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#121 of 143 Old 10-22-2007, 09:20 AM
 
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Originally Posted by phathui5 View Post
I'd recommend seeing what you can get for it though private sale (autotrader or ebay), figure out the difference that you would have to pay the finance company. The sooner you sell it, the less you end up having to pay. But it's definately worth it to get rid of the payment, even if it means paying for the priviledge of getting out of the loan.
But they can't sell it if it's a lease - don't you have to turn the can in at the end of the lease?
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#122 of 143 Old 10-22-2007, 05:15 PM
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Originally Posted by LilMamiBella View Post
Update:

So far, dish network is cancelled and our timeshare sale is pending. If we can sell it then we'll have enough to pay 2 1/2 credit cards out 3.
We leased our truck in July or August and the payment is close to $700 a month with us paying it off in 6 years.: Has anyone ever turned in a truck before? What happens?
brain... collapsing... can ... not... fathom...

6-year lease?
Payments still nearing $700 per month?
What the heckle????

As to your question though, read the terms of the lease; I'm sure it will explain the charges incurred to turn it in early.
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#123 of 143 Old 10-22-2007, 06:54 PM - Thread Starter
 
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Originally Posted by WNB View Post
brain... collapsing... can ... not... fathom...

6-year lease?
Payments still nearing $700 per month?
What the heckle????

As to your question though, read the terms of the lease; I'm sure it will explain the charges incurred to turn it in early.
Yeah: its terrible. We signed up though cause we thought it would help with our fair credit plus we needed the trunk space. Its a big payment every month though and we don't like the idea of paying for 6 years. That's why i thought I'd try to refi after we pay off some cc's.

Stephanie + Dh= Super blessed parents to 1 ds, and 4 dds!
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#124 of 143 Old 10-23-2007, 12:44 PM
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Is it really a lease, though? I didn't realize dealers leased vehicles for anything longer than two or three years, or that you could re-finance them. (I know you can turn the vehicles in early, though there are almost certainly some fees attached. The amount of the fees should be laid out in your lease agreement.)
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#125 of 143 Old 10-23-2007, 01:33 PM - Thread Starter
 
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Is it really a lease, though? I didn't realize dealers leased vehicles for anything longer than two or three years, or that you could re-finance them. (I know you can turn the vehicles in early, though there are almost certainly some fees attached. The amount of the fees should be laid out in your lease agreement.)
Well i thought it was a lease..
Its a 2005 truck. We put in about 11,000 down payment and we are financing at 15 %. They said we could come in to refinance and that 2-3 years from now we can come in and trade it for whatever we want or keeping paying on it(the same truck).

Stephanie + Dh= Super blessed parents to 1 ds, and 4 dds!
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#126 of 143 Old 10-23-2007, 02:29 PM
 
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We have a leased car too (but only pay $291 a month for a 06 Honda Pilot) but I dont think yours sounds like a lease. 11,000 down payment is too high for a lease. Usually it's like 2K down and a certain monthly for 36 months or whatever....ours is a 42 month lease and then at the end we either give the car back or buy it and keep paying. So unless you have a hummer or escalade or something and had to have a huge down payment, I dont think it's a lease. Leases dont have interest rates either (ours doesnt at least.) 15% sucks though....I'd try to get that lower at all possible. On my dh's truck our buying it interest rate is 4.9%.

Desiree

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#127 of 143 Old 10-23-2007, 02:33 PM - Thread Starter
 
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I thought I'd try refi after paying off our credit cards..hopefully that'll look good to them.

Stephanie + Dh= Super blessed parents to 1 ds, and 4 dds!
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#128 of 143 Old 10-23-2007, 02:40 PM
 
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That doesn't sound like a lease. It sounds like you're buying it. What's being financed at 15%? If it's the balance after the down payment it's not a lease.

It sounds like they sold you on the idea of a high interest rate with the promise of a possible re-fi in the future. I think with your income level you could re-fi now through a bank or credit union. You might not get the best rates (3-5%) but I bet you could get single digits. Somehow they've got you thinking you have to go back to them and they did you some kind of favor where you have to improve your credit to re-fi with them. Go elsewhere and see what you can get at this time! Later when you pay off your cards you can return to the new lender and possibly re-fi again.
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#129 of 143 Old 10-23-2007, 02:44 PM
 
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Maybe i'm confused by your OP, but you say

Quote:
get this its $4,069.82 on $5000 a month!
So that means you have over $900 a month left after all of these expenses? Where is the rest going? I'm not saying that you probably shouldn't cut back on a lot of those things to have more savings and emergency fund, but I don't see what is so immediately dire about your financial situation.
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#130 of 143 Old 10-23-2007, 02:47 PM
 
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I bet you could get better with someone else now too before you pay off the cards. When we were young and first married we had 30K on CC and a crap income and still got 9% (they tried 16% first before I called my parents and asked what was normal!) You have to go in knowing what is normal and demand that or else they will screw you.

