with it unless you want to trash your fathers credit or let him make the loan payment (which I wouldn't do).

I would:

*1a make a detailed written budget that changes every month...

1b. keep making the car payment (cause I don't want to trash my fathers credit, need a car to get to work and you probably can't get a car loan in chapter 13 unless approved by the trustee)

2. get rid of the satellite service and try to cut down on cell phone expense

3. save $1k for BS1

4. anything that you have left over at the end of the month, snowball it into the car payment.

You probably can get a second job, but the chapter 13 may require you to turn the extra income over to the trustee for the chapter 13 plan. You should consult with your lawyer before doing anything.

**Judi Dial** · 11-30-2010, 04:01 PM

If the car is in your dad's name, see if he can get the insurance on it. It may be cheaper, depending on how old you are and your driving history. If the insurance is renter's insurance and or your own (rather than thru work) health insurance, shop for a cheaper policy. Also, if the bank takes back the truck, make sure it comes off your insurance when they do.

Judi

**trawick85** · 12-02-2010, 12:10 PM

I'm already working a second job now as it is. Don't think I could take on a third. My primary job is 14.01/hr and second is 8.25/hr and I get about 55 hours a week between the two. Can't take on much more due to my 45 minute commute to the primary job, which is also why I can't drop the cell phone. Don't know where else to cut, cuz there would be no entertainment if I cut the satellite, plus I don't have the $450 to get out of the contract.

**Greebo** · 12-02-2010, 12:22 PM

Can you reduce the cell phone plan? $100/month is a higher priced plan or a plan with an associated data plan. If your work requires you to have such a high end plan then ask them for help paying the bill.

As for no entertainment without the satellite - YOU'RE IN BANKRUPTCY. Find something cheaper. If you cut the satellite you'll have the cancellation fee in 4 months. Waah. Suck it up and get a $10/month netflix account.

And your car costs are still absurd. Beg or borrow enough to cover the diff beween what you owe and what it's worth plus enough to buy a $1,000 beater and sell that puppy. You don't make near enough to justify a $500/month payment.

**HappyMama** · 12-02-2010, 12:27 PM

I have a corporate cell plan through verizon, that I will be replacing with straight talk from Walmart at 45.00 a month for unlimited text and phone, or Boost for unlimited text and phone for month. I will be replacing my plan for two phones, as it will at least be unlimited and no need to up my contract. Look into those, not the fancy phones unless you go Boost but a lot cheaper then 100.00 per month.

ETA: Straight talk does have a plan that is discounted for more then one phone, though that would not apply to your situation, thought it might help someone else.

**kita** · 12-02-2010, 01:57 PM

What I don't understand is that you are working 55 hours a week, Commuting about 7 hours and getting dressed, sleeping, etc. How many hours are you using that $100 a month for entertainment?
My niece just moved in with me and I heard her comment to a friend that she hasn't used the tv. She is unemployed at the moment but even she can't justify cable now...even as a time issue. When do you have time for it?

**Judi Dial** · 12-02-2010, 03:16 PM

If you don't have $450 to get out of the contract, then I'd add the entertainment and its $450 to the bankruptcy and use your local library: CDs, DVDs, books, music for free.

Will that work?

Judi

**littleplum** · 12-02-2010, 05:55 PM

Originally Posted by kita

What I don't understand is that you are working 55 hours a week, Commuting about 7 hours and getting dressed, sleeping, etc. How many hours are you using that $100 a month for entertainment?
My niece just moved in with me and I heard her comment to a friend that she hasn't used the tv. She is unemployed at the moment but even she can't justify cable now...even as a time issue. When do you have time for it?

That's exactly what I was thinking. After 56 hours of sleeping, 55 hours working (and I'm assuming 5 hours on top of that for lunch breaks at the day job), 7.5 hours driving to and from Job #1, there's only 45 hours or so left to shop for groceries, cook, eat, do laundry and housework, shower, dress, and visit with friends and family.

With his schedule, he seriously only has maybe an hour or so a day to watch tv. I know, because I worked two jobs for about 6 months, and my hours were similar, about 56 per week, plus lunch hour. I made time for ONE show during the week: Firefly. Then Fox canceled it!

**joyofsix** · 12-02-2010, 06:36 PM

It's not about the money, it's about mindset and behavior. You're going to have to make up your mind that you'll have to be changing your lifestyle. I can say that because I've got no satellite (see above post on library) and a tracfone. Oh, and no debt.

**frugal.lass** · 12-03-2010, 05:00 PM

Trawick, you'll notice through checking out the forums a common line used is "I can't cut cable/satellite, there'd be nothing to do!". The Villagers here are absolute pros at debunking that myth and can suggest tons of things to do that are free, or at least much cheaper than your satellite bill.

As many posters have pointed out, between your two jobs, you probably don't have a ton of time. How much satellite TV do you actually watch? Try breaking it down to a cost per hour thing and see if it seems easier to cut that way. If you're only getting in 2 hrs of TV a week, that's 12.50/hr (assuming I've done the math right...brain's not working today!!) to watch TV. Pick up some books from the library, read the books during most of your free time and you could "splurge" on going out to a movie once a month and still come out ahead.

If you absolutely *must* get your TV fix, see if your library has TV shows on DVD. Borrow a DVD, enjoy a few episodes for free and the next week, try something new.

We're not trying to jump all over you but in your situation, you have to pinch every penny til it screams! (I've seen that saying on another posters sig and LOVE it)