In debt--Need Help --

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
acald28
Posts: 4
Joined: Sun May 06, 2012 2:26 pm

In debt--Need Help --

Post by acald28 »

Where do I begin???

I am NEW to this site - -

Well here it goes,

I am in debt because of school loans, payday loans, online sports betting and just poor money management...

I am in desperate, desperate need of ANY advice...

How can a Joe Nobody like me with poor credit get the ball rolling???
User avatar
bottlecap
Posts: 6587
Joined: Tue Mar 06, 2007 11:21 pm
Location: Tennessee

Re: In debt--Need Help --

Post by bottlecap »

Welcome. There are a lot of smart people on this forum that might be able to point you in the right direction. Can you post more details? We dont know your income, expenses and amount of debt, all of which are important.

JT
User avatar
rdmayo21
Posts: 71
Joined: Fri Sep 30, 2011 11:13 am

Re: In debt--Need Help --

Post by rdmayo21 »

Step number one: Do not acquire any more debt.
User avatar
market timer
Posts: 6384
Joined: Tue Aug 21, 2007 1:42 am

Re: In debt--Need Help --

Post by market timer »

User avatar
prudent
Moderator
Posts: 7783
Joined: Fri May 20, 2011 2:50 pm

Re: In debt--Need Help --

Post by prudent »

I would recommend trying creditboards.com Credit forum. You can get solid advice on how to approach repairing your credit. But I strongly urge you to read A LOT before taking any action. Then post a thread outlining your plan and ask for input.

You didn't get in a hole overnight, and you won't get out of it overnight. But you can do it with a disciplined approach and learning the techniques you can use to improve your credit.
Nukeboilermaker
Posts: 299
Joined: Mon Apr 11, 2011 9:49 am

Re: In debt--Need Help --

Post by Nukeboilermaker »

1) Realize you determine your financial success or shortcomings. Your post shows that you are recognizing a problem, but you have to be disgusted enough to make the sacrifices to reverse the trend.

2) Develope a plan, write it down and EXECUTE the plan

3) If you are having such a difficult time with debt it may be best to remain living a debt free lifestyle.

Good Luck!

P.S. I personally followed Dave Ramsey's "Total Money Makeover" book to become debt free right out of college. I follow Bogleheads Guide to Investing as a substitute for D.R. Semi-vague investing advice. But I strongly agree with his Snowball approach.
Topic Author
acald28
Posts: 4
Joined: Sun May 06, 2012 2:26 pm

Re: In debt--Need Help --

Post by acald28 »

Well I usually take home $1100 every 2 weeks...

My main enemy now are my payday loans which came as a result of my sports betting addiction...

I am slated to have 615.78 debited from my account 5-10-12

The main thing is these damn payday loans...
retiredjg
Posts: 42753
Joined: Thu Jan 10, 2008 12:56 pm

Re: In debt--Need Help --

Post by retiredjg »

The main thing is these damn payday loans...
1) Gambler's Anonymous - your problem is not the payday loans; your problem is gambling :happy

2) Loan consolidation - this is available for free - check a credit union for a loan consolidation program; do not pay for this service; it may take several months or even a few years to finish, but once you get started on a program like this, the results are amazing

3) Dave Ramsey's programs for getting out of debt are well spoken of; (but ignore his investing advice)

Good luck!
User avatar
Toons
Posts: 13893
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: In debt--Need Help --

Post by Toons »

acald28 wrote:Where do I begin???

I am NEW to this site - -

Well here it goes,

I am in debt because of school loans, payday loans, online sports betting and just poor money management...

I am in desperate, desperate need of ANY advice...

How can a Joe Nobody like me with poor credit get the ball rolling???


