Financial Challenges Support Group

This community is for people who are struggling to meet financial obligations of any kind. Financial challenges include everything from the day-to-day challenges of making ends meet to managing credit card debt to bankruptcy. Get support from others who are going through similar obstacles on the road back to financial stability.

3,050 Members

3,922 Posts

0 Online

babyrena 01/23/2013

today I am struggling more than ever,
I have about 3000 in debt collections, and I have $139.00 for lights, $60.00 phone bill, and $269.00 house payment(auto deduct), $400.00 truck payment, and $140.00 auto deduct for loan payment to tribes, (not car loan)
for income coming in, I have 4 people paying rent at $75.00 each. my income around $1600.00 a month before taxes.
I have med/life/401k through my job.
So I am wondering with my taxes, my loan w/ tribes is $1800.00. A few weeks from now I will be gettin my taxes, idk how much, but usually runs around $3000.00
my question is, pay off my loan w/ tribes, so I have more breathing room with my other bills and I also have 4 children. Or should I drop a huge payment on that big truck that the total is over $19000.
Just need others opinions. My opinion pay off my loan w/ tribes, so I have more breathing room with other bills.
I also still have $240.00 to pay on my insurance. ugh! bills, bills, bills.
I hope I am not sharing too much, I have my ex opinion, he says to drop big payment on truck, and lower monthly payments so that way I can make it month to month. I am not sure which is the right way to go.

Messenger2010 01/23/2013

I have always been of the opinion that if I can pay off a bill in full, I do it... for me that means one less thing to be stressed out about and it is one less bill... or more... to worry about...

I would pay the loan then after that add $100 a month to the truck payment and you still have $40 left over for other things/bills

babyrena 01/24/2013

That was my first thought but when my ex told me to drop that big payment on it, I was doubting my own judgement. In the long run, paying off the loan with the tribes is best and then one less bill to pay! yep my thoughts exactly.
I just needed confimation of my own thoughts. I am praying everything works out for me with this payment. as far as I know with the truck payment being so low for a truck, I usually hear of people paying upwards around $5-600 on a truck. So somehow I lucked out! I was expecting to just get a clunker you know one that is paid in full, but I thought of all the maintanence you would have to do to get it up and running and in good order, almost as much as a monthly payment. So I am happy with my decision, i thing that is the main thing that counts.
Its always been a struggle for me and my children, finally things are starting to fall into place. I feel like that verse in the bible where it says God will return what has been taking away and return it double! I feel like that at this moment.

ScarletAngel 01/24/2013

Ease your cash-flow problem by getting rid of monthly payments (the tribe loan). Then, at your discretion, throw that extra $140/mo at your next debt (or put it in savings).

Making a big payment of the auto loan will have no effect on your monthly cash-flow situation - you still have a monthly truck payment. Paying off the tribe loan WILL effect your cash flow by freeing up $140/mo.

Put that $140 in savings, as an emergency fund. Or save your entire tax return - that's a great start for an emergency fund.

babyrena 01/24/2013

Thanks Scarlet and messenger, I was thinking along those lines. Just major confirmation.

Justonekitty 01/26/2013

Look at your inetest rates. Do throw your money away. Pay the loan with the highest rate first which is probably the tribal loan. I dont know what a tribal loans are but usually smaller loans have the highest rates vs a truck. The truck may have be the most expensive bill but fhe loans may never be payed down so in the long run are waisting your money. Once u pay off one loan put that money towards the next. Good luck.

Justonekitty 01/26/2013

Interest

babyrena 02/01/2013

Thank you Justonekitty

deleted_user 02/06/2013

I think it is nice to pay off something and not have to pay that monthly payment. Also I have heard- start with the smallest first... let me know what you decide =)

babyrena 02/06/2013

Yeah I have decided to go with the smallest bills first. I was off track for a while, but my new truck payment has given me a new determination :)
I know new debt isn't the norm when in debt, but I had to get reliable transportation, and my ex offered to sign for a car for me, so now I must pay the monthly payments in order to keep his credit up. ugh!
But I have 4 ppl renting from me and my income, and also another source of income to help me out.

deleted_user 02/14/2013

You should look into the debt snowball. Basically do not just pay the minimum. Pay a fixed amount and keep it at that, and when you finish paying one card/bill, stick with your budget and put the money you were putting towards the now paid bills toward the ones that still have a balance.

This will greatly cut down the time you are in debt. Just takes discipline. It can be done.

deleted_user 02/18/2013

Unless that big fancy truck has some essential need in your life, you need to dump that in itself and get something more reasonable. Vehicles are horrible investments - they depreciate rapidly. If it isn't necessary to have, I would sell the truck and buy something used that can get you from A to B.

babyrena 02/20/2013

Yeah the truck I use to get wood and haul things for my family, and also I go hunting in it. I can't dump it, it's part of my livlihood.

Join the Conversation