Desiree

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#131 of 143 Old 10-23-2007, 02:49 PM
 
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I was confused by that too, Jeri. You can still sock away almost 1K a month, no?

Desiree

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#132 of 143 Old 10-23-2007, 02:58 PM
 
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Over $900 a month after bills seems like plenty enough to me. It seems like you don't really have to cut out anything if you don't want to. Our monthly expenses (including food and gas) come out to $810 total which leaves us about $1000 a month left.

Unassisted birthing, atheist, poly, bi WOHM to 4 wonderful, smart homeschooling kids Wes (14) Seth (7) Pandora Moonlilly (2) and Nevermore Stargazer (11/2012)  Married to awesome SAH DH.

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#133 of 143 Old 10-23-2007, 03:07 PM
 
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I think the three biggest issues in the OP's post were 1)paying only minimums on the credit cards, 2) no health insurance, and 3)no saving for an emergency.

If credit card payoff, some savings, and health insurance were included, that would be a good budget. It would seem excessive to some, but it would be realistic. But those things being left off in favor of dance, karate, and high car payments were really startling to some people.
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#134 of 143 Old 10-23-2007, 03:09 PM
 
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I missed that the OP didn't have health insurance - I don't count that in my budget because it doesn't come home with dh - it comes out of his check, so i only budget with take home. Aside from that - with an excess of $900/mo, there's nothing stopping then from putting that money towards credit cards and/or in savings, no?
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#135 of 143 Old 10-23-2007, 03:50 PM
 
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Originally Posted by supercrunch View Post
...
we live paycheck to paycheck, with no cushion (despite our best efforts)

Earlier this month...my dh had what we thought was a stomach virus for a few days. After one bad night of high fevers and chills, we ended up in the ER. It was his appendix (without any of the classic symptoms) and it had to come out immediately.
No big deal...right? An easy in and out laproscopic surgery.
Well, they somehow managed to nick an artery during the surgery and we almost lost him. He required a second surgery to repair the artery, 12 units of blood, 4 days in the ICU (2 on a ventilator) and 7 days in a regular hospital room.
...
Things are going to be helplessly rough for us...but without health insurance to offset much of the cost, and disability insurance for his time off work (even though it won't even cover the cost of our rent alone) we would be done for.

It's hard enough not knowing what we're going to do right now...I can't imagine wondering about the rest of our future, too. I know that because we have insurance to help us out...we will somehow find our way through to the other side.

Please,
if you do nothing else to help your budget...find a way to get insurance.
supercrunch,
I hope things get better for you. And I hope the OP takes your advice and that they make whatever additional financial sacrifices are necessary to do so.
~Cath
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#136 of 143 Old 10-23-2007, 03:57 PM
 
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that's not a lease, that's a loan for the truck. a loan that you got completely, utterly ripped off on. 15% over 6 years for an '05?!? And the payments are $700 a month? And you put down 11K? Do you realize that that totals around 61,000?

I hope it's a really, really, REALLY nice truck for that much money. Like, you could "live in that truck if things start going really bad financially" nice truck.
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#137 of 143 Old 10-23-2007, 04:16 PM
 
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LilMamiBella,
I have to give you a lot of credit (no pun intended) for telling your story, listening to some matter of fact "straight talk" and coming back again and again until you began to get a handle on the just how deep and wide your problem is.

While I agree with a couple of PPs that complete deprivation would likely be counterproductive, I would encourage you to take a harder look at your monthly entertainment budget, $100.00 to $150.00 is probably too much until you find the money for health insurance.

I can't put it any more eloquently than Supercrunch, you need health insurance.

Regarding the truck, I think avent is probably right on the money (pun intended).

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Originally Posted by avent View Post
That doesn't sound like a lease. It sounds like you're buying it. ...
It sounds like they sold you on the idea of a high interest rate with the promise of a possible re-fi in the future. I think with your income level you could re-fi now through a bank or credit union. You might not get the best rates (3-5%) but I bet you could get single digits. ...
I think you financed the truck through the dealer. It's never too early to shop around for a better rate, especially on a newer vehicle. The rates are better on newer ones. If you weren't living so close to the edge I'd almost suggest a home equity loan to pay off the truck since the rate would be lower and the interest would be deductible but you don't want to risk losing your house over a truck.

If you walk away from a truck payment all you lose is the truck.

Once you get an idea of what a reasonable rate would be contact the dealer and offer them the opportunity to beat the best rate you can find. You might even try bluffing them a little by shaving a 1/4 of a point off the lowest rate you can find.