When I read this post I figured there was a gambling addiction issue at hand.You confirmed it with your second post.
Looking on the bright side you have admitted your addiction,sounds as though counseling (help ,assistance)
would be something to get(One day at a time :happy )Stay Strong.

http://www.ncpgambling.org/i4a/pages/in ... ageid=3311


http://www.gamblersanonymous.org/ga/
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
Jim127
Posts: 72
Joined: Sun Mar 04, 2012 3:25 pm

Re: In debt--Need Help --

Post by Jim127 »

retiredjg wrote:
The main thing is these damn payday loans...
1) Gambler's Anonymous - your problem is not the payday loans; your problem is gambling :happy

2) Loan consolidation - this is available for free - check a credit union for a loan consolidation program; do not pay for this service; it may take several months or even a few years to finish, but once you get started on a program like this, the results are amazing

3) Dave Ramsey's programs for getting out of debt are well spoken of; (but ignore his investing advice)

Good luck!
I agree with this advice. I would also add that you should get a part-time job (on top of your regular job), to help get out of the payday cycle as quickly as possible as well as to speed up any other debt repayment.
Topic Author
acald28
Posts: 4
Joined: Sun May 06, 2012 2:26 pm

Re: In debt--Need Help --

Post by acald28 »

Thank You all for your strong support and advise...

Now what are some of the things I can start from an investing standpoint to build a better future??
User avatar
CABob
Posts: 4988
Joined: Sun Feb 25, 2007 8:55 pm
Location: Southern California

Re: In debt--Need Help --

Post by CABob »

acald28 wrote:Thank You all for your strong support and advise...

Now what are some of the things I can start from an investing standpoint to build a better future??
I suggest that you not even consider investing until your get your debt and credit situation under control and probably all of the debt paid off. After that happens and you have income coming in that was formerly being used to paid down debt, then you can become concerned about investing.
Bob
User avatar
desertbandit442
Posts: 159
Joined: Mon Feb 20, 2012 8:41 am

Re: In debt--Need Help --

Post by desertbandit442 »

Save up an emergency fund covering six months worth of your monthly expenses (w/o the gambling expense, because you're not going to be doing that anymore!). This should be your first step after paying off payday loan/s.
Muchtolearn
Posts: 1563
Joined: Sun Dec 25, 2011 10:41 am

Re: In debt--Need Help --

Post by Muchtolearn »

acald28 wrote:Well I usually take home $1100 every 2 weeks...

My main enemy now are my payday loans which came as a result of my sports betting addiction...

I am slated to have 615.78 debited from my account 5-10-12

The main thing is these damn payday loans...
OP, are you able to stop betting? I know many people who have had sports betting problems. Some stopped FOREVER> Others never did and are now in poverty, in jail, or dead. Please get that stopped. Pay off all the illegal bookies first. Then the legitimate debts. If you must go bankrupt so be it. The illegal bookies aren't bound by the bankruptcy court and they are the ones with knee breakers and bullets.

And remember, you cannot possibly know anything about an outcome of a game more than the insiders or anybody for that matter.
Good luck.
coldav
Posts: 58
Joined: Wed Apr 18, 2012 2:35 pm

Re: In debt--Need Help --

Post by coldav »

I haven't read the article but in the alternative paper, LA Weekly (Los Angeles) (it's probably online, too), there is a long article on U.S. military veterans with serious gambling problems. Just glancing at it there appears to be little set up by the V.A. to treat it. They mentioned the only major site is at a V.A. Hospital in Cleveland whereas practically all their hospitals treat substance abuse and mental illness. Apparently, it is a problem that is not being dealt with adequately.
retiredjg
Posts: 42753
Joined: Thu Jan 10, 2008 12:56 pm

Re: In debt--Need Help --

Post by retiredjg »

acald28 wrote:Now what are some of the things I can start from an investing standpoint to build a better future??
There are only 2 things you can do now that could possibly be helpful.
  • - Save up an emergency fund (to avoid further debt)

    - Contribute enough to your 401k/403b/whatever to meet the employer match. If there is no retirement plan at work or if there is no employer match, ignore this point.
Anything else is a waste of time until your debts are paid. Obviously, this requires you to stop accumulating debt.
User avatar
Jerilynn
Posts: 1929
Joined: Tue Sep 06, 2011 12:49 pm
Location: USA, Earth

Re: In debt--Need Help --

Post by Jerilynn »

rdmayo21 wrote:Step number one: Do not acquire any more debt.
Step 2: spend less than you make
Cordially, Jeri . . . 100% all natural asset allocation. (no supernatural methods used)
ilmartello
Posts: 1075
Joined: Sun Nov 06, 2011 6:59 pm

Re: In debt--Need Help --

Post by ilmartello »

How old are you?

Consider defaulting on your debts, but first stop gambling.

