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Need major help with financial issues!


carfreek402

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Hi my name is Matt I am 23 years old and I'm having trouble with my finances. I purchased my first new car about a year ago. My car payments are about $320, and I have a lot of speeding tickets so my insurance is also around $320 a month. I only make $10 per hr and I live with my parents still. I also have 2 credit cards and a cell phone bill that I am paying for. I am going nowhere with these bills, I have many aspirations and I feel this car is in my way. It is a 2007 Chevrolet Cobalt and I love it, great gas mileage. I really think I should toss it but the problem is I have recently gotten into an accident, and I still owe just over $10,000 on it. With damage I don't think I'll get near enough to pay off the debt let alone get a reliable used car, and I definitely need a vehicle. A better paying job is not one of my options at this time because it is too hard to find one. I really need some advice on what to do. I'm looking to move to L.A. or N.Y. to further chase my dreams. I just want to get on with my life. Thank you for your help.

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First off, cut up the credit cards, look at what you only need to buy, is there an extra $5 dollars a month? Put it on the credit cards. Next time you are tempted to buy something, ask yourself if it can wait until next month, most of the time you will end up not buying it.

 

As to the car, slow down, tough it out and live with it until it is paid off. Don't get tempted to trade it in or get a different vehicle. You are upside down in the car and that won't go away. Usually you don't get ahead on a car until it is paid off and the repairs start coming in about 30K - 50K miles. Too many people trade a car in and still have negative equity on their old car, they carry that debt over to their new loan and the car dealers are great at finding a way to stretch that payment out to 6, 7, 10 years.

 

Do not declare bankruptcy, it's not that easy to do anyway and you will carry that on your record in the future. You got yourself into this, you can get yourself out.

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Honestly, you're making it seem like a couple more years to stabilize your financial situation will prevent you from ever achieving your dreams. If you think waiting a few more years until you're 25 to move to la or ny is bad, wait till you file bankruptcy or your debt grows. I used to be in the music industry, and I saw no age limits that says people over 25 were never able to make it big.

It's harsh, but you made your bed, and now you have to lay in it. Take it from somebody who is 24 and just paid off all kinds of debt and is just now starting to get his career on track this year. Do the wise thing, and take the time to get your financial self under control, because that's something that you can't drag behind you forever. It will hurt you more than just being 2 years older in age..

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Bankruptcy is getting very difficult to do, it has moved past the days of waking up and deciding you didn't want to keep paying your bills and being able to walk away. These days the courts are asking for very good justification for bankruptcy, which is actually a good thing. It should be a last resort.

 

Not worth it anymore unless you have a life crisis such as health or unforeseen circumstances that would be very acceptable to the court.

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