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Author Topic: omg im screwed-  (Read 11644 times)

tuesday

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #30 on: May 25, 2007, 01:39:02 PM »
What school are you going to?  What are that school's starting salary stats?

It's probably time to do some hard math and figure out what you're getting yourself into.  If you have that much consumer debt going in, and are looking to add another 150k in loans, you need to make sure you aren't about to get youself into something you can't get out of.  

If the school you're going to is not likely to get you to a financial place where you can manage that kind of debt, I'd really recommend waiting a year, working your a** off to get that debt down (sell that car!), and while you're doing that, if a higher LSAT score would get you into a better school or get you a scholarship, might as well do that too.

Para Legal

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #31 on: May 25, 2007, 10:21:19 PM »
Carmax: rule is that if you are upside down, you must front the cash to pay off the note in order to make the deal work. If you own outright, they will cut you a check and/or apply the value to a trade-in. No questions asked- if you want a check, you get it provided you have equity in the vehicle.

That being said, what do you need with a car at Columbia??

My advice- you aren't going to get 85K from the school. Period. They aren't in the business of refinancing your bad decisions, and it's your problem to get yourself in better financial shape.

Did your parents buy your house from you at market value or did they just "take over the mortgage?" If so- why did they buy it from you? if you got full market value, assuming you had some equity in the house...what did you do with the proceeds from the house? If you still own an interest in the house, can you access a home equity loan to consolidate your debts at a lower interest rate, and make one big payment every month?

Bottom line: work your ass off and pay the debt back...defer for a year and go see a financial advisor. Make a budget and stick to it. It sounds like you want to retain at least some of your "baller" status by hanging onto something (*anything*) from the good times, and in your case it's your car.

If I were you (and I'm not, but I've dug myself out of debt and I've been in the workforce a fair amount of time...) here's what I would do (and please forgive the audacity of a complete stranger telling you what to do):

1. Write down all your debts, and figure out what else can go- the car included. Ebay, garage sale, etc.
2. Sell the car and see about a small personal loan to cover the upside down amount- borrow from the parents if you have to. Or, suck it up and make the car payments until you can save up (or pay down) until you break even.
3. Liquidate your assets (if you have any-401k?) and use the money to pay a debt (possibly the remainder of the car note after you sell it).
4. Make your car payment to your credit card, in addition to the minimums (after it is sold). Call your card company and tell them what you are up to- often if you have been a good customer, they will lower your interest rate. Sometimes it helps to suspend your right to use the card - I did this and wasn't allowed to charge for 6 months, but I got an interest rate that was about a quarter of what I had been paying.
5. Defer school. Get a second job. Or a third. And a better paying first job.
6. Every time you want to buy something "extra"- take the money out of your account and put it in a coffee can or something else. At the end of the month, put the money toward your debt in addition to your normal payment.

Less debt = more freedom, and you don't want to bank on a big money job out of law school. You did that once before, and it dried up, remember?

Good luck.

Cheers,

Para  ;)
Hamline University School of Law
1L

blackpowerman

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #32 on: May 25, 2007, 11:12:33 PM »
Para thanks,

Trust me ive gotten my finances on hold- i was never really in over my head so to speak, i was simply unable to catch up.  i mean, i can make all my monthly minimums, but thats it.  i also now live at home.  my parents simply took over the house payments, well, they do real estate investing and bought it and rented it out.  no money was made.  i only had the house for a year so no equity was really built. 

basically, i understand i cant get the 85K i need to turn my life around.  i mean, i can get it, just not through loans.  pisses me off, really, because i was lookin forward to that lower monthly interest rate across the board and a timely deferral until i start makin the big bucks again.  the way i see it, is im a fair shot at starting at 60k at least- 5k a month, back to what i was making before granted more bills- however, more fiscal responsibility. 

and yesssss, debt is slavery!!!  its a black cloud raining on me everytime i try to move.  only time will tell but i hope i can find some good work here.  you guys really dont understand how backwards, old fashioned, unambitious the city of charleston and the entire state of SC is.  theres a girl i currently work with who is basically the poster child for women here (omg, please dont give me a fem nazi thing, its MY experience, not yours)
anyways, her high school teacher came in and saw her- asking where shes going to college. the girls response "well, dropped out of high school, im pregnent, getting married and just bought a trailer" she said this with pride and a smile. 