Here's what we could start with.

Age
Monthly Income
Maritial Status
List of assets you own
Debt, show amount, plus the internet rate, and if it is secured by any collateral, like an auto loan


But you need to kill the addiction first.
User avatar
HardKnocker
Posts: 2063
Joined: Mon Oct 06, 2008 11:55 am
Location: New Jersey USA

Re: In debt--Need Help --

Post by HardKnocker »

acald28 wrote:Where do I begin???

I am in debt because of school loans, payday loans, online sports betting and just poor money management...
Why do you take payday loans?

Why do you involve yourself in any type of gambling?

Why do you manage your money poorly?

You stated the problems very well.

Cut this stuff out.
“Gold gets dug out of the ground, then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility.”--Warren Buffett
JDCPAEsq
Posts: 1835
Joined: Mon Mar 05, 2007 3:58 pm
Location: Southwest Florida

Re: In debt--Need Help --

Post by JDCPAEsq »

Am I the only one who thinks this is a troll?
John
Dandy
Posts: 6426
Joined: Sun Apr 25, 2010 7:42 pm

Re: In debt--Need Help --

Post by Dandy »

get help for the gambling addiction or you will be in trouble the rest of your life. Focus on paying down/off the payday loans first. See if you can arrange some sort of deal on your student loans e.g. pay interest only for awhile. really cut spending. brown bag lunch, drop cable tv, etc. at least until the payday loans are paid off.
Muchtolearn
Posts: 1563
Joined: Sun Dec 25, 2011 10:41 am

Re: In debt--Need Help --

Post by Muchtolearn »

JDCPAEsq wrote:Am I the only one who thinks this is a troll?
John
I didn't but now I do.
trico
Posts: 684
Joined: Wed Nov 12, 2008 7:04 pm

Re: In debt--Need Help --

Post by trico »

I used to gamble at a young age and lost my (you know what). The only way to quit is to go cold turkey, the same way with the smokeing habit. You need to read books about how gambleing and investing are different. Just like everything in life its your choice and you should get help if you cannot help yourself. Now I am a Vanguard Flagship customer, and you too can turn this around if I did. Good Luck.
coldplay221
Posts: 177
Joined: Thu Sep 15, 2011 9:14 pm

Re: In debt--Need Help --

Post by coldplay221 »

JDCPAEsq wrote:Am I the only one who thinks this is a troll?
John
+1
The Wizard
Posts: 13356
Joined: Tue Mar 23, 2010 1:45 pm
Location: Reading, MA

Re: In debt--Need Help --

Post by The Wizard »

Muchtolearn wrote:
JDCPAEsq wrote:Am I the only one who thinks this is a troll?
John
I didn't but now I do.
It could be a troll, but I don't think so.
Regardless, the answer is so simple that doesn't take a lot of discussion or time to get it right...
Attempted new signature...
retiredjg
Posts: 42753
Joined: Thu Jan 10, 2008 12:56 pm

Re: In debt--Need Help --

Post by retiredjg »

The Wizard wrote:Regardless, the answer is so simple that doesn't take a lot of discussion or time to get it right...
Agreed. I'd rather waste a little time on a troll than ignore or be rude to someone who is actually looking for help.
User avatar
Jerilynn
Posts: 1929
Joined: Tue Sep 06, 2011 12:49 pm
Location: USA, Earth

Re: In debt--Need Help --

Post by Jerilynn »

retiredjg wrote:
The Wizard wrote:Regardless, the answer is so simple that doesn't take a lot of discussion or time to get it right...
Agreed. I'd rather waste a little time on a troll than ignore or be rude to someone who is actually looking for help.
Also, some non-trolls may have the same issues and they can get answers via a google search.
Cordially, Jeri . . . 100% all natural asset allocation. (no supernatural methods used)
User avatar
HardKnocker
Posts: 2063
Joined: Mon Oct 06, 2008 11:55 am
Location: New Jersey USA

Re: In debt--Need Help --

Post by HardKnocker »

Even trolls need guidance.
“Gold gets dug out of the ground, then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility.”--Warren Buffett
Alex Frakt
Founder
Posts: 11098
Joined: Fri Feb 23, 2007 1:06 pm
Location: Chicago
Contact:

Re: In debt--Need Help --

Post by Alex Frakt »

Let's work on the assumption the OP is legit. If you don't want to address his questions, please don't respond.
User avatar
archbish99
Posts: 1646
Joined: Fri Jun 10, 2011 6:02 pm

Re: In debt--Need Help --

Post by archbish99 »

Don't get the cart before the horse. Investing early is goodness, but if you're underwater with high interest debt and have poor money management skills, an IRA will not fix that.