If you haven't done the math yet you should know that at the end of 6 years you will have paid about $61,400 (including the $11,000 downpayment) for a vehicle that will be worth a fraction of the MSRP at the time you bought it. I'm guessing that if you're lucky it will be worth around 60% to 70% of what it would have cost if you'd paid cash, depending upon how desireable the model is and what kind of condition it's in. Work vehicles that look like they've been worked hard don't hold their value as well.

Good luck and congrats on the progress so far.
~Cath
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#138 of 143 Old 10-23-2007, 06:36 PM
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Over $900 a month after bills seems like plenty enough to me. It seems like you don't really have to cut out anything if you don't want to. Our monthly expenses (including food and gas) come out to $810 total which leaves us about $1000 a month left.
I think the $900 that appears to be there is fictitious: note the important figures omitted from the list of expenses in the OP, specifically, the actual amount due on the credit cards. She says she's only paying the minimum and later in the thread states that the balance is over $12K, accrued in less than a year. So it sounds like even though there's $900 not being spent, it IS being spent (and then some), just put on plastic instead of being paid for outright. It's not clear to me whether the CC balance is shrinking or growing still (i.e., whether the minimum payment is enough to cover the finance charge, or if they are actually "financing" the finance charges on their CC purchases).


But anyway.. back to the truck: yes, it sounds like you are not leasing the truck, but bought it outright. That's sort of good: you can sell it, and hopefully pay off the principal on the loan to get out from under the $700 per month payments. That is one seriously expensive truck - 44K + interest, if I'm doing the math right... yikes. I hope you can get enough on resale to get out of the loan. :/
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#139 of 143 Old 10-23-2007, 06:47 PM
 
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I missed that the OP didn't have health insurance - I don't count that in my budget because it doesn't come home with dh - it comes out of his check, so i only budget with take home. Aside from that - with an excess of $900/mo, there's nothing stopping then from putting that money towards credit cards and/or in savings, no?
The original post is not really accurate. It's one month's worth of spending. Note the lack of accounting for things like clothing, haircuts, property taxes, gifts, home repairs, etc. that might not occur in a given month. That, combined with the lack of health insurance and savings, combined with the fact that the OP's family charged $12k in credit card debt in about 6 months, is the cause for concern.
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#140 of 143 Old 10-23-2007, 07:20 PM
 
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Over $900 a month after bills seems like plenty enough to me. It seems like you don't really have to cut out anything if you don't want to. Our monthly expenses (including food and gas) come out to $810 total which leaves us about $1000 a month left.

$900/mo left over for people who make $5000/mo is just ridiculous. That might be a good amount for YOU to save (or us - when dh brough home 2200/mo, we saved over $1000/mo). How much you should be saving should pertain to how much you take home. Obviously, socking away $900/mo isn't going to maintain THEIR particular expensive lifestyle if "it" ever hits the fan, kwim?

But these people don't HAVE $900 left over...she spends it in addition to racking up new CC debt (or did...but it sounds like she's doing good now! Woohoo )
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#141 of 143 Old 10-23-2007, 11:52 PM
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I just wanted to reiterate what PPs have said before. Please, get health insurance.
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#142 of 143 Old 11-05-2007, 05:59 PM - Thread Starter
 
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Another update 11/05= I listed the expensive truck for sale. Cross your fingers that it sells! I didn't want to do it but I've been reading the TMMO book and want us to get out of debt.

So, hopefully, if this gets sold then we'll only have the rent as our big payment. We'd like to buy a home one day. I was looking online to see how much how I'd be qualified for if we didn't have any debts and made 50k but it kept coming up with 12k?oes anyone know what this would be? I'm just curious and I know we'd need to come up with a down payment.

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#143 of 143 Old 11-05-2007, 07:55 PM
 
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Originally Posted by LilMamiBella View Post
Another update 11/05= I listed the expensive truck for sale. Cross your fingers that it sells! I didn't want to do it but I've been reading the TMMO book and want us to get out of debt.

So, hopefully, if this gets sold then we'll only have the rent as our big payment. We'd like to buy a home one day. I was looking online to see how much how I'd be qualified for if we didn't have any debts and made 50k but it kept coming up with 12k?oes anyone know what this would be? I'm just curious and I know we'd need to come up with a down payment.
That was a HUGE step for you to consider getting rid of the truck. Yay! I'm sure you'll feel much better without that big payment. Hopefully it sells quickly and for as much as possible. Even though sometimes I feel a little self conscious about driving an older vehicle, I feel much better about not having the monthly payment. I sometimes feel that when I drive up to the school among all the new suburbans, minivans, & even hummers, that other people wonder what's wrong with us that we don't have that too, even if it is by choice.
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