i wish u could have seen the teachers face.  the girl just turned 18 by the way.  im trying to claw my ass out of here ASAP.

unless you have some serious connections, which i dont, the good ol' boy system will paralyze you. 

its really not a matter of where i go- its where i can get away form here.  also, any law degree will wrok in this town if i want to come back- which i dont- which is a good thing

ok enough ranting, time to head to work, again....
"The fox knows many tricks; the hedgehog one good one" - Archilochus

sharky

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #33 on: May 26, 2007, 09:36:53 AM »
Oh, come on.  You're blaming Charleston for way too much here.

Oh, the real estate market sucks. The car market sucks. The job market sucks. The women get knocked up, live in trailers and that's their highest aspiration. The city is crushing your true potential!

Charleston is just fine. 

Networks help everywhere, and unless you learn how to make your own (or break into old ones) you're going to be at a disadvantage post-law school. And if you're just so ambitious, well, you could probably take all those unambitious slobs in the state of South Carolina by storm, right?  (If so, why haven't you already?) And there are plenty of suitable hot, intelligent, ambitious women in South Carolina.  They just probably don't work where you do and they probably don't want to date the "baller" with the negative net worth.

And debt isn't "slavery".  Debt is a responsibility -- it's a mess that you chose to make and now get to clean up.   

Para Legal

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #34 on: May 26, 2007, 03:23:23 PM »
Prince, it's sounding like you can't/won't defer for a year because you want to get the hell up outta Charleston.

I can appreciate wanting to better yourself...but you've got to think about your education and abilities and figure out how to make a better situation for yourself.

You need to find a second job, post-haste. Direct your paycheck directly to your debts and work your ass off.

If you've got a college degree, you should be able to subsitute teach. If you are working at a restaurant, that's mostly nights/weekends, etc. Find out what the cost/requirements are for a sub license- it's glorified babysitting and most places pay $100 a day for a sub. Do that every day 5x100=500x4 = 2K a month. Double what you earn now. Say you clear $1600 after taxes and you pay down your car, and keep making your monthly minimums. In 3 months, you've paid down your car so you're right-side up ($4800 plus your 3 months' payments). Save your next 2 months' worth ($3200) and buy a cheap car and sell the Mazda. Boom. You've just eliminated 20K of debt.

You're a smart person- else you wouldn't have gotten into CLS. Figure out a way to make your restaurant job into your 2nd job. The good ole boy network only stretches so far- and if you can't get a job, start networking and become a good ole boy. If you can't hang with the Charleston boys, no way are you gonna game with the network in NYC.

Best of luck.

Cheers,

Para  :D
Hamline University School of Law
1L

The Poster

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #35 on: May 26, 2007, 07:20:16 PM »
Wow, I have no words.
quote Stanley J. Watson III
you are doomed in the fated sense, but that's completely irrelevant because that's only from the viewpoint of someone who is not constrained by time. since you are temporal, for all intents and purposes you have the power to change your future

sillyberry

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #36 on: May 26, 2007, 08:14:53 PM »
Jesus. 

I got $10k in 0% CC debt (obviously covered with cash earning risk-free interest in the bank), and open/close a new CC every month or two to take a $50-100 (sometimes more) sign on bonus.  I always wondered how they could give away so much money.  Guess this is it.

Ummm...have you checked your credit score?
Juicy: UChicago

It sounds so reasonable when you say it.

ě

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #37 on: May 26, 2007, 09:06:26 PM »
Does income, savings etc affect your creditscore, or is it simply about paying on time or not?

sillyberry

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #38 on: May 26, 2007, 09:13:18 PM »
Does income, savings etc affect your creditscore, or is it simply about paying on time or not?

There are a bunch of websites that discuss how credit scores are determined, but here's one:

http://www.creditreport.com/info/credit-scores/affect-credit-score.asp
Juicy: UChicago

It sounds so reasonable when you say it.

ě

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Re: omg im screwed- i need budget increase for CC and car payments
« Reply #39 on: May 26, 2007, 10:20:22 PM »
Thanks