Basic get-off-the-ground stuff:
  • You need a budget -- youneedabudget.com is a great place to get started, and the forum there will be a lot more targeted to your current stage of personal finance.
  • Once you're no longer living paycheck to paycheck, build a basic emergency fund.
  • Aggressively pay down your high-interest debt (which sounds like most of it, in your case; maybe not the student loans, depending when they're from)
  • Then start carving out money to invest for retirement. We'll be here to help with that part when you get to it.
I'm not a financial advisor, I just play one on the Internet.
Topic Author
acald28
Posts: 4
Joined: Sun May 06, 2012 2:26 pm

Re: In debt--Need Help --

Post by acald28 »

Thanks to all for the constructive tips.... I don't get that troll talk but I guess each forum has their share of people who label strangers as trolls....

I will keep you posted...
coldplay221
Posts: 177
Joined: Thu Sep 15, 2011 9:14 pm

Re: In debt--Need Help --

Post by coldplay221 »

acald28 wrote:Thanks to all for the constructive tips.... I don't get that troll talk but I guess each forum has their share of people who label strangers as trolls....

I will keep you posted...
My apologies.
Hope you get out of debt soon.
User avatar
paddyshack
Posts: 282
Joined: Sat Jul 12, 2008 4:49 pm

Re: In debt--Need Help --

Post by paddyshack »

Those who do not learn how to save money will never have money.

You have a problem that will perpetually make you poor, even if you have times of very good fortune. It's not unique to gambling - many investors hurt themselves with the same delusions of their abilities to beat the system. You will have to come to terms with this personality flaw if you want to have sustained wealth.
epilnk
Posts: 2680
Joined: Wed Apr 18, 2007 7:05 pm

Re: In debt--Need Help --

Post by epilnk »

acald28 wrote:Thank You all for your strong support and advise...

Now what are some of the things I can start from an investing standpoint to build a better future??
You can't. You don't have any money to invest.

You start building a better future by focusing on getting out of your current situation. That means dealing with the gambling problem, cutting yourself off from payday loans, and building up your emergency fund. Poor credit could work to your advantage, since in the short term you can't afford the temptation of more debt. But as you get back on track your credit will be rebuilding itself at the same time. Once you have your emergency fund you can begin contributing to your IRA and/or 401k, and you can fund these while paying down the student loans.

When you do reach the point of being able to invest, be careful. It could be a dangerous game for you since the gambling bug could lead you down some bad roads.
Alex Frakt
Founder
Posts: 11098
Joined: Fri Feb 23, 2007 1:06 pm
Location: Chicago
Contact:

Re: In debt--Need Help --

Post by Alex Frakt »

epilnk wrote:When you do reach the point of being able to invest, be careful. It could be a dangerous game for you since the gambling bug could lead you down some bad roads.
I agree. When it comes time to invest, use an all-in-one fund like the Vanguard Target Retirement funds. Even if it costs you a little in tax efficiency or by varying from some ideal portfolio, it insulates you from the much greater risks that face any active investor, much less one with a history of gambling problems.
User avatar
grabiner
Advisory Board
Posts: 28702
Joined: Tue Feb 20, 2007 11:58 pm
Location: Columbia, MD

Re: In debt--Need Help --

Post by grabiner »

epilnk wrote:
acald28 wrote:Thank You all for your strong support and advise...

Now what are some of the things I can start from an investing standpoint to build a better future??
You can't. You don't have any money to invest.
On the other hand, one way to think of the situation is that paying down a loan works like an investment with a guaranteed return. If you have a loan at 12% annual interest, and you put $1000 towards the loan, you will have $1120 more after one year. That's a better return than you can get on any investment, and unlike most investments, it is risk-free.

And once your loans are gone, you can continue to pay yourself first. If you are using $200 from every monthtly paycheck to pay down your loans, then once you have no loans to pay, you can set up an automatic transfer of the same $200 from every paycheck into your IRA.
Wiki David Grabiner
User avatar
hokieballer
Posts: 20
Joined: Mon Jan 09, 2012 6:18 pm

Re: In debt--Need Help --

Post by hokieballer »

1. How much is left on the payday loans? What are the interest rates?
2. Develop a budget (there are many sample budgets online) that includes the payday loans being garnished from your bank account. Determine how much wiggle room you have with the left over money, if any. Can you use any of that extra money to pay down the loans faster?
"Where in New York can you find a woman with elegance, grace, and culture, a woman suitable for a king?" | "Queens!" | - Coming to America
aubpri
Posts: 34
Joined: Sat May 12, 2012 5:38 am

Re: In debt--Need Help --

Post by aubpri »

Just throwing out an interesting fact I learned from a Manager of a large national chain payday loan company.

They have no recourse on your own besides harassing you with calls and letters. They can't go after your credit. This really surprised me. She told me someone can come in, get a loan, give them a check, close the checking account and disappear and there is absolutely nothing they can do. She daid they have a collections process of calls and threatening letters but they can't come after your credit.

I am not saying you should do this and I am not saying your payday company is the same. I think if you got yourself into the hole by borrowing their money then you owe it back. Read the fine print in your loan agreement with them and see how liable you are. I wouldn't want them having access to my acct at all but that is what you agreed to. Possibly context the companies collection dept and let them know you plan to pay them back their principal amount borrowed over the next 3 months but you are not paying their 900% to 200% APR. honor your debt but don't let them fleece you on the rate.

Just something to know and consider.
aubpri
Posts: 34
Joined: Sat May 12, 2012 5:38 am

Re: In debt--Need Help --

Post by aubpri »

Just read this somewhere else and thought it was good advice.



People going through payday loan problems can consider Payday Loan Consolidation as a possible solution. Take the following steps.

You should be able to buy some time while you are learning about your rights and stand strong against the lenders.

Letter to revoke ACH debit authorization: If you want to stop a lender from debiting your bank accounts, send a “Letter to revoke ACH debit authorization” to each of your payday lenders. You can also revoke any wage assignment agreement you may have signed and give a copy to your payroll department. But continue to pay your loans as long as you can.

Stop all the direct deposits with your employer.

Close the bank accounts if need be after verifying the laws in your state.

Get your paycheck, go to a check cashing place, cash it and buy money orders. Pay your other important bills.

This will help you in getting some control over your money. Dont let it eaten up by the loan sharks.

Once you have done this, the lenders will start sending emails knowing the fact that your account is already closed. You can imagine them losing control and nothing can be done now to harm you. Now, you can make them deal on your terms.

Put your point that your account was closed by the bank and you want to work out payment arrangements with them. Ask for the quickcollect info or the address where you will send the payments. Use the same strategy for all the pdl companies you owe money to.

There is a law that if you pay less than the promised amount, your account will be put into default, and they are not legally allowed to charge any interests on the account. Verify this law with your state first. Keep sending payments until you pay off the principal amount only, no interests. Your defense to be used here is that the original loan agreement was based on your payday bank direct deposit. Once the bank account is closed, the loan agreement got terminated. Now all you have to pay is the principal amount.

Don't be tensed of the pdl collectors. They will only intimidate you on the phone. It will take them very long to get a garnishment against you because you have followed the contract by paying the principal amount. Most IPDL are not licensed in the borrowers state, so they wont take the matter to the court. If they do, question them about their license and turn the judge's attention towards them.

Time the situation very nicely and with determination and strong will. And you can do this when you are putting something on the loan principal or have already paid it. If you are finding hard paying on your own, find some company doing payday loan consolidation.
ResNullius
Posts: 2091
Joined: Wed Oct 24, 2007 3:22 pm

Re: In debt--Need Help --

Post by ResNullius »

This is going to sound extreme, but if your gambling problem and debt problems are not realistically cureable, you might want to consider having some sort of trust set up to take everything from you, then pay it out to you in small increments. Depending on your employability, you might even qualify for government support (SSI, housing support, food stamps, etc.), and a needs-type trust might just be the thing. Good luck.
Post Reply